Smart Grids: Trends in Smart Grid Technology

Smart grids are being touted as the answer to unifying the network, replacing outdated and not-fit-for-purpose legacy grids. We outline the concept of smart grids, their role in modern energy systems and how they may shape the future of smart grid innovation.  

The Role of AI and IoT in Smart Grid Development 

As we move towards a smarter grid model, we’ll also see the integration of other developing technologies to help stabilise the smart grid. We take a look at some of the technologies set to help the energy transformation: 

Role of the Internet of Things (IoT) in Smart Grid Development 

The IoT essentially models the entire smart grid network by utilising sensors and specialist communication software that allows different parts of the network to speak to each other. From renewable plants to in-situ smart meters, the IoT provides useful data to be analysed and to comprise future predictions, which are ultimately used to stabilise the grid. Smart metering infrastructure is where the IoT begins, at the energy procurement end of the network. Smart meters give energy consumers detailed insight into how they are consuming energy and where – ultimately leading to more responsible energy consumption.  

Role of Big Data Analytics in Smart Grid Development 

Once the IoT has extracted data from the smart grid network, analytical software will help make sense of this information, giving real-time overview of the smart grid network in its entirety. Analytics will allow us to pinpoint machine health, failures and pressure points within the network and provide advisory advice on factors like fluctuating energy pricing, transforming grid management and operational efficiency. 

Role of AI in Smart Grid Development 

Artificial intelligence will further enhance big data, analysing, modelling and pulling out useful insights from the rafts of information to help inform human operatives. AI has the potential to identify patterns within the smart grid network, predict and prepare the grid for energy shortages and surges and adjust the operations of the smart grid to accommodate those peaks and troughs.  

Renewable Energy Integration and Storage Solutions 

Integrating renewable energy into smart grids presents a major challenge due to the intermittent nature of sources like wind and solar power. Unlike fossil fuels, which can be produced on demand, renewable energy generation depends on environmental factors, making it less flexible. Energy storage solutions are essential to overcoming this issue by capturing excess energy and storing it until needed, helping to stabilise the grid and ensure a reliable power supply.

Energy storage systems enable smart grids to balance energy supply and demand, even during fluctuations. For example, stored energy can be released during periods of low renewable energy production, such as when the wind isn't blowing, and stored during high-production periods like strong winds.

As energy storage technology advances, costs are decreasing, making these solutions more accessible.

Popular energy storage methods include:

• Battery storage  

• Thermochemical storage  

• Thermal storage  

• Pumped energy storage 

• Compressed air storage 

• Hydrogen storage 

• Chemical storage 

• Magnetic energy storage 

These technologies are categorised into:

• Electrical 

• Mechanical 

• Electrochemical 

• Mechanical 

Each category playing a crucial role in optimising smart grid functionality and supporting renewable energy integration.

Renewable Energy Storage Solutions: Batteries  

Comprised of lithium-ion, standard batteries are rechargeable and use an electrochemical process to convert electricity into a chemical and then reverse the chemical back into electricity when it is required.  

Renewable Energy Storage Solutions: Supercapacitors  

Energy in supercapacitors are stored via electrostatic and electrochemical energy and can deliver energy to consumer demand much more quickly than a traditional lithium-ion battery. It can also be recharged more times over its lifetime than its lithium-ion counterpart.  

Future Trends in Smart Grids 

Smart grids represent the next stage in energy management, combining traditional power infrastructure with digital technology to create a more resilient, efficient, and responsive energy system. 

Decentralised grids 

Some organisations are building smart grids on a smaller scale, decentralising the management of energy generation, transmission and consumption to function independently from the wider national grid. The benefit of this is the ability to respond more quickly to local shutdowns, as well as grid resilience if the wider grid fails. Decentralised grids also utilise technologies like Blockchain.  

Blockchain for energy trading 

Blockchain in energy trading helps to simplify energy transactions, removing the ‘middleman’, in the case utility providers and brokers. Blockchain does this by utilising smart contracts, which take into account the actual energy use of consumers and then secure a desirable fixed price accompanying a Power Purchase Agreement (PPA). This streamlining of energy selling and buying benefits the smart grid because it introduces another crucial element of automation.  

The Path Forward: Policy and Regulatory Considerations 

Governments around the world are prioritising smart grid technology, with the UK rolling out smart and gas meters to residential homes as part of a 2020 initiative; Ofgem invested £500million in smart grid incubator trials over a five-year period from 2010 as well as setting up the Smart Grid Forum with DECC, which aims to identify and overcome barriers to smart grid implementation.  

Germany is placing smart grids at the heart of its energy policies, urging local planning and approving authorities, grid operators, and local citizen initiatives to work together in unison to raise awareness and reinforce the importance of smart grid rollout. 

Smart grids are ushering in a new era of energy management, leveraging cutting-edge technologies like AI, IoT, and advanced energy storage solutions to improve grid efficiency, reliability, and sustainability. As the integration of renewable energy grows, smart grids will play a pivotal role in balancing supply and demand, ensuring a resilient and adaptable energy network. Moving forward, policy support and innovative developments will continue to shape the evolution of smart grids, transforming how we produce, distribute, and consume energy on both a local and global scale.