All over the world, we rely on electricity and energy to power our homes, our workplaces and the organizations that are cornerstones to everyday activities—from grocery stores and restaurants to schools and hospitals.
This essential service is the foundation of daily life, but it’s undergoing a massive transformation as the world works to reduce reliance on fossil fuels, increase use of renewables and integrate digital technologies. This evolution promises to bring about a world where power is more sustainable, but the road to get there isn’t short or easy.
Let’s break this down. The rapid pace of advanced digital technology adoption is adding a new level of complexity to the entire power life cycle—from generation to transmission, followed by distribution. At the same time, more and more utilities are integrating renewables with traditional power sources like coal, nuclear and natural gas to meet sustainability requirements. In fact, electricity generation from renewable sources increased almost 7% globally in 2020 and is expected to grow by more than 8% in 2021, the fastest year-on-year growth since the 1970s.
As the industry continues to advance, automation software and technology will help drive consistent and meaningful change that will enable advancements in reliability, resiliency and use of renewables.
Renewables
While no one disagrees that a shift to more renewable energy is the right thing to do, it requires a closer look at the impact on uninterrupted electricity generation to meet demand and ensure reliable grid management. Keeping the lights on is the unquestioned priority—yet there are significant challenges when moving from a centralized to a decentralized grid with more renewable and distributed energy resources (DERs) from rooftop solar panels, small-scale wind turbines, battery storage systems, microgrids and cogeneration plants in the electricity mix. In particular, renewable power fueled by variable sources is in short supply when the sun isn’t shining or the wind isn’t blowing.
To help fast-track the shift to renewable electricity, the power network needs to balance the evolution from traditional, large physical facilities producing electricity from a single source like natural gas or coal to more renewable and distributed energy resources that can band together to form a “virtual” power plant of the future.
In addition, the energy landscape needs to overcome next-generation challenges associated with integrating renewables and DERs on the power network which includes more interconnection points and bidirectional power flows, both of which can contribute to grid instability. Adding to the complexity, energy consumers are becoming energy providers—for example, consumers who buy electricity from their local utility are also selling power from their solar panels or electric vehicle charging stations and putting it on the grid. These complex energy flows require innovation and investment in grid infrastructure and analytics.