Manage, Convert, and Store: Transitioning to a Decentralized Energy Grid (Sustainability Series #4)
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MANAGE, CONVERT, AND STORE: TRANSITIONING TO A DECENTRALIZED ENERGY GRID (SUSTAINABILITY SERIES #4)
This is the fourth article in a series that aims to illuminate how innovative technological platforms and software solutions are enabling climate tech and invite dialogue with others on the future of energy and sustainability. See here for article 3, “Reduce Industrial Emissions with Two Words: Motor Efficiency.”
In the coming decades, energy needs are forecast to increase as the global population continues to rise and as countries develop and their economies grow. During this transformation, accelerating the availability of clean, renewable energy is critical to meet this growing demand while addressing climate concerns, as energy access impacts both the world’s economies and the well-being and security of all. Only through the efficient management, conversion, and storage of energy can we harness and utilize each ray of sun or puff of wind to reliably manage the electricity grid, power economic growth, and help ensure the health of our planet.
Manage, convert, and store are the foundational actions underpinning the necessary evolution of the modern grid, on which electrification is supported. Think of it (metaphorically) in terms of money. One needs to MANAGE it: check, track, and anticipate current and future balances; CONVERT it: when traveling, via electronic foreign exchange, from Swiss Franc to Japanese Yen to U.S. dollar; and STORE it: held in a savings bank for later use when earnings have declined, funds are short, or new needs arise. Like money, the manage, convert, and store concept offers trackability, flexibility, and security.
THE CENTRALIZED GRID
The grid evolved over 100 years ago1 as a hub and spoke model.2 In this paradigm, electricity is generated and controlled by a few entities at large, centralized, typically fossil fuel power plants. Electricity is then sent over long distances via transmission lines to a web of distribution networks. In this architecture, energy flows in one direction—from power stations to substations and power lines, and finally to the end-user. The model offers certain economies of scale but faces challenges in efficiency, vulnerability to disruptions, and a limited ability to integrate renewable energy sources.
THE DECENTRALIZED GRID
There has been a shift from centralized power stations to distributed renewable energy.3 It’s a deeply interconnected network characterized by smaller and widely spread power generators that feed into the distribution grid. Decentralization results in two-way (bidirectional) power flows, where end consumers become prosumers* and sell excess energy back to the grid, necessitating the evolution of new energy markets. Done right, decentralization promotes energy resilience4 and reduces transmission losses.5 It requires infrastructure investment and coordination among small generators.
As decentralized renewable energy sources become increasingly widespread, the efficient management, conversion, and storage of electrical energy play an even more crucial role in the successful operation of the grid and the sustainable electrification of society.
MANAGE
Accurately measuring, monitoring, and managing grid assets, electrification infrastructure, and energy flow.
CONVERT
Efficient AC-to-DC conversion and voltage transformation across energy generation, storage, distribution, and utilization.
STORE
Reliable and safe energy storage, transport, and supply via distributed energy storage systems (ESS), making power available anytime and anywhere.
MANAGE
“Energy management is needed to empower grid intelligence, resiliency, and security.”
Dermot O'Keeffe,
Product Line Director for Smart Grid Solutions, ADI
Effective management of electricity ensures optimal distribution and utilization of power resources. By employing smart grid technologies, utilities can monitor and control electricity flow in real time, reducing waste6 and power outages7 while helping to enable a more reliable and power supply for industrial processes, commercial operations, and everyday life. Real-time data and the actionable insights derived from that data are critical to the development of new systems and services, and to nurture the energy marketplace. Effective management is essential with the increasing complexity and integration of energy sources, demand patterns, and emerging technologies. Proper grid management enables the optimization of electricity distribution, minimizing transmission losses and ensuring power reaches end-users cost effectively.
CONVERT
“Energy is converted multiple times from AC-to-DC, DC-to-AC, and DC-to-DC, as it flows across the grid—from generation to transmission, to storage to its destination—such as the electric vehicle drive motor.”
Vitaly Goltsberg,
Product Line Director for Energy Conversion Solutions, ADI
Renewable energy sources such as solar panels and wind turbines generate DC power. As such, efficient energy conversion technologies that turn DC to AC (and back again) and convert between DC voltages are essential for facilitating the efficient integration of renewables into the grid. With an increasing number of these conversion systems, called inverters, coming online, there’s an opportunity for smarter controllers that are more intelligent and responsive to the state of the grid.
While energy goals vary widely between countries, the United States has set a target of 80% of electricity to be renewable by 20308—produced by asynchronous or inverter-based sources such as solar and wind. No established body of experience operating hybrid power systems for seamless inverter-based resources exists.9 “It just gives a sense of the uncertainty and the challenge ahead of us here,” said David Ryan, Director, Marketing, Auto Electrification and Energy, Analog Devices, Inc. “In this case, we must rely on experience and technical expertise to solve the challenges and develop viable solutions.”
STORE
“The shift to a renewables-based decentralized energy grid will require a quantum leap in storage.”
Connor Power,
Product Line Director for Energy Storage Solutions, ADI
Energy storage is a cornerstone of the future electrification landscape. Batteries and other storage technologies enable the capturing and storing of surplus electricity during low demand periods, which can then be released during high demand periods.
Energy storage systems make it possible to avoid the risk of grid overload and collapse—potentially saving billions of dollars. ESS can also solve sudden changes in demand, simply and elegantly, by providing batteries—the electrical equivalent of gas tanks for fuel or storage warehouses for coal. Distributed producers may sell excess stored energy back to the grid, thus enabling new business models for energy trading.
Battery management systems (BMS) are fundamental to ESS, as it is crucial to understand a battery’s charge and complete life cycle to maximize battery health and longevity and enable battery reuse and recycling. BMS precisely measures and monitors individual battery cells, providing information about voltage and current, which helps enable systems with better capacity, energy utilization, and lifetime value.
THE GRID’S GROWING NEED FOR ADVANCED ENERGY MANAGEMENT, CONVERSION, AND STORAGE SOLUTIONS
“Renewable electricity generation from technologies that are commercially available today, in combination with a more flexible electric system, is more than adequate to supply 80% of total U.S. electricity generation in 2050 (as opposed to 20% today),” according to The National Renewable Energy Laboratory.10 At that time, electrons (electricity) will need advanced methods and technologies for even greater precision and reliability when they are managed, converted, and stored. The following are prime examples.
Monitoring is crucial for gaining insights into electricity usage patterns and grid performance. By continuously monitoring electricity consumption (and generation), utilities can help identify peak demand periods, detect inefficiencies, and make data-driven decisions to help optimize grid operations and reduce the likelihood of power outages.11
Smart metering takes monitoring to a whole new level by providing real-time data and allowing for decision-making on energy consumption at individual consumer levels. Smart metering can help enable dynamic pricing models, encouraging consumers to shift their usage to cheap off-peak hours. Accurate billing may be secured by enabling precise monitoring of electricity flowing into and out of the grid.12
As a result, new marketplaces are nurtured, helping to enable the smooth integration of renewable energy sources.13 Critical to the success of these markets is real-time transparency into the flow of energy, accurate measurement, and tracking—you can’t trade what you can’t measure.
Demand-side management strategies use time-of-use pricing, smart appliances, electric vehicle charging, and other energy-efficient technologies to manage and help reduce electricity consumption.14
Smart grid technology integrates advanced sensing, communication, and control systems to monitor real-time grid performance. It enables efficient load balancing, demand-response programs, and fault detection, minimizing energy wastage and improving grid reliability.
Interconnection and communication among various components of the decentralized grid allow distributed energy resources (DERs), storage systems, and demand response mechanisms to work harmoniously and can help increase grid resilience, cost savings, and energy efficiency.15–18
Microgrids are part of the emerging new decentralized grid paradigm. These localized clean energy systems are designed to generate, store, and distribute electricity to a specific area or community and can operate independently or in conjunction to feed the main power grid.
THE NEED FOR PARTNERSHIPS AND TRANSPARENCY
The clean energy industry requires partnerships at all levels to reduce inefficiencies while increasing the number of points where and how often data is collected. It starts with enabling transparency across the entire grid infrastructure—from a macro network level to the micro nodes covering the network, with the real-time flow of energy along the supply, demand, and reserve route.
Transparency enables data, and data empowers insights. It is critical to our energy future to build information ecosystems around the various nodes of the grid by aligning technologies that manage, convert, and store.
ACCELERATING THE TRANSITION
Many transmission and distribution systems, designed decades ago, are ill-suited to accommodate today’s decentralized renewable energy sources. Upgrading and modernizing the grid with smart grid technologies is essential to enable flexible energy distribution, optimize renewable energy, and accelerate decarbonization. These technologies also help increase operational efficiencies, improve customer service, and detect faults quickly and accurately.19 Intelligent Edge assets are also needed—self-optimizing and self-reliant, capable of real-time decision-making, and designed to maximize efficiency, reduce grid failures/breakdowns, and provide transparency into the flow of energy at all points.
Technologies that mange, convert, and store can improve energy efficiency, optimize energy utilization, enable seamless integration of renewables, and enhance a decentralized grid’s overall stability and reliability. By embracing these technologies and advancements, we can accelerate the transition to a sustainable future with greater energy security and a cleaner, healthier world.
References
*Prosumers: technological breakthroughs and a rise in user participation blur the line between production and consumption activities, with the consumer becoming a prosumer.
1 James McBride and Anshu Siripurapu. “How Does the U.S. Power Grid Work?” Council on Foreign Relations, July 2022.
2 Ward Pincus. “The Many Forms of Decentralization.” MAN Energy Solutions.
3 Sara Stefanini. “Replacing Centralised Power with Distributed Energy Systems Needs New Policies and Coordination.” Energy Post, January 2022.
4 Arnaud de Giovann and Ben Warren. “Can Decentralized Energy Get Good Enough, Fast Enough?” Ernst & Young, November 2022.
5 “The Potential for Decentralized Energy Systems in Wind Energy Policy.” Energy5, September 2023.
6 Marcin Frąckiewicz. “The Role of Smart Grids in Energy Efficiency and Conservation.” TS2 Space, April 2023.
7 “Smart Meters Can Reduce Power Outages and Restoration Time.” NEMA.
8 H. J. Mai. “Energy Experts Share How the U.S. Can Reach Biden’s Renewable Energy Goals.” National Public Radio, February 2023.
9 “Grid-Forming Inverter Controls.” The National Renewable Energy Laboratory.
10 “Renewable Electricity Futures Study.” The National Renewable Energy Laboratory.
11 “Exploring the Benefits of Real-Time Energy Monitoring in Smart Grids.” Energy5, October 2023.
12 Matthew E. Kahn and Bhaskar Krishnamachari. “Smart Meters and Dynamic Pricing Can Help Consumers Use Electricity When It’s Less Costly, Saving Money and Easing Pollution.” University of Southern California, Dornsife, October 2022.
13 Janet Richardson. “Why Smart Meters Are Important for the Net Zero Target Renewable Energy Hub.” The Renewable Energy Hub, July 2023.
14 “Demand-Side Management and How It Is Used in Electricity Markets.” NRG Energy, June 2023.
15 “Distributed Energy Resources.” American Council for an Energy-Efficient Economy.
16 Lai, Chun Sing; Locatelli, Giorgio; Pimm, Andrew; Wu, Xiaomei; Lai, Loi Lei. "A review on long-term electrical power system modeling with energy storage." Journal of Cleaner Production, September 2020.
17 Pooja Shah. “Grids under strain: How energy storage is the key to a reliable grid.” Det Norske Veritas group (DNV).
18 “Demand Response.” International Energy Agency (IEA).
19 “The Role of Telecommunications Infrastructure in Smart Grids.” Utilities One. August 2023.
