Smart grids are modern-day power grids designed to be more efficient and environmentally friendly. These digital systems utilize renewable energy sources, such as solar and wind power, and incorporate advanced-storage technologies to better manage power usage. According to Statista, the smart grid technology market is forecast to reach roughly 130 billion U.S. dollars by 2028.1 By enabling the efficient integration of renewable energy sources, optimizing energy production and consumption, and improving grid resiliency, smart grids contribute significantly to sustainable technology.
The absence of smart grids to manage the distribution and storage of renewable energy poses a challenge to sustainable and reliable energy supply. Unlike traditional grids that deliver electricity from power plants to consumers, smart grids incorporate advanced digital communication technologies to manage energy usage, production, and distribution. The traditional grids were primarily designed for centralized power plants and fossil fuels-powered energy. An intermittent energy supply and lack of standardized infrastructure are among the most significant challenges facing the renewable energy sector. Most renewable energy sources are dependent on environmental factors like sunshine, wind speed, and water flow that are unpredictable and change continually. Traditional power grids rely on fossil fuels as the energy source and as such, they only need to deliver the required energy to meet the demand.
In Sri Lanka, citizens are beginning to benefit from a smart grid solution developed by Lanka Electricity Company (LECO), Dialog-University of Moratuwa Mobile Communications Research Laboratory, and Dialog Axiata. By gathering data from 3,200 smart meters and 150 network monitoring devices, the solution allows LECO to analyze electricity usage and point out any faults on its grid. A network monitoring device provides detailed power quality measurements, such as voltage sags, swells, and interruptions, as well as a real-time view of the low-voltage power distribution network, allowing LECO to react quickly to power outages. This provides the utility with a good understanding of the distribution network's behavior. By improving the competitiveness of the partners, the smart grid project paves the way for future collaboration and knowledge sharing in R&D. According to the mobile operator, in emerging markets such as Sri Lanka, finding IoT solutions that satisfy the needs of the enterprise and provide a return on investment is the biggest challenge.2
Renewable energy sources are dynamic and smart grids are essential because they can adjust energy distribution to match energy demand, reducing energy wastage and increasing efficiency. A smart grid enables real-time communication between the utilities and consumers, allowing for a better approach to minimizing energy waste and creating more sustainable energy practices. They play a pivotal role in incorporating renewable energy sources such as wind and solar power into our daily energy use. Smart grids address challenges with the conventional grid by providing a mechanism to manage the energy generated from renewable sources effectively. In helping the process of energy storage and distribution, it allows us to use renewable sources even when the sun is not shining, or the wind is not blowing. Smart grids can also aid in reducing carbon footprints and greenhouse gas emissions. Smart grids can also aid in the development of microgrids, which can operate independently of the primary grid. Microgrids can enable rural and isolated communities to generate and distribute their energy from renewable sources, reducing their dependence on centralized power generation and distribution systems.
Market leaders understand the significance of smart grids and how they integrate modern communication and information technologies into the conventional power grid to enable intelligent monitoring, control, and automation of energy sources. The optimal use of energy through smart grids reduces the carbon footprint of a business, which aligns with the increasing demand for corporate social responsibility. This is enabling market leaders to foster a more sustainable future and enables their businesses to become socially and environmentally responsible. They are also benefiting from being able to withstand power outages and disruptions and encouraging the adoption of renewable energy sources. As the world faces significant environmental challenges, the transition to sustainable technology is more critical than ever. Smart grids offer powerful tools to help businesses and communities to achieve these goals.