Revolutionizing Energy Systems with Smart Grid Technologies
RIYADH: Advanced smart grid technologies are pivotal for enhancing energy transition and system reliability, with projections indicating a need to double investments to $600 billion annually by 2030.
The Power System Evolution
In its latest report, the International Energy Agency emphasized that the success of the shift hinges on transforming various facets of the power system, including electricity generation plants, transmission and distribution systems, and consumer practices.
A Global Shift Towards Renewable Energy
The world aims to transition from fossil-based energy systems to renewable sources like wind, solar, and hydropower. This global shift, known as energy transition, is driven by major commitments such as the Paris Agreement, which targets net-zero carbon emissions by 2050.
The Role of Smart Grid Technologies
“The clean energy transition increases electricity demand and requires more wind and solar power, stressing power grids. Smart grid technologies can manage this transition, reduce the need for costly new infrastructure, and improve grid resilience and reliability,” said IEA in the report.
Saudi Arabia Leading the Way
In January, a research report by experts at Saudi Arabia’s King Fahd University of Petroleum and Minerals stated that smart grids could revolutionize the Kingdom’s current energy management systems.
Digital Innovation in the Power Sector
The IEA emphasizes that measuring digital innovation in the power sector is crucial for tracking, improving, and implementing policies to shape the digitalization process effectively.
Geographical Distribution of Smart Grid Innovation
East Asia dominated smart grid innovation from 2017 to 2021, accounting for over half of the IPFs. Since 2007, it has consistently led globally, with North America and Western Europe sharing the remaining IPFs, according to the IEA.
Managing Climate Change Impacts with Urban Planning
In a separate report released in May, the IEA highlighted that urban planning, digitalization, and grid investment can help cities manage the impacts of climate change and growing energy demand.