Grids at breaking point: the situation requires investments in innovation and resiliency

The past year has been a particularly harsh one for utilities and grid operators in the United States. They have been hit by summer droughts and extreme heat waves, a particularly intense hurricane season and – lastly – record-breaking blizzards and Arctic cold. These extreme weather events – the results of climate change – have led to surges in the demand for energy and put electricity grids under extreme stress, in some cases even leading to supply failures. Demand has boomed, while the supply-side faces various challenges, including aging infrastructure, and these further expose the urgent need for grid modernization in order to improve resiliency.

As I see it, if these challenges are to be met, then utilities and grid operators need to make significant investments in the implementation of smart grids, new digital technologies, equipment and controls. As we all know, digitalizing the grid takes time as well as money, and efforts are under way. Through the Inflation Reduction Act, the Biden administration has allocated some $370 billion to “Energy Security and Climate Change programs,” to be deployed over the next 10 years. Part of this sum will be dedicated to grid modernization initiatives, including support for investments in smart grids. By implementing new smart grids and digital services, the US power network will be in a better position to handle extreme weather events and large demand and supply swings – all while pushing the country toward a more sustainable power generation future.

Climate change and ever-increasing grid vulnerabilities
The negative effects of climate change are plain for everyone to see, as devastating droughts, floods, heatwaves and cold spells wreak havoc on energy systems and people’s livelihoods around the world. 

This past summer, Lake Powell (on the Arizona-Utah border) – the nation’s second-largest reservoir, which supplies water and hydroelectric power to millions across the American West - plummeted to record low levels. This climate change-induced time bomb is one of many risks to the nation’s ability to meet demand for electricity generation and distribution. This is why I think that a focus on grid resiliency is crucial for US operators.

But it’s not just a question of climate change: as the US faces weather-induced havoc,  it must also come to terms with aging infrastructure and power plant retirements, which will lead to significant electric capacity shortfalls. In its 2022 summer reliability assessment, the North American Electric Reliability Corporation (NERC) reported that the Midcontinent Independent Systems Operator would face a 1.7% increase in peak demand with 2.3% less generation capacity than in 2021, resulting in a higher risk of energy emergencies over the summer period. Other regions flagged by the NERC as being at risk of potential capacity shortfalls due to extreme heat and drought conditions included Texas, the Missouri River basin and the Western Interconnection.

Digital solutions are the key to improving US grid resiliency and guaranteeing long-term sustainability
At Gridspertise, we feel that implementing digital solutions is crucial to efforts to modernize the US power grid. These solutions will enable it to better withstand future weather events and mitigate power outages – all while saving lives, protecting property and keeping the economy running. Solutions could include technologies for digitalizing field operations, network infrastructure, meters and grids, as well as microgrids.

Advanced metering helps keeps the lights on and guarantees transparency
Advanced metering infrastructure enables the collection of data that supports operators in spotting grid maintenance needs and faults ahead of time, thus helping to keep the lights on when customers need them. Europe and Latin America are ahead of the curve in their adoption of advanced, second-generation metering infrastructure and can serve as models for US utilities and grid operators. The way I see it, Italy is a leading light in this sense: in the early 2000s, the country engaged in a massive rollout of smart meters and it is currently undergoing a second-generation rollout with very advanced functionalities, including a near real-time communication channel for in-home devices. This makes it possible to improve customer awareness regarding energy that is consumed and self-produced, while also enabling a multitude of new enhanced services, such as home automation and demand response. For example, it is possible to schedule the on/off time of devices, such as a heat pump or washing machine, with home automation systems that can determine the best usage pattern or set notifications when there’s a risk of exceeding a consumption limit.

This functionality also allows to recommend to the end customer tailor-made behaviors based on real-time data production from its own generation system, like photovoltaic panels.  It also enables the smart meter to collect real-time data on home appliances’ consumption, that can be used, for example, to modulate the charging power of an EV charger according to the available capacity and other demands for power in the house.

Another example I would cite is the Brazilian city of São Paulo, which since 2021 has been installing smart meter solutions that make electricity bills more transparent: this is also thanks to an app that enables users to manage their accounts and energy profiles directly.

Virtualization: running critical grid operations with less hardware
I also think that US utilities and grid operators should consider embracing virtualization technologies and decentralized computational capability that would enable them to run critical grid functions while simultaneously reducing the number of necessary physical components. Such solutions allow networks to operate at scale more efficiently and sustainably, even in the face of unpredictable weather and capacity shortfalls. At Gridspertise we are well-positioned to meet these needs with solutions that offer key functionalities for network infrastructure digitalization, including metering data management, load profiling, power quality assessment, asset health evaluation and performance monitoring and loss minimization.

Digitalization enables simulating and planning for worst-case scenarios
Another area where I feel that US utilities and grid operators need to invest in is field operations digitalization, which allows for real-time monitoring and predictive maintenance. Thanks to our patent-rich portfolio, at Gridspertise we can offer many innovative products that meet these needs, including integrated solutions which bring together digital tools, artificial intelligence and machine learning. Our Digital Asset and Vegetation Intelligence tool is one example. It creates a virtual replica of the electricity grid and the surrounding environment by acquiring and processing structured datasets provided by laser scanner, photography, videos and other inputs. It enables the identification of critical distances and anomalies on specific components, detecting possible irregularities that facilitate vegetation inspection and predictive maintenance. Such digital tools make it possible to create simulations that test the grid under all possible conditions. For example, in the context of increasingly extreme weather events caused by climate change, these tools can help model how to manage fires that can result when trees fall on electricity distribution lines and poles (which can cause outages).

Microgrids, maxi advantages: guaranteeing energy flows even when the main grid is offline
In my opinion, microgrids will play an increasingly important role in meeting grid management challenges. They are self-sufficient energy systems that can operate independently of the central grid, even in the event of power outages. Microgrids create a more participatory network where individuals can discharge excess electricity back into the local system, thereby counteracting extreme weather and outage events by creating a balance in terms of where, when and how electricity is consumed. Microgrids also provide savings on electricity costs by taking power from the main grid only when it is cheaper, a feature enabled by distributed generation and batteries that boost self-consumption. Microgrids can also play crucial roles during emergency situations. For example, I like to think of how the creation of resilient service stations at local convenience stores and gas stations can help communities maintain power when the grid goes offline. Such service stations provide refueling, water, food, Wi-Fi connections and other essential services, including critical support for first responders and utility crews during an emergency.

Investing in innovation to ensure resiliency and sustainability
The way I see it, in order to mitigate the effects of increasingly unpredictable and violent climate events – and to meet surging demand for electricity – utilities and grid operators across the US need to embrace smart grids and invest in equipment and controls to improve grid resiliency. Thanks to our vast portfolio of digital tools and solutions, Gridspertise is the perfect partner to accompany the country’s efforts along the digitalization journey. Only through investing in innovation – the kind on which we at Gridspertise have built our reputation – can long-term electricity security and sustainability be guaranteed in the US.