Enabling the energy transition with a smarter approach to the grid

The global shift towards clean electricity is a complex undertaking!

Replacing large-scale fossil fuel power stations with renewable solutions goes far beyond the energy generation itself. Just as important is the ability to effectively distribute that clean power, with minimal losses, where it needs to be used, when consumers need it.

But the aging grid, designed for a post-industrial era, is no longer fit for purpose. The huge investment that would be required to create a new network is neither practical nor sustainable and so the grid must evolve if it is to survive.

A smarter grid involves striking a better balance between large-scale power generation and local or distributed generation. Simultaneously, we must embrace technology that helps us balance supply and demand, especially as we incorporate more weather-dependent renewable energy sources into the mix.

To better understand distributed power generation, picture whole districts plugged into geothermal systems or solar panels installed on every rooftop in a neighborhood. By encouraging more local generation we can reduce the need for extensive transmission and alleviate stress on the power grid. Embracing decentralized self-generation through a series of inter-connected microgrids paves the way for a more sustainable and secure future. It bolsters energy security, ensuring we can keep the lights on 24/7, even in challenging situations.

New technology will also make the grid smarter and more efficient, with concepts such as smart buildings. These advancements go beyond storing surplus electricity – they enable automation to charge devices and electric vehicles when prices and demand are lowest. A smart network offers features such as monitoring, control, load and outage management, automation, remote access, and maintenance. Data insights derived from these systems will help utility and power providers, as well as consumers, better manage consumption and optimize energy usage. Focusing consumers on their own energy efficiency involves changing how we all value electricity, so that we see it as a valuable commodity, not a given. Investing in software and tools to reduce energy consumption can yield significant results and avoid undue stress on the grid. After all, a 10 percent increase in energy efficiency means 10 percent less generation.

Finally, a key component of a smarter grid, which provides further opportunities for local generation and storage, is battery energy storage systems (BESS). This helps reduce stress on the system and offers a cost-effective way to integrate wind and solar power without the massive investment required to upgrade infrastructure. BESS offers advantages in balancing supply and demand, crucial when everyone wants to cook dinner and charge their electric vehicles simultaneously.

A great example of this is our partnership with UPSI (Universal Power Solutions Inc.) at Limay in the Philippines, where one of the largest-ever integrated grid-scale BESS has been installed to support the integration of renewable energy sources. Grid performance in the Philippines faces several challenges, such as the length of power lines required as well as intermittent energy supply from wind and solar, which needs storage to act as a frequency regulator.

To tackle this, ABB provided a 60MW capacity packaged BESS solution purposely designed to strengthen the reliability and stability of the grid on the main island of Luzon. The solution, which is currently operating at 50MW, is designed to avoid large frequency and voltage deviations that can result in costly equipment damage and disruptive power system failure. It will play a significant role in not just enabling energy security but making sure every single kW of self-generated capacity is optimized to enable cheaper energy prices for residents.

As fossil fuels continue to be phased out, our thinking about what the grid is must evolve. Taking a smarter approach to integrating local energy generation and storage, while using data insights to optimize supply, demand AND energy efficiency, will all help enable the transition we need.

Understanding the complexities of the energy transition and developing innovative solutions that pave the way for a cleaner and more sustainable future cannot be undertaken in isolation. This is why we continue to collaborate with partners, large and small, to deliver these solutions. Together, we can all enable the energy transition and build a greener tomorrow.