17 June 2019
Paul Clark, director, energy & utilities sector SSE Enterprise Telecoms
It is no surprise that the global demand for energy is set to change significantly over the next century. This comes, especially, as governments are under pressure to pursue cleaner energy and consumers are more considered than ever about how they use and generate power. Supporting this shift to smarter energy requires a nationwide rethink of networks.
This is why new-age technology to create ‘smart grids’ has been developed. These new technologies will enable two-way communication between the utility and its consumers in such a way as to be able to determine reapportionment of unused energy and opening up the possibility for consumers to commoditise their own energy sources. Smart grids also enable utilities to address the challenge faced by integrating grids with distributed energy resources as energy providers reduce their use of fossil fuels. Research by Technavio has estimated that the global market for smart grid technologies will grow by 12 percent between 2019 and 2023, with the rising adoption of smart meters expected to be the key market drivers, with the deadline for each home to have one currently set at 2020. Therefore, to make smart grids a success, a converged approach is required, with telecommunication companies having a key contribution to make.
What has driven the need to change?
The recent attention around climate change and attitudes towards reducing their carbon footprint has altered the way consumers view their responsibility towards energy consumption. Technological advancement has indeed played a role in opening the eyes of consumers and empowering them to take steps that will in turn have a great impact on our energy usage.
For example, by 2030, the UK has pledged that half of all new car sales will be hybrid or electric. As reliance on petrol diminishes, people are likely to have significantly higher electricity demands. The inevitable ban on petrol powered cars will eventually transform petrol stations into charging points, with super-fast ports that can bring an electric vehicle back up to full power in just minutes.
Sustainable homes are also on the rise, with the average eco-home cutting energy bills by 30%. However, once the smart grid network infrastructure is in full-effect, this is expected to grow. Homes like these are increasingly becoming self-sufficient, and may, in turn, be able to feedback into the larger grid system. Businesses with significant real estate, such as warehouse roofs, could stand to generate large amounts of their own power. It is crucial that we think about energy customers in a different way. They are no longer just consumers – they are producers, selling energy back to the grid. This means the existing power networks need to be reimagined; more flexibility, better management of capacity, and most importantly more intelligence.
The future of a two-way smart grid
An initiative called the Open Networks project, led by the Electricity Networks Association (ENA) aims to help networks shift from simply delivering energy to becoming the smart platform for a range of technologies. Through this, local networks and smart cities can become more active managers of supply and demand – in time, turning Distribution Network Operators (DNOs), those responsible for distributing electricity from the national transmission grid to your home or business, into Distribution System Operators (DSOs), who enhance the system by providing local and regional flexible systems. For this to work effectively telecommunication businesses are key. For a start, these companies can assist with connecting those who are generating energy back into the grid, which is crucial for the two-way purchase and sale of energy to succeed. Substations will require increased capacity and faster connections, provided by fibre, to be able to facilitate this flow. Therefore, it is evident that telecommunications companies are an essential aspect of this conversation. From a management perspective, telecommunications providers also offer a valuable contribution.
In a two-way system, interfaces are required on either end which are able to communicate effectively with the system and, eventually, local areas as a whole. The technologies that will be used in the two-way grid, such as smart meters, already exist in the telecommunications industry. In a smart grid, these communications will facilitate real-time monitoring. As such, it’s crucial that these devices are supported by rapid and robust fibre connections that won’t fail when so much is relying on them.
Working together is key
To be successful, telecommunications and energy companies are required to work together to ensure a converged smart-grid future is realised. Currently, one of the challenges is that, as a significant amount of smart energy technology is still in its infancy, there’s no standardisation across strategy or end-user interfaces.
Currently, there are different electric vehicle schemes across the country using various charging access points that aren’t standardised. In order to meet the 2030 goal, there has to be a uniform approach to consider the success of electric cars. Similarly, each smart meter provider presently offers its own solution – which then becomes obsolete should that consumer decide to make a switch.
In order to consider the success of electric cars, a standardised approach is needed. If this patchwork approach continues, there could be serious hindrances for widespread future integration. For the country to make the most of the opportunities created by the shift to DSOs, everybody is required to work together to create a cohesive plan, instead of forging ahead in silos.
Although there is significant buzz around this topic, the reality is that very few people know exactly what shape a smart grid will take, or how it will be executed. However, it is known that both energy companies and telecommunication providers play key roles here. While the benefits of moving from DNOs to DSOs could be significant, this shift will only work if there is clear planning and implementation, and most importantly, supported by reliable connections.
