Energy infrastructure is rapidly evolving as we move towards a deeply renewable energy system. With increasing demand for energy and the urgent need to transition to sustainable sources, the power grid is set to undergo a significant overhaul. Key innovations include the integration of advanced batteries for energy storage, smart grid technologies, and the democratization of energy generation.
The Great Generation Load Mismatch
An emerging theme of the shift to clean energy is the mismatch between supply and demand, and what to do about it. Renewable energy sources tend to generate more electricity when demand is lower – solar during mid-day and wind at night – and less during the peak 4pm – 8pm window. It’s also becoming more common to see regional supply and demand mismatches as population and industry grows faster than generation capacity.
Power can travel from regions with high renewable generation to areas with high load via high-voltage transmission, but building new lines is very expensive and subject to permitting barriers. According to the Department of Energy, “The U.S. needs to expand its transmission grid by around 57% to 47,300 GW-miles by 2035 to meet its clean energy targets, based on a scenario of moderate load and high clean energy deployment.” (It is worth noting DOE made their estimation in October 2023 before the realities of data centers and increasing power demand became clear, so transmission line expansion needs may be even greater.)
So how do we solve these problems?
Battery Energy Storage
Battery energy storage presents itself as one of the most promising solutions to balancing supply and demand. Traditional grids rely heavily on a constant and immediate supply of electricity from power plants to consumers. This method is not only inefficient but also vulnerable to disruptions. Incorporating large-scale battery storage can create a buffer that smooths out fluctuations in energy supply and demand.
Battery energy storage systems (BESS) can store excess energy produced during periods of low demand and release it when demand is highest, ensuring a stable and reliable power supply while minimizing the need for supplemental fossil fuel power. This approach ultimately allows for better integration of renewable energy sources like solar and wind, which are inherently intermittent.
Batteries can also be used as a form of energy transmission asset. Used in this way, storage can enhance existing transmission lines or even serve as an alternative to building new transmission projects. Storage as transmission assets (SATA) has the potential to reduce congestion and cost-effectively improve transfer capability, provide a technical advantage of grid voltage support that improves transmission capability and renewable energy deliverability, and improve capacity deliverability and reduce local capacity requirements.
Smart Grids
In addition to battery storage, smart grid technology is set to revolutionize how we manage and distribute electricity. Artificial intelligence (AI) is quickly integrating itself into many aspects of life and technology and is poised to become a major feature of energy infrastructure in the renewable energy era.
A smart grid uses digital communication technology and AI to monitor and manage the flow of electricity from all points in the grid. Intelligent, real-time data allows for more efficient energy distribution, reducing waste and improving reliability. AI has the ability to quickly act on information such as weather variations, and can learn from load balancing trials to improve over time.
Smart grids can quickly detect and respond to problems such as outages or overloads, minimizing downtime and enhancing overall grid resilience. They enable consumers to be more engaged with their energy usage through smart meters and home energy management systems, promoting their participation in energy initiatives and improving efficiency in the process.
Decentralization of Energy
Decentralization is another critical aspect of the future power grid. Rather than relying solely on large, centralized power plants, the next generation of infrastructure will feature a more distributed model of energy generation. This includes smaller, local power sources like rooftop solar panels or wind turbines paired with storage systems, and even small modular nuclear reactors (SMRs).
Decentralized energy generation reduces the risk of large-scale power outages and enhances energy security. It also empowers communities and individuals to generate their own electricity.
Virtual power plants and vehicle-to-grid technology are further developments that will be featured in the decentralized energy future. As the adoption of EVs and home energy storage grows, so does their potential to serve as energy storage resources that can be activated when aggregate demand is highest. The batteries within these systems can not only draw power from the grid during opportune times but also supply it back during peak demand periods to bring down costs for everyone. These tools are set to increase the penetration of renewables and enhance flexibility, while democratizing participation in the energy ecosystem.
Challenges
While these innovations of the future energy system have tremendous potential, there are still challenges that must be overcome. Battery storage systems are expensive to access in many parts of the world, limiting the number of communities, businesses, and individuals that can benefit from them. Developing affordable, efficient, and clean battery technology is crucial for widespread adoption. Similarly, upgrading existing grid infrastructure to support smart technologies and decentralized energy sources requires significant investment and government support.
Furthermore, managing a more complex and decentralized grid poses technical challenges. Ensuring seamless integration and communication between various energy sources, storage systems, and consumers demands advanced software and cybersecurity measures. It also requires robust regulatory frameworks to coordinate the actions of multiple stakeholders and protect consumer interests.
The Future of Energy
Despite these challenges, the benefits of generational transformation in energy infrastructure are clear. A more adaptable, efficient, and sustainable power grid will significantly advance clean energy initiatives, improve energy security, and provide more reliable, low-cost electricity to consumers.
Endeavoring to move the transition forward can start with accelerating the adoption of low-cost battery storage solutions. New chemistries that leverage designs with readily-available, globally abundant materials and are also non-flammable can address this colossal market transformation. These attributes will enable consumers to adopt battery-powered devices that allow the infrastructure transition to happen as planned.
The generational transformation in infrastructure is not just about improving our power grids but about creating a more sustainable and resilient future. Harnessing advanced batteries, smart grid technologies, decentralized energy generation, and electric vehicles can together build a power system that meets the demands of the 21st century and beyond. This transformation requires vision, innovation, and collaboration, but the rewards of a decarbonization, more reliable power, and a stronger economy are well worth the effort.
