As the world looks to abate climate change by tackling emissions, global legislation is mandating that more renewable energy be integrated into the grid.
The good news is that 151 countries had net zero targets in place in 2023. The US aims to transition the grid to 100% carbon-free electricity by 2035. The remaining G7 advanced economies have agreed to move to achieve “predominantly decarbonized” electricity by the same date.
These goals are already translating into action. For example, the US Energy Information Administration projects a 17% growth in renewable deployment in 2024, up from 15% in 2023. In the five-year window from 2023 to 2028, the US will likely add 340 GW of new renewable capacity, with solar being the most prominent.
These vast new streams of renewable energy also present a major challenge for power players: the integration of hundreds of gigawatts of new green energy, including solar and wind, into aging and siloed grid infrastructures. In addition, global power demand is rising year on year, fueled by rapid urbanization and growing electrification trends.
Against this disruptive backdrop, it’s clear that we must not only rebuild the grid, but also rethink its management.
Reimagining Power
Modern power systems are fed by fluctuating, disparate energy sources. To deal with variable supply and demand, as well as both green and conventional energies, modern grid infrastructure needs to be smart, reliable and resilient. Furthermore, as physical grids become less centralized, flexibility and visibility are critical.
This new power era calls for rapid grid transformation, enhanced energy storage, and the integration of advanced technologies.
Digital solutions, such as IoT, AI and the cloud, can enable real-time monitoring, predictive analytics, and seamless integration with traditional power systems. Such technologies can support efficient operation with supply-demand, variability and under increasingly stringent regulatory frameworks.
Power companies are already leveraging digital applications to analyze power supply and demand (forecasting), consumption patterns and weather conditions. These solutions enable companies to optimize load balancing to protect equipment and enhance reliability.
Real-time data sharing has emerged as a key solution for uncovering actionable insights. Power companies can analyze and share information both internally and with ecosystem partners to make more informed decisions to drive resilience, performance and profitability.
What’s more, modern grid management tools can operate at a national or even global level, dynamically reconfiguring operational states across units, fleets, markets and geographies.
Modern grid technology in action An example of a major US firm using technology to lead the energy transition can be seen in Xcel Energy. The Minneapolis-headquartered firm, which has been a wind power operator since 2005, uses an integrated data management platform to predict drops in wind speed hours in advance. Operators now know when winds are likely to die down, so they can fire up backup plants in a way that minimizes wear and tear on the equipment. This enables them to run the plants at their most efficient rates. Over six years, the company estimates it has saved roughly $46 million.
Another case in point is Vattenfall Hydro Power, which manages more than 50% of energy production in Sweden and is the third-largest hydropower provider in Europe. The utility runs more than 100 hydropower plants with an annual production of 30–35 Terrawatt hours, as well as wind and nuclear plants. By leveraging a data management platform integrated into existing systems, the company can quickly find failures before they occur, reducing overall maintenance costs.
Finally, consider Chevron-owned Renewable Energy Group (REG), operator of low carbon fuel biorefineries, and service provider Allied Reliability who used cloud data sharing capabilities to mitigate centrifuge failures. Through a closed-loop, real time two-way data-sharing process, REG sends process data to Allied Reliability for vibration analysis and receives recommendations directly in the system. This setup not only enables them to detect and remediate critical issues quickly, it has the potential to reduce equipment downtime by as much as 90%.
As these case studies show, digital technologies can accelerate the management of renewable energy. Indeed, more than half (55%) of power industry leaders say they currently lack access to reliable, real-time data and insights most or all of the time when making key business decisions.
As we upgrade the grid with renewables in mind, digital innovation will be essential to advanced power management. These technologies optimize operations, ensure regulatory compliance, and move us closer to a sustainable energy future aligned with net-zero goals.
