Power grid: the foundation of energy transition

For most of us, electricity is a ‘fixed’ commodity. It is just simply there, we do not really think about the fact that almost all of our daily, mundane activities require energy. Turning the lights on, turning on an electric stove, charging our phones or cars, taking a hot shower, or even writing this article, consumes electric power. But where does it come from?

Most of us do not generate our own electricity, or do not generate enough to cover all our needs. Hence, we need a different, greater source of power. This is where power grids, systems of production, transmission, storage and consumption of energy (justenergy.com, 2021), come into play.

We already use the power grid on a daily basis. However, its importance is only going to rapidly increase in the future, as one of the most common ways to fight climate change is mass electrification.

Electrification is a process which minimizes the usage of fossil fuels in favor of electrical power, reducing greenhouse gasses emissions (Office of Electricity, 2024). Moreover, power can be produced from renewable energy sources, such as solar, wind or geothermal, further reducing the importance of fossil fuels in our energy system.

The intensified consumption of energy, as well as gradually more wide-spread application of renewable energy production, has a great impact on the power grid and its importance. The grid is already used unsustainably - we over- or underuse it, depending on the time of the day or the season. Combined with its limitations, as well as mass electrification, it leads to issues with the system that could be avoided if used in a more feasible way.  

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We need to utilize the grid to its full potential

Power grids experience limitations in terms of capacity, voltage and frequency, as they were originally tailored towards a stable, constant power generation (Peck, 2024). Hence, those constraints stem from fluctuations in output and input of power caused by, for instance, intermittent nature of power generation from renewables, as well as random events and intermissions in the system.

As aforementioned, most of our daily activities require electricity. If everyone in a particular district wants to consume considerable amounts of energy at the same time, it may lead to the creation of transmission bottlenecks, especially if the infrastructure is dated or insufficient. Moreover, due to its inability to meet the transmission requirements for increased energy consumption, the grid itself becomes a bottleneck for development as, for instance, businesses are not able to utilize additional power for transportation or production.

The same issue arises with the increasing integration of renewables into the grid. Renewable energy production is not constant, nor stable - there are ups and downs due to numerous factors, for instance weather conditions. Those spikes and drops may exceed the capacity of the system, meaning that the grid would not be able to transmit the already-produced energy. Therefore, even if the amount of electricity generated from renewable sources was larger, it would not improve the grid’s efficiency.

These problems can be resolved through modernizing or enlarging the grid by adding new cables, however this is not only lengthy, but also a costly process. This leaves us with a perfectly usable grid which we are unable to fully utilize. 

The reasons as to why we need to utilize the grid to its full potential are clear and straightforward. However, it begs another question: how can we achieve that?

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Flexibility: the enabling factor 

One of the answers to that burning question is increasing the grid flexibility. This can be achieved in different ways, such as energy storage or peak shaving (Peck, 2024). 

However, there is another method of increasing grid flexibility - flexibility trading. 

Private houses, as well as businesses can disclose their assets that consume a set value of electricity while they are used, and free up that value when unplugged from the system. 

Flexibility trading is a great way to increase the grid flexibility. It enables the utilization of the grid to its full potential, allowing for further electrification and decreasing the harmful impact of fossil fuels on the planet. Moreover, it uses the infrastructure we already possess, and there is nothing more sustainable than using the things we already have to their maximum. 

Smart usage of the grid is an essential and central component that speeds up the energy transition, leading to a green, sustainable future for which we strive for. Therefore it is extremely important to start working on the grid flexibility now. 

If you have any further questions about grids, flexibility or flexibility trading, contact us today at post@flexpartner.energy.

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References

justenergy.com (2021). Power Grid: What Is It and How Does It Work? [online] Just Energy. Available at: https://justenergy.com/blog/power-grid-what-is-it-and-how-does-it-work/ [Accessed 23 Aug. 2024].

Office of Electricity (2024). What is Electrification? [online] Energy.gov. Available at: https://www.energy.gov/electricity-insights/what-electrification [Accessed 23 Aug. 2024].

Peck, J. (2024). What are Grid Constraints & Why Do They Cause Problems? [online] Wattstor. Available at: https://wattstor.com/insight/grid-constraints/ [Accessed 23 Aug. 2024].