A modern grid: distributed energy resources and clean energy
In today's world, the urgency for sustainable and efficient energy solutions is more pressing than ever. This spotlight shines on the critical need for grid modernization and the pivotal role of distributed energy resources (DERs) in ushering in a greener future. Far from being optional, modernizing our power grid is essential to seamless integration of clean energy with existing electrical energy distribution infrastructure, ensuring the grid can efficiently and reliably handle new technologies and energy sources. Here at Fluke Corporation, we understand the importance of this transformation and are actively developing the tools, software, AI, and other technologies required to help the world innovate toward a clean energy future.
What you need to know about grid modernization
What is grid modernization?
Grid modernization is the process of upgrading our electrical grid to make it smarter, more flexible, and capable of meeting modern electrical energy distribution demands. This involves implementing advanced technologies to enhance grid reliability and efficiency, particularly as our energy landscape evolves. Resources from the U.S. Department of Energy (DOE) and the National Institute of Standards and Technology (NIST) are valuable for those wishing to explore the depths of grid modernization efforts.
What is the concept of a modern grid?
A modern grid is characterized by automation, intelligence, and interoperability. It supports renewable energy, boosts energy efficiency, and empowers customers with more control over their energy usage. By facilitating a two-way exchange of electricity and information, a modern grid promotes a responsive and sustainable energy ecosystem. Insights from the Electric Power Research Institute (EPRI) and the DOE Office of Electricity further illuminate the significance and role of the modern grid.
Is the US electrical grid outdated?
The current state of the U.S. electrical grid, burdened by age and limitations, struggles to accommodate clean energy and DERs adequately. This scenario underscores the urgency of modernization for a reliable and efficient energy future. Insights from the American Society of Civil Engineers (ASCE) and the U.S. Energy Information Administration (EIA)highlight the grid's present challenges and their implications for energy transformation.
How much will it cost to upgrade the grid?
Although the financial outlay for grid modernization is considerable, the investment is justified by the significant economic and environmental returns it promises. Enhancing the grid's ability to integrate renewable energy and improve efficiency ensures that the long-term benefits far outweigh the initial costs. Analysis from the National Renewable Energy Laboratory (NREL) and Wood Mackenzie provides a glimpse into the projected costs and benefits of grid modernization.
Understanding distributed energy resources (DERs)
What is a distributed energy resource?
Distributed energy resources are smaller energy generation units located on the consumer end of the meter. Distributed energy resources are associated with distributed generation, which is when electricity is generated from sources (often renewable) close to where it’s used. An example is the combination of an energy source like a solar PV system and storage technology like a solar battery.
Distributed energy resources are instrumental in modernizing the grid by offering cleaner energy alternatives and bolstering the grid's resilience and adaptability. Detailed information from the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) elaborates on DERs and their significant impact on the energy landscape.
Significantly, the solar sector in the United States is poised for a transformation, with Wood Mackenzie reporting that approximately 23 GW of solar capacity is nearing its 15-year mark over the next five years. While solar panels continue to perform efficiently, the inverters — key for converting solar energy into grid-compatible electricity — are aging. The upcoming period is expected to see substantial investment in repowering solar installations to maintain their contribution to clean energy objectives. This involves maintenance and upgrading aged components, highlighting the demand for sophisticated electrical components and diagnostic tools capable of servicing a spectrum of solar project voltages. The absence of such specialized tools could exacerbate supply chain pressures, already taxed by the demand from new solar projects.
What are examples of DERs? Plus benefits, challenges, and more
Distributed energy resources: energy generation technologies
Distributed energy resources comprise traditional and modern technologies. Oil and gas engines are still widely utilized to generate energy, but they produce large amounts of greenhouse gases. However, newer, cleaner technologies offer low- or even zero-emission energy generation:
Solar photovoltaic (PV) systems
PV systems (comprised of solar panels and other components) are increasingly utilized on a global scale. PV systems only require sunlight to generate clean power, but solar batteries also serve an important role. According to the IEA, PV system generation increased by 25% in 2023, reaching over 1,600 TWh.
Fuel cells
Fuel cells generate electricity from chemical energy stored inside fuel. Common fuel sources include hydrogen or methanol. Fuel cells are regarded as highly efficient and clean energy generation sources, producing only water and heat as byproducts. This technology is utilized in select vehicles and power plants.
Wind turbines
Wind turbines, which make up distributed wind installations, can meet a wide range of energy needs. From residential properties to industrial sites, wind turbines serve as a clean, adaptable energy source.
Distributed energy resources: energy storage technologies
Energy generation is just one aspect of distributed energy resources; energy storage technologies are another crucial component:
Battery storage
Battery storage, or battery energy storage systems (BESS), store energy generated from renewable sources such as wind and solar for later use. These intelligent energy storage systems can decide when to store energy or release it to the grid, maximizing efficiency and lowering costs. Battery storage is important to home and business DER systems.
Electric water heaters
Unused heat generated by residential electric water heaters can be fed to power grids as energy. In this way, water heaters act as a “thermal battery,” storing emission-free renewable energy.
Electric vehicles (EVs)
When plugged into charging stations, electric vehicles (EVs) can act as distributed energy resources. Remaining energy in an EV battery can be fed into a power grid using vehicle-to-grid (V2G) technology in response to demand peaks.
Benefits of distributed energy resources
Because distributed energy resources supply power near their point of use, they offer numerous benefits for consumers and the grid. Here are a few:
Lower costs
Distributed energy resources let consumers produce and use cheaper energy. Alternatively, providing energy to local grids can earn energy bill credits, which is known as net metering. Additionally, DER technologies are being integrated into electric utility systems, cutting energy infrastructure costs.
Increased energy efficiency
Distributed energy resources improve efficiency by providing power to nearby consumers. Due to the proximity of DERs to the point of use, energy loss during transmission via power lines is reduced. Through demand response programs, DERs also enable more efficient energy management.
System resilience
Natural disasters and extreme weather events can damage electric utility infrastructure, resulting in power outages. Distributed energy resources can serve as a backup option when centralized power plants aren’t operational.
Challenges of distributed energy resources
Initial costs
Long-term, distributed energy resources can greatly reduce energy costs, but installing DERs such as PV systems and fuel cells can be cost-prohibitive for some consumers. However, subsidies and tax credits offered by the government can help offset these initial costs, making it more affordable.
Burden on electricity grids
Outdated electricity grids weren’t designed with consumer-owned DERs in mind. DERs can overwhelm electrical grids when electricity is sent back into the grid, causing congestion and potentially leading to blackouts. Smart grid technologies are one part of the solution, but coordination between operators, consumers, and regulators is also necessary.
The future of grid modernization and distributed energy resources
The trajectory for grid modernization and DERs appears promising. Nevertheless, the journey is fraught with challenges, such as regulatory hurdles and the substantial need for infrastructure investment.
The shift towards a more contemporary grid and the embrace of DERs are crucial for fulfilling our clean energy ambitions. By recognizing the current state of our grid, acknowledging the role of DERs, and committing to modernization efforts, we can navigate the challenges that lie ahead. The future of energy is poised to be clean, efficient, and sustainable, with grid modernization and DERs playing a central role.
Embracing these changes will not only advance environmental objectives but also ensure energy security and efficiency for future generations. The journey towards grid modernization and the integration of DERs is pivotal for a sustainable energy future.