Smart Grid Characteristic: Optimizing Asset Utilization

In today’s grid, systems that can understand and optimize real-time asset utilization are typically unavailable, particularly in the distribution grid.

Even when necessary information is available, the ability to adjust individual asset loadings is limited due to the relatively low penetration of distribution automation and demand response. In the US, the power grids operate at approximately 40% efficiency.

Countries are investing heavily in smart grids. The market is forecasted to grow at a CAGR of 16.8%, reaching $173 billion by 2030.

So, what makes a grid “smart” and the importance of optimizing asset utilization?

A smart grid is fundamentally a digital technology that facilitates bidirectional communication between the utility providers and its consumers, and the ‘sensing’ along the transmission lines.

Like the Internet, the Smart Grid consists of controls, computers, automation, and new technologies and equipment systems that work together with the electrical grid and digitally respond to rapidly changing electric demand.

The benefits associated with the Smart Grid include:

• Improved efficiency in transmitting electricity
• Faster restoration of electricity in the event of power outages
• Reduced operational and management costs for utilities, leading to lower power costs for consumers
• Lower peak demand, resulting in reduced electricity rates
• Increased integration of large-scale renewable energy systems
• Better integration of customer-owned power generation.

Advanced tools for operating the grid more efficiently are currently limited. However, efforts are being made to analyze and interpret the large amount of new data expected. This allows operators to quickly understand the grid’s state in real-time.

Such real-time assessment is crucial for maximizing grid efficiency without compromising reliability. While these tools would be highly beneficial for grid operations, their widespread availability and implementation are yet to happen.

Increasing Asset utilization

Electricity prices are primarily influenced by two costs:
fuel costs for electricity generation and the capital costs of the infrastructure for generating, transmitting, and distributing electricity.

This means we’re consuming large amounts of power in short periods, mainly due to rising demand that can also be attributed to changes in the weather patterns & climate change.

High demand levels are likely to happen when there are unprecedented weather patterns during extreme heat or cold, but we usually don’t restrict consumption with “brownouts”, “blackouts” or similar measures.

Instead, we construct more infrastructure, which is then underused for the rest of the year. Serving the top 1% of demand can contribute to up to 9% of total infrastructure costs, while the top 10% of demand can account for around 25% of total costs.

Therefore, if we could “flatten the curve” by decreasing peak demand, increasing consumption during other times, or ideally both, we could distribute more energy over the same fixed costs, which would improve capacity utilization and reduce infrastructure costs per kilowatt-hour delivered.

DERs into the generation mix to flatten the curve

We can mitigate demand surges with Distributed Energy Resources (DERs) added into the generation mix. DERs as assets can include electric storage, intermittent generation, distributed generation, demand response, energy efficiency, thermal storage, or electric vehicles and their charging equipment.

DERs are successors to traditional Demand Response (DR) resources, which are on-site devices that alter their behavior in response to signals from utilities or power market operators.

While Demand Response directives have significantly reduced peak demand, they are limited in that they can cease electricity use, but cannot send energy back to the grid from the customer.

Asset Management

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Asset management involves system planning, maintenance, engineering, and work management processes. However, these processes are not as effective as they could be due to limited information.
System planners often make conservative decisions on capacity improvement projects due to incomplete load forecast data, which can lead to overbuilding.

Maintenance engineers face challenges when implementing condition-based maintenance (CBM) programs due to a lack of necessary asset condition information. This lack of information means that maintenance practices are primarily time-based rather than condition-based, leading to more reactive maintenance.

Engineering, design, and workforce management processes are also not as efficient as they could be. They lack the operating information and communication capabilities needed to achieve a higher level of performance. Achieving optimized capacity asset utilization, asset health, and operations can result in significant cost reductions and performance improvements.

Improving asset efficiency and utilization is a priority due to rising costs and environmental concerns. Efforts are underway to advance the efficiency of transformers, enhance VAR support, and establish dynamic line ratings. However, the uptake of these technologies remains restricted due to their high cost, stage of development, and the absence of suitable support infrastructure.

Future State of Asset Utilization & Smart Grids

Intelligent electronic sensors and advanced algorithms, combined with comprehensive control over assets, will make Smart Grid more efficient. These technologies enhance operational and asset management processes, resulting in improvements at minimal additional cost.

Asset utilization will become more efficient

Advanced Distribution Management Systems (ADMS) and improved transmission monitoring will allow for adjustments in system flows and better use of under-utilized assets. This reduces stress on overworked assets, extending their life and improving power quality.

System losses and congestion will decrease

The implementation of DERs, electric vehicles, demand response, and energy storage will offer resources to minimize losses. The distribution system will benefit Regional Transmission Organizations (RTO’s) by providing additional tools for managing transmission congestion and improving economic dispatch process.

Capacity planning processes will be more accurate

Detailed load forecasts will enable system planners to better predict asset loading. The use of DERs provides a new set of tools for system planners, allowing for more precise forecasts of future needs.

Maintenance will shift from reactive to predictive. Using asset condition information, maintenance programs can anticipate when repairs are needed, reducing costs and extending the life of critical assets.

Outage durations will decrease significantly thanks to Advanced Outage Management Systems (OMS). These systems will expedite the detection, diagnosis, and resolution of outages, reducing the financial impact on consumers, generators, and delivery companies.

Modeling and simulation tools will enhance risk management

They will allow operators to anticipate problems and take corrective actions, improving grid efficiency and preventing unexpected disturbances.

Lastly, the “power density” of assets will increase due to advanced materials and new intelligent electronic sensors. This will increase capacity ratings on new assets and support accurate dynamic ratings for transmission lines and other assets.

Evolution

The Smart Grid is gradually developing over the next ten years or so. Once fully developed, the Smart Grid is expected to bring about a transformation similar to the one the Internet has already brought to our lifestyle, work, leisure activities, and learning.

The Smart Grid can make life better for people and the environment by providing more sustainable energy. It is important for distributing and using energy in the future.

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