How Grid Software is Helping Drive the Energy Transition

The energy transition. These words are popping up everywhere in clean energy discussion circles. But what is the energy transition? How does it affect our day-to-day lives? And how does technology, like grid software, play a role in making it all happen? We’ll explore those questions and more in this blog.

First, let’s start with the basics – what IS the energy transition, anyway? It may help to think of the energy transition as the “RENEWABLE energy transition.” It’s rooted in the major global concern that we are simply using too much fossil fuel, too fast. There is not enough fossil fuel, like oil, natural gas, and coal, to last us forever. In addition, these fossil fuels are harmful to the environment, from the technology we leverage to extract and prepare them for use, to the carbon-based byproducts released after we use them.

That’s why governments are passing laws, institutions are conducting research, and businesses and private citizens are taking steps to transition from fossil fuels to renewable energy sources, like wind and solar. Signs of the energy transition are all around us – By 2026, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels. Bloomberg NEF estimates a 57% increase in sales of electric vehicles (EVs), as well as an increase in the number of public EV charging connectors, to 50 million globally. And shipping conglomerate DHL has pledged to electrify 60% of its fleet by 2030.

Renewable Energy Sources
As mentioned above, experts are worried about how quickly humans are burning through fossil fuels. There is only a certain amount of fossil fuel left, and when it’s gone, it’s gone. Imagine running out of fossil fuels, and all industry and transportation systems suddenly grind to a halt. Not an ideal scenario. Significant investments are being made into researching renewable energy sources as an alternative.

So, what sorts of power sources are renewable? Wind is a big one, and so is solar. Both are powerful and cost-effective sources of electricity – so much so, in fact, that they are less expensive than fossil fuels in many areas of Europe and the U.S. The energy transition is largely focused on replacing our reliance on fossil fuels with a reliance on sustainable energy sources like wind and solar. The global energy transition can thus be thought of as a renewable energy transition.

Distributed Energy Resources
The global shift towards renewables and distributed generation has caused a significant increase in the volume of Distributed Energy Resources (DERs) coming onto the grid. DERs are small-scale assets that provide electricity generation, storage, or a related service, and are attached to the distribution grid. In contrast to traditional centralized energy generation, DERs allow individuals to contribute to the clean energy transition in their own ways. Every day, more and more electric cars, heat pumps, batteries, solar panels, smart thermostats and other DERs are connected to the grid, allowing individuals to actively participate in building a sustainable future.

Decarbonization
When fossil fuels are burned, they release carbon, heating up the planet and contributing to the greenhouse effect. According to the National Oceanic and Atmospheric Administration (NOAA), the warming influence of human-caused greenhouse gases shot up 49% over just two decades. Of that increase in greenhouse gases, 80% can be blamed on carbon dioxide, the exact substance released by burning fossil fuels.

The renewable energy transition seeks to reduce the amount of carbon released into our atmosphere by making a transition from fossil fuels to renewable energy – this is known as Decarbonization.

Digital Transformation in Energy
So many industries are undergoing digital transformation, and the energy industry is no exception – especially when it comes to the influx of DERs and renewables. Many of these assets can be connected to the grid by private, unaffiliated operators via the internet, presenting concerns about security and grid capacity. It is critically important to digitize the process of integrating these assets into grid networks – digitization is the best way to ensure this is done safely, securely, and efficiently.

Electrification
Electrification is the process of replacing fossil fuel-powered technologies and systems with those that use electricity instead. There is perhaps no better or clearer example of this than the rise of electric vehicles. Far from Tesla’s humble beginnings as the world’s sole electric vehicle manufacturer, virtually all automotive companies are preparing for a drastic shift toward electric vehicle production.

Public policy is paving the way – by 2030, the European Union has pledged to reduce net greenhouse gas emissions by 55%, while the United States is targeting a 50% electric vehicle target. By electrifying vehicles and other technologies that traditionally ran on fossil fuels, we will realize better air quality, reduced carbon emissions, new jobs, increased energy efficiency, and a variety of other benefits.

A variety of grid software solutions are available to help utility leaders and grid operators navigate the challenging energy transition.

Grid Orchestration
Once upon a time, the flow of power was unidirectional. Electrons flowed from the generators, across transmission lines, through the distribution lines, and to the edge where the electricity was consumed.

How times have changed. Now electrons flow in a variety of directions, thanks to the introduction of renewables like home solar panels, whose electricity can be sold to the power companies. Thousands of assets are unconnected to SCADA and can instead be connected via the internet. It’s become essential for grids to be managed proactively, prescriptively, and automatically.

Enter grid orchestration software. This software brings energy data, network modeling, and AI-driven analytics together across the grid to power composable applications, utilities, and partners that help utilities orchestrate an integrated, flexible, and secure sustainable energy grid. The best solutions are secure against external and internal threats, driven by data pulled from the grid itself, and intelligent enough to leverage AI and machine learning technologies. AI and machine learning are especially important as they help control-room operators manage the grid proactively.

Network Modeling
Think about all the components that make up an electrical grid. Starting at the generation end, you have massive wind and solar farms and power plants feeding transmission lines. Embedded in the grid are rooftop solar panels, electric vehicle charging, and battery storage. You have the transmission and distribution networks and their supporting infrastructure; transmission towers, distribution poles, streetlights and underground civils.

Network modeling, via geospatial modeling solutions, merges all these grid components into an essential single, enterprise-wide view of the electric grid. With this type of solution, it becomes possible to model the network and how it is connected - supporting the design, build and maintenance operations of a utility. With data quality rigor built into the system, the maintained digital model of the network is shared with the operational systems that manage the electrical grid minute by minute. The digital model feeds analysis tools that assess the essential maintenance and investment required to improve the resilience of the electric grid.

To meet the challenge of serving these fundamental needs, the best geospatial modeling solutions are highly scalable and able to incorporate data from both within the enterprise and essential third parties.

Advanced Distribution Management System
Utilities are facing higher grid reliability and resiliency risks due to the energy transition’s increasing renewables penetration and electrification. Both take a heavy toll on the grid and strain its capabilities to the max. Grid operators are increasingly turning to Advanced Distribution Management System (ADMS) to meet these challenges. ADMS works in two ways:

Distributed Energy Resources Management System
As previously mentioned, grid operators are facing rapid growth of DERs, each and every one of which must be connected to the grid. Tack on the added challenges of balancing network capacity, incorporating new and often intermittent electrical patterns from sources like solar, managing diverse stakeholders and navigating ever-changing regulations, and you’ve got one seriously complex grid! This raises the question: How can grid operators allow more DERs onto the grid, while keeping the lights on, for all at an affordable cost?

A Distributed Energy Resources Management System (DERMS) is an advanced software solution that helps improve grid reliability and resiliency and ensure regulatory compliance, while also enabling energy affordability and customer participation in grid modernization. The best DERMS solution features end-to-end software that allows utilities to integrate DERs safely and securely onto the grid. By using DERMS, grid operators can optimize DER performance, anticipate potential issues, and proactively respond to changing grid conditions, ultimately facilitating a seamless transition to a more sustainable and decentralized energy future.

Grid Analytics
One of the high growth grid software technologies, grid analytics serves a number of useful purposes in helping navigate the energy transition. One is increasing grid resilience against disruption events like storms, floods, wildfires, and the like.

Nothing drives down customer satisfaction quite like power outages. If only there were a way to predict troublesome disruptions before they occur, rather than scrambling to minimize the damage after it’s already been inflicted.

In this scenario, grid analytics draws on a variety of historical and in-the-moment data to predict the impact of disruptions – like storms, wildfires, heat waves, vegetation growth and more – and direct utility companies to prepare accordingly. The right solution can predict the impact of these disruptive events with remarkable accuracy and determine appropriate responses, such as mobilizing the correct amount of utility personnel or having the right amount of backup generators on standby. Grid analytics can make a world of difference within the energy transition, especially given the rather intermittent nature of renewables.

Grid Management
Grid management is often associated with the transmission network, specifically with power sourced from renewables like wind and solar power. It starts with a simple principle – that these sources of power are intermittent. In other words, the sun doesn’t always shine, and the wind doesn’t always blow – making it difficult at times to ensure a steady stream of electricity. That’s where grid management solutions like advanced energy management and renewables management software come into play. They help balance and stabilize the flow of electricity across the grid, drawing power from various sources to ensure a steady and reliable operation. They are especially handy when it comes to managing renewables at large scale – their technology enables the flow of energy, inertia, and more to be managed automatically and prescriptively.

Grid Complexity
The energy transition has created an immense amount of complexity for grid operators to navigate. The addition of thousands or even millions of new assets across the system has made it an immeasurable challenge to modernize the grid to accommodate these new assets while keeping electrons flowing. Luckily, grid orchestration software can cut through the complexity and orchestrate electrons across transmission, distribution, and the edge in an integrated manner versus being siloed. It also combines grid planning and operations with energy market management solutions to seamlessly manage the grid from an operational and an economical perspective to ensure that electrons are reaching consumers in a safe, reliable, and an affordable manner, and that utilities can unlock the economic value of DER and renewables flexibility.

Security Concerns
Any time a system changes, security becomes a concern. Thus is the case in the energy transition. The number of cyber-attacks on the grid is increasing greatly every year, and experts are highly concerned – especially since the threats come from both internal and external players. Once the system has been infiltrated, it’s rather easy for a hacker to shut down the grid entirely as a terroristic attack or else lock it down and hold it for ransom. Especially concerning is the increase in DERs connecting to the grid, many via the internet. This presents a potential security risk, as any cunning hacker can leverage the connection point to insert viruses or other malware into the grid network.

Luckily, the best grid software applications incorporate Zero Trust grid security principles. Zero Trust grid security principles require explicit verification, strictly limit user access, and always assume malintent, even when the evidence is minimal. In sum, as the name suggests, grid software with Zero Trust grid security principles trusts no-one, even registered users, in the name of security.

Lack of Talent
It’s no secret that utilities are struggling to find and attract talent in today’s uber-competitive job market. Add to that the fact that 50% of the current energy utilities workforce is expected to retire within the next 10 years. Utilities need a skilled, tech-savvy workforce to navigate the software-forward energy transition.

The technology itself can help. Utilities can attract talent by making smart investments in the latest software products for energy management and grid orchestration. The prospect of working with cutting edge technology that makes a difference in the world is an enticing one for potential workers.

Job Changes
The energy transition has made thousands of people wonder about the future of their jobs, especially leaders and operators of fossil fuel-powered grids. But what needs to be understood is that their jobs aren’t going away – they’re simply changing along with the energy source.

Grid software eases that transition by adding technology and automation to the equation, simplifying tasks that may have once been seen as tedious or challenging, like coordinating response crews in the wake of a storm, predicting electrical outages, and more. In another sense, grid software can help improve working relations that may have once been strained. Traditionally, for example, transmission and distribution teams were somewhat siloed, hyper focused on their own jurisdictions. The implementation of grid orchestration software, however, can help break down those silos and get the transmission and distribution teams working more collaboratively as they orchestrate the entire grid, not just one sector.