Electricity grids worldwide are undergoing a revolutionary transformation as smart grids become the cornerstone of modern power infrastructure. In response to the urgent need for resilient and efficient electrical grids, significant global investments are being made, with initiatives like the EU's $633 billion plan and the U.S.'s GRIP Programme taking center stage.

Smart grids are electric grids – a network of transmission lines, substations, and transformers – that use smart technologies, such as artificial intelligence (AI) and machine learning to address the shortcomings of outdated electricity grids built over a century ago. The expansion of smart grids aligns with the increasing integration of renewable energy sources, such as wind and solar, prompting suppliers to develop safer and more responsive grids capable of real-time demand monitoring.

One key advantage of smart grids is their ability to establish two-way communication between utilities and customers, allowing the grid to adapt to changing energy demands. This infrastructure optimizes the coordination among generators, grid operators, end-users, and electricity market stakeholders, resulting in more efficient, reliable, and environmentally friendly power distribution.

Not only do smart grids offer a range of benefits, but they are also becoming essential for delivering power in a world transitioning away from fossil fuels. As reliance on renewable energy increases, smart prediction technologies powered by AI play a crucial role in responding to energy fluctuations, ensuring uninterrupted power supply. Experts like Karen Panetta emphasize the necessity of AI to correlate trends and improve forecasting, highlighting the vast potential for smart grids in mitigating failures and redistributing energy efficiently.

The International Energy Agency (IEA) stresses the need for a significant increase in smart grid investments to achieve Net Zero Emissions by 2050, especially in emerging markets. Countries worldwide, including those in Europe, North America, and Asia, are already making substantial investments in smart grid initiatives, signaling a global commitment to a sustainable energy future.

Source: oilprice.com