Electricity is the foundation for modern societies. It keeps the lights on, powers computer systems, and heats and cools homes and businesses. Many grids are in an early stage of development or in need of an upgrade, so utilities are making signicant investments in them.
In established countries, like the US, much of the infrastructure is decades old and in need of modernization. Developing countries need to put the basic infrastructure in place. Consequently, the Global Smart Grid Communications market reached $37.89 billion in 2021 and is projected to ise to $104.90 billion in 2027, a Compound Annual Growth Rate (CAGR) of 18.49%, according to MarketWatch.
The choices for investments are many:
- Customer systems enable smart grid functions in buildings, facilities, and appliances and equipment by adding smart grid functions to equipment and implementing customer-facing software applications.
- Advanced Metering Infrastructure (AMI) smart meters provide two-way communications networks and data management systems. These information exchanges create a range of new customer applications, such as time-based rate programs, demand response programs, and web portals with near-real-time customer energy usage information.
- Electric distribution systems add smart grid functionality to equipment, like substations, transformer banks, feeder lines, and pole-top transformers.
- The electric transmission systems in projects add smart grid functionality to devices, like phasor measurement units, phasor data concentrators, and visualization tools
- Finally, renewable energy has been gaining interest and needs to be integrated into the grid.
Utilities rely on their grids to deliver energy to customers. These networks are in need of new investments, and energy companies have been focusing on a handful of areas to bring their infrastructure to where it needs to be.