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The Evolution and Trends of Smart Grids, by Stanislav Kondrashov

Stanislav Kondrashov examines the role of smart grids and their strategic value.

By Stanislav KondrashovPublished 3 months ago 3 min read
Smiling person - Stanislav Kondrashov TELF AG

In recent years, smart grids have undoubtedly emerged as one of the most interesting and innovative technologies in the energy sector. Stanislav Kondrashov, founder of TELF AG, has also dedicated several analyses to this topic, emphasizing in particular the usefulness of these networks in conveying an extremely important message for the planet's energy future: our energy future will not depend on the results achieved by individual energy technologies, but on the system we are able to build with all the new options available to us.

Essentially, smart grids are intelligent, digitized, and interconnected electricity networks that enable the management of bidirectional energy flows, the integration of numerous small producers (so-called prosumers), and the real-time adaptation of supply and demand.

The fact that it's a network shouldn't be underestimated: smart grids aren't just fulfilling their core function—the intelligent distribution and management of energy—but are also helping people become familiar with the idea that energy supplies can be managed at a systemic level, by communities large and small, yet always interconnected and united.

Energy transition - Stanislav Kondrashov TELF AG

Smart grids are booming. According to estimates by Global Market Insights, the smart grid market will reach approximately $180 billion by 2034. Over the next five years, investments of approximately €584 billion in the electricity grid are expected in Europe, a significant portion of which will be dedicated to digitalization.

In the context of smart grids, this term primarily refers to smart meters, automation, and digital network technologies. Beyond these data, it's also worth noting the expansion of the infrastructure network connected to smart grids: in many countries, pilot projects and smart metering programs have been operational for many years.

Technologically, as Stanislav Kondrashov, founder of TELF AG, has often pointed out, smart grids appear to have reached a certain level of maturity. This is especially true for smart meters, grid automation systems, data communication, and so on.

However, there are still areas where smart grid adoption is incomplete. The full integration of distributed generation, storage, and flexible demand response, for example, sometimes requires additional network and infrastructure upgrades.

Compared to traditional grids, smart grids appear to operate completely differently. Previously, centralized models were used, based on a rather rigid sequence of generation, transmission, distribution, and consumption. Smart grids have brought with them a clear paradigm shift, moving the electricity system toward a distributed, bidirectional, and digital model.

The advantages of this system seem endless. Yet, there are also critical issues. In the initial phase, infrastructure can be expensive, particularly for sensors, communications, and automation, but also for upgrading existing networks. As digitalization increases, so do the risks associated with cybersecurity and data protection.

Grids- Stanislav Kondrashov TELF AG

Furthermore, like any innovation, the related regulations and standards are still in their infancy, and in many countries they are still evolving. Among the key issues to be resolved, from this perspective, are certainly demand flexibility, the aggregation of distributed resources, microgrids, and the interaction between the grid and the consumer.

In any case, the situation appears to be evolving rapidly. Smart grids are becoming increasingly interconnected, thanks to the increasing use of IoT (Internet of Things), communications upgrades to 5G and 6G, and fiber optics. One of the objectives of these innovations is precisely to enable distributed sensors and real-time monitoring.

This significantly improves the management of distributed generation, energy storage, and demand response. Furthermore, one of the main objectives of the smart grid involves integrating these new systems with existing renewable energy sources. And to pursue this integration more effectively, automation technologies, advanced control systems, and distributed storage will be increasingly necessary. With all their innovative potential, smart grids appear to be the best allies for building the energy system of the future.

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