Unlocking the path toward a sustainable energy future

Grid flexibility measures and distributed energy resources are key elements for creating a more sustainable and reliable energy system, writes Paul Budde.

MY EARLIER two articles (here and here) on the symbiosis between energy and I.T. (telecoms, AI, data centres) triggered a discussion with my American colleagues on grid flexibility and distributed energy resources (DERs).

They mentioned the interesting developments in the USA shaped by ambitious net zero goals set at the state levels and an unprecedented US$40 billion (AU$ 59.6 billion) set aside by the Federal Government for investments in clean energy. In 2022, electric power generation from all types of renewables accounted for nearly one-quarter of total generation in the USA.

As indicated in those previous articles, the landscape of energy generation and distribution is undergoing a profound transformation, driven by the enormous growth in the demand for energy and the urgent need to reduce greenhouse gas emissions, enhance energy efficiency and transition toward renewable energy sources.

Two key concepts at the forefront of this transformation are grid flexibility and DERs. These concepts play a pivotal role in modernising our energy systems and paving the way for a sustainable and resilient energy future. The key to achieving this relies on the use of smart technologies.

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Grid flexibility: Adapting to a changing energy landscape

Grid flexibility refers to the ability of an electricity grid to dynamically respond to changes in both energy supply and demand while maintaining stability and reliability. In an era marked by the growing integration of variable renewable energy sources like wind and solar power, grid flexibility has become paramount.

Here are some key elements of grid flexibility:

Demand response: Grid operators have adopted demand response strategies that incentivise consumers to adjust their electricity consumption during peak periods or in response to fluctuations in energy supply. This approach helps balance supply and demand, mitigates the need for additional generation capacity and prevents grid overloads.
Energy storage: Advanced energy storage technologies, including batteries, pumped hydro storage and compressed air energy storage, allow excess energy to be stored during low-demand periods and released when demand surges. These technologies are instrumental in enhancing grid flexibility.
Smart grids: Smart grids leverage cutting-edge digital technologies to monitor, control and optimise the flow of electricity across the grid. Real-time communication between grid components facilitates efficient grid management.
Grid interconnection: Interconnecting different grid regions or even countries enables the sharing of energy resources and enhances grid stability during periods of high demand or supply variability.
Microgrids: Microgrids represent localised and smaller-scale grids that can operate autonomously or in conjunction with the main grid. They enhance grid resilience and can provide localised flexibility.
Advanced forecasting: Accurate weather and energy demand forecasting are pivotal for anticipating grid conditions and making timely adjustments to optimise grid operations.

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Distributed energy resources: Decentralising energy generation

DERs encompass a wide array of decentralised energy generation and storage systems located in close proximity to the point of energy consumption.

DERs represent a diverse set of technologies and solutions that contribute to a more sustainable energy ecosystem:

Renewable energy: DERs like solar panels and wind turbines generate electricity from renewable sources, reducing greenhouse gas emissions and offering a sustainable energy supply.
Energy storage: Batteries play a critical role in DERs, enabling the storage of surplus energy generated during periods of low demand or from intermittent renewable sources for later use.
Combined heat and power (CHP): CHP systems, also known as cogeneration, produce both electricity and useful heat from a single energy source, typically natural gas. They enhance overall energy efficiency.
Electric vehicles (EVs): Electric vehicles, when equipped with bidirectional charging capabilities, can function as DERs by discharging stored energy back into the grid during peak demand, thus providing grid support.
Demand-side management: DERs also include technologies focused on better managing energy demand, such as smart thermostats, energy-efficient appliances and home energy management systems.
Grid support: DERs can be harnessed to provide essential grid support functions, including voltage regulation, frequency control and grid resilience, especially when integrated into microgrids or aggregated to provide grid services.

Incorporating grid flexibility measures and deploying distributed energy resources are critical steps in creating a more resilient, sustainable and reliable energy system. These initiatives support the transition to cleaner energy sources, reduce the environmental impact of energy generation and consumption, and contribute to energy independence and greater energy security.

As our energy landscape continues to evolve, grid flexibility and DERs will remain essential building blocks for a brighter, more sustainable energy future.

Paul Budde is an Independent Australia columnist and managing director of Paul Budde Consulting, an independent telecommunications research and consultancy organisation. You can follow Paul on Twitter @PaulBudde.