Smart Grid drivers

In alphabetical order

Aging infrastructures

Large parts of the existing infrastructure dates back to the 1960s or even earlier and is reaching the end of its useful life. Equipment is under extreme stress during peak demand.

Integrating intermittent energy sources

Intermittent energy sources such as wind and solar will put additional strains on existing grids. Their intermittence must be counter-balanced with more intelligence in the Grid, base load power generation (hydro, nuclear) and storage.

Lower energy prices

Regulators are pushing for more competition to lower energy prices. Utilities need to add information and communication techniques to maintain profitability and retain the ability to invest in infrastructure.

Security of supply and increase in energy needs

Efficient and reliable transmission and distribution of electricity is fundamental to maintain functioning economies and societies. Electricity demand is steadily increasing.

Sustainability

Public interest groups are putting pressure on politicians to reduce CO2 emissions through the adoption of alternative energy sources and put in place regulations to increase energy efficiency.

Utilities need to address the following challenges

High power system loading
Increasing distance between generation and consumption
Fluctuating energy availability of renewables
Additional and new consumption models (electric car, smart buildings)
Central power generation in parallel to large numbers of small, decentralized (distributed) generation
Increasing cost and regulatory pressures
Utility unbundling
Increased energy trading
Transparent consumption & pricing for the consumer

The priority of local drivers and challenges might differ from place to place.

International

Electrotechnical

Commission

Smart Grid

Optimal electricity delivery