10 relevant smart grids terms
Top 10 most relevant terms in smart grids
Smart grids are electricity distribution networks combined with information technologies that provide data to both electricity distribution companies and consumers. These are the 10 most relevant terms to understand how they work and their importance in achieving the energy transition.
The electricity industry is moving more and more directly towards a transformation to a grid with technologies that enable greater consumer interaction. This is where smart grids become particularly important, representing a change in the business model and the relationships of all stakeholders, from utilities to the end consumer.
To find out more about this energy distribution system, we take a look at the 10 most important smart grid terms. From what exactly a smart meter is to how smart cities are organised.
Top 10 most relevant smart grids terms
Automation
Application of advanced technology and systems to efficiently manage and control electricity distribution. It allows utilities to monitor, coordinate and operate distributed devices in real time from a remote location. It gives the grid the ability to modify its topology, connecting and disconnecting networks and generation resources and flexibility to adapt to the needs of the grid at any given moment. It makes it possible to isolate areas affected by faults and automatically recover electricity service and improve its quality.
Telecommunications
The set of systems, electronic equipment and means of transmission that enable the exchange of information between distant locations. Telecommunications are essential to enable the efficient, safe and reliable functioning and operation of the electricity grid. They are also the basis for its transformation into a smart grid, and are an essential part of enabling customers to benefit from the new services and functionalities they provide.
Control Centre
Also known as Distribution Operation Centres (DOC), these are facilities where the distribution network is supervised, managed and operated. They are a key part of ensuring a reliable supply of electricity to homes, businesses and industry, acting as the brain of the grid. Operators in control centres use advanced monitoring and control systems to supervise the flow of electricity, respond to outages, and make adjustments to balance the load and maintain grid stability. They can also coordinate with power generation facilities and other entities to optimise electricity distribution.
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Smart Meter
Advanced electricity or gas meter. In addition to traditional metering and storage systems, it incorporates calculation systems, drive and control devices and telecommunication modules for the integration of data in a processing centre. Smart meters also allow the establishment of value-added services such as: remote reading, storage and retrieval of historical data, establishment and modification of tariff regimes and power limits at each consumption point, remote restoration and cut-off of the service, additional network quality services such as detection of variations in the nominal voltage of the network or automatic detection of service losses and customer information services on consumption in real time, allowing optimal use of energy.
Microgrids
A microgrid is a localised electricity generation and distribution system that can operate independently or connected to the main electricity grid. It typically consists of renewable energy sources, energy storage and management technology to supply electricity to a community or a group of buildings. Microgrids are flexible, can operate in emergency situations and can integrate sources such as solar panels, wind turbines and batteries to increase resilience and energy efficiency.
Smart cities
An urban area that uses technology and solutions to improve efficiency, sustainability and quality of life for its residents. These cities take advantage of various technologies, including the Internet of Things (IoT), artificial intelligence (AI) and the improvement of infrastructure, services and urban management in general. To this end, smart cities prioritise environmental sustainability by implementing smart grid-related technologies that improve energy efficiency and enable the reduction of carbon emissions by increasing the grid's capacity to integrate renewable energy.
Distributed Energy Resources (DER)
A set of elements geographically distributed throughout an area and connected to a distribution grid, intended for generation, storage and distribution on a small/medium scale. This definition includes all those small generation plants, self-consumption points with the capacity to discharge to the grid, small storage systems or even electric vehicles connected to the grid.
The proliferation of these elements and their integration into distribution grids in such a way as to provide integrated resource management is a challenge for grid operators, but at the same time a valuable resource that makes it possible to improve grid efficiency, increase grid resilience and implement flexible services.
Flexibility
Initiatives and elements that allow electricity grids to adapt dynamically to the conditions and needs of the electricity system, enabling efficient use of resources and maximising their capacity. Flexibility becomes more important with the proliferation of generation plants based on non-manageable resources (wind and solar) to the detriment of conventional generation plants (thermal, gas, nuclear, etc.).
Typical examples of flexibility are battery systems to keep electricity generation stable, storing the surplus in those time slots where renewable generation exceeds consumption and releasing it in time slots with higher consumption, limiting the use of more expensive generation technologies. Or the dynamic modification of the maximum load on distribution and transmission lines depending on environmental and surrounding conditions, maximising the use of resources while maintaining their safe operation through advanced monitoring systems.
Resilience
Ability to withstand and reduce the magnitude and/or duration of disruptive events by being able to anticipate, absorb, adapt and/or recover quickly from the effects of such events, and to implement improvements to dynamically transform or grow the organisation.
Achieving a resilient organisation requires the establishment of continuous improvement processes that minimise the likelihood of a disruptive event occurring and implement procedures so that responses to such events minimise or eliminate their effects on service continuity. This becomes even more crucial as the electricity infrastructure faces challenges such as climate change and the increasing interconnection of power systems.
Digital Customer Experience
Digital Customer Experience refers to the overall impression and interactions a customer has with a company or brand through digital channels and technologies. This experience has become increasingly important as more consumers rely on digital channels to obtain information, shop and communicate with companies. For this reason, the goal today with respect to Digital Customer Experience is to create positive, engaging and memorable interactions with customers in the digital realm, ultimately leading to customer satisfaction, loyalty and advocacy.