Indeed, the story of the power industry is the story of modern civilization itself. While the core aspects of producing and delivering energy remain constant, the details around how these tasks are performed is constantly changing and adapting. As new technologies are introduced to alleviate challenges, new and different challenges are unveiled, which in turn spurs more technological innovation. This tool was created to familiarize users with the novel and emerging technologies available to address the challenges currently facing the power industry. To do so effectively however, it is worthwhile to discuss the most pressing challenges themselves. Some of these challenges are described below:
Grid Congestion
Grid congestion refers to the situation where the demand for energy exceeds the capacity of the transmission and distribution networks to deliver it from the most cost-effective point of generation to the point of use. This issue is often compounded by other issues such as rising peak demand and . Potential consequences include the increased risk of outages, loss of revenue for energy providers, and higher electricity costs for consumers.
Rising Peak Demand
Ongoing trends such as the increased use of consumer electronic devices, increased electrification, increased domestic manufacturing, the growing demand for data centers, demographic shifts, and the increasing prevalence of electric vehicles are all contributing to a trend of rising peak electricity demand. The consequences of rising peak demand can include increased wear on equipment, increased operational costs increased capital costs insufficient generation capacity, and lower reliability.
Intermittent Generation
Intermittent generation refers to the fact that, unlike conventional generators, wind and solar generators are not dispatchable. This fact complicates grid operations and often requires the dispatch of fast-responding gas-fired power plants to meet production shortfalls. Potential consequences of this intermittency can include grid instability and increased wear on other grid components, as well as exacerbating other challenges like congestion.
Aging Infrastructure
The challenge of aging infrastructure refers to the large portions of the nation’s electric grid that were built decades ago and are now in need of repair or replacement. The presence of this older equipment presents a growing challenge for things like . The potential consequences of utilities relying on aging infrastructure can include the increased likelihood of system outages, increased wild fire risks, , and general safety concerns.
Enhanced Outage Management
Enhanced outage management refers to the increasing need for novel outage detection, response, and restoration strategies. Responding to outages has always been a part of power system operations, but the increasing digitalization of society has made the consequences of prolonged outages more severe. Additionally, as inverter-based resources (IBRs) become a larger portion of the energy mix, much of the restoration capability provided by conventional generators is being lost, necessitating new techniques. Failing to sufficiently adapt to this growing challenge could lead to lost revenue, reputation damage, and increased safety risks.
DER Integration
DER integration refers to the challenges associated with incorporating distributed energy resources into the operations of the broader power grid. This issue is driven by the increased adoption of DERs by traditional energy consumers and third-party providers. Unlike conventional grid assets, most DERs are outside the direct control of grid operators and utilities, making their incorporation into grid operation strategies particularly difficult. Ineffective integration and coordination can lead to decreased grid stability, and safety concerns.
Reduced Grid Stability
Decreased grid stability refers to the growing challenges in maintaining consistent voltage magnitude and frequency within the power system. This issue is driven primarily by the retirement of conventional generators, increased penetration of inverter-based resources (IBRs), and the decentralization of power generation. Unlike conventional generators, IBRs and distributed energy resources (DERs) do not provide the same stabilizing effects, making it harder to ensure reliable operation. Ineffective management of grid stability can lead to fluctuations in power quality, increased risk of blackouts, and other operational challenges, equipment damage.
Cyber Threats
Cyber threats refers to the risks and vulnerabilities associated with the use of digital devices and communication technologies in power systems. This issue is driven by the increased reliance on third party software and services, targeted attacks on critical infrastructure, evolving regulatory requirements, . Ineffective management of cyber threats can lead to operational disruptions, data breaches, reputation damage, and regulatory penalties.