The power industry is large and complex with a long history dating back to the beginning of the industrial revolution. 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, advanced, 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 situations when the demand for energy exceeds the capacity of the transmission and distribution networks to deliver it safely and reliably from the most cost-effective points of generation to the points of use. This challenge is often exacerbated by other issues such as rising peak demand, intermittent generation, and aging infrastructure. Potential consequences include the increased risk of outages and higher electricity costs for consumers.
Rapid Load Growth
Ongoing trends such as the increased use of consumer electronic devices, greater electrification across multiple sectors, reshoring manufacturing, and the growing demand for data centers are all contributing to rapid load growth and more complex system dynamics. Potential consequences include increased wear on grid equipment, higher operational costs, required grid upgrades, resource adequacy challenges, and lower reliability.
Aging Infrastructure
Large portions of the nation’s electric grid were built decades ago and are now in need of repair or replacement. This older equipment is more vulnerable to extreme weather event and presents challenges for the integration of inverter-based resources (IBR), distributed energy resources (DERs), advanced controls, and other innovations, that are not readily compatible with legacy technologies and systems. Potential consequences include increased likelihood of system outages, component misoperation, heightened wildfire risks, greater maintenance costs, and general safety concerns.
Outage Management
Responding to outages and restoring power has always been a part of utility operations, but the increasing digitalization of society has made the consequences of prolonged outages more severe. Additionally, the changing generation mix is challenging the availability of restoration capabilities and established techniques. Novel outage management technologies and strategies are needed to rapidly detect events, assess the situation, respond appropriately, and restore power. Failing to sufficiently adapt and meet greater demands for resilience could lead to lost revenue, reputation damage, and increased safety risks.
Coordinating Distributed Energy Resources (DERs)
Increased adoption of DERs at consumers premises and greater deployments from third-party providers present challenges with operating the broader power grid. Unlike conventional grid assets, most DERs are outside the direct monitoring and control of grid operators and utilities, making effective coordination vital to system reliability. Ineffective integration and coordination can lead to voltage violations, decreased grid stability, and safety concerns.
Reduced Grid Stability
Reduced grid stability refers to the growing challenge with maintaining power system voltage and frequency within established limits under normal and abnormal conditions. This issue is driven primarily by the retirement of conventional generators, increased penetration of IBRs, and the decentralization of power generation. Unlike conventional generators with large spinning masses, conventional IBRs and 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, equipment damage, and other operational challenges.
Increasing Cyberthreats
Cyberthreats refer to the risks and vulnerabilities associated with the use of digital devices, software, and communication technologies in power system operations. This challenge is driven by utilities’ increased reliance on these technologies, third party software and services, foreign supply chains, targeted attacks on critical infrastructure, and evolving regulatory requirements. Ineffective management of cyber threats can lead to operational disruptions, data breaches, reputation damage, and regulatory penalties.