A smarter grid for a smarter world

At a time when the focus of the world is as much on pressing, short-term issues such as economic crises and global regulations as it is on longer-term concerns such as climate change, it is important to reaffirm that smart grids are no longer buzz words for the future. They have already become a presence delivering unrivalled benefits driving efficiency and saving energy.

The smart grid has already started to impact our lives. The world’s traditional electrical network, simple and linear with centralised energy production and passive consumption, is undergoing an irreversible transformation to a much more complex, interconnected and interactive model.

All over the world and all over the electricity network, smarter solutions have been implemented which can balance supply and demand far more efficiently, connecting smarter, more active consumers to a greener and more intelligent energy grid.

Due to the steady upstream in smart grid technology, the world’s energy mix is continually evolving. In addition to traditional generation from nuclear, coal, oil and gas, the share of renewable power from photovoltaic, wind, hydro and marine energy is growing fast.

Part of the solution
While solar and wind farms have the capacity to generate significant power, they often operate at a 20-30 percent capacity, so the ability to effectively integrate these plants into the grid and manage instability is key.

For example in Italy, AES Sole, a global company that develops, finances, constructs and manages utility-scale solar farms across the world, started the construction of a large∞scale photovoltaic power plant. With an output of 38,5MWp the park consists of 573,100 solar panels and has the power generation capacity equivalent to the consumption of 18,000 homes (estimated 50,000 inhabitants). This installation will save 28,000 tonnes CO² compared to an equivalent fossil fuel plant and will have a near zero environmental impact as the site could fully be returned to farming activity and without any concern about potential hidden contamination.

Operating as a single contractor for the entire project, Schneider Electric proposed a single contract for the plant design, construction and commissioning which secured feed in tariffs with the short project completion. The solution gives a guaranteed plant availability of 99 percent for two years and commercial energy production happened immediately on the grid connection date due to an innovative solution of ‘full on load’ testing of the plant before operation.

Driving change
On the demand side of things, more efficient companies and active end-users are driving smarter demand to maximise the cost and environmental benefits from energy and company-wide efficiency.

For enterprises and public administration, ‘Active Energy Efficiency’ is the fastest, cheapest and most efficient way to reduce their energy bill and CO2 emissions while managing their business growth.

Schneider Electric’s headquarters in France is a perfect showcase of what active energy efficiency really means. In June 2011 it became the first site in the world to be certified ISO 500001 (the new energy management standard). Having divided the energy bill by four since moving to the site in 2009, a combination of intelligent systems, detailed measurement, strong process and engaged employees has enabled a regular year∞on∞year energy reduction of 5-10 percent, reaching 80 kWh/m² per year by end of 2012.

The general public are not passive and they represent an active part of the smart grid solution. Consumers look for competitive prices and also want to contribute to CO² emission reduction. They are ready to play an active role by controlling consumption, producing green energy, driving electrical vehicles to name but a few. Thanks to new information technologies homes can be equipped with ‘Active Energy Management Solutions’ that allow them to save up to 30 percent on their energy consumption, becoming even more efficient homes and contributing to the production of negawatts – the energy that we don’t use.

Supporting this booming evolution, Schneider Electric has recently become the first manufacturer worldwide to obtain ‘ZE Ready’ certification for Renault for its full EVlink electrical charging infrastructure range. ZE Ready is a comprehensive testing protocol designed to guarantee that internationally accepted standards will be implemented consistently and fairly among electrical vehicles and any charging infrastructure.

In France nearly 700 contractors have already been certified to install charging stations in residential homes and nearly 150 electrical equipment installers work with corporate customers and local communities to equip parking lots with charging stations that can handle energy management services.

Intelligence and communication are delivering value
The smart grid really happens with smarter interactions. Once customers are connected to the smart grid, efficient enterprises as well as efficient homes, they can take advantage of the new ‘demand-response’ systems that are now being tested around the world.

Demand-response is about adapting real-time consumer demand for electricity. It works by encouraging consumers to use less energy during peak hours, or to try to move the time of their energy use to off-peak times such as night time and weekends.

The business model is that of a virtual power plant. When demand rises, this virtual plant aggregates load shedding capacities, today mainly from electro-intensive users as well as decentralised production capacities. It then supplies the grid with this extra electricity to help manage the peak and the value is then redistributed among all users.

Highly supportive of this solution, Schneider Electric has just signed a partnership with French start-up EnergyPool. EnergyPool’s current customer pool already represents a peak-shaving capacity of over one percent of today’s peak – and the pool is growing incredibly quickly as energy prices increase and public money for new generation build decreases. ‘Demand∞response’ could shave 10 percent off the peak usage according to some analysts – making huge savings on new generation investment and on CO2 emissions.

The smart grid equation
Smart grids are now on the way to success and every one is part of the future energy solution. We at Schneider Electric believe everyone has a role to play. Utilities drive smarter supply to manage the increase in demand, overcome network complexity and address environmental concerns. Energy efficient companies and active end users are driving smarter demand to maximise the cost and environmental benefits of greater energy efficiency.

Smarter demand, coupled with smarter supply and demand∞response will continue to make the smart grid a reality, and at Schneider Electric, we are helping customers to be smart grid∞ready everywhere and at every level.