How a Smart Grid Works

By introducing sensors in our homes and places of work – known as smart meters – utility companies receive real-time data about energy use to better prepare and model future demand. As sensors become cheaper and the Internet of Things (IoT) becomes widespread, utilities are adding more sophisticated technologies to the power grid – known as a smart grid.

Smart grids help reduce power failures, reroute electricity and avoid overloaded transformers and powerlines. They also help to reduce climate change by allowing renewable energy sources to be introduced into the grid. Historically, the intermittent electricity produced by wind and solar farms was very difficult to implement as its output was difficult to judge. However, thanks to advances in energy storage solutions, electricity can be stored and fed into the grid as and when it’s needed, such as using battery storage units.

Below you can see how electricity networks are now running parallel to virtual data networks, enabling optimal management of the power system.

Read our related blog post on ‘Smart Grids: How energy is becoming more intelligent. Spencer Thompson, Business Development Director at VINCI Energies, discusses how smart grids are providing the solution…’

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