Shorter lifecycles
Smart infrastructure adapts to meet trends in demand and keep up with technological advances. This level of flexibility means that its development/deployment cycles are significantly shortened, and the assets used in smart infrastructures must be replaced more quickly than the assets previously used by utilities.
Advanced metering infrastructures, for example, have been in place for over a decade and a new generation of smart meters is emerging. California and the Nordics, who deployed their first smart meters in 2010, have already begun to update their smart metering systems.
Ecosystems can be built around the grid. This includes smart substations and new software, like distributed energy resource management systems (DERMS), that address renewable energy and allow interaction with aggregators and virtual power plant suppliers.
Besides improving the efficiency of predictive maintenance, optimizing assets is crucial, as they now consist of software, as well as copper.
Distribution grids will become fully distributed eventually, and ubiquitous telecommunication technology (UTT) must decide whether to add more power lines or adopt a more agile – and innovative – approach to managing the current grid, to avoid installing more copper in the field.
Smart infrastructure – and its use of real-time data – allows utilities to improve their distribution grids through strategic planning, which includes risk management, particularly for new hazards stemming from climate change, such as wildfires and flooding.
In the event of a natural disaster, it is crucial to determine how energy can still be distributed to the location where it previously flowed.
This illustrates how asset management has evolved from simply purchasing and installing transformers to addressing a broader range of considerations.
Utilities operate under the supervision of regulators who define the direction in which energy providers must proceed. In order for utilities to continue to evolve, regulatory bodies should also adapt their regulations to fit changes within the energy sector.
The distribution system operator (DSO) market currently focuses on hardware assets. The recognition of software as a valuable asset in the DSO market is needed to ensure a smooth transition to widespread smart infrastructure for utilities – and increased sustainability.
Furthermore, transmission and distribution (T&D) operators need more room to innovate. To achieve this, the energy market structure must be modernized to allow for greater aggregation and flexibility.
In addition, the boundary between transmission system operators (TSOs) and DSOs should be reviewed, with both entities taking responsibility for demand/response forecasting and supervision.
To support these changes, T&D operators must be responsible for capacity markets and new services, including demand response, storage, and capacity management, on top of their traditional roles in energy transmission and distribution.
