A new study from Juniper research has found that deployment of smart grids could save over $125 billion (£103bn) globally in 2027. This is a rise from just over 33bn USD (£27bn) in 2022, and the tech could greatly aid in the ongoing energy crisis. 

The growth is largely due to rising energy prices, and smart grids using AI technology will play a critical role in maximising network efficiency and optimising resource management. 

Smart grids use advanced technologies to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end users across their network. 

The research identified the abilities of AI-based analytics as crucial to increase benefits of new renewable energy sources by actively balancing load and optimising energy transmission. 

Environmental Sustainability

Efficient management of grids becomes more important as nations switch to renewable energy – renewables do not generate electricity continuously, according to the report, so need to be actively managed to effectively store and distribute energy. 

Smart grids claim to decarbonise the electricity grid by improving the amount and consistency of renewable energy provided to the energy network, which increases the overall capacity of renewables. 

By using data, the smart grids can maximise energy efficiency and identify patterns which lead to sustainable practices. 

Cost of Living Crisis

Smart grids can use their data to generate accurate billing for consumers, allowing them to identify their energy consumption patterns and cutting administrative costs. 

They also enable companies to offer dynamic pricing to consumers based on this collected data – businesses can offer discounted prices for houses that do not use high-powered devices during peak demand times, for instance. 

Meeting Energy Demands

The communication capabilities offered by smart grids enables them to avoid more power outages and meet increased energy demands by ensuring supply and demand are balanced. 

AI systems can measure and monitor the supply of smart meters and compare supply and demand, and encourage consumers to decrease their consumption for short periods so they can increase their energy storage. 

Data collected by smart grids allows energy companies to track and predict supply needs more accurately, making the company’s themselves more efficient. 

The Forecast

The study by Juniper predicted that smart grids will save billions, enable decarbonisation of electricity production, and decrease CO2 emissions. 

Smart grids should allow renewable sources like solar and wind power, to meet energy demand efficiently. 

The AI technology will enable this by predicting spikes in demand, allowing energy suppliers to actively mitigate these.

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It is predicted that the smart grid deployments can result in nearly 700 million MMT (million metric tonnes) reduction in carbon dioxide equivalent emissions globally in 2027. This will be vital in meeting the demands to mitigate climate change. 

To maximise this, smart grid vendors are advised to develop data engines which can analyse data from multiple sources including smart meters, network data, and weather forecasts, forming a holistic approach to energy efficiency. 

Research co-author Nick Maynard explained further: “By leveraging AI, electricity networks can ensure that spikes in demand are predicted and mitigated.

“Smart grid vendors must focus on enhancing their models to more accurately predict usage patterns to maximise these benefits.”

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