A greener future through convergence

valid but tough questions. For example, as renewable energy from wind and solar is weather dependent, will we be able to be permanently independent of coal, oil and natural gas? And with the shift to electric cars, will our energy system be able to handle the increased demand on the grid?

The answer? While clean energy technologies are evolving tenfold, much more flexibility will be necessary for these energy sources to provide the reliability we require. This includes investing in interconnected systems, having ample control over when and how we use energy, and – most importantly – safe, reliable and efficient energy storage.

Business benefit for energy storage

Today’s energy storage solutions provide business owners with the unique opportunity to not only invest in renewable energy projects, but to also benefit from their excess. The surplus energy that is generated from renewable sources, such as solar or wind, is stored and used later when they are no longer generating energy – further eliminating emissions from imported electricity. This excess energy can also then be sold back to the grid, giving businesses the chance to improve on their own return on investment, while lowering overall energy costs.

Investing in battery storage projects like microgrids also enables businesses to ensure reliable power continuity during grid outages – especially during peak times. This is particularly interesting for financial investors, as many see this as a way to play on the grid service markets.

There is no doubt that smart cities are the future – and many would even argue they are our present. But given their environmental impact, and their ability to put vast amounts of pressure on the grid, the way that they’re currently set up is simply unsustainable. The need for renewable energy sources has come to a head, and while many nations are taking the right steps forward, more needs to be done. A strong, efficient and sustainable future depends on the creation of smart technologies to provide flexibility – and energy storage is just the first step. Because without sustainability, the smart cities we envision are likely to remain closer to fiction than reality.

Seydou Kane, managing director, Eaton Africa

One of the biggest energy challenges going forward is to make electricity efficient and visible – an evolutionary process that Schneider Electric calls Electricity 4.0.

“The world’s energy demand continues to be met by fossil fuels that are distributed by systems that are passive and outdated,” says Taru Madangombe, vice president: Power Systems, Schneider Electric.

“This means that we need to upgrade each stage of the value chain – from generation with cleaner energy production, to distribution that includes microgrids closer to the point consumption, and energy usage that incorporates metering and smart technology,” he continues. “When we then bring Electricity 4.0 into the equation, we start making real strides.”

As Madangombe points out, electricity is the most efficient energy (proven to be three to five times more efficient than other sources) and it is also the best vector for decarbonisation. It offers near 100% maximum thermal efficiency when it comes to ‘useful energy’.

“Also, while electricity demand is projected to double by 2040, six times more electricity will also come from renewables, which translates into a massive jump from 6% to 40% in the next 20 years,” he explains.

The convergence

At its core, Electricity 4.0 represents the convergence of electricity and digital. An important benefit is the establishment of smart energy measurement and waste reduction.

The technology already exists to digitalise electrical distribution, making it visible to grid operators, and providing insights into how it’s used. “When you then add smart devices, apps, analytics and software, we can then deploy energy more efficiently, which results in massive savings,” adds Madangombe.

“Ultimately, Electricity 4.0 allows us to become more efficient and to transmit electricity with less loss and waste. However, for us to gain the most from Electricity 4.0, we must upgrade our transmission grid. This will entail substantial commitment and investment, which can only be achieved through public-private partnership,” Madangombe concludes.

Taru Madangombe, vice president: Power Systems, Schneider Electric