By Jake Saunders | 30 Nov 2021 | IN-6349
5G can help support a versatile and reliable smart grid communications infrastructure.
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Energy Resource Management Becoming More Complex |
NEWS |
Previously, ABI Research has highlighted growing interested in smart grids (IN-6336) and the role they can play to make a country’s energy supply more streamlined, flexible, and responsive to a more complex mix of energy sources. The electrical grid may have to load balance between renewables, such as wind, solar, and/or tidal, and baseline energy supplies, such as nuclear gas or oil. That flexibility will be necessary as end users migrate away from diesel/petrol engine vehicles to electric vehicles, demanding the management of electrical power to be dynamically responsive.
How 5G can Benefit Smart Grids |
IMPACT |
5G can help support a versatile and reliable smart grid communications infrastructure. Smart grid communication links need to:
Differentiated 5G Deterministic Network
Smart grids, however, do raise the bar for connectivity within the electrical infrastructure domain. Key requirements include:
Partitioning and Authentication
Critical infrastructure has to be protected from malware and security threats. 5G can support additional vertical and horizontal layers:
Electrical Power Suppliers Require Self Determination
Smart grids are therefore inherently complex network architectures that require considerable control over the communications layers. To achieve this, Electrical Power Suppliers require End to End (E2E) network slicing and dedicated edge computing:
Investment in Smart Grid Digitalization is Picking up |
RECOMMENDATIONS |
The International Energy Agency (IEA) reports that while there has been gradual year over year contraction in overall energy infrastructure spending, energy grids have become more decentralized and digitalized. The latest reported yearly data, 2019, showed a 7% reduction to US$271 billion. However, smart grid infrastructure spend has stayed constant at around US$20 billion from 2017 to 2019. Crucially, the digitalization share of the energy supply has been growing from 11% in 2015 to 17% in 2019. This investment profile is telling. Overall investment in the energy infrastructure is constrained by government regulatory limits and the current uncertain economic and COVID-19 influenced climate. Governments, energy suppliers, and planners will need to ensure the much-needed investment is prudently spent and current, and just as important, that future energy sources are effectively managed. 5G-enabled smart grids can play a vital role in this process.
5G has several technical features that can not only connect and monitor electrical equipment but also provide latency, high reliability, and secure communications. Investment in smart grids is not just taking place in Asia but also in Europe and in North America. ABI Research anticipates these 5G-enabled investments in smart grids will accelerate.