How IoT Enables the Smart Grid: Applications

The data collected by IoT devices is essential for enabling informed decision-making through Big Data and Artificial Intelligence within the Smart Grid. Smart meters and sensors transmit real-time usage data to energy companies, providing DSOs and customers with more accurate and detailed information.

IoT technology is a crucial tool for shaping the future of the Smart Grid. The connectivity of these devices facilitates improved communication between parties involved in energy distribution and streamlines the integration of prosumers into the system.

Summarizing:

• IoT devices play a vital role in the operation of Smart Grids by enabling real-time data collection and analysis, enhancing communication, facilitating the integration of prosumers, and improving decision-making through the use of Big Data and AI.

• This technology streamlines the integration of renewable energy generation by providing real-time information on energy production, automating management processes, and enabling better operational control and cost reduction. 

• The value of IoT technology is projected to reach $238 billion by 2023 and $483 billion by 2027. 

• Smart meters and sensors facilitate the exchange of real-time information on energy consumption and renewable energy production, improving energy demand management and billing accuracy.
  
  
  

What’s IoT?

IoT (Internet of Things) refers to the network of physical objects embedded with sensors, software, and other technologies that enable them to connect and exchange data with other devices and systems over the internet. These objects can range from common household items to sophisticated industrial tools.

The connectivity of IoT devices is often leveraged to enhance efficiency and automate operations, benefits that the Smart Grid is capitalizing on to create a digitized system in which information flows in real-time. Usage and condition data can be shared across the value chain, enabling informed decision-making.

According to IoT Analytics’ Global IoT Enterprise Spending Dashboard, the value of this technology is estimated to reach $238 billion by 2023. The same report projects that this figure will rise to $483 billion by 2027, at a CAGR of 22%.

Globally, IoT is expected to unlock new revenue streams, hence the positive value projection for this technology. It is currently being applied in diverse industries such as automotive, home automation, edge computing, and manufacturing.

IoT in the Smart Grid

IoT technology is utilized within the Smart Grid to connect electrical devices, such as smart meters, thermostats, and solar panels, through a communications network. These devices can exchange real-time information on energy consumption, renewable energy production, and the status of the power grid.

Another advantage of IoT devices is their ability to improve the security and reliability of the power supply. They enable continuous monitoring of the Smart Grid, facilitating early detection of problems and rapid response to failures and supply interruptions.

Smart meters provide real-time information on the energy consumption of homes and businesses. This allows for more accurate billing and improved energy demand management by more effectively balancing energy demand and production.

The main benefits that IoT devices bring to the Smart Grid include:

• Enhanced Operational Efficiency. IoT technology can reduce downtime and improve cost-effectiveness by automatically scheduling maintenance based on real-time equipment wear data. Additionally, devices that monitor raw material levels can automatically reorder supplies when they reach a predetermined threshold.

• Increased Workplace Safety. The use of smart devices to automate maintenance scheduling can minimize workplace injuries and improve a company’s compliance ratings. Furthermore, the reduction of human error in critical operations through the use of IoT technology can further enhance workplace safety.

• Optimal Resource Utilization. It facilitates the automation of resource usage, leading to reductions in resource consumption. This cost-effective solution can be implemented using simple motion detection devices.

• Dynamic Price Adjustment. By monitoring real-time data on demand and consumption, DSOs can offer more realistic prices, increasing transparency with their users and providing more accurate tariffs.

However, with current technology, this information is only received every 24 hours. But the more accurate and up-to-date the data, the better. Therefore, work is underway to develop new models such as BPLC. A system that adds 100Mbps to the cable to receive real-time information from the meters.

The role of smart meters

A defining characteristic of the Smart Grid is the continuous generation of data from various sources and of different types. A significant portion of this responsibility falls on smart meters, devices that enable both DSOs and consumers to have complete control over their energy supply, beyond simply visualizing consumption data. Smart meters also facilitate the efficient location of faults, minimizing user disconnection times.

Smart meters streamline operations and processes within the Smart Grid. These devices enable remote registration, disconnection, power control, and tariff changes without the need for in-person operator intervention. The readings taken by smart meters are transmitted to a Service Center, where they are analyzed for various purposes. 

The future of these devices lies in facilitating real-time process automation through recorded insights. Although technically feasible, there is still a long way to go before this type of device is widely implemented. And this is where systems such as the BPLC, mentioned above, come into play. 

How IoT Devices Ease the Integration of Renewable Generation?

In addition to its digitalization, another key characteristic that differentiates the Smart Grid from traditional power systems is the presence of prosumers. These users are not only energy consumers but also generators, typically through the generation of solar energy in their homes or facilities.

IoT devices can enhance the performance of this equipment by maximizing its efficiency through standardized networks and protocols and providing real-time information on energy production from solar panels, wind turbines, and other equipment. Additionally, their ability to connect remotely enables the monitoring of assets and the resolution of potential problems in energy generation.

Smart meters are one of the IoT devices that most facilitate this purpose. Users who generate their own energy can choose to connect or disconnect from the grid depending on factors such as energy price, weather conditions, or the amount of energy stored in their batteries.

For large prosumers, sensor-based IoT technology can also help automate the management of wind and solar farms, enabling better operational control and reducing operating costs. Companies can connect all their renewable energy equipment into a single system and manage it efficiently through real-time dashboards and controls.

IoT and EV deployment

The development of a fleet of electric vehicles powered by the Smart Grid is another key component in the transition toward decarbonization. In this scenario, IoT devices play a crucial role in identifying and coordinating efficient charging strategies.

Meters in EVs collect information on the state of charge of their batteries and their location. By maintaining a permanent connection, drivers can connect to planned charging points along their route and receive recommendations for refueling based on variables such as expected occupancy or vehicle location.

This improvement in the efficiency of charging points is a boost for the EV sector in Europe. However, according to a 2021 study conducted by Arthur D. Little, Ericsson, and Blue Corner, most charging points in Europe and the United States are not yet connected to the grid, indicating significant room for improvement in this area.

The same report highlights how IoT technology can help alleviate one of the major pain points for EV drivers. By enabling easier visualization of the location and status of charging points, it reduces the stress that many drivers feel due to the limited range of these vehicles.

As with power distribution and generation, remote monitoring is another advantage of IoT devices in the EV industry. Both charging stations and vehicles can receive real-time assistance without the need for physical operator presence. This enables corrective and predictive maintenance operations to enter a new dimension.

Beyond Monitoring

The continuous internet connectivity of IoT devices enables real-time data exchange within the Smart Grid, facilitating informed decision-making through the use of Big Data and Artificial Intelligence. This technology enhances operational efficiency, improves workplace safety, optimizes resource utilization, and enables dynamic price adjustment.

Smart meters and other IoT devices not only provide real-time consumption data but also have a far-reaching impact. For example, the role of IoT in EV development is crucial, enabling drivers to improve their charging strategies and optimize the use of their vehicles.