The electric grid faces many challenges as renewables and other technologies transform energy generation, distribution and consumption. The growth of electric vehicles (EVs), for example, raises many questions about the grid’s capacity to absorb charging needs.
Smart grid technology will help the grid meet some of these challenges, and in many cases, the adoption of new technology is propelling growth in smart grid technology, too.
Vision Research Reports’ “Smart Grid Market: Global Market Size, Trends, Analysis, Segment Forecast, Regional Position, 2020–2027” observes that the global smart grid market is poised for growth.
The study identifies several factors that are fueling demand for smart grid solutions, such as growing concerns regarding the reduction of carbon emissions and an increased demand for energy efficiency. Supportive government policies and regulations to use smart meters also contribute to growth, as well as a rise in investments in digital electricity infrastructure. Finally, the growing number of EVs on the road also creates new opportunities for market growth.
Rural Electric Magazine, a publication of the National Rural Electric Cooperative Association, Arlington, Va., notes that EVs have a unique relationship with the grid, one that poses challenges and opportunities. While EVs can serve as a source of storage, feeding power back into the grid, they also present planning challenges for utilities whose traditional schedules and infrastructure will be tested by the charging cycles of EVs.
Smart grid technology can help utilities and consumers address some of these issues by providing insight and control.
The Vision Research report notes that the global smart grid market size was worth $67.23 billion in 2018, and projects the market to reach $170.23 billion by 2026, growing at a CAGR of 12.8% from 2021 to 2026.