As more renewables enter the grid, utilities providers are struggling to balance supply and demand and maintain the resilience of aging infrastructure. Here we outline two breakthrough technologies that can help.

The energy transition is on. Almost a third (29 percent) of the world’s energy supply already comes from renewable sources such as wind, solar and hydro1. By 2026 this figure will likely be equivalent to today’s fossil fuel and nuclear energy capacity combined2.

However, along with this positive decarbonization trajectory come challenges around balancing the new power mix on an aged and under pressure grid. Historically, the grid was designed to deal with a steady, reliable supply of energy under the basic assumption that the amount of electricity fed into the grid is always equal to the amount of electricity consumed. But weather-dependent renewable energy sources like solar and wind do not operate like that. They are incredibly difficult to predict and add a new layer of complexity to power generation and distribution.

For example, if there is too much electricity - say on a very sunny day - and low demand, the electrical frequency increases. By design, this can cause power plants to disconnect from the grid. Alternatively, in the case of high demand and low availability, the frequency drops, which may prompt automatic load shedding, and in the worst-case scenario, a blackout.

In China as many as 20 provinces experienced power outages in 2021 with the potential to affect up to 66 percent of gross domestic product (GDP)3, as the country struggled to balance electricity supplies with soaring demand.

Battery energy storage: balancing shifts in supply and demand

One strategy to increase grid resilience is battery energy storage, a market that is predicted to grow 15-fold from 2021 to 2030, with a cumulative 411 gigawatts forecast to be online by the end of the decade4.

Advanced battery energy storage systems enable utilities and industrial operators to obtain backup power, decarbonize and manage energy efficiently. At ABB, we believe this innovation is only going to gain ground as it has the potential to help power system operators achieve local resilience by averaging the energy load more accurately at the point of generation.

Our 63.3MW Calatagan Solar Farm project in the Philippines, which we deployed in partnership with solar energy provider Solar Philippines, is a prime example of the benefits battery energy storage can bring in a country with vast solar resources but highly unpredictable weather conditions. In the Philippines’ tropical climate, it is not unheard of to see extremely hot periods followed by sustained rain – making it incredibly important that the highs and lows of solar generation are accounted for.

We provided a comprehensive package of Electrical Balance of Plant (eBOP) equipment with the bulk of battery energy storage units close to the transmission grid. The result is that daily shifts in supply and demand, along with the terrain’s changeable climate, can be balanced easily and instantly managed by simply adding a battery to the grid or charging it, helping the facility provide reliable electricity to more than 413,000 people across six municipalities.

The system we provided combines low and medium voltage technology and includes 23 2,400kVA and 13.8 kV skid-mounted modules, along with two bays of 69 kV substation equipment, 30 MVA 69 kV/13.8 kV power transformers, one modularized e-House with 14 frames of UniGear ZS1 switchgear with Relion protection relays and one set of protection and control panels.

Modern microgrids: boosting resilience and improving energy efficiency

Microgrid solutions are also gaining popularity, with the market forecast to reach nearly $59.74 billion by 2030, a growth rate of 14.9 percent from 20215.

At its most basic level, a modern microgrid is made up of renewable energy generation options such as solar panels and wind turbines, and some form of energy storage device, invariably a battery, to create a decentralized, self-sufficient energy hub.

A major benefit of this approach is that a microgrid can act as part of the wider grid while also being able to disconnect from it and operate independently, for example, in the event of a blackout.

In this way, it can help utilities to boost resilience and provide power during peak usage while working to modernize the existing grid infrastructure. Amid increased energy volatility, more businesses are turning to microgrids to safeguard them from the huge operational and financial implications of a power outage. In fact, according to research by Deloitte, nearly 40 percent of utilities are receiving requests from companies for help implementing microgrids6.

But the value of microgrids is not confined to power backup. Local control of the microgrid means operators can be smarter about the energy they use, both on and off the grid, to improve the energy efficiency of buildings within it, reduce carbon emissions and lower costs.

With more and more renewable energy set to flow into the grid, along with increasingly extreme weather conditions, grid instability is a challenge that must be addressed. Battery energy storage and microgrid solutions are two effective routes utility providers must consider as they begin to build a pathway to a stronger grid for future generations.

1. https://www.iea.org/fuels-and-technologies/renewables

2. https://www.iea.org/news/renewable-electricity-growth-is-accelerating-faster-than-ever-worldwide-supporting-the-emergence-of-the-new-global-energy-economy

3. https://www.power-technology.com/news/china-power-cuts/

4. https://about.bnef.com/blog/global-energy-storage-market-to-grow-15-fold-by-2030/

5. https://www.alliedmarketresearch.com/microgrid-market

6. https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/smart-energy-management.html