The Impact of Renewables on the Grid

In recent years, the world has witnessed a remarkable surge in the popularity of renewable energy sources such as wind, solar, and hydropower. These cleaner and more sustainable alternatives are revolutionizing the way we generate power, replacing traditional fossil fuels.The integration of these renewable sources into the energy grid is a crucial step towards achieving decarbonization and building a greener future for generations to come.This requires a fundamental rethinking and strategic planning to establish a dependable, cost-effective, and highly efficient electrical grid powered by clean and sustainable sources. In this article, we explore the impact of renewables on the grid, the challenges this poses and suggest some innovative solutions to overcome those.

Centralized VS Decentralized

systems Let’s begin by comprehending the distinction between two grid types: centralized and decentralized.A centralized grid is a typical system of energy generation and distribution in which a few major power plants produce electricity and distribute it to end- users via a network of transmission and distribution lines. Power facilities in this model are often located distant from high-demand locations, and electricity is carried over large distances, resulting in energy losses during transmission. In contrast, decentralized grid, also known as a distributed energy system, on the other hand, involves smaller-scale generation and distribution of power closer to the point of use. In this model, many small-scale renewable energy sources such as solar panels, wind turbines, and micro-hydro generators provide electricity. 

Benefits of decentralized grid 

Since a decentralized grid does not depend on a few major power plants, it is much more resilient to disturbances that may occur, such as, due to extreme weather.With many small-scale renewable energy sources and local distribution networks, a decentralized grid can continue to operate even if one or more energy sources or distribution systems fail to generate power. By reducing dependance on fossil fuels, it also increases energy security. Moreover, a decentralized grid provides for more energy generation and consumption flexibility. Local energy sources can be easily altered to match a community’s unique demands, and excess energy can be sold back to the grid. This can result in more efficient energy consumption and less waste. This in turn leads to a positive impact on the environment. A distributed grid can also help in achieving greater grid stability by reducing fluctuations.

Challenges of integrating renewables

From an emissions standpoint, renewables are preferred over their traditional counterpart as they produce significantly less greenhouse gas emissions. However, their integration poses several challenges for the grid operators. 

Renewable energy sources are sporadic and unpredictable, as opposed to standard fossil fuel plants, which can offer a consistent and predictable supply of energy. Wind and sunlight availability can change greatly during the day and from season to season. These fluctuations are a big problem, particularly for base load power plants, which are centralized facilities that continuously generate electricity in order to meet the minimum levels of demand for electricity. The variability factor of clean sources means very high maintenance costs for these power plants. Renewables also require very high investments as their sources are often located very far into remote areas. Thus, without proper infrastructure and transmission lines, it cannot be effectively integrated into the grid. Moreover, renewables can cause fluctuations in voltage and frequency because of their intermittent availability. If there is too much or too little electricity produced which is not properly managed by the grid operators, fluctuations may occur. 

One major challenge that grid operators face is forecasting the net load. This essentially refers to the difference between the electricity demanded by consumers and the electricity generated at a time. Although, other natural sources such as natural gas or coal can be used to make up the difference, as the penetration of renewables increases, it becomes increasingly difficult to forecast and meet the load. This requires operators to be highly flexible and responsive to changes in energy requirements.

Innovative Solutions to Overcome the Challenges of Integrating Renewables

1. Use of energy storage technologies such as batteries, pumped hydro, and thermal energy storage can facilitate energy storage during periods of low demand and high generation and release stored energy when demand is high.

2. In areas with high demand and plenty renewables sources such as wind or sunlight, building more transmission lines can help avoid overload.

3. Combining two or more renewable sources such as wind with other sources like sunlight, hydro and/or geothermal can significantly reduce the problem of variability and volatility in energy generation.

4. Smart grid technology may be used to monitor and regulate the grid in real time, allowing grid operators to respond swiftly to voltage or frequency variations while maintaining system stability.

5. Strategically managing the demand in a way that affects how power is utilized by the end-users. Many countries have taken steps to integrate renewables into their energy grids. One of the leading countries in decarbonization, Germany has taken many steps to achieve its goal of producing 65% of its electricity from clean sources by 2030.The government has made significant investments in wind and solar power, as well as developed a feed-in-tariff system to encourage the generation of clean energy. Germany has also built a robust grid infrastructure, including high-voltage transmission lines and a smart grid system capable of balancing supply and demand.Denmark has also incorporated a significant amount of wind power into its system, accounting for more than 40% of the country’s electricity usage. As of 2022, 67% of its electricity was being generated from renewable sources. In addition, the government has invested in interconnections with neighboring countries, allowing extra wind energy to be exported when demand is low. Denmark has also adopted a variable energy pricing system that encourages users to adapt their energy consumption based on renewable energy availability.

Grid integration in the GCC

In 2022, the government of UAE announced a new law that regulated how the distributed or decentralized energy units would be linked to the country’s main electrical grid. The step was taken to increase the share of renewables in its overall energy mix. Moreover, UAE’s DEWA had previously announced its smart grid strategy and has already successfully achieved all the short-term goals under this initiative. Last year in 2022, the public company updated its medium and long-term goals, some of which included grid automation, smart grid AI, smart energy solutions etc. Despite some entities like DEWA taking steps to introduce smart grids, it is still a new concept in the country, with many plans not yet in action. The below chart shows the variable renewables in the global electricity mix from 2017 till 2023 (forecast)