Smart Grid for Business Outlook, Forecast and Dynamics


Users enjoy the benefits of the electrical grid each time they flip a light switch or push a start button. The grid is a dynamic network of people and equipment that operates around the clock to generate and distribute power to millions of homes around the world. The electric grid operates so well, citizens usually care about it either when getting their electric bills, or when there is a power failure in those rare circumstances.

More than a century ago, America’s electrical grid was established when electricity needs were essential and the requirement for energy was much smaller. Energy providers need ways to adapt to the changing demand for energy in real-time as American homes and companies take on ever-rising numbers of electronic devices and technical capabilities. This is made possible by the Smart Grid, resulting in more stable power for all grid consumers. The impact of the smart grid on the electricity consumption patterns within the United States can be studied using Global Market Database.


Consumer Ecosystem

America’s infrastructure, national defense, and even its people’s health and welfare rely on the stable supply of electricity. According to the market database, more than 9,200 electric generating units having more than 1 million megawatts of generating power connecting to more than 600,000 miles of transmission lines. The United States electric grid is an infrastructure success.

The electricity supply is more than just an infrastructure for the generation and transmission of power. It is an ecosystem of federal, state, and regional asset owners, suppliers, utility companies, and government leaders, all operating together to create one of the most efficient power grids in the world. To ensure access to safe, stable, and renewable energy supplies, the Office of Electricity (OE) works with its public and private partners to enhance, develop, and improve the energy system.

America’s electricity grid is aging, and more than it was initially planned to do is being pushed to do. By using cutting-edge technology and controls that connect and function together to generate electricity more effectively and efficiently, modernizing a smarter and reliable grid would significantly diminish the frequency and length of power outages, mitigate storm impacts, and restore capacity faster. Consumers have easy access to data, they can control their energy use and prices.

Advancing Technologies of Smart Grid

Two-way networking technology, control systems, and data processing render smart grid technologies feasible. These technological advances include advanced sensors known as Phasor Measurement Units (PMUs) that enable operators to determine grid stability, modern digital meters that provide better data to consumers and automatically report blackouts. It also automatically senses and recovers from power station failures, automatically feed switches that reroute power around issues, and store excess energy in batteries and make it accessible to the grid later to meet consumer demand. This exciting development of the electric smart grid of the country provides both challenges and opportunities to promote the potentials of the electricity supply system of today.

According to the market database, grids became more decentralized and digitized in 2019, amid a 7% year-on-year decline in total spending. More emerging technology, including artificial intelligence and digital twinning, has been introduced by energy providers worldwide. It was also noted that US regulators are heading toward performance-based compliance. Additionally, the European Commission has introduced the Renewable Energy Package, which includes a range of steps to help grid operators implement smarter technologies.

Grid Investments

Data taken from Market research tools state that the investment in power systems decreased in 2019 for the third straight year, dipping 7% to just under USD 275 billion from the 2018 mark. By comparison, developments in the complete emerging technology package, including advanced metering infrastructure, grid modernization, and charging infrastructure for electric cars, accounted for more than 15% of overall grid expenditure.

According to the market database, the United States overtook China in 2019 to lead grid spending. US investment rose 12% continuing the ongoing upward trajectory started a decade earlier. There had been a need for increased investment to update aging facilities, digitize and electrify industries such as transport and heating, and protect the grid against natural calamities and cyber warfare.

From wireless substations to smart metering and other power engineering devices, smart grid investments remain based on hardware. Although it is not yet popular to report on software spending, utilities around the world have suggested that they are gradually implementing sophisticated software tools. Record spending on software was reported by energy suppliers and grid corporations, including, Exelon, Duke, and Edison International in the United States.

Grid Modernization

The Office of Electricity (OE) has facilitated investment in electrical and energy infrastructure since its launch. Over the years, OE has continued to invest in modern technological research, development, and implementation. It has also developed new capabilities for modeling and analytics that can evolve as technology and policy needs mature. Global Market Database studies the effects of Grid Modernization on the Global Markets. The free market analysis tool makes use of DMD (Dynamic Market Data) to analyze the changing market trends.

National initiatives are led by OE to establish the next generation of technology, instruments, and techniques for the effective, resilient, secure, and affordable supply of electricity in the United States. OE works with public and private partners to develop the concepts, instruments, and technologies necessary for the future grid to be measured, analyzed, predicted, protected, and controlled.

According to the market database, National Grid collaborated with Utiliti data and Sense to create a “digital twin” of the grid from the substation to the house, mapping power supply, voltage, and utilities. American Electric Power, built in partnership with Siemens, has also announced the digital twinning of its transmission network. Elsewhere, PA developed a world-first system using AI with San Diego Gas & Electric Company to reduce power outages by forecasting asset faults weeks in advance.