Cloud computing will play a key role in managing data in smart grids

Monday 23 January 2012, Amsterdam

The report provides information on the current scenario and an outlook on smart grid markets, investments, revenues and the competitive landscape. The report explains the current state of the global smart grid industry in terms of various upcoming technologies such as Vehicle to Grid (V2G), cloud computing, Outage Management Systems (OMS), microgrid and more. The report also discusses various projects, plans and policies related to the installation of smart grids that have initiated by governments around the globe. It provides details about the investment trends of global smart grid technologies, and covers key financing activities such as mergers, acquisitions, partnerships, private equity and venture capital. A section of the report is dedicated to an analysis of the current competitive scenario amongst global vendors of smart grid technologies.


Cloud computing will play a key role in managing data in smart grids

Cloud computing has emerged as a potential solution for managing data generated from the advanced metering technology used in smart grids. Issues related to the large-scale, real-time computing, communication, transfer and storage of data generated by smart grid technologies can all be addressed through cloud computing. Cloud computing is a new phenomenon in the field of information technology that will allow utilities to make better use of their storage and processing capacity in smart grids. The need for cloud computing will increase as the deployment of smart meters and intelligent electronic devices increases.


Cyber security will emerge as a key factor that convinces consumers to adopt smart grid technologies

The need to improve power grid security has been a major global concern. Increased use of various technologies, such as advanced storage systems, advanced metering infrastructure and wireless networks, has led to increased concern over the physical and cyber-based security of the smart grid and its components. Security in smart meters is mostly related to the physical design of the meters. However, tamper-proof meters are now available that alert consumers and utilities to interference. Smart meter security is also critical at the consumer end of the process. Various companies and organizations are taking a cue from the NIST guidelines and are likely to release new products and solutions with the aim of improving the security of smart grid applications: Cyber security vendors such as Boeing Corporation, Lockheed Martin, and BAE Systems, for example, provide various security solutions. The increasing focus on cyber security is expected to encourage consumers to use smart grid technologies, by allay their concerns about the security of their data.
 

Vehicle-To-Grid (V2G) Technology Will Revolutionize Energy Trading Between Consumers and Power Utilities

Electric Vehicles (EV) require specialized Vehicle-To-Grid (V2G) technologies that are able to allow the bi-directional flow of data and exchange of power between the vehicle and the electric grid. These systems will help to store energy generated from renewable resources that can be sent back to the grid. With V2G, consumers are allowed to sell the excess stored electricity in their battery, with the price attained being based on the time of day, and quantity required by the utility. These systems are presently not available, as the current infrastructure is incapable of supporting them. V2G products and services are presently in the testing phase, and are expected to be functional by 2012. In the future, many players, such as automobile manufacturers, smart grid integrators and other energy service providers, are expected to participate in the development of this upcoming technology.


Investments in smart grid will continue to increase during 2011-2016

In the past few years, smart grid technology witnessed huge support from governments across the globe. Various policy incentives are being offered by governments to encourage smart grid development. Investments, grants and demonstration projects have also increased in recent years. The number of mergers and acquisition activities is the smart grid space has risen due to the growing interest of vendors in this sector. Due to this investment in smart grids, the market is expected to rise during the period 2011-2016.


WiMAX Base Station Market , Global, Cumulative Units Installed, 2011-2016 (see figure)


Regional policies will decide the success of smart grids during 2011-2016

Power transmission and distribution loss, and carbon dioxide emissions, are the major issues related to the current power grid infrastructure. Governments across various regions have realized the importance of the potential benefits associated with the smart grid technology, and are increasingly viewing smart grids as strategic infrastructure investments that will enable them to achieve long-term economic prosperity. The American Recovery and Reinvestment Act (ARRA) grant of the US government and 20/20/20 target of the European Union are just two of the major initiatives planned to modernize the current grid infrastructure. The long-term plans initiated by governments will decide the future of power grid across various regions. These will provide the industry with much awaited guidelines regarding the deployment of different technologies.