Analysis of the Application and Future Development of Smart Meters (1)
In Europe, the European Union has strong regulations on smart meter installations. Countries such as Sweden, Italy and Finland are already close to 100% smart meter penetration and benefit from customer engagement and active energy management initiatives.
Maintaining a steady supply of high-quality electricity is becoming an even bigger global challenge as massive amounts of renewable energy are introduced into the grid. High-quality power is stable in voltage and frequency, which is an essential characteristic of power supplies. The demand for energy storage systems to be used with new energy sources to overcome this challenge is on the rise. Ram Ramachander, Chief Digital Officer and Chief Commercial Officer of Hitachi Europe's Social Innovation business, has described how Hitachi is developing new battery energy storage solutions, expanding efforts to smart meters and electric vehicle programs, and providing an outlook on the future development of energy.
Network connectivity and unprecedented amounts of data are revolutionizing many industries, and energy is no exception. Digitization is changing the way people produce, distribute and manage energy. Artificial intelligence and machine learning enable predictive maintenance across the energy grid, while battery storage technology enables the integration of renewable energy. In home applications, smart meters are installed, and electric vehicles are planned to be purchased. These advances have democratized energy, allowing consumers to be both producers and consumers of energy. As technology continues to change, where will the next developments take place? A new white paper written by Hitachi in collaboration with consulting firm Frost & Sullivan explores these issues. This survey study highlights three areas of rapid innovation: the boom in battery energy storage, the widespread adoption of smart meters, and the move into the age of electric vehicles.
1) The prosperity of battery energy storage
Battery storage is key to the successful integration of renewable energy into the grid. Its ability to store energy can provide grid smoothing, congestion management and frequency regulation services, which are critical for efficient integration of power sources. These advancements depend on the development of battery technology. New lithium-ion batteries extend product life, increase energy storage capacity and reduce size, while advanced battery management systems maximize cost savings through tariff price tracking and arbitrage services.
In the future, consumers installing their own energy storage systems will see significant cost savings once upfront costs are reduced, as well as the ability to generate revenue through cloud-based community sales back to the grid. These communities have access to not only homes but also electric vehicles (EVs), allowing for cheap and green charging using grid charging points. Blockchain technology is currently being used in pilot projects to provide consumers with installed and connected solar panels, energy storage systems, electric vehicles the layer of trust required for peer-to-peer energy transactions over the Internet.
Why is battery storage so important to the future energy roadmap, the report states? It has a dual purpose. First, it facilitates the integration of intermittent renewable energy sources while generating income. Battery energy storage drives mass market adoption of residential energy storage systems beyond 2020. By 2025, we expect residential energy storage to be an integrated and integral part of all renewable energy projects.
