Renewable energy resources, like wind and solar, are abundant, homegrown, and emissions-free and have the potential to help lead the nation toward energy independence.

Unfortunately, today's infrastructure is unable to maximize the benefits of significantly more renewable resources. Wind and solar resources are connected to the grid as "one-off" solutions that are generally not integrated with other generation nor optimized as a reliable first-tier energy source.

Additionally, when renewable resources are producing electricity, the possibility of congestion on transmission lines can create a barrier to their full utilization. The variability of renewable sources can also cause challenges. And when renewables are offline—when the wind doesn't blow or it's a cloudy day— other power generation will be needed to fill in the gaps.

Without infrastructure expansion and changes to the way the power system is operated, it will be difficult for the U.S. to produce more than 30% of its electricity (the target percentage for many states) from variable renewable energy resources, such as wind and solar.

The Variability of Renewable Power

Wind and solar power are inherently variable, meaning sometimes the wind doesn't blow and the sun doesn't shine. Then what? Fortunately, smart grid technologies can help manage the unpredictability of wind and solar to help alleviate reliability and stability issues caused by power fluctuations. This will become increasingly important as more wind and solar power is connected to the grid.

Automated demand response technologies will act as a lever that utilities can pull to help lower demand in the event there is a gap in renewable power generation—for instance, if the wind stops blowing. To address such contingencies, a utility may incent consumers to opt into programs that allow certain devices (i.e., water heaters) to be temporarily switched off during peak times.

In the future, storage technologies could also help utilities manage the short-term imbalances in the supply and demand of energy, sometimes caused by the fluctuations of a lot of renewable energy. Batteries will store energy during times of excess wind energy production and discharge that energy via smart grid automation technologies when energy demand exceeds supply.

In some parts of the country, overburdened power lines make it difficult to move electricity from wind farms into the grid for consumption. There have been cases when wind farms are forced to shut down—even when the wind is blowing—because there is no capacity available in the lines for the electricity they create.

Without adequate transmission to transport power from "renewable" rich areas (like Arizona) to densely populated areas, it is only cost effective to use renewable sources in certain areas of the country—at least for now.

While building new infrastructure would certainly help, smart grid technologies can also help utilities alleviate grid congestion and maximize the potential of our current infrastructure. Smart grid technologies can help provide real-time readings of the power line, enabling utilities to maximize flow through those lines and help alleviate congestion.

As smart grid technologies become more widespread, the electrical grid will be made more efficient, helping reduce issues of congestion. Sensors and controls will help intelligently reroute power to other lines when necessary, accommodating energy from renewable sources, so that power can be transported greater distances, exactly where it's needed.

Traditionally, electricity has flowed one way, from a power station to a customer. However, as more energy is generated by alternative sources, power will be entering the network from multiple locations, including the distribution network (i.e., distributed generation). These sources are often cleaner or more efficient; for example, combined heat and power plants (CHP) are more than 75% efficient, compared to traditional generation, which is only 49% efficient on average.¹

Unfortunately, the current grid was not designed with multi-directional power flow in mind. Two-way power flow, sophisticated controls, and grid automation technologies can help bring wind, solar and other alternative energy solutions safely into the distribution grid and move it where it's needed, when it's needed.

In some regions, individuals can contribute to energy production on the distribution grid by generating electricity at their home—for example, solar on rooftops. Where available, enhanced net-metering incents consumers to sell power back to the grid during peak pricing hours—so, consumers make money, and utilities are able to better manage peak demand. Whole neighborhoods could become solar or wind generation plants, introducing excess power back into the grid to meet demand.