The transition to renewable power

Global renewable adoption is on the rise; electricity demand is expected to reach 38,700 terawatt-hours by 2050—with renewables providing 50% of that energy.¹

The highly distributed nature of renewable energy is upending the traditional power delivery model. Electricity no longer flows in one direction from the utility that generates it to those who consume it. The new energy ecosystem comprises an intricate network of “prosumers”: consumers and businesses who produce their own energy locally, use what’s needed and, in many cases, are looking to export excess power back to the grid. Furthermore, the electrification of transportation, building systems and industrial processes will drive considerable increases in demand for electrical power over the coming decades. Data centers, offices, factories and similar sites can participate in the transition via battery and thermal energy storage systems and grid-interactive uninterruptible power systems. 

This will give rise to vast bi-directional electricity flows requiring a network with the flexibility to cope with higher volatility and demand.

Planning for the shift to more electrical power

The electrification of more areas of the economy, including transport, building systems and industry will drive a substantial increase in power demand by 2050. It is technically feasible to meet this extra demand with electricity generated from low or zero carbon sources. However, this will require concerted government support through policy and regulation, as well as research and development to reduce the cost of new green energy sources such as clean hydrogen.

Homes, offices, stadiums, factories and data centers can now generate and store more of their own power to optimize energy costs, lower their carbon footprint and, in some cases, reduce reliance on the grid. This is Everything as a Grid.

Traditional electrical power infrastructures must be upgraded, with software and services optimizing every process, to realize new energy benefits. We enable a systems approach to infrastructure integration and the technologies that help transform power generation and distribution for homes, buildings and utilities. 

Responding to the high demand for low carbon 

Renewable and battery market shares continue to rise and play a larger role in the global power supply, even in the wake of the COVID-19 pandemic. The steady increase of competitiveness in renewables, along with their modularity, rapid scalability and job creation potential, make them highly attractive as countries and communities evaluate economic stimulus options.³

The challenge lies in balancing variable renewable power and storage options against the always-there, always-on power users demand. By helping utilities, building managers and homeowners adopt renewable power and storage strategies, we're helping to make clean energy available when and where it’s needed.

Regulators are starting to make important changes to incentivize services like demand response to reduce costs, encourage and integrate the uptake of clean energy and increase customer participation. However, we have far to go if we are to replicate best practices and further encourage innovation. This includes financial mechanisms that reward utilities and distribution companies for contracting with distributed energy providers in place of capital investments—a departure from traditional regulation in which the addition of new capital assets is the main source of profit. Through market data analysis and expert insights, we help companies and countries prepare for and embrace the regulatory changes needed to assure a reliable power mix. 

Only 48% of utility executives feel they are prepared to handle the challenges of a cyberattack interruption.⁴ As utilities address the challenges of improving power reliability and efficiency, they must also contend with the near-constant barrage of security threats.

We proactively address cyber threats via a system-wide defensive approach and an unwavering focus on the dangers malware, spyware and ransomware present across the globe. Our team members meet and exceed competencies recognized by international standards organizations like UL, IEC, ISA and others through rigorous, in-depth technical training programs. Our "secure-by-design” philosophy, processes and secure development lifecycle are integrated into product development and guide our labs, procurement and design teams as the foundation of innovation. And our understanding of and influence in changing global standards help guide safer, more efficient energy infrastructures.

Powering the energy transition

The technologies that convert wind and sunlight to renewable energy have matured, allowing for more flexible power possibilities. The growth of renewables, localized electricity production and bi-directional energy helps more homes, businesses and communities produce their own clean, dependable energy for less reliance on the utility grid. Count on Eaton for the technologies and digital intelligence needed for you to join this energy transition. Through our Everything as a Grid approach, infrastructures can be re-vamped to manage and optimize renewable integration, so you can realize more efficient, sustainable power that costs less.

References

^{1 BloombergNEF (September 2018). Global Electricity Demand to Increase 57% by 2050. Retrieved from https://about.bnef.com/blog/global-electricity-demand-increase-57-2050/#:~:text=Global%20electricity%20demand%20will%20reach,our%20New%20Energy%20Outlook%202018}

^{2 IRENA (2018). Corporate Sourcing of Renewables: Market and Industry Trends. Retrieved from https://irena.org/-/media/Files/IRENA/Agency/Publication/2018/May/IRENA_Corporate_sourcing_2018.pdf}

^{3 IRENA (2020). Renewable power generation costs in 2019. Retrieved from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Jun/IRENA_Power_Generation_Costs_2019.pdf}

^{4 Accenture (2015). The New Energy Consumer Unleashing Business Value in a Digital World. Retrieved from https://www.accenture.com/_acnmedia/Accenture/next-gen/insight-unlocking-value-of-digital-consumer/PDF/Accenture-New-Energy-Consumer-Final.pdf}