Every month, you receive an electricity bill, a necessary expense to keep the lights on. However, a shift is on the horizon where utilities may require something from you – electricity. The future of the power grid is evolving towards a more distributed system, with power flowing from what experts term the “grid edge.” This new landscape includes household batteries, electric vehicles, and various devices that can potentially contribute electricity back into the grid.
The integration of wind and solar energy into the grid is driving the need for customers to become active participants in the energy ecosystem. An increasing number of individuals are installing solar panels coupled with home batteries, creating a network of potential energy sources that utilities can tap into during periods of high demand. This transition raises a critical question – how can millions of devices at the grid edge, owned by diverse customers, effectively communicate with utility systems?
To address this challenge, a team of researchers from various universities and national laboratories has developed an algorithm for a “local electricity market.” This innovative approach compensates ratepayers for allowing their devices to supply backup power to the utility. The algorithm, detailed in a recent publication in the Proceedings of the National Academy of Sciences, streamlines the coordination of numerous power sources and has been put to the test to validate its effectiveness.
Anu Annaswamy, a senior research scientist at the Massachusetts Institute of Technology and co-author of the paper, emphasizes the necessity of decentralization in managing vast energy networks. She highlights the role of the local electricity market in enabling a more distributed approach to grid management.
Traditionally, utilities have relied on fossil fuel-powered plants to meet spikes in electricity demand. However, the growing reliance on renewable energy sources necessitates a more flexible grid infrastructure. Energy storage solutions like lithium-ion batteries are becoming pivotal in storing excess energy for future consumption.
The scenario of a cyberattack or grid outage underscores the importance of grid flexibility. In such situations, a cohesive network of batteries and smart devices can stabilize the grid by adjusting power supply and demand. Jan Kleissl, the director of the Center for Energy Research at the University of California, San Diego, points out that both batteries and smart devices like water heaters can play a crucial role in grid support.
The algorithm developed by the research team has demonstrated its efficacy in various scenarios, including cyberattacks and weather-related disruptions to solar energy generation. It offers a structured approach to compensating households for their active participation in grid support. Factors like time of day, location, and overall demand influence the rates paid to consumers.
Utility companies have begun to explore compensation programs that incentivize consumer participation in grid support activities. Initiatives such as electric buses in Oakland, California, feeding energy back into the grid during downtime, and household battery contracts for virtual power plants are emerging as viable solutions. Anna Lafoyiannis, a senior team lead at the Electric Power Research Institute, emphasizes the agility of distributed resources in quickly adapting to grid needs.
The integration of energy sources at the grid edge, alongside utility-operated battery farms, is dispelling the misconception that renewables lack reliability. As these systems mature, the possibility of receiving compensation for supporting the grid becomes increasingly plausible. The evolving energy landscape presents an opportunity for consumers to actively engage in shaping the future of sustainable power generation.
