Global Smart Energy Market Overview, 2024-29

Market Dynamic

Major Drivers • Electrification of Transportation: EVs produce fewer greenhouse gas emissions compared to traditional gasoline or diesel vehicles, especially when powered by renewable energy sources. The adoption of EVs contributes to decarbonising the transportation sector, which is a major source of global emissions. As EV adoption increases, there is a growing need for infrastructure to support charging stations. Smart energy solutions, such as smart grids and vehicle-to-grid (V2G) technology, enable efficient integration of EV charging into the electricity grid. V2G technology allows EV batteries to store and discharge energy, providing grid services and balancing supply and demand. EV charging can contribute to peak demand on the electricity grid, particularly during evening hours when many people return home from work and plug in their vehicles. • Energy Access and Rural Electrification :Access to electricity is essential for socioeconomic development, enabling access to education, healthcare, communication, and productive activities. Rural electrification initiatives improve the quality of life for underserved communities, lifting people out of poverty and promoting economic growth. In remote and rural areas where grid infrastructure is absent or unreliable, off-grid smart energy solutions, such as solar home systems, mini-grids, and decentralised energy systems, provide a reliable and sustainable source of electricity. These solutions often leverage smart technologies to optimise energy use, monitor system performance, and enhance energy efficiency. Major Challenges • Infrastructure Limitations: Many regions, especially in developing countries or rural areas, have out-dated or insufficient grid infrastructure. This can impede the integration of smart grid technologies, renewable energy sources, and energy storage systems. Smart energy systems rely on robust communication networks to transmit data between devices, sensors, and control systems. In areas with poor or unreliable communication infrastructure, such as remote locations or underserved communities, connectivity issues arise, limiting the functionality of smart energy solutions. The deployment of energy storage systems, such as batteries or pumped hydroelectric storage, faces challenges related to land availability, environmental considerations, and permitting processes. Limited access to suitable sites for energy storage infrastructure can hinder grid stability and renewable energy integration. • Cybersecurity Risks: Unauthorised access to sensitive data, such as energy consumption patterns, customer information, or grid operations data, can compromise privacy and security. Malicious software, such as malware or ransomware, can infect smart energy systems, disrupt operations, and cause financial losses or service disruptions. Attackers launch DoS attacks to overwhelm smart energy systems with traffic, leading to system downtime or degraded performance.

Key Development

• In 2022, GE Digital has unveiled a Distributed Energy Resource Management System (DERMS) solution, contributing to a safer, secure, and resilient electric grid. The software integrates intelligence, operations, economics, and markets in a unified platform, empowering grid operators to efficiently manage and optimize Distributed Energy Resources (DERs) for clean, reliable, and affordable energy delivery. • In 2022, GE Renewable Energy has secured orders from Continuum Green Energy Limited for 81 units of its 2.7-132 onshore wind turbines. The turbines, totaling 218.70 MW, will be installed across wind power projects in Tamil Nadu and Madhya Pradesh, India. • In 2022, Itron is expanding its collaboration with Microsoft to accelerate the energy transition. The partnership merges Itron's energy management solutions with Microsoft's cloud offerings, revolutionizing how users perceive and manage energy. Together, they aim to provide utilities with innovative solutions, promoting grid resilience, consumer engagement, operational efficiency, and decarbonization. • In May 2021, New carbon footprint reduction goals were set by the German government. According to the new targets, Germany will strive for a 65%, 88%, and nearly 0% net carbon emission by 2030, 2040, and 2045, respectively. Additionally, Governments are putting a number of policy measures into place in order to decarbonize their economies and electricity sectors in line with both medium- and long-term climate ambitions.