These traditional electricity grids, however, operated on a demand-driven basis with no storage capabilities, structured in a hierarchical manner.
This model consisted of a few large-scale power stations - typically fueled by fossil fuels or sometimes nuclear energy - that transmitted power over extended distances to homes, commercial and retail buildings, factories, hospitals, schools, and various other locations. How do smart grids compare to traditional electricity networks?įor many years, we relied on a relatively straightforward ‘National Grid’ model to meet our electricity needs. IoT devices and technologies then enable power grids to communicate with each other to balance supply and demand effectively, preventing network overloads and resulting in a more secure electricity supply. Through the real-time exchange of data facilitated by smart metres, we can now gain precise insights into when and how electricity is used. This modernised approach hinges on two key elements: energy and data. Unlike conventional energy grids, which function on a one-way distribution model from producer to consumer, smart grids employ IoT technology to establish a new, intelligence-based model that integrates monitoring capabilities. These devices can transfer data over a network without necessitating human-to-human or human-to-computer interaction. 👉 A quick refresher on IoT: The Internet of Things (IoT) refers to a system of interconnected computing, mechanical, and digital devices, each assigned unique identifiers (UIDs). Key components of smart grid technology include sensors, wireless modules, monitoring systems, and robust ICT infrastructures. This two-way data flow is what earns the grid its "smart" title, proving beneficial for all involved parties. In more technical terms, a smart grid is an "IoT-enabled application," which means it facilitates the exchange of electricity and information between utilities and customers. In essence, this smart power generation methodology paves the way for a more sustainable energy system. The concept is straightforward: use real-time data to balance electricity flows, thereby enhancing energy efficiency, facilitating distributed energy resources, and improving the overall electricity supply system across the grid. This term is often used interchangeably with "smart electricity grid." Essentially, a smart grid uses real-time data on electricity usage and consumption to inform all network participants, including producers, distributors, and consumers. A "smart grid" is an electrical network that incorporates information and communication technologies (ICT), such as connected devices.
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