Smart energy resources are called “smart” because they can use advanced technologies to optimize the generation, distribution, and utilization of electricity. The integration of smart energy resources into the electric grid plays a vital role in improving the efficiency, reliability, resiliency, and sustainability of the power system.

It is also a well-known fact that the modern energy system is currently undergoing through a transition from fossil fuels to renewable energy resources because of the following key reasons −

• To reduce greenhouse gas emissions and carbon footprint
• To reduce the need and dependence on fossil fuels
• To utilize the freely available energy resources
• To minimize the cost of electricity
• To create new business models and job opportunities
• To develop a more reliable, resilient, and sustainable energy system, etc.

However, this shift from fossil fuels to renewable energy resources faces several challenges which are discussed here.

Challenges in Integration of Smart Energy Resources

Smart energy resources have several benefits over fossil fuels, however their deployment in electric grid faces a variety of barriers which are explained below −

• Technology − The development of new technologies is a complex process that requires both expertise and investment.
• Business Models − The market creation of new technologies and smart grid products is also a challenging task.
• Compatibility Issues − Due to lack of standardization, the integration of different technologies together can be a challenging problem.
• Regulations and Policies − The existing regulations and policies are not much supportive in adoption of smart energy resources.
• High Initial Cost − The cost involved in development of infrastructure for deploying smart energy resources into the grid is very high and acts as a major barrier.

Concept of Distributed Generation

Distributed generation is the way of generating electricity from small power plants which are directly connected to the distribution grid. For example, a solar power plant supplying a house. This is called distributed generation because these small generating plants like solar, wind, biomass, etc. are located at a wide geographical area and near to the point of utilization.

Distributed generation is also referred to as decentralized generation. The trend of distributed generation has significantly increased in the past few years.

Distributed energy generation offers the following major benefits over centralized power generation −

• It reduces the needs for long distance transmission and hence the associated losses.
• It enhances the reliability of energy supply, as they can provide power during outages in centralized grid.
• Decentralized power plants are easy to scale up depending on the energy demand.
• The most used energy resources in decentralized power generation are renewable like solar, wind, hydro, etc. Hence, they result in several environmental benefits through reduced greenhouse gas emissions and carbon footprint.

What are Distributed Energy Resources?

Distributed energy resources, also known as decentralized energy resources, are the energy resources that generate or store energy in small, grid-connected devices. These energy resources can be of two types, one which generate and supply electricity directly to the loads, and another are energy storage systems that store energy during low demand periods and supply during high demand periods.

Distributed energy resources are generally located near to the point of utilization and have low generation capacities.

Properties of Distributed Energy Resources

The following are some key properties or features of the distributed energy resources −

• Distributed energy resources are decentralized systems and are installed at local levels close to the load points.
• These resources are directly integrated into the distribution networks instead of transmission grid.
• Distributed energy resources have faster demand response and can regulate the power generation to balance the supply and demand.
• Distributed energy resources can be seamlessly integrated with the smart grid technologies to provide better control and optimization of power system.

Types of Distributed Energy Resources

Let us now discuss about some popular types of distributed energy resources −

Cogeneration

Cogeneration is a concept of utilizing the waste heat produced in the power generation process. This heat is then utilized for other purposes like space heating, producing steam, or in industrial processes.

The production of electricity through cogeneration involves the following three steps −

• Primary fuel input like coal, biomass, natural gas, etc. to the main plant.
• The fuel input rotates a prime mover like steam turbine, gas turbine, IC engine, etc. which in turn drives a generator and produces electricity.
• The waste heat produced during the generation of electricity is recovered and utilized in other applications like space heating, water heating, steam production, or any other industrial process.

Listed below are some of the major advantages of cogeneration −

• It can improve the efficiency of the system by 10% to 30%.
• It helps in reducing the energy cost by making the use of waste heat.
• It reduces the emissions and impact on the environment.

The concept of cogeneration as a smart energy resource or distributed energy resource is used in commercial buildings, industries, hospitals, or universities to balance the energy demand and improve the energy efficiency.

Solar Power System

Solar power system is one of the most popular types of smart or distributed energy resource. In this power generation system, the energy from sunlight is directly converted into electricity.

The most widely used technology in solar power generation is photovoltaics, in which PV cells are assembled in the form of solar panels and used for converting sunlight into electricity.

The electricity generated by solar panels is DC (Direct Current) and is stored in battery banks. At a later time, it is converted into AC (Alternating Current) with the help of inverters.

Let us now understand the working of a solar power system.

• The PV system is directly exposed to the sunlight.
• It produces direct current electricity which is stored in battery banks.
• The energy stored in battery is converted into alternating current electricity and utilized.

The solar power system has the following advantages −

• Solar energy is renewable and freely available in abundant.
• The operation and maintenance cost of solar power system is low.
• It does not produce any emissions when operate.

Today, solar power system is being used in both residential and commercial power generation applications. These can be used as standalone systems as well as can be integrated into the grid.

Wind Power System

Wind power system is another most commonly used type of renewable energy resource for power generation. In this system, the kinetic energy of airflow is used to turn a wind turbine and generate electricity.

Wind or airflow turns the blades of the wind turbine that rotates the shaft of an electric generator connected to it which produces electricity.

A wind power system has the following major advantages −

• It is a renewable and clean electricity production system, as it does not produce any emission during operation.
• Wind is the main source of energy, which is freely available in nature and hence making this power system a cost-effective source of electricity.
• The generation capacity of a wind power system can be increased easily by adding additional wind turbines into the existing one.

Wind power systems are used in areas where airflow is consistent throughout the year. These systems are generally used in hilly areas for power generation.

Hydro Power System

It is also known as hydroelectric power system. Hydropower is another major smart energy resource used to produce electricity. In this power generation system, the kinetic energy of flowing or falling water is used to spin a water turbine which rotates the shaft of a generator connected to it and produces electricity.

The components and working of a hydropower system is explained here −

• A large amount water is stored in dams and reservoirs to create a water head.
• This stored water is released to flow through a water turbine.
• The turbine is connected to an electric generator through a mechanical shaft.
• The rotating turbine drives the generator that produces electricity.
• After that the water is let to flow in rivers.

The hydropower system has the following major advantages −

• It is a renewable and naturally available source of energy.
• It does not require any fossil fuel to operate.
• It can produce consistent electricity through dam and reservoir system.
• Hydro power system has very low operational cost.
• Hydro power system can fast respond to load variations.

Hydro power system is used to produce electricity at large scale and commercially. This is because it requires large initial investment.

Waste to Energy System

There is another form of electricity generation system in which electricity is produced by processing municipal solid waste and natural waste like sewage sludge, food waste and animal manure. These waste materials are decomposed to discharge methane-containing gas which is stored and used as a fuel in gas turbines to produce electricity.

Let us understand the working of a waste to energy system for electricity generation −

• Waste materials are collected and processed to discharge methane-containing gas.
• The methane gas is collected and used as a fuel to rotate a gas turbine.
• The turbine in turn drives an electric generator and produces electricity.

The following are some key benefits of waste to energy power generation system −

• It reduces the amount of waste sent to landfills.
• It provides a way of recovering energy from waste materials.
• It is a renewable source of energy as it is continuously producing.
• It has several environmental benefits and reduces the methane emissions from landfills.

The waste to energy system can be used at small-scale as well as commercially for power generation from waste materials.

Vehicle to Grid

Vehicle to grid is one of the smartest energy resource or technology that allows electric vehicles to supply electricity to the main grid.

This energy generation technology works as described below −

• Electric vehicles come up with bidirectional equipment to take electricity from grid and supply back to the grid.
• Electric vehicles take electricity from electric grid during low demand hours and supply the stored energy back to the grid during peak demand hours.

The vehicle to grid energy resources results in the following advantages −

• Vehicle to grid system helps in balancing the load demand by providing additional energy during peak demand hours.
• Vehicle to grid system enables vehicle owners to sell electricity and generate an extra income.
• It also improves the energy efficiency through bulk power generation during low demand period and store it in EV batteries. This stored energy can be supplied back to the grid during high demand periods.
• This system creates a space for high power generation and economic growth.

The vehicle to grid system is a distributed smart energy resource that can be used to balance the energy demand during peak demand periods.

Smart Energy System

A smart energy system is an integrated and highly efficient energy system in which renewable, thermal, and gas turbine power plants are combined together to provide electricity to the main grid. This also provides a coordination between all these energy resources to achieve an optimal solution to meet the whole energy demand.

A smart energy system is nothing but an energy system which consists of an electricity infrastructure and new technologies. This combination is developed for a reliable and resilient energy system.

Conclusion

The transition from traditional energy resources to smart energy resources is at the core of smart grid technology. Hence, smart energy resources are the primary components of the modern electric grid. These resources are very important for balancing the increasing demand of electricity and reducing the dependence on fossil fuels.

The integration of smart energy resources plays a vital role in improving the reliability and resiliency of the electric grid.