Economics of Smart Grids Technologies Towards Sustainability

Abstract

The aim of this paper is to identify challenges and solutions for the energy grids and economics of the future. Smart grids are perceived as a key building block for a sustainable energy future with less emissions and better quality of service. Energy efficiency is at the heart of any strategy to guarantee secure, sustainable and inclusive economic growth. It is one of the most cost-effective ways to enhance security of energy supply, to boost competitiveness and welfare, and to reduce the environmental footprint of the energy system. The anticipated growth of cities creates unprecedented sustainability challenges. Increasing demands for energy, water, sanitation, education, healthcare, housing, transport and public service are testing the limits of city infrastructures. Six million new people move to such housing every year, thus ever increasing the demand for services. Cities are responsible for 67 percent of the global energy demand and consume 40 percent of world’s energy overall. Energy intensity improves in the Stated Policies Scenario by 2.3% annually to 2040. Smart electric grids are vital to success in the new energy landscape. Smart grids are shaping opportunities for a new energy age: They automatically balance demand and generation, handle multi-directional power flows and ensure the energy transition to seamlessly incorporate photovoltaic and other renewables.