Page 40 - Turning digital technology innovation into climate action

Turning digital technology innovation into climate action

replace fossil fuels, conserve energy and reduce GHG emissions, which, individually and jointly, could
represent a significant element in climate change mitigation.
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However, studies suggest that the demand for fossil fuels has grown so exponentially that it is
compensating for the gain in renewables. In the latest Global Energy & CO Status Report produced
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by the International Energy Agency (IEA), it is indicated that demand for all fuels, including natural
gas, oil, and coal, has increased. Worldwide energy consumption grew by 2.3 per cent in 2018, driven
by a robust global economy and higher heating and cooling needs. As a result, CO emissions went
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up by 1.7 per cent in 2018 despite record renewables growth. In order to achieve a low-carbon
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economy with high renewable uptake while keeping fossil fuel demands in check, it is imperative to
start adopting intelligent power grids that are capable of utilizing data and information to maximize
energy efficiency through collecting, distributing and storing renewables. Smart grids are vital in
facilitating the transition to renewable energy in a sustainable and reliable manner.

According to IRENA, for a power grid to be smart and capable of accelerating renewable energy
deployment, it must be able to overcome the following challenges: 25

• Variability – Renewable energy such as solar and wind are dependent on fluctuating resources.
As electricity supply must meet demand at all times, it is imperative that the grid is able to absorb
this variability and ensure that electricity is available to meet the demand.

• Distributed – Small-scale systems that are privately owned and operated must be recognized
by traditional utilities and must be able to connect to the grid. Concerns over safety and grid
stability must also be addressed.
• High initial cost – Renewable electricity typically has a higher initial cost but lower operating
cost compared to fossil-fuelled electricity. Some countries simply cannot invest in renewables
that have a high initial cost.
ICTs are the foundational layer of a smart grid. They weave digital intelligence into the power grids,
allowing each component to communicate with the others and enable the near real-time collection
of information, which then can be sent, shared and analysed in order to maximize efficiency in energy
output. For instance, if a photovoltaic system (i.e. a solar power system as shown in Figure 10) is tied
to the electricity status of a consumer via a smart grid, when energy output drops (due to clouds
or other weather conditions) the grid would be able to intercept and adjust energy output to an
acceptable level until weather conditions improve.

Smart grids also benefit distributed renewable generation by providing real-time information on
the performance of the system. Smart meters and sensors collect information, including electrical
output and voltage. This information is very useful to utility system operators and to consumers in
determining optimal energy output in different scenarios, including formulating competitive prices
and encouraging renewable uptakes and behavioural changes. Accompanied by the ever-improving
energy storage technologies, it is clear that ICTs can play a significant role in reshaping renewable
energy into a viable alternative to fossil-fuelled electricity.

23 Edenhofer, Ottmar, et al. ‘Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN):
Summary for Policymakers.’ Intergovernmental Panel on Climate Change (IPCC), 2011, www .ipcc .ch/ site/ assets/
uploads/ 2018/ 03/ Summary -for -Policymakers -1 .pdf.
24 International Energy Agency (IEA). ‘Global Energy & CO2 Status Report.” 2018, www .iea .org/ geco/ .
25 International Renewable Energy Agency (IRENA). ‘Smart Grid and Renewables: A Guide for Effective Deployment.’ Nov.
2013, www .irena .org/ documentdownloads/ publications/ smart _grids .pdf.

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