The current energy crisis is not just about high electricity prices. Yes, the very high price is the most visible part for us, the consumers, and the most directly affecting our daily lives today. What remains mostly invisible to consumers is the health of the electricity grid itself. How well the grid can withstand fluctuations in electricity demand and generation. This is a question of the survival of our society.
In an ideal situation, electricity production and consumption are in balance. Energy production is increasingly based on renewable sources – wind and solar – which are fully dependent on the weather. If the sun does not shine, the solar panel does not work; if the wind does not blow, the windmill does not rotate. The more energy comes from weather-dependent power plants, the more the generation capacity will fluctuate. The net cannot cope alone, something has to be done to achieve balance. The current practice of managing production capacities is no longer valid, we need to address consumption management.
The current practice of managing production capacities is no longer valid, we need to address consumption management.
Consumption management solutions are no longer something that solve a hypothetical problem. The reality is that events that push our electricity grid to the limits of its endurance are occurring with increasing frequency. The biggest problem is balance.
California lesson
2022. 6. On 9 September, California’s power grid was on the verge of collapse as an unprecedented 46-degree heatwave forced consumers to turn on every cooling device they had on hand. This led to a record increase in energy demand to 52 000 megawatts, which is a level three energy emergency. Put simply, 10% of consumption was uncovered, i.e. demand exceeded supply and there was nowhere to take it from. The next step would have been widespread blackouts.
Put simply, 10% of consumption was uncovered, i.e. demand exceeded supply and there was nowhere to take it from.
The situation was saved by the fact that the network operator had been able to make the necessary preparations by looking at the weather forecast. Residents were urged to keep air conditioners at least at 25 degrees Celsius during evening peak hours, and no lower, and to turn off all unnecessary lighting. The network operator was even prepared to rotate consumers off the grid to keep the balance – the stakes were just so high.
Thanks to the cooperation of consumers, more than 1,200 megawatts of energy were saved during critical hours – equivalent to the production capacity of one of the smallest coal-fired power plants. How was this achieved? Consumers were most likely to have to manually adjust the operation of their appliances, while newer homes and offices often have automatic systems. We are convinced that consumption management solutions must be simple, workable and almost invisible.
Futurgrid thinks ahead
That’s why Futugrid’s mission is to create a functional consumption management solution that connects households into a virtual power plant. This would mean that consumers would no longer have to monitor when the network operator gives an order to reduce electricity consumption in order to balance the network, but would receive this order directly from household appliances. This way, appliances can reduce their operating temperature at the right moment or delay energy consumption just a little. This is the future of the smart grid and the only way to save vital electricity.
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