Cost savings from smart grid deployments will exceed $125 billion globally in 2027 against over $33 billion in 2022, Juniper Research said.
This growth will be driven by rising energy prices, with smart grid technologies playing a critical role in increasing network efficiency and optimising resource management.
The Smart Grid market report identified abilities of AI-based analytics as crucial to maximising benefits of new renewable energy sources, by actively balancing load and optimising energy transmission.
Smart grids are electricity networks using advanced technologies to monitor and manage transport of electricity from all generation sources to meet varying electricity demands of end users.
Smart grid deployments are key to decarbonisation of electricity production. Smart grids will enable energy sources that produce electricity based on external elements, such as solar and wind power, to meet energy requirements more effectively, by actively balancing load and predicting surges in demand & production.
Research co-author Nick Maynard said: “By leveraging AI, electricity networks can ensure spikes in demand are predicted and mitigated. Smart grid vendors must focus on enhancing their models to more accurately predict usage patterns to maximise these benefits.”
Smart grid deployments will result in an almost 700 million MMT (Million Metrics Tons) reduction in CO2e (Carbon Dioxide Equivalent) emissions globally in 2027; falling from 214 million in 2022.
Smart grid vendors must develop data ingestion engines that can analyse and interpret structured and unstructured data from disparate sources, including smart meters, network data and weather forecasts, to maximise emission reductions.