Work to be done for US utilities to modernise fragile grid – Black & Veatch

The majority of utilities in the US are not ready to define or implement grid modernisation and digitalisation programmes that help ensure the resilience and reliability of energy networks, according to a new e-book released by consulting firm Black & Veatch.

Whilst drivers for grid modernisation are clear, only a few utilities are “ready when it comes to defining where to start and what approaches to prioritise to accelerate the development of a more flexible, resilient electric grid,” states Black & Veatch in Grid Modernisation 2022: Reliability and Resilience.

Although factors including climate change, ageing infrastructure, increased penetration of renewable energy and extreme weather events continue to challenge utility operations thereby highlighting the need to modernise energy networks, the majority of utilities are lagging behind and as such continue to suffer from the consequences of an unreliable grid, according to the e-book.

For instance, power outages continue to increase in the US with up to 383 being recorded by the Department of Energy in 2020. This is more than double the number experienced in 2017. Up to $169 billion is lost in the US economy per annum due to these outages with the Texas outage that was experienced in 2021 costing the US economy $110 billion in damages and losses alone.

Other factors driving the need to modernise the grid, highlighted in the e-book, include an increasing amount of smart devices, varying consumer loads owing to distributed resources such as electric vehicles, and growing cybersecurity threats.

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Kevin Ludwig, Grid Solutions Leader at Black & Veatch, said: “Megatrends like digitisation and decarbonisation coupled with the increasing impacts of climate change and cybersecurity risks means that the industry’s core product of providing always-on, dependable electricity services is under serious threat.

“The good news is that our grids can be engineered to handle a wide range of severe conditions and threats as long as grid operators can assess, plan for, and reliably predict the risks.”

Although 50% of utilities surveyed by Black & Veatch highlighted that they will increase investments in grid modernisation for reliability whilst 38% say to optimise monitoring, control and automation and 31% to address ageing infrastructure, the e-book states that utility investments in upgrades over the next decade will not match the required pace.

The American Society of Civil Engineers states that the funding gap for modernising the grid will reach nearly $200 billion in the next decade.

In addition to the inability of utilities to plan and implement strategic modernisation plans, regulatory uncertainty is also hindering development, according to Black & Veatch.

However, the e-book adds that increased collaboration by energy utilities in discussing and planning for trends within the sector will help address energy sector challenges through grid modernisation.

Data-driven grid modernisation planning and the removal of silos across energy generation, transmission and distribution processes will help utilities to achieve smart utility goals whilst ensuring system reliability and improved customer services.

The e-book presents nine areas to achieve effective and efficient grid modernisation and they include:

• Grid modernisation strategy and roadmap
• Grid modernisation investment planning
• Vulnerability assessments
• Grid hardening
• Distribution asset and device management
• Digitisation, modelling & predictive analytics
• OT cybersecurity
• Generation and transmission investments
• Telecommunication investments.

According to Black and Veatch, addressing the nine areas identified in the e-book will help companies to achieve greenhouse gas emissions reductions targets whilst meeting rapidly changing consumer demands for digital and green services.

Find out more about the e-book.