A smart grid is an intelligent power grid that incorporates IT technology to enable real-time power demand and efficient energy management. It has the potential to reduce power waste, maximise the use of cleaner, alternative energy sources, and contribute to sustainable development.

The smart power grid – the smart grid

Since the discovery and diffusion of electricity, humanity’s use of electricity has steadily increased. Modern society has become so dependent on electricity that we cannot function for a moment without it. From household electronics to large-scale industry, electricity has become an essential resource for human civilisation. Especially after Edison’s invention of the light bulb in the late 19th century, electricity spread rapidly, and power grids began to be built to provide a reliable supply of electricity. While these grids were relatively simple at the time, the complexity of power grids has increased with rapid industrialisation and urbanisation. We have now reached a point where they need to be more sophisticated and efficiently managed to keep up with the demand for electricity.
Today, in an era of rising power demand and higher power quality, we cannot simply build more power plants to supply our needs. News warnings of power shortages, especially during summer peaks, are commonplace. But we cannot simply build more power plants: thermal power plants come with their own depletion of fossil fuels and environmental pollution, and hydroelectric power has its own limitations of insufficient generation. Furthermore, nuclear power plants have recently become the subject of greater public debate due to safety concerns.
For these reasons, alternative energy development and conservation are becoming essential. Green and sustainable alternative energy sources, such as wind and solar power, are being actively researched, and at the same time, attention is being focused on how to streamline electricity consumption through intelligent power grids, also known as ‘smart grids’. A smart grid is a system that incorporates IT technology into the traditional electricity grid to help manage the supply and consumption of electricity more intelligently. It’s a revolutionary power grid that goes beyond simple conservation to enable more efficient utilisation of power resources.

What is a smart grid?

A smart grid is an intelligent power grid system designed to integrate information and communication technology (IT) into the power grid, allowing power providers and consumers to interact. Whereas traditional power grids are one-way systems that deliver power, smart grids enable two-way communication, allowing for real-time understanding of power supply and demand. This allows for analysis of power usage patterns and provides ways to produce and consume power more efficiently. For example, intelligent electricity meters can be introduced to identify and provide information on power demand and supply by time of day and location. These intelligent systems can make a significant contribution to reducing wasted surplus power and addressing the issue of conservation.
With a smart grid, power production and consumption can be flexibly coordinated. Because current power production systems cannot instantly reflect the volatility of power demand, they are forced to produce more power than is actually used. This results in a surplus of about 10 per cent or more of the power required. However, this surplus power will dissipate if nothing is done to utilise it, leading to energy waste. While pumped-storage power plants have been used to harness excess power, they have not been an effective solution due to their low output.
With a smart grid, however, power demand can be understood in real time, allowing power production to be coordinated more efficiently. This in turn reduces the production of unnecessary surplus power and minimises the waste of power resources. Smart grids can also make electricity pricing more rational. Currently, industrial electricity tariffs are structured to be more expensive during the day and cheaper at night, but this is based on statistical data showing that electricity demand is higher during the day. However, this tariff structure has its limitations because in reality, electricity demand fluctuates by time of day. With a smart grid, a more sophisticated and rational pricing structure can be built that reflects real-time demand data.
Smart grids can also enable power trading between individuals to maximise the utilisation of power resources. For example, a system could be put in place that allows individuals who own solar generators to sell the power they generate to generate revenue, or individuals with electric vehicles to charge them at night when it is cheaper and sell them when needed. This functions like a pumped storage plant, but with greater efficiency, and as a result, provides an efficient way for individuals to use the energy resources they own.

Social impact of smart grids

Smart grids are a technology that can have a huge impact on society as a whole, beyond just improving the power supply system. The flexibility of the grid strengthens the stability of a country’s economy, reduces energy waste, and contributes to environmental protection. In particular, as an integral part of sustainable development, smart grids can play an important role in reducing carbon emissions.
Smart grids are currently being actively researched in many countries around the world, including the United States, Japan, and Germany, and Korea has also established a smart grid demonstration complex on Jeju Island. These demonstration sites play an important role in experimenting with the possibilities of smart grids and accumulating data for future large-scale adoption. These studies are also stimulating discussions about how smart grids can contribute to the global power grid.
So far, we’ve explored the concept of smart grids, their capabilities, and their potential societal impact. Smart grids will play an important role in helping humanity move towards a sustainable energy system, and they will also bring about major changes in future energy policies. As advanced IT technologies are incorporated into the grid, energy will no longer be a resource that is simply consumed, but one that can be managed more sophisticatedly and intelligently.