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Smart technology is the answer to energy distribution problems

By 2030, almost 40% of the world’s energy demand will come from renewable sources. However, integrating renewables into the power grid poses a number of challenges due to their intermittent nature and the mismatch between peak renewable energy production and demand. Accurate forecasting is also a problem due to weather variability.

Share in the global energy mix. Source: GlobalData: Global Power Mix in Transition 2021–2030 Outlook, page 6

Traditional grids designed for centralized energy sources require significant modernization. Even in countries with well-developed power grids, there is a need for updates to adapt to the changing generation mix, using next-generation connectivity solutions to increase grid resilience and establish cross-border connections between regions.

However, Current energy storage solutions are not yet able to meet modern demand cycles, and innovative business solutions and technology models, such as vehicle-to-grid systems and microgrids, are still in their infancy.

Traditional power grids suffer from significant energy losses during transmission and distribution, which impacts overall efficiency and increases operating costs. These losses can be attributed to factors such as aging infrastructure, inefficient technologies, and limited monitoring capabilities.

The role of technology in energy transformation

The 26th conference discussed the role of technology and how it can be used to increase efficiency and reduce carbon dioxide emissions in the energy transformation process.t World Energy Conference in Rotterdam in April. Industry leaders gathered for a panel discussion where the conversation focused on the potential of technology to drive the energy transformation, with a focus on automation, digitalization, AI, sustainability software and the importance of investing in these technologies.

Panelist Jason Li, President of Global Marketing & Solutions at Huawei Electric Power Digitalization Business Unit, outlined to Congress how Huawei believes that traditional automation technologies alone cannot solve the challenges of modern grid management, which must manage hundreds of millions of volatile and unpredictable objects and complex processes. Huawei is leveraging its digital platform and technologies such as cloud computing and artificial intelligence to address this.

“In China, installed capacity will increase from 760 gigawatts to 1,530 gigawatts from 2022 to 2025,” Li told the panel. “In just three years, it will more than double. At the same time, distributed PV will increase from 158 gigawatts to 298 gigawatts… an astonishing number. The number of electric cars in China will increase to 45 million by 2025, and EV charging will increase from six million to 22 million.”

Huawei’s Jason Li during a panel discussion on energy transformation at WEC 2024. Source: WEC 2024

Microsoft’s Darryl Willis, also on the panel, commented on the importance of AI in the energy sector: “AI is going to be an enabler of everything we do in terms of digitizing and decarbonizing the energy sector. It’s happening very quickly. We’re having some interesting conversations about this journey from preventative maintenance to predictive maintenance to what’s called prescriptive maintenance. That’s going to allow companies to start seeing what’s going on around the corner using data.”

Li also spoke about investment in the industry: “Digitalization for the electric sector is not only a technology upgrade, but also a transformation of the entire industry. Therefore, we should change our mindset. Investing in a large power plant costs billions of dollars, but investment in digitalization has historically accounted for less than 2% of a power company’s total revenue.

“Only when digital investment reaches 4-5% of total revenue can we attract more talent and industry players. As a result, customers will also be encouraged to invest more in digitalization, which leads to a virtuous cycle called the compound interest effect. We should all focus on this and try to introduce more digital technologies into the industry.”

Huawei Intelligent Distribution Solution (IDS)

As the backbone of the power system, the power distribution network provides the “last mile” of power supply to industries and homes. With the continuous construction of future energy systems and the modernization of existing ones, distribution networks face increasing challenges in load management, mixed power generation and consumer demand such as electric vehicle charging and digital charging meters.

This challenge prompted Huawei to work with ecosystem partners to develop a new solution to address the high line loss, low reliability, and high emphasis on new power load management. Converged intelligent terminals replace multiple electrical devices, minimizing the natural line loss and automating the operation of intelligent equipment. The implementation of these changes improves the overall perception of the distribution network, leading to improved work efficiency.

Huawei Intelligent Distribution Solution (IDS) leverages digital and IoT (Internet of Things) technologies combined with a cloud-pipe-edge-pipe-device architecture to build a unified distribution network.

The benefits of the IDS system include:

  • Reduced line losses with real-time analytics
  • Increased power reliability, fast and accurate fault detection reduced to just a few minutes
  • New energy management with data collected every minute
  • Improved online and manual control (with automatic remote control)
  • Agile development of new services. With applications, new services can be implemented in just a few weeks.

The use of AI has played a fundamental role in the development of grid automation technologies, including remote monitoring and fault detection. Advanced data analytics and machine learning techniques are helping utilities analyze data, optimize maintenance schedules, integrate EV charging infrastructure, and more.

Huawei IDS is an innovative initiative in the energy industry. It offers a range of benefits, including meeting growing energy demand, enabling renewable energy integration, and building a sustainable, resilient future. It also helps utilities meet these needs efficiently and sustainably by balancing supply and demand, managing fluctuations, and optimizing energy storage solutions. It has so far shown promising results in initial tests in many countries in the Middle East, Asia, and Africa.

IDS contributes to a more resilient energy future by integrating renewable energy sources, reducing line losses and optimizing grid performance, thus supporting global efforts to combat climate change and promote clean energy.

For more information about Huawei Intelligent Distribution Solution (IDS) Click here.