Digital Grid: Transforming the Electric Power Grid into an Innovation Engine for the United States

TL;DR

The paper advocates transforming the traditional electric power grid into a digital, open, and real-time market platform to enhance innovation, accommodate distributed energy resources, and meet modern energy needs.

Contribution

It proposes a comprehensive framework for a digital grid that integrates physical energy systems with digital and cyber information for increased flexibility and innovation.

Findings

Highlights the need for digital transformation of the power grid.

Identifies challenges in stability, data management, and cybersecurity.

Suggests a new market model for open competition and innovation.

Abstract

The electric power grid is one of the largest and most complex infrastructures ever built by mankind. Modern civilization depends on it for industry production, human mobility, and comfortable living. However, many critical technologies such as the 60 Hz transformers were developed at the beginning of the 20th century and have changed very little since then.1 The traditional unidirectional power from the generation to the customer through the transmission-distribution grid has also changed nominally, but it no longer meets the need of the 21st century market energy customers. On one hand, 128m US residential customers pay $15B/per month for their utility bill, yet they have no option to select their energy supplier. In a world of where many traditional industries are transformed by digital Internet technology (Amazon, Ebay, Uber, Airbnb), the traditional electric energy market is lagging significantly behind. A move towards a true digital grid is needed. Such a digital grid requires a tight integration of the physical layer (energy and power) with digital and cyber information to allow an open and real time market akin to the world of e-commerce. Another major factor that is pushing for this radical transformation are the rapidly changing patterns in energy resources ownership and load flow. Driven by the decreasing cost in distributed solar, energy storage, electric vehicle, on site generation and microgrids, the high penetration of Distributed Energy Resource (DER) is shifting challenges substantially towards the edge of grid from the control point of view. The envisioned Digital Grid must facilitate the open competition and open innovation needed to accelerate of the adoption of new DER technologies while satisfying challenges in grid stability, data explosion and cyber security.