Smart Grid Demand Offer Opportunity to Energy Sector
November 28, 2021
The key to achieving a more sustainable planet lies in increasing the amount of smart grids on a global level, which opens up new opportunities in the energy sector
A new study from Juniper Research in England estimates global smart grid deployments will lead to annual energy savings of 1,060 terawatt-hours by 2026 — a significant increase from 316 terawatt-hours in 2021. That amount is equivalent to powering over 42 million 90-minute football matches at Wembley stadium.
The research identified increased sustainability and energy security as critical to the appeal of smart grids, with analytics and demand-responsive networks able to have a dramatic impact in a renewables-heavy future. According to the report, vendors that can best combine analytics that deliver operational insights to energy companies, with low-cost sensors and connectivity, will achieve the greatest success.
The new research, Smart Grid: Industry Trends, Competitor Leaderboard and Market Forecasts 2021-2026, found that smart grid software, which analyses energy usage in real-time to enable responsive features for utility companies, will be critical to delivering energy and cost savings. These benefits will drive smart grid software spend to over $38 billion annually by 2026, up from $12 billion in 2021.
Research co-author Damla Sat explained, “To meet ambitious climate targets and lower spiraling operating costs for utility companies, the grid must evolve rapidly into a smart grid. Leveraging connectivity and deploying analytics at scale will be vital in achieving the truly demand-responsive grid that is needed today.”
The research found that smart metering roll-outs are growing, with global smart meters in service set to reach over 2 billion in 2026, up from 1.1 billion in 2021. While this represents growth of just under 95 percent, adoption is very uneven worldwide, with markets including Latin America and Africa & Middle East lagging significantly behind the leaders in Western Europe and the Far East & China. The research recommends that vendors lobby governments to support smart metering roll-outs, or risk falling further behind.
Juniper Research, which provides research and analytical services to the global hi-tech communications sector also has a whitepaper that can be downloaded here
