Smart grids have created a paradigm shift toward active energy distribution and have significantly transformed the role of consumers to prosumers, who simultaneously participate in power consumption and production by integrating energy generation units within their premises.
This is the finding of Frost & Sullivan’s latest report, Technology Advancements Enabling Prosumerism in Energy Sector.
According to the analysis, energy management systems, energy storage, microgrid technologies, and intelligent communications and information platforms are witnessing the convergence of applications and operations. This technological convergence has enabled a greener, locally managed, reliable energy supply mechanism while ensuring financial benefits for participants throughout the smart grid network.
Have you read?
‘Smart grids are vital’ – Schneider Electric’s Gary Lawrence
Smart grid interoperability – new models and concepts
How peer-to-peer electricity trading can benefit communities and grid management
Furthermore, energy storage is fast becoming a vital component of prosumerism. Residential behind-the-meter storage continues to grow rapidly, propelled by the value proposition offered by solar photovoltaics and batteries. Similarly, reducing energy costs by limiting power demand peaks and benefitting from monetization avenues are the key drivers of energy storage adoption in the commercial and industrial (C&I) segment.
“Intelligent algorithms capable of precisely tracking and forecasting energy demand ensure productivity and comfort for utilities and prosumers,” said Shrinivas Tukdeo, TechVision programme manager at Frost & Sullivan. “An automated approach for managing and controlling the onsite generation, energy storage, and consumption has enabled effective optimization of residential and C&I energy requirements through establishing a bi-directional energy exchange, ensuring grid resiliency.”
Tukdeo added: “Rapid digitization across the industry peripheral has enabled a shift from conventional business models to advanced go-to-market strategic imperatives. Restructuring operations and an instant response to technological enhancements remain the primary factors required to streamline the business process.”
In order to develop a prosumer strategy that maximises return on investment, the report suggests that industry participants review the following for growth:
- Research and development (R&D) investment for technological innovation: Aligning technological enhancements with R&D mandates, consumer preferences, and grid requirements will be the primary factor driving business growth.
- Technology convergence for grid resilience: Smart grid companies should collaborate with energy analytics, smart components, and sensor manufacturing firms to combine their technological expertise and enhance grid control system portfolios.
- Technology sourcing for system integration: Source out technological derivatives to large original equipment manufacturers (OEMs) to benefit from their integrated supply chain, diverse consumer portfolio, and brand value.
Download the report for more detail.
Join the conversation about empowered consumers
Visit Enlit Europe 365 for webinars, podcasts, interviews, marketplace, projects. And more…