Smart inverters are among the most important DER assets and are equipped with onboard computing capabilities. This increase in DER efficiency creates value across the network for both DER owners and network operators. By integrating onboard processing power into sensing devices that measure power flow, power quality, frequency, and other vital grid characteristics, DER network utilization can be maximized, safety can be prioritized, and overall DER system efficiency can be increased. With the addition of renewable generation and energy storage on the customer side of the meter, the need for enhanced monitoring and control has become more important than ever. A few of the most significant benefits of grid edge computing are outlined as follows: While substantial barriers exist, Guidehouse Insights expects the market for grid edge computing to grow significantly over the next decade. The benefits to the increased deployments of this technology are tremendous. Home energy management systems can leverage smart inverters to manage the interactions between DER and the grid.Įach of these applications enables intelligent grid edge assets to collect data, analyze data, and act based on the results of the analysis-all without involving any centralized IT system or requiring advanced communications networks. Smart inverters: Advanced smart inverters can integrate load flow data with VVO and conservation voltage reduction to provide reactive power compensation to the grid to offset fluctuations caused by DER and DR programs.Advanced metering infrastructure (AMI): Advanced meters can continuously calculate and analyze loads on individual distribution transformers, locate outages at the meter level, and integrate with VVO, FLISR, and active demand response (DR) programs. ![]() Volt/VAR optimization (VVO): Utilities can control voltage and volt-ampere reactive (VAR) levels in real time to optimize power flows, reduce energy consumption, and manage challenges that arise with high penetrations of DER.Distribution automation (DA): Near-instantaneous fault detection, location, isolation, and service restoration (FLISR) uses the split-second action of DA assets around the grid for enhanced grid reliability and resiliency.The following figure illustrates the functions and locations of various grid edge computing applications.Īcross all grid segments, Guidehouse Insights expects edge computing platforms to be centered around four key technologies: Edge computing is a small part of the overall distribution automation and controls market, but it spans the entire distribution network-from the substations, to and through the meters, and onto DER networks, microgrids, and distributed generation. The integration of distributed energy resources (DER), the increase in customer demand for grid reliability and stability, and recent advances in grid technology are driving utilities and grid operators to equip their distribution networks with monitoring, automation, and control equipment.
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