Electricity net |  For power companies moving into renewable electricity, the future is all about smart grids. This brings a raft of opportunities for businesses big and small.

The electricity network is looking at big changes as the political sphere puts new demands on large-scale production of renewable electricity and reduction of greenhouse gas emissions. Smart grids are a vision of our future energy supply.

That message came through at a recent Smart Grid seminar on future electricity organized by the Society of Politics and Business, SPN, a business-politics caucus group under the wing of the Confederation of Swedish Enterprise.

Traditional electricity grids are built around centralized energy production in the shape of large-scale hydropower, nuclear power and CHP or combined heat-and-power plants. Electricity leaves on a one-way journey to regional and distribution networks. The Smart Grid seminar looked at the challenges facing the energy business when the system has to adapt to new demands.

“Today’s network can’t handle all the solar and wind-generated power being produced. Tomorrow’s grids have to be more flexible and become an intermediary for electricity production from different parts of the network,” said Magnus Olofsson, director-general of Elsäkerhetsverket, Sweden’s electrical safety board.

The established power companies will need new investments and technology development while new markets will be opening up for small companies specializing in solar, wind and tidal power. Magnus Olofsson pointed out that consumers too will need to adapt electricity use to its production.

Karl Elfstadius, head of ABB’s Network Management business unit, painted a picture of how electricity and wind power can be directed to where it is best needed at the moment. Suburban houses will have solar panels generating electricity and electricity meters that both buy and sell. Electric cars recharge at posts that measure and bill electricity.

“These are new technology fields that need commercial solutions. Take the concept of smart houses and pro-active electricity consumers — that’s a lot of business opportunities right there,” said Elfstadius.

He noted that the transformation to smart grids has already begun but to boost development, politicians need to finance research. There is a need as well to financially support convergences for energy stakeholders such as politicians, authorities, energy companies, distributors and consumers.

“And regulations for small distributors have to be simplified so they don’t drown in the rules that apply to the giants,” said Elfstadius.

Magnus Olofsson pointed to the US, where President Barack Obama has approved large investment in smart electricity grids as part of the regeneration of the economy after the finance crisis.

“There, they’re allowing a higher yield and quicker depreciation for companies that invest. The cost isn’t great and it produces the desired effect by involving more people in developing a sustainable energy system.”

Pernilla Nordström