A smart grid is not just about installing smart meters across residential and commercial areas, but also about the ability to control the entire energy network. Setting up a communications network is equally essential for the smart grid network
The need of efficient energy promotes the use of smart grid. Smart grid is the latest technology adopted by the power utility to reduce the transmission and distribution loss and also to make the grid line more efficient. The major advantage of the smart grid network is the bidirectional communication network, wherein the utilities and the end-user are able to effectively communicate with each other.
A smart grid is not just about installing smart meters across residential and commercial areas, but also about the ability to control the entire energy network. Setting up a communications network is equally essential for the smart grid network. Countries like Australia, UK, France, Italy, and U.S. have the highest potential across all the geographies.
The communication networks have high growth potential and the smart grid technology market size is expected to increase in the next five years. Smart grid will balance the electricity supply and demand. It will improve the grid reliability by monitoring the frequency and duration of power outages and the number of disturbances, including reduction of the possibility of regional blackouts. Smart grid will improve the efficiency and dependability in energy distribution and assist in optimizing utilization of resources.
Reduction in transmission and distribution loss, coupled with an increase in energy efficiency, is one of the major drivers of this market. The governments of various countries are playing important roles in the commercialization of this and passing on mandates and regulations for the same. The high cost of installation of the entire smart grid network is one of the restraints of the smart grid market. Another major restraint is the lack of interoperability of standards. There are huge amounts of investments happening in this market, which are an opportunity for the growth of the market. Prepaid electricity is also en-route, wherein the users will prepay for the electricity that will be consumed by them.