As the world grapples with climate change and the need for sustainable energy solutions, the energy industry is undergoing an unprecedented transformation, often referred to as the 'energy transition.' At the heart of this transition is the power grid, a vital infrastructure that connects supply and demand in increasingly decentralized energy systems. The transition toward a cleaner, more efficient, and decarbonized energy future is accelerating, driven by the integration of large-scale renewable energy generation, bulk energy storage systems, upgrading and enhancing the existing grid infrastructure and Distributed Energy Resources (DERs) such as wind, solar, batteries, and electric vehicles (EVs) at distribution & consumption level.
However, the grid of the future will need to do much more than accommodate these new energy sources. It must be flexible, resilient, and capable of managing the complexities of fluctuating energy supplies while maintaining reliable and affordable power for consumers. As a leading engineering service provider in the energy sector, Quest Global is uniquely positioned to support this critical transformation. This article explores the pivotal role of grid engineering in facilitating the energy transition and outlines Quest Global's approach to designing and executing sustainable, resilient, and smart grid solutions.
The global energy transition is driven by a fundamental shift towards sustainability, net-zero emissions, and decarbonization. With increasing commitments from countries to achieve net-zero carbon emissions by mid-century, there is a growing demand for clean energy production, including renewable energy sources such as wind, solar, and hydro and integrating it to the grid and preparing the grid to handle the increased supply and demand.
Extreme weather events, which are increasing in frequency due to climate change, further emphasize the need for robust transmission and distribution networks. Improving grid resilience could prevent outages and save billions of dollars annually. Grid engineering can address these issues by incorporating smart grid technologies, automation, and advanced monitoring systems to predict and mitigate potential faults.
The energy transition is not just about producing clean energy; it's about managing it effectively. From large-scale renewable energy production to grid balancing and bulk energy storage, grid engineering plays a central role in ensuring that the energy transition is successful, and that clean energy can be reliably distributed.
The financial investment required to support this transformation is immense, with annual grid expenditures projected to skyrocket from $274 billion in 2022 to $1 trillion by 2050, leading to a cumulative expenditure of $21 trillion. These numbers highlight the monumental task ahead for grid engineering, which must not only support a vast influx of renewable energy but also ensure the grid remains reliable, resilient, and future-ready.
The energy ecosystem is becoming more complex as new subsystems enter the grid. These subsystems include:
These new entrants bring immense opportunities but also challenges, such as grid integration, grid balancing, grid stability, and the need for real-time orchestration of all subsystems. It entails a new approach to monitor, control and manage the grid leveraging the emerging technologies.
A. Challenge of RE integration to grid
The grid is undergoing fundamental changes to accommodate emerging subsystems that are transforming both energy generation and consumption. Large-scale renewable energy production, especially from solar and wind, is a major shift in the energy landscape. But this clean energy is often produced far from population centers, requiring new transmission infrastructure, mainly High Voltage Direct Current (HVDC) systems, to transport power efficiently over long distances.
The scale of challenges facing grid integration today is staggering, underscoring the urgency of building a modern, resilient grid that can support the global energy transition. In the U.S. alone, the backlog for new power generation and energy storage seeking transmission connections reached an all-time high in 2023, with nearly 2,600 gigawatts (GW) of capacity awaiting grid interconnection—more than twice the total installed capacity of the existing U.S. power plant fleet. According to research from Lawrence Berkeley National Laboratory2, this active capacity has grown nearly eightfold over the past decade, driven predominantly by solar, wind, and battery storage projects, which made up over 95% of the queue by the end of 2023. This backlog represents not just a technical hurdle, but a critical bottleneck in the deployment of clean energy infrastructure.
Compounding the challenge, the global grid connection backlog saw a 30% increase in 2023 alone, fueled by rising demand for renewable energy and storage solutions. The need for expanding and upgrading transmission networks has never been more pressing. The length of High Voltage Direct Current (HVDC) lines is expected to triple by 2050 —from 100,000 kilometers to 300,000 kilometers globally.
B. Challenges of enhancing and upgrading the grid
Grid needs to be highly reliable and resilient to handle the new scenario. The new scenario also demands bi-directional power flow, and the grid needs to be equipped for the same too. Grid’s role in connecting bulk renewable power, managing distributed energy resources, and ensuring reliable transmission and distribution infrastructure is critical. The International Energy Agency (IEA)3 reports that grid investment must nearly double to over USD 600 billion per year by 2030, after years of stagnation, with a focus on digitalizing and modernizing distribution grids.
Increasing demand due to the move towards greater electrification, specifically from transportation sector and other energy-intensive industries, requires building new Transmission & Distribution (T&D) infrastructure and most importantly upgrading the existing infrastructure. This includes building new T&D lines and a lot more substations and equipping the grid to all-that-needed for better monitoring and control. Engineering the new substations and digitizing the existing ones are the need of the hour and sizable one across the globe. Also, a set of technologies such as FACTS (Flexible AC Transmission System), Dynamic Line Rating, Power-Flow Control Devices and Analytical tool helps to significantly enhance the capacity of existing T&D infrastructure.
Seamless data exchange through tighter integration of Advanced Distribution Management Systems (ADMS), Energy Management Systems (EMS), Wide Area Management Systems (WAMS) and DER orchestration systems are essential for enhancing grid flexibility and resilience. These platforms allow grid operators to manage a complex scenario of grid balancing and grid operations management.
According to the Department of Energy’s (DOE) National Transmission Needs Study1, the U.S. will require an estimated 54,500 GW-miles of new transmission by 2035, representing a 64% increase from the current system. This expansion is essential to accommodate rising electricity demand and integrate more renewable energy sources.
The need is to build AC lines to enhance the grid. Also, more new transformers and substations are to be built and existing ones to be upgraded.
C. Challenges due to changes in grid edge (DERs, Microgrid)
At the distribution and consumption level, new types of subsystems and users are entering the energy ecosystem— which could be consumers, producers or prosumers like electric vehicles (EVs) collectively known as DERs (Distributed Energy Resources).
With the rise of DERs, the grid needs to be resilient enough to withstand disruptions and ensure reliable energy delivery. The intermittent nature of renewables like wind and solar complicates grid balancing, requiring advanced forecasting and energy storage. High DER penetration can cause voltage fluctuations; effective system design and smart technologies are needed to maintain stability. Increased decentralization raises cybersecurity threats, necessitating robust protections and efficient data management for real-time operations.
Knowing the real-time status of these DERs and controlling the behavior of such millions of DERs in given point of time is critical to balance the grid. To effectively integrate and orchestrate DERs, the grid must be modernized with advanced technologies that allow for real-time monitoring, control, and optimization. Grid operators must be able to dynamically balance supply and demand, ensuring that power flows seamlessly even as renewable energy sources and demand fluctuate.
At Quest Global, we understand that grid engineering is central to the energy transition. Our deep domain expertise in energy systems and our holistic approach to grid modernization help utilities and energy companies build sustainable, resilient, efficient, and future-proof grids. Our key offerings include:
1. Grid Integration and Connectivity: HVDC & FACTS Project Execution
Quest Global delivers essential engineering solutions, services and talent requirements for HVDC and FACTS projects globally. Considering the niche nature of technologies and the deficit in the market we have established a Grid Academy to supply engineering talent and address their current and future requirements.
2. Grid Operations Management Platforms
Providing end-to-end solutions and services for sustaining and deploying grid monitoring & control platforms (AEMS, ADMS, WAMS, and SAS) and also for developing advanced next-gen digital orchestration solutions for global energy leaders.
3. Grid Automation: Substation Engineering
Substation engineering services include design and engineering for primary and secondary systems for substations in HVDC, renewable energy integration, and AC grid. Next-gen product development for modern digital substations is another stream of activities we offer to our customers.
4. Grid Edge Solutions
We provide services to design and develop digital solutions which address the needs of grid edge. This includes solutions like VPP, DERMS, EV Fleet Management, microgrid platforms etc.
At Quest Global, we offer end-to-end grid engineering services that address the full lifecycle of grid modernization products and projects.
References:
1. National Transmission Needs Study, October 2023 [https://www.powermag.com/2-2b-for-13-gw-of-new-transmission-capacity-doe-unveils-latest-boost-for-u-s-grid-modernization/]
2. Berkeley Lab, April 2024: https://emp.lbl.gov/news/grid-connection-backlog-grows-30-2023-dominated-requests-solar-wind-and-energy-storage
3. International Energy Agency (IEA), Nov 2023: https://www.iea.org/reports/electricity-grids-and-secure-energy-transitions/executive-summary
Director & CoE Leader (Energy & Industrial), Chairman - Grid Academy, Quest Global
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