Beyond the grid: What is really driving smart cities in today’s energy transition

By Teoh Chee Seng

Smart grids act as the essential "backbone" of the energy infrastructure that powers every facet of a smart city. 

According to the International Electrotechnical Commission (IEC), as of January this year, over 4 billion people live in cities. With this number expected to double by 2050, governments must leverage technology and innovation to build smart cities that can accommodate the burgeoning population.

Smart cities in APAC

IoT devices, AI and Machine Learning, Big Data, cloud computing, cybersecurity, and, at least for now, 5G technology, form the building blocks of a smart city. This highly complex ecosystem involving multiple technologies require meticulous and expert urban planning. Yet, it is tied together by something incredibly simple – power.

Smart cities aren’t just aimed at improving services, resilience, and the quality of life of their citizens; they should also be sustainable. As the Earth’s natural resources dwindle and its biocapacity is being stretched thin, smart cities must prioritise maximising resources whilst reducing their ecological footprint.

This is where smart grids come in. They act as the essential "backbone" of the energy infrastructure that powers every facet of a smart city. They provide not only the necessary energy to keep smart cities running but also a comprehensive overview of energy usage and supply patterns. This real-time data allows energy management operators to gain crucial insights, enabling them to optimise energy distribution and improve overall efficiency in managing resources.

Notably, APAC is leading in the transformation to smart cities. The region’s rapid adoption of smart grids is driven by governments promoting smart power grid infrastructures to replace aging Transmission & Distribution (T&D) infrastructures, increased adoption of electric vehicles (EVs), the rise of Distributed Energy Resources (DERs), and the proliferation of different renewable energy sources, all of which need to be effectively integrated into the grid.

The complex interplay between generation, T&D, and storage within the grid alone is daunting. The addition of consumers (individuals, businesses, and technologies that require power), renewables, and vehicle-to-everything (V2X) further complicates this. With energy entering and leaving in so many directions, how exactly will smart grids and, by extension, smart cities optimise this multifaceted energy landscape for maximum efficiency?

Smart metering systems at the core of energy management

As highly interconnected living environments running on sensors, networks, and other devices, smart cities can be likened to a human body with different systems that work closely together. Equipped with sensors, smart meters are part of the ‘nervous system’ in this body, functioning as sensory organs to offer real-time data that will inform how other systems respond. This flow of information ensures that the city's operations, from energy distribution to resource management, are constantly optimised based on real-time conditions.

Imagine a sudden surge in electricity demand during a heat wave due to people using more air-conditioners and fans. With smart meters in place, the grid operator would instantly receive data about increased consumption, allowing them to adjust power generation accordingly or implement demand response programs to lighten the load during peak hours. Without this real-time data, operators might be slow to respond to the surge, leading to potential blackouts or brownouts.

If smart meters are the nerve endings that collect information, Advanced Metering Infrastructure (AMI) is then the collection of neurons, dendrites and axons that transmit and receive information to the utilities’ central system ("the brain"). 

The synchronous updates from consumers, energy sources, and the grid itself enable operators to make timely and accurate decisions for the usage of resources, improvement in efficiency, and ultimately the creation of a more sustainable environment. The rich dataset AMI also offers valuable insights into the health and performance of the electrical grid infrastructure through a variety of functions, including anomaly detection, load profiling, asset health monitoring, and outage detection and localisation. Early detection of issues allows for timely intervention and minimised downtimes – this uninterrupted access to power is a hallmark of a smart city.

How innovation in metering can drive smart cities in an efficient, affordable, and safe way

The ability to access real-time data, unlike traditional meters that provide updates only hourly or half-hourly, is a game changer for smart cities. This continuous flow of information enables more effective resource allocation, which in turn enhances overall energy efficiency and affordability for both utilities and consumers.

(1) Efficiency
The information from smart meters doesn’t just benefit operators that need to manage the grid.

Through readings on smart meters, consumers can also monitor their usage patterns in real-time, enabling them to make adjustments for greater energy efficiency. This can be done through identifying energy-intensive activities or appliances, or adopting more energy-conscious habits, such as switching appliances off when not in use.

Such functions will be made even more accessible when grid operators partner with solutions providers that offer interoperable solutions that can easily be integrated into digital payment platforms. 

(2) Smart Savings Solution
In a market driven by supply and demand, improved resource allocation naturally has an impact on costs for both operators and consumers.

For operators, smart meters generally eliminate the need for manual meter readings through automated real-time data transmission, significantly reducing the laborcosts involved in having someone head down to access a traditional meter and check against previous readings or perform tests to ensure accuracy. Accurate and timely data also result in improved billing accuracy, meaning less time and labor spent on rectifying such issues that arise from manual readings. These savings can be passed on to consumers through lower utility bills.

In sustainable smart cities, improved resource allocation isn’t just about making sure everyone has enough energy on demand, but also on managing and balancing demand wisely to optimise and sustain resource use.

Smart meters allow utilities to roll out demand response programs where they typically offer financial incentives or provide direct control over certain appliances to reduce electricity consumption during peak periods. For example, Singapore’s Energy Market Authority (EMA) and state-owned electricity and gas distribution company SP Group piloted a Residential Demand Response (R-DR) program this year. The first-of-its-kind program sends alerts to participating households to temporarily reduce or defer their electricity consumption during peak periods in exchange for financial incentives.

(3) Safety and Suitability
Potential hazards from faulty grid equipment or appliances in homes will be detected as anomalies in real-time, allowing for proactive or timely repairs.

Whilst smart meters contribute to the overall safety of smart cities, as metering technology advances, there will still be a need for regular audits and checks to ensure the safety and suitability of the latest smart meters. The replacement of the ‘nerve endings’ of a city’s energy system is not to be taken lightly – as outlined above, any issues will have ramifications on energy efficiency, cost, and, more broadly, sustainability. Above all, safety is crucial.

Working with the right partners

It should be clear by now that selecting the right partners to deploy smart metering technology is crucial for the grid, utilities, and consumers.

An adequate partner must possess the requisite certifications, prioritise research and development (R&D), and offer customisable solutions. Whilst IEC or, in some cases, American National Standards Institute (ANSI) certifications are the baseline for smart meters, supplementary certifications such as the Measuring Instruments Directive (MID), Device Language Message Specification (DLMS), and Standard Transfer Specification (STS) are essential for achieving a robust, secure and efficient deployment of AMIs. These certifications respectively help to ensure the accuracy and reliability of metering devices, promote interoperability through standardised communications protocols, and safeguard the operation of the meters.

An ideal partner would go beyond the traditional requirements. In addition to obtaining certifications, providing customisable solutions, and performing R&D, they would also prioritise sustainability as a unifying factor, integrating these elements into a holistic approach that benefits the environment, society, and the business.

Ultimately, each smart city is unique and will have its own set of requirements – often, different countries have different required certifications. The right partner will be able to guide you through this labyrinth of technicalities and red tape whilst continuously striving to make your city more efficient, safe, and sustainable.

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