Electricity 4.0 – Towards a world of energy producers?

In the not-too-distant future, you won’t just be driving a vehicle running on electricity when you get behind the wheel, you will be contributing to national energy production!

Or at least that’s the promise of the carmakers, who are already marketing vehicles with bidirectional charging. When you plug in your car for charging, it also becomes a power source for the grid or your home, potentially halving your electricity bill. This technology is already deployed by Tesla in the USA and could be implemented more widely soon, since Renault is working on around fifteen projects of this type in partnership with grid operator Enedis.

​​​​​This is just one of the ways in which energy production is becoming more varied and decentralized, with the transformation of power grids. We could say that this is the end of the traditional model of energy production, based on just one or two producers supplying energy from two or three main sources.

So why do we need to reinvent power grids?

If you hear the term Electricity 4.0, it’s not just another marketing ploy, but a way to underline a break with the past. It relates to the need for more abundant, more efficient and – above all – sustainable energy sources to support ​​​​the fourth industrial revolution, a transformation driven by electric mobility, data centers (cloud computing, data and artificial intelligence) and, first and foremost, the electrification of everything and the digitalization of virtually all areas of activity.

Electricity has all the qualities necessary to address these new challenges. For a clearer understanding, remember that it took 150 years for electricity to meet just one-quarter of our energy requirements, and that we need to reach 60% in just 25 years if we are to meet carbon neutrality targets.

This will involve a 40% increase in electricity demand by 2040, and a six-fold increase in the share of wind and solar power in the energy mix.

This change of scale will require a significant increase in the annual pace of investment in the grid (cables, pylons, transformers, etc.), with figures doubling or tripling compared with the past fifteen years. France, for example, has one of the oldest grids in Europe, with power lines that are 50 years old on average.

Further, renewable electricity is set to dominate the EU electricity sector by 2030. The change is gathering pace, with renewable energies expected to generate 66% of EU electricity by 2030, up from 44% in 2023.

This progress can be achieved only by implementing technological solutions able to fine-tune the balance between production and consumption, and to improve efficiency, security and sustainability.

A profusion of producers

The electricity revolution is all about the multiplication and decentralization of energy production methods.

We have an increasingly complex energy mix, with some countries using energies that are on the way out, like coal and gas, others opting for nuclear power, and – more generally – a growing proportion of hydro, solar and wind power.

At the same time, everybody is free to set up their own installation. This option is now very much a part of everyday life: an increasing number of individuals, SMEs, shopping malls and business corporations are investing in energy production. It is no longer an option reserved solely for major investors: a modest manufacturing firm in southern France can easily meet a third of its electricity needs by installing solar panels.

Between 2022 and 2023 in France, the number of new installations tripled for private customers and doubled for business users. And this is just the beginning, according to Laetitia Brottier, vice-president of Enerplan, the union of solar energy professionals.

Although the complexity of integrating new producers can lead to bottlenecks in grid access, this movement nevertheless plays an essential role in efforts to decarbonize our economies, and it is made possible by the transition towards smart grids.

These new-generation grids enable more agile energy management and make it easier to integrate new decentralized energy production sources, such as wind and solar power. According to a European Union study, optimizing the use of renewable energies through smart grids could reduce greenhouse gas emissions by between 10 and 15%.

Driven by demand

As a result, a completely new approach is taking shape, since energy production can be initiated and adjusted to reflect demand in the field, and in real time.

A multitude of sensors deployed across the chain, from the end user to the power distribution network, will enable live monitoring of power flows and consumption. This will allow for better management of the load, i.e. the maximum power supported by the system, so that switching on different household appliances at the same time will no longer cause a power cut.

In the same way as electrification, energy efficiency has a key role to play in the energy transition, allowing us to turn the heating on before we get home, control the shutters according to light and weather conditions, and so on. Connected objects will turn our homes into ‘energy ecosystems’, adapting appliances to weather conditions, to our activities, and to the price fluctuations announced by electricity suppliers based on their supply costs. This will make it possible to limit soaring household energy bills, while maintaining comfort.

This transformation will be seen not only in households and residential infrastructures but also on plants and industrial sites. It is already increasingly common for production workers and technicians to operate automated, remotely controlled systems (motors, furnaces, assembly lines, etc.), providing the grid with information on current and future energy consumption. Here again, this allows them to take advantage of the lowest possible market prices.

For this reason, manufacturers are innovating continuously to develop systems able to monitor all the components in the electrotechnical chain, such as electrical transformers, cables and connection accessories such as junctions. The purpose of digitalizing power networks is to monitor the activity and load of all these components, to prevent malfunctions and optimize use. Allowing for the measurement of partial discharges also helps to extend the service life of installations. In consequence, the monitoring of electrical infrastructures pursues two main aims: to measure and optimize power consumption, and to increase network reliability and service life.

Will we finally be able to store electricity and avoid wastage?

It is important to remember that production will inevitably exceed demand from time to time. Electricity consumption remains structurally higher in the daytime, on weekdays and in winter. However, solar production is higher in summer, while high pressure systems bring cold snaps and a lack of wind for wind turbines.

This being so, a large-scale transition to sustainable energies is intrinsically linked to storage technologies. These technologies need to demonstrate their efficiency in coping with variations in the production of renewables, when the sun disappears, or the wind is not strong enough. We are referring here not only to batteries, such as those used in electric vehicles, but also to pumped storage power plants. Note that the three main types of renewable energy – water, solar and wind – are highly complementary.

Sébastien Arbola, Executive Vice-President in charge of Flexible Generation & Retail activities at Engie, said: “For every megawatt of renewable energy installed, we will need between 10 and 15% of equivalent capacity in the form of storage.”

This fast-growing market requires new solutions, such as those developed by Nexans, which is contributing to the design of transmission and distribution networks able to collect renewables at source, and to the integration of storage sites on a larger scale, more widely distributed across a given area.

As you can see, electricity 4.0 is far more than just a technological adjustment. With the planet on high alert, managing electricity is fundamental in the transition to cleaner energies. Renewable power plants are one way to reduce our carbon footprint, along with more efficient distribution networks, new energy storage solutions, and interconnections with networks in neighboring countries.

This will also help us to take back control of our energy supply sources. With geopolitical tensions on the rise, this is vital for limiting energy dependency, managing price fluctuations and ensuring grid security.