Electrification, the third revolution

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We are in the middle of a third revolution, and our energy diet is changing! Throughout history, the world has made transitions from one source of energy to another. Not only have we made this journey once but several times. We have gone from using animal power to coal to oil and gas, and now we are in the process of electrification by evolving from fossil fuels to renewable energy.

In the following decades, we will see a substantial increase in renewable electricity production and supply, a steep rise in the replacement of combustion engines with electric drives, and a profound transformation of many greenhouse gas-emitting industrial processes. This, however, requires a significant expansion of a more intelligent and much more flexible electricity grid, new clean-tech innovations, and vast implementation of digitalization.

New technological developments, together with a sustainable policy agenda and the urgent need to combat climate change, are driving this critical energy transition. This transition is toward clean electricity as a principal fuel, combined with smarter digital technologies that make it possible to take full advantage of the growing amounts of cheap renewable power. This development and implementation of new electrified and sustainable technology transform our daily lives, cities, and transportation systems. Electrification enables the shift towards a sustainable future by decreasing fossil fuels' use, creating a better city life by reducing noise and improving air quality.

Nevertheless, this transition is complex and affects all levels of society, like infrastructure, industry, policymakers, and citizens. To solve this, we need to develop synergies between electricity usage and renewable power generation across all demand sectors – power, transport, industry, and buildings.

Electrification creates a very different energy system and a need for new technology

Overall electricity demand will rise significantly in transport, buildings, and industry, which will create substantial growth in several existing and new markets. Solar and wind energy will be key suppliers on the generative side, as their cost of producing electricity is already lower than from existing coal plants in many countries. Simultaneously, the electricity they generate will vary depending on weather conditions, which will put intense demands on the grid becoming more flexible. This introduces many new technologies and business models such as flexibility services, virtual power plants (VPP), and vehicle-to-grid (V2G). In Sweden, new platforms are being trialed where aggregated prosumers can offer power injection or power usage reduction towards the grid operator at the most challenging hours to keep the grid balanced. The need for this is imminent as several areas of the national grid are already congested and limit cities' expansion of housing and industry.

Our transportation system is evolving exponentially with the introduction of more and more electric vehicles or EVs. Almost all major car manufactures are offering or developing fully electric vehicles, and some have already set dates on when this will be their only offering. Today, cars are being electrified, buses, smaller service vehicles and trucks, scooters, motorcycles, boats, and ferries. This movement strongly suggests that all vehicles that can be electrified will be electrified now or in the future. Given the increase in vehicle efficiency and sustainability, they should and must be.

EVs are in many ways ideal to be powered from a grid with renewable energy generation. Road vehicles are parked about 90% of the time, allowing their charging schedules to be optimized using innovative power management to accommodate and take advantage of power generation and pricing variations. At specific points, depending on the local grid, optimized charging will be necessary. If half of Sweden's fleet of cars would be electric and half of them would plug in to charge at, say 5 pm, their combined power need would be approximately 20% of the total power generation capabilities of the whole of Sweden. As mentioned, EVs offer the potential of vehicle-to-grid services. When parked and connected to a charge point, their batteries can help regulate voltage and frequency, or supply electricity to meet spikes in demand in the grid.

To deliver this new system cost-effectively, merely switching to electricity in end uses and building new renewable generation alone is not sufficient, as should be evident. Electrification also requires smart devices and other information technologies that offer much more flexibility, decentralization, and AI.

Sweden is at the forefront of developing and implementing new electrified solutions through companies like the battery and energy storage manufacturers Northvolt and Polarium, solar and energy management technologists like Ferroamp and Ngenic, and transportation disruptors like Einride, CAKE, and Polestar.

The world around us is being electrified, renewable, and sustainable. What a time to be alive!

Author

Karin Hasselström is Regional Manager at Knightec Technology in Mälardalen and is a driving force around Knightec's area of expertise - Electrification and battery integration. With ten years of experience in electrification from the power industry, Karin has worked with Sweden's electricity grid expansion but also with electrification and electric power globally. Today, she is passionate about smart and sustainable development as well as technological shifts in electrification.

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