Getting a grip on the grid with Siemens Smart Infrastructure's Stephan May

Stephan May highlights how to navigate complex business, regulatory and technology environments to achieve grid stability and meet sustainability goals.

As we shift from centralised fossil fuel power plants to decentralised renewable generation, the grid must be capable of managing a diverse and variable energy mix.

Stephan May, CEO of Electrification and Automation at Siemens Smart Infrastructure, reveals some of the biggest hurdles involved, and explains how embracing digital technologies like artificial intelligence and cloud computing can overcome many of them.

What progress is being made in accelerating the energy transition?

The focus on sustainability and CO₂-footprint reduction is maturing across all industries. However, regulatory frameworks need to accelerate in adapting to enable efficient transformation towards a new clean energy world. Efforts are increasing to deploy clean and efficient technologies, replacing fossil processes with electrified ones.

The International Energy Agency (IEA) states that in 2025, renewables will surpass coal to become the largest source of electricity generation. CO₂-neutral generation and electrifying processes, however, aren’t the only relevant success factors. Efficiency of transmission and distribution grids, as well as sector coupling, are further essential elements for a successful energy transformation. The IEA further states that the demand for hydrogen is expected to grow by 63% from 2023 to 2030.

The most critical aspect lies in missing or delayed policies. These are crucial for investors – for the security of their investments, but also for keeping the transformation process affordable, and ultimately for providing clean energy that is affordable for consumers.

In particular, the required enhancements to electrical grids haven’t received the necessary regulatory attention and investment, despite being highlighted to policymakers by the industry for years. It starts with permits and approval times, over to the regulations if BESS can be operated by transmission- and/or distribution companies, to the question, if the existing merit order principle is triggering investment to achieve a most cost-efficient energy transformation.

So, good progress has been made on the technology side and on increasing renewable energy generation. However, streamlined and coordinated policies will be essential for maintaining the timeline and managing the cost of the energy transformation.

How important are electrical grids in ensuring a successful energy transition?

Electrical grids are the backbone of the energy transition. Their importance cannot be overstated. Critical infrastructure underpins our entire journey towards a sustainable energy future, and the energy transition would not be feasible without robust and reliable grids. Grids are essential for integrating renewable energy sources. As we shift from centralised fossil fuel power plants to decentralised renewable generation, grids must be capable of managing a diverse and variable energy mix and increased dynamics.

Transparency within grids, especially at lower voltage levels, is paramount. The increasing decentralisation of energy production and the growing demand for EV charging and other loads from electrified processes necessitate a more sophisticated grid management approach.

We must create more transparent and intelligent grids that ensure stability and reliability by harnessing data and deploying digital technologies like artificial intelligence. Given the limitations on expanding network capacities, we must focus on optimising the use of what we already have. This involves bringing intelligence into all levels of grids, and deploying solutions that enhance the efficiency and resilience whilst keeping it economical.

Have you read?
‘We need to think smart and fast’ to future-proof the grid
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Why the electrical grid is ‘the backbone of the energy transition’  

What keeps your customers awake at night?

Our customers’ concerns span reliable and cost-efficient business operations, being protected from cyber-attacks, reducing environmental impact, and workforce management, all of which are critical to their success and the broader energy transition. From an operational perspective, avoiding unplanned shutdowns without frequent manual field checks is one of the most pressing issues.

Ageing assets pose a significant risk, requiring substantial resources for maintenance. Unplanned power outages can be extremely costly, impacting the infrastructure and lowering competitiveness and reputation. Environmental challenges are also at the forefront.

Maintaining grid stability amid a growing share of decentralised generation and expanding EV charging infrastructure are complex. Within the EU alone, it’s expected that 20 million new consumers will be added to the grid by 2026, whilst reducing the CO2 footprint to meet sustainability goals is imperative. Cybersecurity is another growing concern.

Ageing electrical assets in many networks are vulnerable to cyber-attacks, with over 23,000 susceptible points in the US alone. As the number of vulnerable points increases, so do the grid stability and security risks. Physical upgrades of grids, retrofits and digitisation all require efficient policies, skilled labour, material availability, industrial capacities, and lastly sufficient budgets. Therefore, the timeframe for making grids fit for purpose is extremely short.

With rapidly growing EV charging networks, the pressure on the grid is increasing. How can we address this while keeping the grid stable?

The rapid growth of EV charging networks necessitates a strategic and multifaceted approach to ensure stability. Load management is crucial in this context. We can manage the increasing demand for EV charging stations by optimising energy supply systems. Advanced load management functions provide complete transparency of the charging network status and load, allowing for efficient monitoring and grid management.

Additionally, smart grid technologies play a vital role in enhancing the grid’s ability to monitor and respond to changes in electricity demand in real time. Integrating smart meters, sensors and advanced analytics allows grid operators to predict and prevent potential overloads, balancing supply and demand more effectively. Energy storage systems further support this effort by storing excess energy generated during periods of low demand and releasing it during peak times.

How can the digitalisation of electrification infrastructure help?

The digitalisation of electrification infrastructure is crucial for enhancing the grid’s efficiency, reliability, and sustainability. It enables real-time monitoring through smart meters and sensors, allowing operators to detect anomalies, predict issues, and implement corrective actions, thus improving reliability and reducing downtime. By analysing data from various grid components, operators can perform predictive maintenance, identifying signs of wear and tear before they lead to failures. Digitalisation also facilitates better integration of renewable energy sources, managing their variable output to effectively ensure a stable electricity supply and balance supply and demand.

Furthermore, digitalisation improves energy efficiency as smart grids dynamically adjust to changing consumption patterns, optimising energy use across the network. Demand response programmes can shift energy use to off-peak times, reducing grid strain and lowering consumer costs. An interconnected grid also necessitates robust cybersecurity measures, including real-time vulnerability scans, automated threat detection, and compliance with regulatory standards to protect against cyber-attacks and maintain a reliable energy supply. Enhanced data analytics and reporting capabilities help organisations meet regulatory requirements and improve their corporate social responsibility profiles.

You recently launched Electrification X. How can it help master the challenges of the energy transition?

Electrification X is an integrated IoT suite in the Siemens Xcelerator portfolio. It is designed to address the complex challenges of the energy transition by using IoT technology to manage end-to-end electrification infrastructure across various use cases. The portfolio enhances reliability with its Network Fault Management feature, providing early warnings and allowing for proactive management of network faults.

Additionally, the Asset Management function maximises asset utilisation and uptime, improving efficiency and reducing maintenance costs for all grid assets. Distribution Grid Monitoring offers precise oversight of all stations in the distribution grid, identifying potential bottlenecks and maintaining stability even as decentralised renewable energy sources increase – all while OT Companion ensures robust cybersecurity, protecting energy supply systems against vulnerabilities and streamlining compliance with standards.

Utilising further feature sets of Siemens’ Xcelerator platform will enable to simulate production of green hydrogen by digital twins. Ultimately, Electrification X supports sustainability goals by optimising energy use, helping businesses reduce their carbon footprint and meet regulatory requirements. It plays a crucial role in mastering the energy transition and keeping the distribution grid stable by enhancing energy efficiency, keeping it cost-efficient and ensuring clean, reliable and affordable electrical energy supply.