Grid Modernisation: The Next Era of Smart Energy

With demand predicted to continue surging and ambitious sustainability goals, grid modernisation is imperative. Technology innovation will drive the transformation with advances in renewables, distributed energy resources, battery storage, and cybersecurity.

December 11, 2025. By News Bureau

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Smart grid

Smart energy solutions

Smart Grid Infrastructure

Keysight Technologies

Marie Hattar

The power grid is under immense strain, with soaring demand, aging and outdated systems and standards, and extreme weather to contend with. This trifecta is shining a spotlight on critical infrastructure and the pressing need to build a more resilient, efficient, and intelligent grid.

Power consumption is surging with electric vehicles (EVs) and energy intensive data centers expected to require 35 GW of additional electricity by 2030. Data centers alone are projected to consume 12 percent of the US' electricity by 2028, equivalent to powering 55 million homes. A report from the Virginia General Assembly, home to Data Center Alley, warns that the growth in power may exceed utilities' ability to meet it. Goldman Sachs echoes this forecast, stating that 60 percent of energy has to come from new capacity.

The soaring demand, coupled with net-zero emissions goals, requires transmission capacity to double. However, with permitting timelines taking over 5 years, utility companies recognize that grid modernisation is critical, particularly as the aging infrastructure strains to meet current requirements.

The challenge ahead is to remodel the grid into a resilient, secure, and sustainable system through innovation. Major drivers of this transformation include:

Renewables

By 2026, renewables are expected to be the largest source of electricity. However, the variable nature of solar and wind-generated power requires grid upgrades to handle these fluctuations without compromising reliability. Advances in battery technology, including iron-air and sodium-ion systems, will mitigate this by quickly storing excess power for later use, thereby extending discharge times, improving efficiency, and lowering costs.

Energy Storage

The integration of new storage methods will be part of modernisation efforts. Lithium-ion batteries offer high energy density, fast charging capabilities, and are suitable for a range of applications, including EVs and grid-scale storage, in addition to supporting renewables. Other options under consideration include pumped hydro, compressed-air energy, and thermal storage, which offer long-duration energy. Along with solid-state batteries, hydrogen, and gravity systems, these technologies will improve stability, helping the transition to a more resilient and reliable grid.

Smart Grid Technology

Creating more efficient infrastructure and systems requires integrating more intelligence. Predictive analytics, AI-powered grid management, and autonomous energy systems will be widely deployed. These technologies will monitor, control, and optimise power distribution, thereby improving overall efficiency.

Advanced Telecommunications

The power grid is a cyber-physical system, and as it becomes more advanced, seamless communication is vital to ensure power is transmitted and received, and any losses identified. As part of modernisation efforts, communications will be upgraded, with 5G networks incorporated to enhance data transfer and reduce latency. Advanced metering infrastructure, which enables bidirectional communication and flow, will provide utilities with granular usage information. And as IoT devices proliferate at the network edge, it will boost the grid’s efficiency and responsiveness.

Cybersecurity

A more connected grid with renewables and clean energy incentives presents more vulnerabilities for malicious state and non-state actors to exploit. Robust security is essential to reduce the likelihood of an attack and protect critical infrastructure.

To combat the risks and improve resilience, utilities must strengthen their security posture in several areas. Strategies like network segmentation help limit malware and cyberattacks, along with encrypting data to protect it from unauthorised access, and implementing intrusion detection systems to monitor for suspicious network activity. Operationally, training, incident response plans, and regular audits are vital to combat evolving threats and enhance security.

Testing Expands

As more systems and technologies, including distributed energy resources, charging stations, and generation assets, are embedded, they must be rigorously evaluated. For example, EVs must be able to charge reliably without overloading power systems. AI tools can simulate real loads to ensure they can reliably support peak demand. Managing power across solar, wind, storage, and grid systems requires advanced power electronics—further expanding testing requirements. As the power grid transforms with a complex web of hardware and software, testing will play a pivotal role in determining the pace of change.

Powering the Future

With demand predicted to continue surging and ambitious sustainability goals, grid modernisation is imperative. Technology innovation will drive the transformation with advances in renewables, distributed energy resources, battery storage, and cybersecurity. By 2030, the landscape of how power is generated, distributed, and consumed will have transformed significantly from the start of the decade. This transformation will deliver a more sustainable, reliable, and secure power grid designed to support the needs of our increasingly intelligent and connected world.

- Marie Hattar, SVP, Keysight Technologies