As renewable generation scales, grids need flexible tools to match production with round‑the‑clock demand.

Battery Energy Storage Systems (BESS) store surplus electricity and deliver it within seconds, converting variable output into dependable capacity, balancing supply and demand, cutting peak costs, and strengthening resilience during extreme weather and outages.

Two forces make BESS indispensable today.

Globally, storage is widely recognized as core grid flexibility for integrating higher shares of renewables while maintaining reliability.

BESS Value and Safety

As variable renewables continue to expand, BESS will play a major role in strengthening grid reliability and flexibility by supplying fast frequency regulation, rapid ramping, voltage support, spinning reserve, and black‑start services. 

By enabling peak shaving and load shifting, BESS can move energy from low‑cost hours to high‑demand periods that results in reduced prices, eases energy congestion, and defers costly transmission and distribution upgrades.

When co‑located with solar and wind, BESS can transform variable output into firm, scheduled delivery, improving capacity value and cutting curtailment that would otherwise waste clean energy.

In addition, BESS‑powered microgrids can provide backup during outages, system restart capability, and steadier power quality in remote access areas.

Earning public trust and securing financing for deployments starts with demonstrated safety and code compliance. BESS projects follow NFPA-based rules, and they must obtain system safety certifications that test worst-case battery failures. They also add practical protections like ventilation, gas and fire detection, remote monitoring, and coordinated firefighter plans, which help win permits, insurance, and community support.

Market Outlook, Industry Impact, and Transportation

Battery storage is scaling fast as costs fall and revenue opportunities expand, especially alongside solar and longer-duration systems.

The biggest winners will include electric utilities and grid operators (more reliable service and fewer blackouts), renewable developers (less wasted wind/solar and better project revenues), and large power users like factories and campuses that can cut peak bills and maintain operations during outages. Critical facilities and remote communities will gain from resilient microgrids, while longer‑duration storage will help regions meet multi‑hour reliability needs as clean energy grows.

Transportation systems are poised for a major boost, too. Co‑located BESS at bus depots, trucking hubs, ports, and airports can deliver high‑power charging without overloading the grid, shave costly demand peaks, and keep fleets running during outages. As EV adoption grows, storage paired with smart charging and emerging vehicle‑to‑grid pilots will help balance loads and integrate more renewables into transport energy use.

Build Expertise with IEEE

Learn what it takes to turn renewable variability into reliable projects. Enroll in the Battery Energy Storage Technologies and Applications online course program to master the technical, economic, and regulatory skills to design, integrate, and de-risk BESS across grid, microgrid, facility, and transportation contexts. 

This five-course program builds a solid foundation in battery storage, covers economics and value stacking, and provides practical skills in system sizing, controls, and interconnection. It also addresses safety and compliance (including key standards) and explores transportation and high‑performance solutions, making it ideal for engineers, researchers, and battery professionals working on modern energy systems and storage deployments. Earn an IEEE certificate of completion bearing professional development credit as well as a shareable digital badge. 

Get started on the IEEE Learning Network or contact an IEEE Content Specialist for organizational access.

Experts confirm that current and future needs for electricity may soon exceed our global supply. New AI-driven data centers, electric vehicle charging stations, energy-intensive manufacturing operations, and a growing volume of internet connections are placing an increasing strain on outdated electric grids. This looming reality has since challenged utilities, grid operators, technologists, and regulators to reconcile existing electric capacity with rising demand.

It subsequently comes as no surprise that interest in renewable energy sources and related green technologies continues to grow. These solutions reduce carbon footprints, enhance global sustainability, and combat the effects of climate change.

Energy industry professionals have been addressing the disparity between electric supply and demand in various ways. Solutions include everything from increasing overall reliance on renewable energy sources to employing IoT-enabled automation devices. These actions optimize electric distribution, reduce waste, and enhance overall electric efficiency, reliability, and performance.

A Green Energy Revolution

As utilities continue to integrate renewable energy sources into their mix, numerous engineering advancements are helping them meet energy supply targets and align with the United Nations’ Sustainable Development Goals for 2030.

In the solar power arena, scientists use a highly responsive family of crystalline compounds called perovskites to deliver more power from existing solar panel devices. Based on their ability to analyze massive amounts of real-world data, quantum computing and AI are also being harnessed to help achieve more efficient solar cell design. Thanks to these technological achievements, solar energy has become more affordable, with costs dropping by some 90% in the last decade. Based on this and other factors, the World Economic Forum predicts that solar power is on track to be the world’s dominant power source by 2050.

The Future of Sustainable Energy

Though wind turbines are currently a less prevalent source of renewable energy worldwide than solar power, advancements in these devices are similarly helping to make them more powerful, efficient, and accessible. An engineering team at England’s University of Birmingham recently used AI to test more than 2,000 different blade designs and “explore design possibilities beyond the scope of traditional human experimentation.” Their research led to the development of the ‘Birmingham Blade,’ an optimally shaped and weighted blade that’s up to seven times more efficient than existing designs. It is scheduled to be commercially available later this year. The computational powers of AI also accelerated the blade design process, reducing development time from years to weeks.

As a result of these and other breakthroughs in the green energy industry, renewable energy sources are growing globally. In 2024, all renewable energy sources combined – including wind, solar, hydropower, biomass, and geothermal – provided over 32% of the world’s electricity. This is nearly double the level that renewable sources represented 25 years earlier. In the U.S., the use of renewables accounted for over 24% of total electricity production in 2024, up 4% from 2023.

Smart Grid innovations

On top of the growing use of renewable energy sources, utilities are increasingly relying on intelligent “edge devices” to optimize electricity usage. This category includes the use of IoT-driven sensors and smart two-way meters. These devices provide continuous monitoring and enable real-time insights into grid conditions. By tracking each user’s energy consumption patterns, these smart devices promote informed decision-making. This allows utilities and users to optimize their energy usage and better integrate solar, wind, and other renewable sources into their energy portfolio. The additional ability to store this energy through battery energy storage systems (BESS) further helps to address supply shortfalls and stabilize/optimize the grid.

Transportation and Sustainability

Other technological developments are also making great strides towards reducing our global reliance on fossil fuels and combatting climate change. In the transportation sector, ongoing advancements in electric vehicle design, regenerative braking, and electric drive train technology continue to deliver instant power, greater efficiency, and zero tailpipe emissions relative to conventional internal combustion engines.

The world is responding in kind, with global sales of electric vehicles hitting a record 17 million in 2024 (a 25% growth over 2023 levels). This trend will continue to reduce the world’s carbon footprint. According to the European Environment Agency (EEA), electric vehicles emit 30% less greenhouse gases than traditional gasoline-fueled cars. Their lifecycle emissions could decrease by at least 73% by 2050. In the U.S. alone, experts believe that the widespread use of EVs will lower the country’s CO2 pollution by two-thirds.

IEEE Climate Change eLearning Courses

As a globally recognized professional organization that plays a key role in shaping the fields of electrical engineering, electronics, and computer science, IEEE is committed to using its expertise and resources to foster technology for a sustainable climate.

To address growing concerns about climate change, IEEE offers a broad range of eLearning resources. These courses focus specifically on climate change and its impact across various industries, including:

Explore these courses on the IEEE Learning Network, or request institutional access today.

The Internet of Things (IoT) is allowing organizations to cost-effectively implement smart grids, also known as microgrids. Through IoT-based energy technologies, companies could revolutionize the distribution of electricity around the world.

Microgrids create smaller groups from the larger electrical utility grid, which provides greater control to organizations on how they use their energy supply.  Through this ability to disconnect and operate on the grid or in island mode, organizations can make smarter use of their power.

Islanding

Islanding refers to the ability of microgrid owners to improve resiliency when the grid is not supplying enough power. Microgrid owners are able to produce their own power when needed.

According to Justin Brant, a senior associate with the Southwest Energy Efficiency Project (SWEEP), “the biggest key is just in the area of resiliency, and that [microgrids] can provide the opportunity to island from the grid…When the grid may be down, you can still provide basic services.”

Benefits of a Microgrid

An IoT-based microgrid gives organizations power—both literally and figuratively. With the installation of an IoT-based microgrid, owners are able to improve the efficiency of their energy consumption. In additional to giving owners the ability to generate their own energy, microgrids also reduce dependency on utilities by helping to reduce costs and avoid peak usage charges. The technology even has the ability to produce revenue should the microgrid produce a surplus of power, which could be sold to a utility.

Utility Concerns

Microgrids may be helpful for organizations, but many utilities do not view them in a positive light. An increase in IoT-based microgrids could possibly mean a revenue loss. Furthermore, an increase in microgrids will require infrastructure upgrades. Because microgrids both use and generate energy, utilities will need to make sure that they are able to handle the bidirectional movement of power.

However, as microgrids continue to grow, opposition from utilities is decreasing, and they are looking into creating a new revenue stream. They are taking this opportunity to become partners with microgrid owners and offer fee-based services, such as microgrid feasibility studies and designs.

Modernizing the Smart Grid from IEEE

Do you want to learn more about the smart grid? Check out Modernizing the Smart Grid, a four-course online learning program from IEEE.

One of the biggest frontiers in electrical engineering today is the development and implementation of smart grid technology. Fueled by the global demand for greener technologies and alternative fuels, environmentally-friendly smart grid technology can stimulate stagnated economies. It also has the potential to change the way power is delivered to electricity consumers around the world.

Modernizing the Smart Grid, now available on the IEEE Learning Network, is designed to get you and your team up to speed quickly on the latest smart grid technologies.

Interested in bulk discounts for your organization? Contact us today, and we’ll put you in touch with an IEEE Account Specialist.

 

Resources

Castagna, Rich. (16 January 2020). Microgrids Deliver Resiliency, Security and Savings. IoT World Today.

Smart grid technology is enabling the effective management and distribution of renewable energy sources such as solar, wind, and hydrogen. The smart grid connects a variety of distributed energy resource assets to the power grid. By leveraging the Internet of Things (IoT) to collect data on the smart grid, utilities are able to quickly detect and resolve service issues through continuous self-assessments. Because utilities no longer have to depend on customers to report outages, this self-healing capability is vital component of the smart grid.

Smart Grid Management of Renewable Energy

The relationship between the smart grid and renewable energy revolves around gathering data. For example, wind farms use mechanical gears that require each link to support multiple sensors. Each sensor is able to note current climate and environmental conditions. This information is then quickly sent though the grid to alert the utility of any issues, which improves both the quality of service and safety.

“You’ve got this story of this invisible, dangerous commodity that travels at the speed of light that we call electricity and for the last hundred-plus years most people could interact with it in only the most rudimentary ways,” says Mark Feasel, vice president of smart grid for Schneider Electric. Companies are now deploying much more advanced sensing devices. According to Feasel, some devices can continually capture information on electricity up to 60,000 times per second.

Semiconductor materials, such as silicon, are supporting the creation of green energy with smart grid technology. Due to their ability to hold millions of minuscule transistors, these materials have enabled IoT advancement. In turn, this advancement has allowed the smart grid to link up devices throughout the system, which ensures that the supply of energy is equal to the demand. It also keeps the current evenly distributed.

Smart grids equipped with parts made from semiconductor material reduce the usage of electricity. For example, electric vehicles can charge at night— a time when offices and homes are not typically using much electricity. Lights switches and furnaces can also automatically power on and off. In this way, energy usage becomes “smart” by not using more than what is needed.

Renewable Energy with Smart Grid Technology Initiatives

As smart grid technology becomes more promising, both local and federal governments are exploring potential grid improvements.

Thailand

By 2037, Thailand wants a third of its energy to be generated by renewable energy sources. This means that Thailand’s grid will need to be modernized to handle the varying levels of energy provided by renewable sources. Any modernization plans will also need to take the country’s growing demand for electric vehicles (EVs), which is predicted to grow in coming years.

“When we have more renewable energy, the grid will become more difficult to manage, and then we will need to give them more flexibility with the digital to make it smarter,” says Dr. Surat Tanterdtid, Chief of Enterprise Architecture of the Electricity Generating Authority of Thailand. Smart grid technology can help monitor and predict the supply of renewable energy into Thailand’s grid. This may allow the country to anticipate power outages and prepare accordingly.

New York

The New York State Energy Research and Development Authority is currently holding a competition in order to improve the state’s energy distribution. The Future Grid Challenge, which began in July, is part of a push to transition the state’s electric grid to renewable energy. A new statewide act includes requirements for a clean or carbon-free electricity sector by 2040 as well as an 85% greenhouse gas emissions drop by 2050.

The first round of funding will provide up to $6 million USD to projects that partner with Con Edison and Orange & Rockland Utilities. The goal of the competition is to improve data analytics, grid stability, and forecasting while reducing system losses. 

Modernizing the Smart Grid

One of the biggest frontiers in electrical engineering today is the development and implementation of smart grid technology. Fueled by the global demand for greener technologies and alternative fuels, environmentally-friendly smart grid technology has the ability to stimulate stagnant economies as well as change the way power is delivered to electricity consumers around the world.

Modernizing the Smart Grid is a four-course program designed to get you and your team up to speed quickly on the latest smart grid technologies. Learn more about how your organization can benefit from this IEEE course program today!

 

Resources

Pilkington, Ben. (4 September 2019). The Role of Semiconductors in Clean Energy. AZO Clean Tech. 

Castagna, Rich. (29 August 2019). How Smart Grid Technology Is Driving Renewable Energy. IoT World Today.

Clemens, Ashley. (12 September 2019). New York power grid challenge is part of larger state energy goals. Daily Orange.

Basu, Medha. (19 August 2019). Thailand will use smart grid to predict outages. GovInsider.

Basu, Medha. (16 September 2019). How Thailand will integrate renewables and EVs into the grid. GovInsider.

 

Today’s modern smart grid connects a variety of distributed energy resource assets to the power grid. This creates a diverse and disparate system, which both individuals and power companies can impact, with enormous benefits. Distributed energy collection assets (such as solar panels) are essential to increase the use of green energy, which helps the environment and can reduce costs. Furthermore, consumers have greater insight into their energy usage through modern smart grid technology, allowing them to better conserve energy.

However, an individual’s increased access to the grid can jeopardize the security of the entire system.

Consumers Putting the Smart Grid at Risk?

Because they are often installed and controlled by the consumer, distributed energy resources can put the power grid as a whole at risk. For example, consumers who do not properly secure their devices and/or networks are prime targets for attack. If there are enough compromised devices on a smart grid, bad actors can destabilize the power system and cause significant damage.

Efforts to Increase and Standardize Smart Grid Security

There are efforts underway to increase the security of the smart grid in order to harness the benefits while avoiding the security pitfalls. For example, the European Network for Cyber Security (ENCS) and the European Distribution System Operators’ Association (E.DSO) recently released suggested cyber-security requirements for smart meters (SM) and data concentrators (DC). These guidelines help network operators choose SMs and DCs that enhance security of the smart grid. By creating a consistent set of requirements, smart grids across Europe have a built-in baseline of security.

Planning a Secure Smart Grid

In order to avoid catastrophic results, today’s smart grid operator needs to have a plan in place that accounts for security.

As Ed Wood, CEO of Dispersive Networks, writes in SC Magazine, “Attack-resilient, secure virtual IP networks can be designed and rolled out, which will enable utilities to ensure a more secure overall grid. Advanced virtual networking software that offers the highest level of security is available today and can be integrated directly into Distributed Energy Resource assets, enabling them to ‘plug-n-play’ into ultra-resilient virtual cloud networks. Leveraging the processing and memory of these devices and the public Internet is essential to lowering costs.”

This tactic can help secure the smart grid while taking advantage of the environmental and cost-saving benefits of distributed energy resources.

Modernizing the Smart Grid from IEEE

Want to learn more about the smart grid? Check out Modernizing the Smart Grid, a new 4-course online learning program from IEEE.

One of the biggest frontiers in electrical engineering today is the development and implementation of smart grid technology. Fueled by the global demand for greener technologies and alternative fuels, environmentally-friendly smart grid technology can stimulate stagnated economies. It also has the potential to change the way power is delivered to electricity consumers around the world.

Modernizing the Smart Grid, now available on the IEEE Learning Network, is designed to get you and your team up to speed quickly on the latest smart grid technologies. Interested in bulk discounts for your organization? Contact us today, and we’ll put you in touch with an IEEE Account Specialist.

 

Resources:

Wood, Ed. (18 Jul 2019). How Securing DER Smart Grids Differs from Securing Traditional Energy Grids, and Why it Matters. SC Magazine.

SmartCitiesWorld News Team. (23 Jul 2019). Europe seeks to harmonise smart grid security requirements. SmartCitiesWorld.

One of the biggest frontiers in electrical engineering today is the development and implementation of smart grid technology. Fueled by the global demand for greener technologies and alternative fuels, environmentally-friendly smart grid technology has the ability to stimulate stagnated economies. It can change the way utilities deliver power to electricity consumers around the world.

Smart grid technology combines existing electrical infrastructure with digital technologies and advanced applications. It provides much more efficient, reliable, and cost-effective energy distribution. It’s a merger of power systems, information technology, telecommunications, switchgear, and local power generation, along with other fields. As these separate technologies become merged, new safety considerations must be taken into account.

Ever since the days of Thomas Edison, people have been concerned with the safety of electrical devices. As innovative technologies and new opportunities and safety issues arise, the National Electrical Safety Code® (NESC®) evolves to address any and all concerns.

The NESC Evolves with Advancing Technology

As plug-in hybrid electric vehicles (PHEVs) and full electric vehicles (EVs) replace gasoline-only burning vehicles, public parking lots will need to be equipped with outdoor charging stations. This includes pay-for-use charging stations. These stations will integrate technologies such as electrical metering, switching, information technology, telecommunications, and currency handling technology.

Safety comes into play in making the charging station terminals safe for unskilled drivers to use. It also involves guarding against intentional access to hazardous voltages, as well as protecting communication circuits. This may mean putting telecommunication protectors at each end of a campus-run communication conductor, where an exposure to lightning or accidental contact with electric power conductors exists.

Vehicle charging stations are just one example of how advances in technology lead to NESC updates.

Stay on Top of the NESC

smart grid safety national electrical safety code 2017 ieee standards

The safety of utility-owned smart grid equipment within power generation or transmission circuits continues to be evaluated. This evaluation includes the service conductors to customer buildings. Professionals conduct the work in accordance with basic utility safety standards or codes, including NESC.

To help your company prepare to comply with the latest safety guidelines, IEEE offers a complete seven-course NESC program online through IEEE Xplore :

Order the complete program today and stay on top of the critical tech issues affecting the industry.

Resources

Gies, Don. (1 Mar 2014). Safety Considerations for Smart Grid Technology Equipment. In Compliance.