Largely due to falling costs and supportive government policies like the European Union’s (EU) Renewable Energy Directive, renewables have become the technology of choice, with wind and solar projected to surge to as much as 50% of the world’s power generation by 2050.

Deployment of high-voltage direct current (HVDC) technology will be key in connecting these new wind and solar resources to the grid and supporting their integration by efficiently moving them over long distances, smoothing out variability and increasing the security of supply by interconnecting large continental systems. Currently, HVDC systems connect offshore wind or hydropower produced in less densely populated areas to the grid and connect islands to continental systems to improve security of supply. But as more cities look to convert to clean energy sources, this technology will allow major population centres far from the source to easily make the transition.

However, integrating variable generation into an ageing grid requires smart technologies that can support a better use of existing capacity and dynamically adjust flexible resources to real-time grid variations. To manage both fluctuating demand and generation, storage and flexible demand will also be an increasingly important part of the electricity picture as it facilitates renewable integration by providing congestion management, stabilising the grid and optimising asset utilisation and increase quality and security of supply.

The push towards a low-carbon intensive world coupled with the adoption of new technologies will drive continued growth of renewables.

As investments in transmission and distribution continue, the biggest challenges facing the industry are ageing infrastructure and the need for grid resiliency and reliability. For example, approximately 70% of the US grid’s transmission lines and power transformers are over 25 years old and the average power plant is over 30 years old. This, combined with the integration of distributed energy resources at the distribution level necessitates much more advanced grid applications such as lifecycle asset performance management and grid services to optimise asset operation, maintenance and replacement. With the rise of digital solutions, the entire value chain – from generation to consumption – can be optimised to operate more efficiently and economically.

Over the next few years, large, centrally located power plants will be supplemented by new, often smaller energy sources connected throughout the transmission and distribution system. This evolution is not only limited to the US – it’s happening across the globe. With the EU calling for 10% interconnection capacity by 2020, European countries will need to have transmission systems in place that are capable of carrying electricity over long distances – across borders to neighbouring countries, and vice versa. For example, the UK has already established new HVDC links with Norway and Belgium, with others planned for the future. HVDC systems in conjunction with flexible AC transmission systems and synchronous condensers are key technologies enabling greater grid stability and efficiency. This move towards a growing network of interconnected grids will cause a new digital grid of the future to emerge with smart sensors and advanced software and control playing a key role to provide greater efficiency, reliability and cost effectiveness for grid operators, owners, and consumers.

As more technologies that offer greater connectivity are incorporated into the grid system, we can’t ignore that the risk for cybersecurity breach increases. While the benefits of connected technologies outweigh the risks, operators will need to analyse and monitor for threats in real-time, implement defences and ensure continuity of operations in order to safeguard the grid.

While it may seem like the only thing the world is talking about is renewable energy, traditional sources, including fossil fuels and nuclear power, still account for 77% of total electricity generation today, according to the IEA. In spite of the increase of renewable sources, nuclear, coal and gas-fired technologies will remain an important part of the electric power mix in some countries, as they provide backup capacity and flexibility, which are an important complement to increasing amounts of variable renewables.

Over the next few years, natural gas generation will increase as new gas-fired power plants are deployed both to meet growing demand and to provide flexibility and security of supply within systems that are increasingly reliant on variable solar and wind power. The future electricity mix will be a diversified one including all fuels and technologies; however, the mix will shift towards both centralised and distributed renewables as their cost competitiveness continues to improve. The future grid will also evolve with this change by effectively integrating diverse electricity sources – from both fossil fuels and renewables – with the help of digital technologies and other technology innovations.