Smart electrification of end-use sectors: Benefits for distribution grids

In order to achieve the collective goal to secure a carbon-neutral future, the global energy transition focuses not only on how energy is produced but also, importantly, on how it is consumed; both supply and demand must be simultaneously transformed to deliver the efficient and effective decarbonisation of the entire system. Innovation in end-use sectors is therefore integral to the global energy transition.

IRENA’s Innovation landscape for smart electrification mapped key innovations to build smart electrification strategies. These strategies offer cost-effective decarbonisation pathways to electrify end-use sectors, increase system flexibility, incorporate large shares of renewable energy in power systems and minimise the investments needed in grid reinforcements.

This report complements Innovation landscape for smart electrification by quantifying the benefits that different smart electrification strategies can bring to distribution grids and consumers.  Combining smart operation of heat pumps, smart charging of electric vehicles and generation from the decentralised PV systems can minimise the investments needed in grid reinforcements, reduce loses and ultimately result in considerable savings for consumers.