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< Back | 28 February 2025

Near consumption point

Technologies for a new generation paradigm

The energy transition to a more sustainable energy model is driving an unprecedented transformation in power generation and distribution. In this context, power electronics play a key role in enabling the efficient integration of renewable energy sources and greater proximity to the point of consumption. This paradigm shift aims to optimise grid stability, minimise losses and improve the resilience of the power system.

Distributed Generation and Power Electronics

The traditional model of centralised generation, based on large power plants that transport energy through long transmission lines, is evolving towards a more distributed system. Distributed generation is based on multiple renewable energy sources, such as solar PV, wind or battery storage, which are strategically located close to consumers. For this model to work optimally, the application of advanced power electronics technologies is essential.

Power converters allow electricity to be transformed and managed in a flexible way, ensuring that locally generated energy can be efficiently integrated into the grid or used directly by end users. Their role is key to ensuring stability, improving power quality and enabling a greater share of intermittent renewables in the energy mix.

A real-world example of this implementation is the case of the Kodiak Island microgrid in Alaska, which has managed to be almost entirely powered by renewable energy through the use of advanced power converters that manage wind energy and battery storage. This has drastically reduced the use of fossil fuels in the region.

Key Technologies in the New Generation Paradigm

To achieve greater efficiency and sustainability in distributed generation, the following power electronics technologies have become essential:

1. Power Electronics Converters

Converters allow the generated power to be adapted to the requirements of the grid or the end consumer. There are several configurations, including:

  • Photovoltaic inverters: Convert direct current (DC) from solar panels to grid-compatible alternating current (AC). Currently, the installed capacity of PV inverters in the world is estimated at around 2,000 GW, with manufacturers such as SMA, Huawei and Sungrow dominating the market. These inverters have efficiencies of over 98%, optimising energy conversion losses.
  • AC-DC rectifiers and DC-DC converters: These facilitate the management of energy storage systems and enable the operation of microgrids. According to industry experts, global grid-connected battery storage capacity is estimated to reach 200 GWh in 2024, with applications including microgrids, backup systems and electric vehicles.
  • Multilevel converters: Improving efficiency and reducing losses in medium and high voltage systems. In Germany, HVDC interconnection projects have demonstrated up to 99% efficiency in power transmission on lines longer than 1,000 km.

2. Smart Energy Storage and Management

Battery storage is a key element in distributed generation, enabling a more stable and reliable supply. Energy management systems based on power electronics optimise the charging and discharging of batteries, enabling better integration of renewable energy sources and greater energy autonomy in isolated systems.

An example of success in this area is the Hornsdale Power Reserve storage system in Australia, which with a capacity of 150 MW/193.5 MWh has demonstrated its ability to stabilise the grid and reduce energy costs in the region. Globally, it is estimated that installed battery storage capacity could reach 2,000 GWh by 2030, driven by lithium-ion technologies and new solutions such as solid-state batteries.

3. Power Electronics in Micro and Smart Grids

Microgrids combine distributed generation, storage and advanced control systems to manage energy flow efficiently. Power electronics are essential to their operation, enabling functions such as:

  • Bi-directional energy management.
  • Real-time voltage and frequency management.
  • Connection to and disconnection from the main grid according to energy needs.

In New York, the Brooklyn microgrid is an example of how power electronics technology can enable decentralised energy transactions between users, reducing dependence on the central grid. It is estimated that there are currently more than 20,000 microgrids in operation worldwide, with a combined capacity of more than 40 GW, and this number is expected to double in the next decade.

4. Power Electronics Systems for Electric Mobility

The rise of electric mobility is driving the development of new solutions based on power electronics. Power converters enable bi-directional charging of electric vehicles (V2G), facilitating the integration of electric vehicles into the grid as distributed energy resources.

In Denmark, several V2G projects have demonstrated how electric vehicles can feed energy back into the grid at times of high demand, improving stability and reducing operating costs. It is estimated that there will be more than 250 million electric vehicles on the road by 2030, with a combined storage capacity of more than 10 TWh, representing a unique opportunity for smart energy management.

Conclusion

Advances in power electronics are changing the energy landscape, facilitating the transition to a more distributed, efficient and sustainable system. By enabling greater penetration of renewable energy, improving grid stability and reducing transmission losses, these technologies are positioned as fundamental pillars of the new power generation paradigm.

At Norvento Enerxía, we are committed to developing and implementing advanced solutions in power electronics to promote a more sustainable and resilient energy model, adapted to the needs of the future. Proximity to the consumption point and the digitalisation of the sector will be key to making the most of the opportunities offered by this technological revolution.

References

  1. “Kodiak Island Microgrid,” Renewable Energy World, https://www.renewableenergyworld.com
  2. “Noor Solar Complex,” World Bank, https://www.worldbank.org
  3. “Hornsdale Power Reserve,” Tesla, https://www.tesla.com
  4. “Brooklyn Microgrid: A Community-Driven Energy Marketplace,” LO3 Energy, https://www.lo3energy.com
  5. “Vehicle-to-Grid in Denmark: A Success Story,” European Commission, https://ec.europa.eu
  6. Storage market volume data, www. rhomotion.com

Image of Nickel: Garnierite, by Ekaterina.

Luis Jiménez Gutiérrez

Head of Photovoltaic and Storage. Operations Area of Norvento Enerxía.

Industrial Engineer from the Polytechnic University of Madrid and PDD from IESE, he has 30 years of professional experience in various positions in companies such as Telefónica and UPS. For the last 20 years he has been dedicated to the renewable energy sector in companies such as Conergy, where he was responsible for the subsidiaries in Spain, France and the United Kingdom and later collaborated as an independent consultant in several renewable energy projects.

Specialised in photovoltaic solar energy and storage systems, Luis has extensive experience in the management of renewable energy projects. He has been part of the Norvento team since 2018, where he has developed the solar photovoltaic business unit and, in the last 3 years, the storage business unit, leading projects all over the world.

 

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