What makes an electrical network “dumb”? The grid in Hungary, as in many other countries, comprises power plants, distribution nodes and cables terminating in the industrial and household appliances that we use every day. However, just as the plants themselves, the system is not fully efficient, as a significant portion of the power generated simply goes to waste. But producing the energy that is ultimately never used still costs money, which shows up in your electricity bills.
New technologies, or rather a new approach, that of Smartgrids, is targeted at eliminating the squandering, which could translate into substantial savings. The best way to achieve this is to set up a system of telecom technology supporting the electricity transfer already in place, which directs the energy circulating in the power lines to where it is actually needed and redirect it from places where additional supplies could cause overloads and thereby outages.
Certain elements are already present in the system that provides the juice for our computers. “We have already introduced several developments or their introduction is underway,” Gábor Tari, CEO of the Hungarian grid operator Mavir told the Budapest Business Journal. These include a Work and Asset Management project replacing an outdated IT system, allowing better control, the almost complete overhaul of the transfer structure, and installing remote management functions, a development set to be completed by the end of March. Mavir is also looking to update its wind monitoring system to better predict its strength.
Tari noted that Mavir is constantly looking at new solutions that would allow the firm to cut its costs and also pointed out that certain “smart” solutions have already been in practice for many years. One example is what is called “night electricity,” when households get their electricity cheaper during periods when demand in general is lower.
Still in the middle ages
But tempting as the prospective gains may be, in order to actually make the grid smart, it would essentially require the complete overhaul of the country’s power generation. The smart distribution of power also requires the presence of highly decentralized generation capacities, namely small power plants that are for the time being few and far between. The obvious reason: industry players that could have a part in the advancement of the approach are not necessarily interested.
“In Hungary, this subject is still bogged down in the middle ages,” said István Szabó, project manager of Ecotech Zrt. His firm is a project company established by the College of Dunaújváros to develop an experimental Smartgrid solution. It is currently building a research laboratory relying on a photovoltaic system with a maximum capacity of 20 kilowatts, scheduled to be put into operation in the third quarter of the year. Ecotech is also working on the specifications of the telecommunications system it plans to use in the project.
Although Szabó highlighted Ecotech’s efforts in promoting the method to the energy sector, since major players have vested interests in preserving the current system of a limited number of major power plants generating the necessary capacities, they are unlikely to make the switch and start building smaller plants anytime soon. “Major energy companies are typically behind the curve when it comes to investing in research and development,” he added.
Tari agreed that any speculation on converting Hungary’s energy system to make it fully smart is purely academic. “For the time being many questions have yet to be clarified in the subject,” he said. As such, he noted that there is little to no sense in delving into details like the costs of extensive Smartgrid development or its specific impact.
All about the costs
Looking at the long-term effects, Smartgrid investments could yield serious cost savings. As Szabó explained, if the availability of the small power plant network was a given, the intelligent grid network regulating the generated power flow could reduce electricity consumption by 50%, which is the amount estimated as going to waste at present.
However, since the private sector is not interested, he believes that only state involvement or the introduction of EU or UN directives could actually lead to advancement. Currently, Hungary’s KÁT system (the subsidy scheme launched to assist sustainably produced energy that is at a competitive disadvantage to fossils) is also hindering any progress in his view.
Tari likewise found that given the uncertainty surrounding the issue and the number of factors involved, making calculations is senseless. “Considering the conditions, such as frameworks yet to be developed, and other issues requiring clarification, identifying the sources of financing is currently impossible,” he said.
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