Why Edge Computing is the Key to Solving Challenges in the Energy Sector

KEY TAKEAWAYS

Looking ahead, edge computing will play a vital role in helping the energy sector tackle rising demand, make better use of resources, and create a more sustainable energy system.

The energy industry is going through a huge shift as it faces big challenges like integrating renewable energy, handling the increasing demand for electricity, and the growing number of electric vehicles. One way to address these issues is by using edge computing.

In today’s world, the energy industry generates a massive amount of data across its networks, from generation to distribution, according to Arnie de Castro, a principal product manager at SAS, an analytics company. He explains that gathering all this data in one centralized system, like the cloud, would take up a lot of bandwidth. That’s where edge computing comes in, helping process and manage this data quickly and locally without overloading central systems.

The Need for Speed

When energy companies need to make split-second decisions, any delay caused by transferring data between a central computer system and the edge is just not acceptable, says de Castro.

“Edge computing allows all the data to be grouped and sent in batches to the control center, speeding up the process,” he adds.

By doing this, edge computing can help energy companies spot outages faster, fix them sooner, and improve grid reliability, keeping customers happy and the lights on.

Right now, many grid-edge devices use edge computing, but the systems are closed off—meaning only the original equipment manufacturers (OEMs) can control them, says Haider Khan, senior director of energy analytics at ICF, a technology services provider.

At the moment, real-time computing mostly happens in the cloud, where algorithms run to send signals to grid-edge devices based on the grid’s needs. However, this approach adds a slight delay, which limits the grid’s ability to react as quickly as it should, given that grid conditions change every few microseconds.

In the future, edge computing is expected to evolve and allow grid operators to manage devices themselves, without relying on OEMs. This opens the door to improved load management, better control over power generation and storage, and even self-healing networks, according to Khan.

Improving Grid Stability and Reliability

Edge computing doesn’t just help with speed; it also improves the stability of the power grid. By processing data locally, it reduces the strain on central systems and ensures decisions can be made quickly, says Andy Foster, product director at IOTech Systems.

“This reduces delays, eases the demand on bandwidth, and helps power companies balance supply and demand more efficiently,” Foster explains. This real-time decision-making makes the grid more stable, helping utilities distribute power where it’s needed most, right when it's needed.

Carl Moberg, CTO at Avassa.io, adds that edge computing lets devices and sensors in the grid react instantly to changes in demand, potential faults, or supply issues. The ability to respond right away means fewer outages and smoother energy distribution, which improves both the reliability and innovation of the grid.

Edge computing also helps decide when to tap into renewable energy and when to fall back on traditional sources, Moberg notes. By placing sensors and edge devices at renewable energy sites, grid operators can collect real-time data on energy production, storage, weather, and demand. This helps predict energy surpluses or shortages, ensuring a more stable and dependable grid that can better handle the ups and downs of renewable energy.

Foster adds that edge computing is also essential for managing the complexity of a decentralized grid. New edge technologies enable more responsive control decisions and better integration between local systems and central data centers.

Enhancing Building Energy Management

Edge computing doesn’t just benefit large energy networks—it can also make a big difference in building energy management, according to Colm Nee, CTO at Enlighted, a property technology provider.

“Real-time monitoring and control of building energy systems can save energy, reduce waste, prevent downtime, and improve data security,” says Nee.

As Internet of Things (IoT) technology advances, it generates tons of data, which edge computing helps manage efficiently. It allows buildings to run smarter by analyzing data locally, such as turning off lights in empty rooms or adjusting the heating based on occupancy. These small, real-time adjustments can lead to significant savings in energy and cost.

Supporting Electric Vehicle-to-Grid Communication

Electric vehicles (EVs) are another area where edge computing makes a big impact. By processing data locally at charging stations, edge computing helps monitor battery health and balance the energy load on the grid, says Foster.

It also enables vehicle-to-grid communication, where EVs can send stored energy back to the grid during peak times. This two-way energy flow helps the grid handle demand more efficiently, adding to the overall sustainability and resilience of our energy systems.

The Bottom Line

Edge computing is set to revolutionize the energy sector, enabling it to meet rising energy demands, use resources more efficiently, and move toward a more sustainable future. By allowing real-time decisions on when to use renewable or traditional energy, edge computing plays a key role in guiding the energy industry through its transformation. As Moberg says, “Edge computing is lighting the path forward for the energy sector’s sustainable future.”