AI-Powered Smart Grids in the Middle East

As defined by the International Energy Agency (IEA), smart grids “better match the supply and demand of electricity in real-time while minimising costs and maintaining the stability and reliability of the grid.”

In the power sector, grids — or power generation, transmission, and distribution networks — play the crucial role of ensuring a reliable and consistent supply of electricity to homes, businesses, and industries. 

Smart grids differ from traditional ones in that they use digital technologies, sensors, and software. As defined by the International Energy Agency (IEA), smart grids leverage these to “better match the supply and demand of electricity in real-time while minimising costs and maintaining the stability and reliability of the grid.”

The importance of smart grids

As the world aspires to achieve Net Zero Emissions by 2050 (NZE) Scenario — wherein the global energy sector would achieve net zero CO2 emissions by the said year — the role of smart grids becomes even more crucial. 

With governments, especially in the Middle East, pushing for a clean-energy agenda, the sector would see a substantial increase in electricity demand, coupled with the widespread implementation of cleaner energies like solar and wind. Power grids will bear the brunt of facilitating these changes.

To manage this transition, accelerating the development of smart grids is imperative.

According to GlobalData’s “Thematic Research: Smart Grid in Power” report, the integration of artificial intelligence (AI) and blockchain will enhance smart grids’ ability to provide and monitor renewable energy solutions. AI can analyse large data sets to optimise energy demand, output, and storage. It can also monitor system problems, prevent blackouts, and balance supply and demand from renewable sources. 

The IEA echoes the same sentiment. “In the pursuit of a cleaner energy sector, smart grid technologies are pivotal in modernising a consistently overloaded grid. Digital technologies will also allow to integrate continually increasing shares of renewables from multiple sources, and further engage end users so that they can improve energy efficiency and reduce emissions,” the agency stated in a report.

Saudi Arabia’s smart-grid efforts

In the Middle East, Saudi Arabia is at the forefront of utilising smart grid technologies to support the clean energy transition. The country has been making steady progress in developing smart grids as part of its broader strategy to achieve net-zero emissions by 2060.

The country’s National Smart Grid Roadmap outlines the implementation of smart grids with a strong focus on technological advancements, regulatory frameworks, and stakeholder engagement. The Saudi Electricity Company (SEC) has taken significant steps in this direction by initiating the widespread installation of smart meters, with the goal if installing 10 million units by 2025. These smart meters will enable real-time monitoring of energy consumption and improve billing accuracy.

Moreover, in February this year, Peter Terium, CEO of NEOM’s water and electricity subsidiary ENOWA, shared insights into the company’s ambitious blueprint for the world’s first renewable, high-voltage smart grid. 

This innovative grid will enable ENOWA to supply the NEOM region with 100% renewable electricity while reducing the corridor footprint by 50%. Terium explained that the principle of smart grids, traditionally used on a small scale in buildings, can be scaled up to meet the extensive energy needs of a large region like NEOM.

The UAE sets an example

In the UAE, the Department of Energy in Abu Dhabi recently signed a Memorandum of Understanding (MoU) with the State Grid Corporation of China (SGCC) to develop a highly efficient smart energy and power system utilising diversified sources, especially clean and renewable energy. The MoU aligns with the UAE’s goal of achieving net zero emissions by 2050.

Key components of the MoU include conducting feasibility studies on decarbonisation and power system upgrades and adopting technologies that support automation and artificial intelligence.

Meanwhile, the Dubai Electricity and Water Authority (DEWA) also boasts advanced infrastructure that incorporates cutting-edge technologies such as the smart grid, AI, blockchain, energy storage, Internet of Things (IoT), and 3D printing. Their goal is to manage facilities and services more efficiently. 

Notable among DEWA’s smart grid initiatives is the Automatic Smart Grid Restoration System (ASGR). This groundbreaking advancement in fault detection and service restoration functions autonomously without human intervention.