Much of the technology used in today’s electricity grid remains substantially unchanged since the 1800s, when it was pioneered. New technologies that can support these systems are now becoming cost effective for widespread implementation, and can help reduce energy waste and improve efficiency. These include energy efficient transformers, new lighting technologies such as LED and many others.

In order to manage the growing and various alternative energy sources that have intermittent or varying electricity generation capabilities during different times of day in the electricity grid, and to more efficiently manage back-up and base-load power generation assets, the electricity grid needs to become more intelligent and efficient. Electricity needs to be routed to where it is needed, when it is needed. As electric and plug-in hybrid vehicles become more prevalent, load-balancing issues will be alleviated to some degree as the cumulative effect of millions of vehicles provides a meaningful energy-storage asset. However, intelligence needs to be added to the electricity grid with central control capability to reduce overall power usage. Additionally, a smart electric grid will lessen the occurrence of brownouts or the required use of expensive backup fossil-fuel power plants. 

According to the Nuclear Power Gaining Importance in China report by World Energy Media: “The State Grid Corporation of China’s grid system is sophisticated and rapidly growing, utilizing ultra high voltage (1000 kV AC and 800 kV DC). By 2020, the capacity of the Ultra High Voltage network is expected to be some 300 GW, of which hydropower will account for 78vGW, and wind power from the north a further significant portion. At the end of 2009, China had budgeted to spend $600 billion upgrading its grid.” As China’s electricity grid evolves to adopt smart electric grid technology, Barron Partners invests in those quality, innovative companies that are driving the advancements in energy management and energy efficiency.