IEEE Power & Energy Magazine - July/August 2019 - 105

The New Trading Floor for
Electricity
Substations capable of collecting sup-
ply and demand metrics near custom-
ers will be the ultimate trading floor
of electricity in the new world of DER
integration. Substations will provide
information to investors seeking to op-
timize the expansion and operation of
generation and storage. Utilities will
use this information to manage asset-
loading cycles, perform maintenance,
and plan system improvements.
We are seeing growth in peer-to-
peer generation and the sale of electric-
ity in some areas in the United States
and internationally. Local demand and
supply aggregators are innovating and
managing the real-time optimization
of consumption and the production of
electricity. These market-based innova-
tions are expected to lead to the creation
and growth of independent electricity-
trading platforms that interact with AI
platforms. These platforms will operate
the substations and the grid by redirect-
ing the power flow to where the demand

and market price are greatest. The sub-
station AI will ensure that the grid oper-
ates efficiently and reliably. The great-
est challenge would be resolving any
conflicts between the two systems.
Individual customers will not only
consume electricity but may also gen-
erate and participate in local electric-
ity markets by using trading platforms
and AI. The trading platforms will also
present their own set of concerns and
challenges to be addressed, ranging
from regulatory reform to public per-
ception. Adopting this customer para-
digm is inevitable.

Sustainability
As the use of carbon-free resources
for electricity generation increases,
we become more mindful of the effect
our activities have on the environment
around us. Adopting the various tech-
nologies discussed here would lower
carbon emissions by using resources
more efficiently and reduce the physi-
cal footprint of the equipment the sub-
stations use. These gains will acceler-

ate as older assets are refurbished over
the next two decades, which will also
improve asset utilization and lead to
long-term sustainable outcomes.
Another aspect of sustainability is
environmental compatibility. Substation
designs are becoming more environ-
mentally friendly, especially in urban
areas where they blend into the local
background. We are also seeing a trend
toward underground substations, which
frees up valuable real estate for other
uses while also providing better physical
security of the critical infrastructure.
What an exciting time to design fu-
ture substations! Consistent with the
S-curve for new technology adoption,
the electric grid is almost at the tip-
ping point for technological innovation
and will then spread at an exponential
pace in the very near future. A VR-de-
signed, AI-enabled solid-state compact
modular substation will be developed
soon, ultimately solidifying the substa-
tion's critical role at the center of the
new grid.
p&e

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IEEE Power & Energy Magazine - July/August 2019

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