The global shift from fossil fuels to renewables is gaining momentum. Renewable energy sources are powering countries such as Albania, Iceland and Uruguay, with hydro, wind, solar, and geothermal meeting nearly 100% of their electricity needs. 

According to the International Renewable Energy Agency (IRENA)’s March 2024 report, renewables reached 3,870GW in 2023, comprising 86% of new capacity. The push for carbon neutrality and net zero goals is propelling this growth, despite challenges like unpredictable supply and surplus energy management.

Digitalisation and intelligence integration

David Sun, Vice President of Huawei and CEO of its Electric Power Digitalisation Business Unit, highlights the shift from traditional load-based generation to source-grid-load-storage systems. He emphasises integrating digitalisation with power scenarios to maximise its value.

“Huawei's perspective, though external, offers valuable insights for power companies,” David states. “Building grid-based sources, loads, and networks is crucial. Accurate weather data can enhance wind, solar and hydro power predictions. Precise analysis of energy consumption behaviour and accurate network status information are essential for grid autonomy.”

David uses transformer districts as examples, stressing the need for efficient brain control to achieve grid autonomy. Additionally, market-oriented mechanisms are vital for balancing supply and demand.

Building digital capabilities

Power companies must develop digital capabilities focused on digital foundations and open ecosystems to tackle new power system challenges.

“The digital foundation comprises three core capabilities: ubiquitous network connection, powerful intelligent computing and a digital platform,” says David. “These become strategic assets for power enterprises. In the digital era, no single player can address all pain points. Hierarchical decoupling, modularisation, and converged innovation are essential. Open, digital, and intelligent ecosystems, including algorithms, applications, edge computing and terminals, enable industry and cross-industry capabilities for customers.”

In March 2022, Huawei established the Electric Power Digitalisation Business Unit to bridge power scenario requirements and digital technologies. It focuses on R&D, marketing, sales, service and ecosystem construction, pairing digital and intelligent communication technologies with appropriate scenarios.

Intelligent distribution solutions

David identifies power distribution networks as the core challenge for new power systems. Improving reliability and reducing line loss – while managing new energy and loads – are priorities.

In China, Huawei partnered with State Grid Shaanxi to develop the Intelligent Distribution Solution (IDS), featuring ‘cloud-pipe-edge-device’ synergy. This evolution from single-point digitalisation to systematic intelligence involved four key technologies:

1. The edge computing unit (ECU) integrates multiple terminals and functions as the smart brain, enabling rapid online upgrades for edge devices.
2. Optical fibre and wireless networks provide reliable distribution backhaul communication, essential for real-time service access.
3. High-speed power line carrier communication (HPLC) dual-mode technology ensures 99.9% communication reliability, supporting minute-level data collection and second-level control.
4. A cloud-based, unified enterprise digital platform acts as the smart OS, leveraging enterprise-level data, AI models, and IoT platforms.

“Huawei helps build an open ecosystem,” says David. “We aim to eliminate industry barriers and make digital capabilities accessible to all industry players through integration and innovation.”

The digital foundation and open ecosystem delivered impressive results for State Grid Shaanxi, achieving 100% accuracy in blind tests, a 99.98% daily frozen data collection success rate, one-second abnormal event reporting and three-minute power outage notifications. This shift from passive response to proactive service significantly improved user satisfaction.

Beyond distribution, Huawei offers intelligent solutions for power generation, transmission, and transformation. “Huawei will continue to focus on communications, digitalisation and AI,” David concludes. “Partnering with industry companies and ecosystem partners, we aim to solve problems and create value.”

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