Power production is mainly hydro-electric and wind-powered, which means that power supply isn’t always constant to meet with demand. The Faroe Islands are now the first real-world users of a full smart grid.
Smart grid technology does a couple of things. First, if there is damage to a part of the grid, switches instantly block off power, rerouting it to undamaged parts of the grid. Fewer residences and buildings lose power, and power crews can easily locate damaged sections to restore power to the rest.
Second, smart grid technology can store and release power, depending on supply and demand. For example, when wind and hydro are running top-speed, battery packs can store excess energy, which is released when the wind does down or there is a spike in demand.
The smart grid put in place in the Faroe Islands, supported by a mix of renewable and non-renewable energy plants, will utilize computer systems, similar to Growing Energy Labs, Inc. [GELI], to continually monitor supply and demand, as well as problems in the system.
Decentralized electrical storage works to smooth out power production and demand, as well as switching systems to instantly reroute power in case of a problem.