The Role of Smart Grids in Enhancing Renewable Energy Utilization in Urban Areas

Abstract

A smart grid is an innovative solution in electric power systems that enables energy efficiency, renewable energy integration, and grid stability improvement. This study aims to analyze the impact of smart grid implementation on energy efficiency, power loss, carbon emissions, and long-term economic benefits. Based on simulation and analysis results, smart grid implementation can increase energy efficiency by 20-30% compared to conventional power grid. In addition, power loss is significantly reduced from 10% in a traditional grid to 5% in a smart grid, increasing energy distribution efficiency. In terms of sustainability, the smart grid enables more optimal renewable energy integration, with solar power contributing 45%, wind 35%, biomass 15%, and hydro 5%, thus helping to reduce carbon emissions by up to 40% compared to conventional systems. From an economic perspective, cost-benefit analysis shows that although the initial investment of a smart grid is relatively high, within 10 years of implementation, this system can generate net economic benefits of 15-20% through energy savings and operational efficiency. In addition, applying demand-side management strategies in smart grids helps reduce peak load fluctuations by 25%, increases the reliability of the power system, and minimizes the risk of blackouts. Thus, the results of this study indicate that smart grids are a solution that not only improves the efficiency and stability of the power system but also supports environmental sustainability and long-term economic growth.