The Evolution of the Grid: From Unidirectional to Bidirectional

The historical electricity grid is a centralized system. The energy transition is imposing a paradigm shift toward a distributed model, which Lowitzsch et al. (2020) define as the emergence of "renewable energy clusters" (RE clusters). These clusters are the technical-engineering representation of what RECs represent from a socio-economic perspective.

The main technical challenges include:

• Bidirectional Energy Flows: Energy produced by RECs is injected into the grid, reversing the traditional flow. This can cause voltage management issues and overloads on low- and medium-voltage networks.
• Intermittency of Renewable Sources: Solar and wind production is variable and non-programmable, creating potential imbalances between supply and demand at the local level.
• Congestion Management: During periods of high production (e.g., at noon on a sunny day) and low local consumption, the grid can become congested, requiring plant curtailment or the implementation of storage systems.

To address these challenges, the grid must evolve and become "smart."