The growth in energy trading is also causing additional network
loading, which is leading to bottlenecks at cross-border network
interconnection points. Meanwhile, as wind power with its fl uctuating input is fed into the grid, power grids must be designed to handle two different situations. They must be able to accommodate both strong wind phases as well as low wind phases when conventional power plants have to compensate for the reduced renewable feed-in. Highly populated areas are experiencing increases in short-circuit currents. Although substantial investments in network upgrading in the past have solved problems with the short-circuit current carrying capacities, given the costs, power utilities should consider using short-circuit limiters in the future. Both HVDC transmission and series compensation can play an important role in developing the supraregional transport network in Europe. The two options are capable of controlling load fl ow fl uctuations that arise from the growth in decentralized power generation. They can also stabilize supply networks which are generally becoming more complex. Finally, supply reliability should not be sacrifi ced for the sake of fl exibility and dynamism. Synchronous, interconnected three-phase networks demonstrate the obvious advantages of HVDC transmission technology. The technology acts as a fi rewall between three-phase networks. In the event of a fault, HVDC transmission technology suppresses interference and decouples the two connected networks. The new, self-commutated HVDC technology, HVDC PLUS, also works very well for connecting offshore wind parks; it provides an economical and space-saving solution. Increasing energy demands require the comprehensive expansion of the network. Load management systems are also needed to maintain a dynamic equilibrium between controllable power generation, the increasing feed-in of wind energy (with its fl uctuating grid input), and power consumption. In the absence of available, cost-effective energy storage technology, electrical energy could be used in peak load periods. For example, it could be used in the transport sector (for hybrid vehicles), for heating buildings and to replace increasingly scarce fossil energy sources. Today it is already possible to use electrical energy via heat pumps for heating buildings and thus help reduce CO2 emissions. New equipment, based on power electronics solutions from the HVDC and FACTS modules, enable load fl ows in both trans mission grids as well as medium-voltage networks to be regulated. This makes cross-border energy trading possible with highly effi cient and easily regulated interconnecting stations and ensures dynamic system perturbation without jeopardizing the security of the power supply. Today, innovative power system management can help combine several decentralized power providers into a larger unit a so-called virtual power plant (VPP). Intelligent grid automation systems can bring together different generating plants such as block heating power plants or wind power plants to form a virtual balancing circuit that can be planned and controlled more effectively than its individual components. The energy management systems already in use in the distribution networks could also be expanded to incorporate a large number of small power generating sources. However, the reliability of the power supply and the maintenance of relevant quality criteria would not meet the high demands of the grid operators. Therefore, specialized automated systems will be used in smaller mediumvoltage systems and in local grid stations to measure the quality of the electricity and make necessary adjustments to voltages. As power supply systems become larger and more complex, they become increasingly vulnerable to faults such as blackouts. Given those vulnerabilities, a power system control center must be able to react quickly and effectively to minimize the impact of a fault. Modern power management systems record the precise state of the supply network, and, before problems occur, analyze it and suggest the best operational solutions in critical situations. Some response tactics can even be automated. The eventual replacement of standard, periodic network maintenance with condition-based maintenance will help cut operating costs. It will also play a role in keeping energy prices competitive. Thanks to the increasingly automatic analysis of both the importance and the condition of the network (including the consequences of a possible failure), we can carry out maintenance activities with minimum costs and maximum availability. All of these measures are part of the SmartGrid concept that is designed to meet todays energy supply challenges with effi cient, fl exible and secure solutions (fi g. 1-2). In the future, all possibilities will be exploited in energy supply systems to fulfi ll the demands for primary energy effi ciency and the reduction of greenhouse gas emissions under the most economical conditions. Large centralized power plants will also continue to play a dominating role in ensuring reliable energy supplies. Wind parks and large photovoltaic installations will also make growing power contributions that are fed into the main power grids. The operators of distributed grids have to prepare for the growing demand that will burden even well-developed grids to the limits of their capacity. Especially problematic are the peak loads in certain parts of the day that have to be compensated in order to avoid investments that are too expensive simply to meet peak demands for a few hours a day. The answer is to utilize all measures that allow a shifting of demand to help ensure more economical grid operation such as by monitoring the real-time demand rate. Grid operators will manage the loads of private customers as well. In these efforts, it will be especially important to provide bi-directional communication between the grid operator and the electronic household meters feeding from the grid. This will make smart metering possible and will allow grid operators to gain valuable data about the momentary condition and load of their power grids, monitor the maintenance of voltage levels, and exert infl uence on the central power plants or grid loads.