Transition to clean energy: innovations in smart grids rise to 13% in 2022

The transition to clean energy is accelerating the demand for electricity and increasing the importance of wind and solar power. This is the key finding of the new IEA report on smart grid technologies.

Smart grids emerge as a key solution for managing the energy transition, enhancing the resilience and reliability of the grid, and reducing the need for costly new infrastructure.

Transition to clean energy: europe stands out for technological specialization in smart grids

The year 2011 marked a peak in smart grid innovation, with 2,000 unique inventions in the energy sector, accounting for 11% of total innovations. After a period of decline, the relative share of innovations in smart grids rose to 13% in 2022, aligning with the objectives of the IEA Net Zero by 2050 scenario.

In 2020, technologies for monitoring and controlling generation units and supporting grid management constituted 41% of registered patents for smart grids, indicating growing investment in electrical equipment.

East Asia, primarily Japan and China, has dominated smart grid innovation, accounting for more than half of the total inventions since 2007. North America and Western Europe, with the USA and Germany in the lead, share the rest of the innovations.

Over the past two decades, there has been a shift from European and American dominance to a more central role for Asia in smart grids. More than 40% of smart grid innovations come from 10 global cities, highlighting a concentrated pattern of innovation.

Tokyo, Seoul, Beijing, Nagoya, Nuremberg, and the San Francisco Bay Area are among the leading metropolitan areas for innovation.

Europe stands out as a hub for technological specialization in smart grids, as indicated by the Revealed Technological Advantage (RTA). In contrast, Japan, the USA, and China show lower RTAs, despite their significant commitment to this sector.

Despite a decrease in the size of patent families, patent applications have increased since 2009, suggesting a rise in the market value of recent inventions.