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Why renewable grids need smarter assets, not just stronger ones

11 Sep 2026 | Articles

As renewable energy grows, OEMs are being asked to deliver intelligence alongside reliable hardware.

For decades, the success of power system assets has been measured by one question: will they operate reliably when needed? 

That benchmark is no longer enough. 

As renewable generation, battery storage and distributed energy resources reshape electricity networks, utilities are placing greater emphasis on how individual assets contribute to the performance of the wider system. The future grid requires equipment that not only performs reliably but also generates insights, supports faster decision making and responds intelligently to changing operating conditions.  

This evolution is driving a new approach to asset intelligence, one that is changing expectations for original equipment manufacturers (OEMs) and creating new opportunities to add value beyond hardware alone. 

Reliability is becoming the starting point 

Renewable rich electricity networks behave very differently from the systems they are replacing. 

As conventional synchronous generation retires, grid inertia is reduced, leaving operators with less time to respond to disturbances. At the same time, bidirectional power flows and increasing network complexity require assets to communicate, coordinate and adapt far more effectively than before. 

In this environment, simply proving that an asset is reliable is no longer sufficient. Utilities increasingly need equipment that contributes to wider network stability by supplying operational data, supporting predictive analysis and helping operators understand how changing conditions affect the system as a whole.  

Asset intelligence changes the role of OEMs 

This shift is expanding the role of manufacturers. 

Traditionally, OEMs have focused on delivering robust, dependable equipment that performs consistently throughout its service life. Increasingly, customers are looking for assets that also generate actionable information. 

Rather than reporting historical performance alone, intelligent assets are expected to sense operating conditions, interpret emerging risks and support faster operational decisions. The goal is not simply to monitor equipment health but to provide information that helps operators maintain network resilience during periods of stress. 

This represents a significant change in how value is created. Digital capabilities, analytics and operational insight are becoming as important as mechanical and electrical performance.  

From descriptive data to system awareness 

The next stage of asset intelligence goes beyond condition monitoring. 

Many organisations have already adopted descriptive and diagnostic analytics to understand asset performance. The focus is now moving towards predictive and prescriptive capabilities that recommend actions before problems develop. 

Ultimately, assets will increasingly operate as part of an intelligent network, sharing information with neighbouring equipment and contributing to coordinated system responses. This system level awareness will become particularly important as renewable generation continues to increase and decision making windows become shorter. 

Battery energy storage, advanced control systems and connected assets all have an important role to play, but only if they operate as part of an integrated ecosystem rather than isolated technologies.  

Collaboration will define the next generation of grids 

No single organisation can deliver this transformation alone. 

Utilities, OEMs and technology providers will need to work together to develop solutions that reflect real operating conditions rather than theoretical performance. Co-designing technologies, sharing operational knowledge and piloting new approaches will be essential to ensuring intelligent assets solve practical challenges for network operators. 

As renewable penetration continues to rise, the organisations that succeed will be those that combine engineering excellence with digital insight, delivering equipment that strengthens the performance of the entire power system rather than individual assets alone.  

These are the conversations shaping the future of transmission and distribution. At CWIEME Berlin, manufacturers, utilities and technology specialists come together to explore how digitalisation, asset intelligence and system level thinking are redefining electrical engineering. As renewable energy networks continue to evolve, collaboration across the value chain will be key to building more resilient, responsive power systems.

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