Blog | Peak

AI, SSTs For The Modern Power Grid

Written by Shaun Walsh | Mar 10, 2025 8:10:55 PM

AI and Modern Power Grids

Artificial Intelligence (AI) plays a crucial role in energy trading, power grid modernization, and various other aspects of the power industry. The use of AI for energy management, particularly when combined with digital transitions such as solid-state transformers (SSTs) and high-frequency switching (HFS), significantly enhances the electrical grid's reliability, efficiency, and responsiveness.

  • More Precise Control: AI-driven optimization, leveraging the precision of SSTs, HFS, and other digital technologies, is a game-changer in energy management. It enables real-time balancing of energy flows, supply and demand, and reliability. SSTs, with their ability to integrate renewables more seamlessly into the grid, significantly improve grid flexibility.
  • Optimization and Minimizing Waste: High-frequency power electronics, a key feature of SSTs, effectively reduce conduction losses and improve energy efficiency even under high loads. This ensures that grids using SSTs minimize energy waste, aligning perfectly with AI-driven optimization strategies that aim to balance supply and demand efficiently.

  • Smaller and More Responsive Systems: Digital elements in the power grid enable the use of compact components, reducing system size while improving transient response. SSTs, HFS, and other digital technologies allow AI systems to adapt quickly to supply and demand changes, or variation in grid conditions.

  • Bidirectional Power Flow: SSTs can be designed to enable seamless two-way power flow, allowing AI systems to integrate renewable sources like solar or wind into the grid while optimizing energy storage and distribution strategies.

  • Real-Time Monitoring: SSTs provide real-time data on grid conditions, which AI algorithms can analyze to make informed decisions about power distribution and help reduce consumer electricity costs. For example, this enables AI algorithms to predict electricity supply, price, and trends based on grid demand or renewable energy output.

In summary, SSTs are responsive and efficient, while AI leverages these capabilities for smarter energy trading. Together, they enable faster decision-making, better resource allocation, and improved profitability in dynamic electricity markets.

Traditional vs. Solid-State Transformers

Conventional transformers rely on heavy iron cores and low-frequency operation. While they are robust and well-suited for large-scale power transmission, they lack advanced control and monitoring capabilities. Solid-state transformers offer compact designs, better efficiency under variable conditions, and enhanced functionality for modern grids, but they do so at higher costs and complexity.

 

Traditional Transformer

Solid-State Transformer (SST)

Operating Principle

Electromagnetic induction

Power electronics and high-frequency switching

Size & Weight

Large and heavy

Compact and lightweight due to high-frequency design

Efficiency

High at full load; lower at partial load

Higher efficiency under varying loads

Voltage Regulation

Limited, passive

Active, precise voltage and frequency control

Power Flow

Unidirectional

Bidirectional (supports two-way power flow)

Integration

Limited compatibility with modern grids

Easily integrates with smart grids and renewables

Maintenance

Minimal but requires oil cooling for heat dissipation

Requires advanced cooling systems for semiconductors

Cost

Lower initial cost

Higher initial cost due to advanced components

Applications

Long-distance power transmission, step-up/down tasks

Smart grids, renewable energy, urban power systems


SST - Advanced Materials Used in Transformers

SSTs utilize advanced materials to support high-frequency operation, compact design, and thermal management:

Magnetic Core Materials
    • Nanocrystalline Alloys: Offer low core losses, high saturation flux density, and excellent permeability, making them ideal for high-frequency transformers (HFTs) in SSTs.

    • Ferrites (e.g., Mn-Zn): Provide stable operation at high frequencies with low losses but lower saturation flux density than nanocrystalline materials.

    • Amorphous Metals: Feature reduced core losses and moderate saturation flux density, suitable for medium-frequency applications.

Semiconductor Materials
    • Silicon Carbide (SiC)

    • Gallium Nitride (GaN): Wide-bandgap semiconductors enable higher switching frequencies, reduced energy losses, and better thermal stability.

Insulation Materials
    • Advanced polymer composites for high-voltage insulation systems ensure thermal durability and reliability in compact designs.

Passive Components
    • High-temperature capacitors and inductors designed for efficient energy storage and high-frequency filtering.
 

Traditional Transformers

Solid-State Transformers (SSTs)

Magnetic Cores

Grain-oriented silicon steel, amorphous metals

Nanocrystalline, ferrites, amorphous metals

Semiconductors

Not applicable

SiC, GaN

Insulation Systems

Oil-based systems

Polymer composites

Passive Components

Standard capacitors/inductors

High-temperature capacitors/inductors

SSTs leverage advanced materials like nanocrystalline cores and wide-bandgap semiconductors to achieve compactness, efficiency, and adaptability to modern grid requirements. Traditional transformers focus on durability and cost-effectiveness using materials suited for low-frequency operation.

10 Operational Benefits of Solid-State Transformers (SSTs)

As we move toward an AI-driven digital power grid, SSTs offer several operational and efficiency advantages over traditional transformers.

  1. Enhanced Efficiency: SSTs are more efficient, especially under variable or partial load conditions, resulting in reduced energy losses and lower operating costs.

  2. Compact Size and Weight: High-frequency operation allows SSTs to use smaller magnetic components, making them significantly lighter and more compact than traditional transformers.

  3. Bidirectional Power Flow: SSTs enable two-way power flow, essential for integrating renewable energy sources and energy storage systems into modern grids.

  4. Improved Power Quality: SSTs actively regulate voltage, correct power factor, and suppress harmonics, ensuring better power quality and stability for sensitive applications like hospitals or industrial processes.

  5. Fault Isolation and Reliability: SSTs can rapidly detect and isolate faults, reducing system damage and improving overall reliability compared to traditional transformers.

  6. Safety Features: By eliminating the need for oil-based insulation, SSTs reduce fire risks and contribute to a cleaner environment by minimizing the potential for environmental contamination. This safety aspect adds a layer of confidence to the use of SSTs in power grids.

  7. Flexibility in Power Conversion: SSTs can handle AC-AC, AC-DC, or DC-DC conversions with precise control over voltage and frequency levels, making them versatile for smart grids and renewable energy systems.

  8. Voltage Matching and Conversion: SSTs can efficiently increase or decrease the variable output voltages of renewable sources like solar panels or wind turbines to match grid requirements. They handle AC and DC inputs, making them versatile for hybrid systems

  9. Power Quality Management: SSTs improve power quality by regulating voltage, compensating for reactive power, and filtering harmonics. This stabilizes the grid despite fluctuations caused by intermittent renewable energy generation.

  10. AI-Driven Power Exchanges: SSTs provide better power management, helping to allocate power more precisely. Their reduced lossy nature also increases revenues from the same power generation resources.

Return on Investment of SSTs

The timeline for upgrading traditional transformers to solid-state transformers is expected to span multiple decades due to several factors:

  1. Traditional Transformers' Long Lifespan: Traditional transformers have a 30–50-year lifespan, meaning many in service today will not require replacement for decades. Utilities typically replace them only when they fail or at the end of their life cycle.

  2. Higher Purchase Costs of SSTs: Traditional transformers typically have a 3-5x lower purchase price but are 20% less efficient than SSTs. Due to their advanced materials, complex designs, and reliance on semiconductor technologies, SSTs have higher initial purchase costs than traditional transformers. This limits their immediate adoption but makes them more viable for specific applications like renewable energy integration or urban grids.

  3. Grid Modernization Projects: The transition to SSTs will likely align with grid modernization efforts, which are gradual and depend on government policies, funding, and the need for innovative grid capabilities. Hybrid systems combining traditional and solid-state transformers may be an interim solution.

  4. 20% Better Operating Costs: Traditional Transformers have up to 20% higher energy losses (both load and no-load losses), contributing to higher lifetime operational costs. Due to energy losses, a standard transformer’s total ownership cost over 15 years can reach $62,524. SSTs are more efficient under variable loads, often exceeding 98% in optimized designs. They also offer lower maintenance costs due to the absence of oil-based cooling systems and real-time monitoring capabilities.

  5. Energy Savings: In specific applications, SSTs reduce energy losses by up to 50% compared to traditional transformers, resulting in significant savings over time. For a grid application, SSTs can reduce load losses by thousands annually. Over time, the improved efficiency of SSTs can lead to substantial operational savings, especially in systems with variable loads or renewable energy sources. These savings help justify the higher initial investment.

  6. Grid Operational Benefits: SSTs provide advanced functionalities like bidirectional power flow, voltage regulation, and renewable energy integration, which add indirect financial value by improving grid reliability and reducing downtime costs.

  7. Market Growth Projections: The SST market is growing at a compound annual growth rate (CAGR) of 15.3%, and significant adoption is expected by 2032 in niche areas like renewable energy integration and electric vehicle infrastructure.

While traditional transformers offer lower upfront costs and longer lifespans, SSTs provide long-term benefits through energy savings, advanced functionality, and support for modern grids. However, widespread adoption of SSTs will depend on further cost reductions and technological maturity.

Digital Infrastructure Heats Up Power Grids

One of the impacts of the move to digital infrastructure is the increase in heat generation. As with all power systems, when one part places new demands into the system, the entire environment must adapt. Without adaptation, it can lead to operational outages, reliability issues, and maintenance costs can be increased. Solid-state transformers generate more heat than traditional transformers due to their reliance on high-frequency switching and semiconductor components. These processes inherently produce significant heat, necessitating advanced cooling systems for efficient thermal management. However, SSTs are often more efficient under partial load conditions and offer better control over energy distribution, which can reduce overall energy losses compared to conventional transformers in specific applications. Despite these advantages, traditional transformers generally have higher efficiency at rated loads due to lower switching losses and effective heat dissipation through oil-based cooling systems.

Why Peak NanoPlex is Ideal for the SST Transition

Like most digital elements of the modern power grid, solid-state transformers require capacitors with higher temperature tolerances to support the grid. Due to switching losses and high power density, SSTs operate at high frequencies and generate significant heat. To optimize for SSTs, capacitors in the power grid must provide higher temperatures and better self-healing.

By leveraging these advancements, power distribution systems can become more efficient, reliable, and capable of meeting the growing demands of our increasingly electrified world. Advanced capacitor technologies, such as those developed by Peak, offer promising solutions to current challenges:

  • Higher Energy Density: NanoPlex HDC films can store 2-4 times more energy, allowing for more compact and efficient capacitor designs.

  • Reduced Size and Weight: These advanced films enable two-times smaller and lighter capacitors, facilitating easier installation and reducing infrastructure requirements.

  • Improved Durability: NanoPlex LDF provides 3-5 times longer lifetimes and duty cycles, addressing the need for more reliable and long-lasting components in power systems.

  • Enhanced Temperature Tolerance: With support for temperatures up to 130°C, these new capacitor films can better withstand the harsh conditions often encountered in power distribution environments.

Sources: 

https://electrical-engineering-portal.com/download-center/books-and-guides/power-substations/power-transformer 

https://www.intelligent-power-today.com/electrical-protection/transformer-protection/solid-state-protection