The Future of Power Systems: 10 Big Questions on Smart Grids & Digital Substations

Akriti Kumari
Sep 23, 2025
3 min read

The global energy sector is changing rapidly. Smart grids, digital substations, renewable integration, and sustainability are no longer buzzwords—they’re shaping the future of how we generate, transmit, and use electricity.

At VSS Power Engineering Services, we stay at the forefront of these trends to help clients prepare for tomorrow’s grid. Below, we answer 10 critical questions about the technologies and innovations that will define the next era of power systems.

1. What Are the Latest Trends in Smart Grid Technology?

Smart grids are evolving with AI-powered analytics, IoT sensors, edge computing, and self-healing capabilities. Integration of distributed energy resources (DERs) such as rooftop solar, EVs, and battery storage is becoming standard. Grids are also moving toward real-time monitoring and predictive maintenance to reduce downtime and losses.

2. How Will AI Transform Digital Substations in the Future?

AI will enable:

Predictive fault detection from substation sensor data.
Real-time relay setting optimization based on grid conditions.
Anomaly detection for cybersecurity threats.
Digital twins for simulation and performance optimization. This will make substations more resilient, efficient, and autonomous.

3. What Is the Role of Blockchain in Smart Grids?

Blockchain enables secure, transparent, and decentralized energy transactions. It can support:

Peer-to-peer (P2P) energy trading between prosumers.
Tamper-proof data logs for grid operations.
Automated settlements for distributed generation. This could democratize electricity markets and improve trust among stakeholders.

4. How Can Microgrids Support Smart City Development?

Microgrids provide localized, reliable, and sustainable power. In smart cities, they:

Reduce dependence on central grids.
Improve resilience during outages.
Integrate renewable sources seamlessly.
Enable community energy sharing models. Cities of the future will rely on microgrids for energy independence and resilience.

5. What Are Hybrid Substations and Where Are They Used?

Hybrid substations combine Air-Insulated Switchgear (AIS) and Gas-Insulated Switchgear (GIS).

Used in space-constrained urban areas (GIS for compactness).
Used in expansion projects where both AIS and GIS exist.
Offer cost efficiency + footprint optimization. They’re increasingly popular in fast-growing cities and renewable hubs.

6. What New Eco-Friendly Alternatives Exist to SF₆ Gas in Substations?

SF₆ (sulfur hexafluoride) is a strong greenhouse gas. Alternatives include:

Fluoronitrile-based mixtures (g³) developed by GE & partners.
Vacuum switching technologies.
CO₂-based insulating gases. Utilities worldwide are shifting toward these solutions for sustainability and regulatory compliance.

7. How Do Smart Grids Prepare for Extreme Weather Events?

Smart grids use:

Self-healing capabilities to reroute power automatically.
Real-time monitoring of line and equipment conditions.
Microgrids + storage to maintain supply during blackouts.
Predictive analytics for storm impact assessment. This resilience is critical as climate change drives more frequent extreme events.

8. What Skills Do Engineers Need for Future Substations?

Tomorrow’s substation engineers will need:

Digital communication & IEC 61850 expertise.
Data analytics & AI application knowledge.
Cybersecurity awareness.
Renewable integration and storage system know-how. The focus will shift from pure hardware skills to a blend of power + IT + data.

9. How Do Smart Grids Empower Consumers to Become “Prosumers”?

Prosumers both consume and produce energy (e.g., rooftop solar). Smart grids enable:

Net metering & P2P trading.
Dynamic pricing for better cost savings.
Energy storage + EV charging as additional revenue streams. This shifts consumers from passive users to active participants in the energy market.