Smart Grid Technologies Accounts For Just 0.2% Of Registered Patents Worldwide, Says IEA

Smart Grid Technologies Accounts For 5% Registered IPFs, Says Report

The International Energy Agency (IEA) recently released a report on global patent data for smart grid technology spanning from 2000 to 2023 revealing approximately 16,000 Intellectual Property Families (IPFs) registered worldwide in this domain. This constitutes 0.2% of total IPFs across all technologies.

IEA report found that smart grid technologies account for about 5% of IPFs during the same period within the power sector. The report underscores a critical need for increased investment in smart grids, suggesting that current levels—around USD 300 billion annually, and it’s estimated to more than double by 2030 to nearly USD 600 billion per year to align with the Net Zero by 2050 Scenario.

In 2020 technologies related to monitoring or controlling equipment for energy generation units and supporting power network operation or management collectively accounted for 41% of total smart grid patent registrations – the largest share among all smart grid categories. This increased share may be linked to the rising capital investment in power equipment during recent years.

In recent years, East Asia (mainly Japan and China) has dominated smart grid innovation, accounting for over half of the total. Since 2007 it has consistently held the top position among regions. North America (mainly the United States) and Western Europe (mainly Germany) together share the remaining smart grid inventions.

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aglobalreviewofpatentdataforsmartgridtechnologies

In the last two decades, there has been a transition from Europe and the Americas being the primary sources of smart grid innovation to Asia taking on a more prominent role in this field.

More than 40% of smart grid innovation is happening in ten cities around the world, showcasing a concentrated innovation model. The top metropolitan areas for innovation between 2000 and 2022 were Tokyo, Seoul, Beijing, Nagoya, Nuremberg and the San Francisco Bay Area.

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Source-IEA

Europe emerges as a hub for smart grid technology specialisation, as shown by the Revealed Technological Advantage (RTA). Conversely, Japan, the United States and China exhibit lower RTAs, suggesting that despite their considerable innovation endeavours in smart grids, they lack a distinct specialisation in this particular field of innovation.

Although family size has decreased in smart grid inventions in more recent years, showing that inventors choose to protect their inventions in fewer offices, patent claims have increased since 2009. Patent claims typically suggest increased market value, indicating a trend towards more valuable inventions in more recent years.

The study smart grid innovation peaked in 2011, constituting 11% of power sector innovation, before gradually declining to 7% in subsequent years. This decrease in recent years (2016-2021) can be attributed to inconsistent grid investment, particularly in developing economies. The report emphasizes the importance of directing investments toward digitalizing electricity networks to spur innovation and enable broader deployment of renewable energy.