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Written by Gregory Iwahashi   
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Tuesday, 04 October 2011

Smart Grid Definition
While the smart grid is one of the hottest buzz words in the energy and green industry, few know exactly what it is, and for good reason. As recently as August 1, 2011 the National Institute of Standards and Technology (NIST) released a comprehensive catalog of smart grid standards.1 The smart grid is still being defined and its capacity as a technology and clean energy game changer is yet to be determined. However, most can agree what the smart grid will achieve at its completion, and it is this vision that both the government and private companies are striving to create. In short, the smart grid is the development of a reliable network of transmission and distribution lines that allow new technologies, equipment, and control systems to be easily integrated into an energy grid. While this sounds like a small adaptation to the existing grid, it has the potential to save millions in energy costs and usage, reducing greenhouse gas emissions in the global effort to combat climate change.

The current U.S. electricity grid was built in the 1890s and improved upon over time,2 but the major technology changes only date back to the 1960s,3 so it’s definitely time for an update! This update will not happen overnight, but the current hopes are for a major transformation into the “smart grid” over the next decade.4 Here is a list of technologies and innovations that will drive the smart grid to its ideal completion in the 21st century:5
  • Integrated communications—connecting components to open architecture for real-time information and control—allowing every part of the grid to both ‘talk’ and ‘listen.’

  • Sensory and measurement technologies—to support faster and more accurate response such as remote monitoring, time-of-use pricing, and demand-side management.

  • Advanced components—to apply the latest research in superconductivity, storage, power electronics, and diagnostics.

  • Advanced control methods—to monitor essential components, enabling rapid diagnosis and precise solutions appropriate for any event.

  • Improved interfaces and decision support—to amplify human decision-making, transforming grid operators and managers quite literally into visionaries when it come to seeing into their systems.

Another major goal of the smart grid is to allow renewable energies such as solar, wind, hydropower, geothermal, and biofuels to become bigger energy providers, whether they are small or large producers. This will become possible once the energy grid is decentralized in the new smart grid. Even individual consumers who have solar panels on their roofs, for example, could be an “energy supplier” in the newly imagined smart grid! 6

7



Why Do We Need a Smart Grid?

Environmental protection: Traditional electricity generation emits about 40% of carbon dioxide (CO2) emissions in the United States annually.8 If gains can be made in the energy efficiency forefront, this will reduce tons of CO2 emitted from electricity generation.

Affordability: Energy prices have been rising exponentially. The rising cost of electricity has contributed to higher living expenses and skyrocketing fuel costs.9 Lowering the cost of energy could have economic benefits that would positively affect every individual consumer as well as the global economy.

Growing demand: Demand for energy is only going to increase in the U.S. and the world for years to come. With a growing population and economy, the demand for more accessibility and more electricity are becoming real life challenges to utilities. Considering the accessibility of electricity, with businesses expanding to every corner of the U.S., the energy grid similarly needs to expand to accommodate these needs. In terms of higher demand for more electricity, many of us are all too familiar with blackouts. These temporary outages are often caused by a peak demand in energy and subsequently a breakdown of the grid itself. In a time when businesses, homeowners, and government/public infrastructure rely so heavily on technology, they depend just as much on electricity. A single rolling blackout in California’s Silicon Valley during the summer of 2008 alone cost over $75 million in economic losses.10 A more daily problem that we encounter is "peak" energy usage, or high demand for energy. For example, during a hot day everyone turns up their air conditioners, which shoots up electricity demand and the utility responds by increasing the output on their strained grid with dirtier (more CO2 emissions/kW of energy) and more expensive energy. This is because peak energy normally comes from older, outdated plants that exist solely to handle peak energy usage times.11

What is Your Role in the Smart Grid?

Research shows that while utility companies will save millions and do much of the heavy investment in order to make the grid smarter, it is really in the hands of consumers to make the smart grid a success for the long haul. The potential products and monitoring systems are there to provide consumers with the information and capability to make more energy conscious decisions, but the consumer must act to make use of this newfound knowledge.12

Already we have seen smart meters take the nation by storm, with many people not really knowing the difference between this new technology and the smart grid itself. These smart meters are a part of what many are calling an Advanced Metering Infrastructure (AMI), and are just one example of the vast number of applications that will contribute to the smart grid. Ultimately theses meters will monitor, provide feedback, and most importantly give real time energy pricing to the consumer. Unlike before, consumers will know ahead of time what the actual cost is to turn on a light bulb or dishwasher at six o'clock in the evening. Given this knowledge, consumers can adapt their energy use habits to save both money and peak energy usage.13

However, smart meters are really only the tip of a product iceberg. Companies such as Tendril, GE, and Siemens are a few of the leading manufacturers of home energy management systems and smart appliances. These home energy management systems link up with your smart meter to provide you real time information on anything from your computer to a hand held blackberry application. Smart appliances are also aware of the energy demands on the grid and respond accordingly. These thermostats, washers, dryers, you name it, adjust and turn themselves on when it is both energy conscious and most economical.14;15;16

Future of the Smart Grid:

While it is yet clear what the smart grid will become in the future, the great potential to save energy and costs to utilities and consumers alike make it an extremely important technology. However, one clear cut goal of the smart grid is to give consumers more control and interaction with their energy usage. With this newfound connection, utilities and consumers alike will know more about how energy is being used in their area, and most importantly give them the ability to do something about it. Similar to what email did for the internet, many believe that it may take something as small as an iPhone application to make the smart grid the next big technology sensation.17 The biggest barrier is, as usual, cost—for the utility companies to build the infrastructure, and then rely on consumers to make the right energy choices to make the investment worthwhile.18 Perhaps consumers need to get out there and make the commitment to show utility companies that we are serious about energy conservation and savings, both for the environment and our wallets!

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1 http://gcn.com/articles/2011/08/01/smart-grid-6-interoperability-standards.aspx
2 http://www.smartgrid.gov/the_smart_grid#smart_grid
3 http://www.energybulletin.net/node/43823
4 http://www.smartgrid.gov/the_smart_grid#smart_grid
5 http://www.oe.energy.gov/DocumentsandMedia/DOE_SG_Book_Single_Pages(1).pdf
6 http://www.smartmeters.com/faqs/1245-what-is-a-smart-grid.html
7 http://www.oe.energy.gov/DocumentsandMedia/DOE_SG_Book_Single_Pages(1).pdf
8 http://www.naturalgas.org/environment/naturalgas.asp
9 http://www.oe.energy.gov/DocumentsandMedia/DOE_SG_Book_Single_Pages(1).pdf
10 http://www.architectureandgovernance.com/content/green-green-
aligning-business-technology-and-planet
11 http://www.smartgrid.gov/the_smart_grid#smart_grid
12 http://news.cnet.com/8301-11128_3-20084996-54/iee-smart-grids
-depend-on-consumers-for-success/
13 http://www.oe.energy.gov/DocumentsandMedia/DOE_SG_Book_Single_Pages(1).pdf
14 http://www.tendrilinc.com/products/
15 http://www.usa.siemens.com/answers/en/index.htm?section=smartgrid&stc=usccc021682#
16 http://ge.ecomagination.com/smartgrid/#/smart_meters
17 http://www.oe.energy.gov/DocumentsandMedia/DOE_SG_Book_Single_Pages(1).pdf
18 http://www.edisonfoundation.net/iee/reports/IEE_BenefitsofSmartMeters_Final.pdf
19 Icon image http://1.bp.blogspot.com/-U3WD_MGHVhE/TWBCVjyqdkI/AAAAAAAABbc/
ZbIQCTIU-HY/s200/Smart-Grid_top_10_countries.jpg




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