The ABCs of the Smart Grid

The U.S. electric power grid consists of more than 300,000 miles of transmission lines weaving there way across the country that despite its age performs remarkably well. The U.S. Department of Energy (DOE) assigns it a reliability rating in excess of 99.9 percent However, the relatively few outages that do occur each year in the U.S. cost the American economy an estimated $150 billion annually. There are a number of challenges with today’s electric grid that suggest that, left unabated, will result in even higher outage related costs in the not too distant future:

• First and foremost, the current grid can best be categorized as aged and technically obsolete, and not particularly well-funded in terms of investment capital or maintenance support.
• A growing population continues to draw on the power with little discernible impact, thus far, from the various energy efficiency or demand reduction initiatives.
• The inability to store electricity further compounds the economics and technical challenges in meeting this continued increase in demand on an aging and deteriorating infrastructure.

The Transition to Smart Grid

The solution, sponsored by the U.S. Department of Energy (DOE), is to transition to an improved version of the current grid, commonly referred to as the smart grid. This transition needs to deal head on with a number of issues, including:

• Though overburdened, the power grid in its current state is quite reliable and flexible. For reasons already stated, it has not kept up with modern technology and questions remain about its sustainability.
• In any given geographic area electricity consumption fluctuates based on time-of-day and/or season. Though the peak requirements are not representative of day-to-day requirements, electric utilities must build more power plants to meet these spikes in demand. This adds significantly to the cost of electricity And highlights the potential benefits to demand reduction efforts.
• The contingency plans to deal with unanticipated massive fluctuations in available electric service (i.e. large power outages) often depend on operators’ ability to respond and maintain a clear view of what’s happening across the grid.
• Given the critical role of electricity in driving our economy and in maintaining our defense systems, issues of security remain a vital concern.

These issues can all be addressed by the U.S. Department of Energy’s initiatives to evolve to a less centralized, yet more interactive network that incorporates the following two key elements:

• Advanced Metering Infrastructure (AMI): This clarifies the role each individual can play in better managing energy consumption; and allows for more effective partnering between the electric utilities and their customers.
• Visualization Technology: Provides automation to instantly respond to the fluctuating demand for electricity across the grid.

Initial Smart Grid Implementation

There many elements involved in effectively implementing the technologies listed above – these include sufficient investment, consumer behavior changes, modernizing current infrastructure to accommodate technology, and technology selection. There are several specific actions that can be taken to facilitate the transition, including focusing on:

• Smart Meters will provide both the electric utility (grid) and consumer with more detailed usage information.
• Programmable Thermostats will support improved efficiency in the use of heating and cooling systems.
• Public Outreach and Education will start the process of behavior modification with respect to energy conservation and the technology available to assist in effecting these changes.
• Prioritize the Role of Power Plants: In anticipation of an automated system that will provide more precise profiles on electricity consumption, establish the future role of each plant based on its ability to support environmental and sustainability related strategies.
• Renewable Energy: Where practicable, continue the addition of renewable energy sources into the overall generation portfolio.
• State and Federal Regulations: Continue to establish the necessary regulatory and legal frameworks to ensure as technology is developed and adopted, the transition to a smart grid is only impeded by physical and financial constraints.