Do we need a smart grid?

artwork by Althea Georgelas

Smart grids whats the deal? Endless surveys suggest that consumers would embrace them enthusiastically. Barack Obama is a big fan: he rated them as one of the highlights of America’s stimulus bill, which lavished $3.9 billion on them. Businesses, not to be out done, are investing with at an alarming rate. No one, it seems, has a bad word to say about smart grids. But what is the smart grid? It seems that with talk of energy restructuring, the conversation inevitably reverts back to this idea. Beyond a buzz word though why do we need a smart grid, and who will control it?

Smart grid the basics:

The whole premise of a smart grid starts with the idea of an upgrade of the current system, which is built around traditional power sources such as coal, nuclear and natural gas generating systems. The current high-voltage transmission grid imposes constraints on the deployment of new renewable energy resources such as wind, solar, and geothermal power. It simply does not go where many of these renewable energy resources will be developed. And congestion bottlenecks hurt the reliability of the grid overall, particularly where it is needed to move large volumes of new power from remote generation areas (where renewable energy is created) to major urban and industrial centers—where demand for that energy is greatest. The monitoring and control technology for both transmission and distribution networks is also weak and outdated. The lack of smart technology to provide utilities and consumers with better information in real time hurts the entire electricity system’s security and efficiency, and places unnecessary cost burdens on consumers. It also slows the adoption and integration of new technology such as solar panels on our homes, intelligent appliances to cut our energy bills, or micro-grids to help first responders cope with natural disasters. Our current grid has been responsible for five massive blackouts over the past 40 years due to grid failure—three of these in the last nine years. These cost the U.S. economy upward of $100 billion each year in damages and lost business. For example, the 2003 blackout in the Northeastern United States and Canada affected 50 million people and caused an estimated $7 billion to $10 billion in economic losses.

The advantages of a smart grid:

Self-Healing

With real-time monitoring, problems can be automatically detected and responded to. With the incorporation of micro grids affected areas can be isolated from the main networks limiting disruption.

Demand response

Allows consumers to monitor and directly control their energy consumption through smart meters. Also with real time price notification consumers are motivated to consume less during peak hours and divert the use of energy to down times (late evening).

Open Electricity market

Creates an open market where alternative energy sources can be sold to customers regardless of location. This in turn provides power utilities a motivation to invest in renewable technologies.

The disadvantages of a smart grid

Technological impotence

There are various technology components such as: software, the power generators, system integrators, etc. Not every company is on a level playing field to take the risks necessary to build a smart grid. This is the reason many utility companies refrain from venturing into this area.

Infrastructure challenges

With current grids distribution of information, data and access is not a two way street. For smart grids, there is a need for access points that can be identified for data and information transfer between the point of usage and the power generating system. This is very similar to a computer access point, which enables a connection to the internet. The need for two way communication is crucial, and as of now the infrastructure is not in place which leads to….

Cost

Well if no ones going to step in then I guess its up to the feds. Obama announced early last month a total of $3.9 billion will be released in the form of 100 grants. But the overall costs will continue to grow as the national grid becomes more centralized. The added cost of thousands of miles of transmission lines to distribute renewable energy from rural areas to urban centers will be an extravagant expense.

The idea of a smart grid is a wonderful idea, consumers managing their power intake to limit costs and create efficency while power distributors can monitor, access, control and respond to the grid and any disruptions. But as the economist points out, cleverness does not replace policy and in the case of a smart grid, technology isn’t its own saving grace it needs to be manipulated in a certain way to garner positive results. The lack of policy surrounding the United States energy grid should be the first point of concern, who are we to say that energy suppliers wouldn’t use a smart gird to increase blackouts, or utilize smart meters to increase consumption. The arguement to this is they can do that now, but the fact cannot be ignored that the largest benefactors of a smart grid aren’t consumers (smart meter capacity will not be a gift to families, it will come at a monthly cost) but rather renewable power generation companies. With an influx of new transmission lines heavily subsidized, inefficient electricity will become readily available pushing up the cost. And sadly nothing has really indicated that Co2 has decreased in the renewable swan-song nations of Denmark, Germany or Spain.

images: Smart grid report – GP Bullhound , www.nature.com