The Smart Grid is a composite of intelligent electricity networks that connect energy suppliers and consumers by employing sophisticated technologies such as:
The Smart Grid has the capability to improve industrial efficiency, promote the country’s usage of cleaner energy resources, ensure the security of our infrastructure and improve everyday lives.[1]
Initially established by the Energy Independence and Security Act (EISA) of 2007, the Smart Grid program has become an important element of the Obama administration’s economic recovery program because its implementation would create new jobs, strengthen American energy independence and would curb greenhouse gas emissions. Now that funds have become available from sources such as the federal Stimulus Bill for developing and fielding new electric grid technologies, the need for uniform standards, interoperability and security have come into play. The National Institute of Standards (NIST) has tasked the Electric Power Research Institute (EPRI) with developing the interim Smart Grid roadmap, which is slated for completion in the summer of 2009. [2]
Smart Grids save energy, reduce costs and reduce carbon emissions. Usage of Smart Grids creates an interactive network linking multiple energy providers with many energy users by way of advanced technologies such as AMI (Advanced Metering Infrastructure) and Smart Meters. Unlike traditional systems where energy flows from utility to consumer, AMI / Smart Grid systems allow for both information and energy to flow bi-directionally. This results in the ability to make data on energy production, energy costs, energy sources and energy consumption available to producers and consumers. These data sets can then be input into either automated or managed decision-making processes that would manage energy demand, choose energy providers or schedule energy use for off-peak periods. Under an ambitious scenario, the implementation of a smart grid enabled supply and demand management system could reduce power sector emissions by 2.03 GTCO2e and save up to $79B by 2020.[3]
The U.S. is not the only country considering the implementation of a Smart Grid. Other countries, such as Canada and China, are allocating funds for Smart Grids as part of the "Green New Deal." [4]
Smart meters offer the capability to reduce energy consumption by between 3% and 15%. While currently there are approximately 1.5B meters installed globally, in excess of 90% of these meters are based on 1970s designs. Replacing these meters would cause utilities to have to spend "hundreds of billions in the coming years on new smart meters, infrastructure improvements, including computers, sensors, and networking systems." The installed base of smart electricity meters in Europe is projected to grow by over 15% between 2008 and 2013 with Italy and the Nordic countries rapidly rolling out smart technologies and France, Spain and the Netherlands all are all in the process of adopting smart meters. Here in the U.S. there is a significant effort toward smart meters, most notably in California.[5]
