SMART GRID: US Energy System Poised To Make Digital Leap

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H. JOSEF HEBERT | 06/ 6/09 10:30 PM | AP

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William Gausman, Pepco Holding, Inc., Senior Vice President of Asset Management and Planning, holds an electric meter with smart technology during a display of smart grid technology on Capitol Hill in Washington, Monday, April 20, 2009. The "smart grid" has become the buzz of the electric power industry, at the White House and among members of Congress. (AP Photo/Susan Walsh)

WASHINGTON — Thomas Alva Edison, meet the Internet. More than a century after Edison invented a reliable light bulb, the nation's electricity distribution system, an aging spider web of power lines, is poised to move into the digital age.

The "smart grid" has become the buzz of the electric power industry, at the White House and among members of Congress. President Barack Obama says it's essential to boost development of wind and solar power, get people to use less energy and to tackle climate change.

What smart grid visionaries see coming are home thermostats and appliances that adjust automatically depending on the cost of power; where a water heater may get juice from a neighbor's rooftop solar panel; and where on a scorching hot day a plug-in hybrid electric car charges one minute and the next sends electricity back to the grid to help head off a brownout

It is where utilities get instant feedback on a transformer outage, shift easily among energy sources, integrating wind and solar energy with electricity from coal-burning power plants, and go into homes and businesses to automatically adjust power use based on prearranged agreements.

"It's the marriage of information technology and automation technology with the existing electricity network. This is the energy Internet," said Bob Gilligan, vice president for transmission at GE Energy, which is aggressively pursuing smart grid development. "There are going to be applications 10 years from now that you and I have no idea that we're going to want or need or think are essential to our lives."

Hundreds of technology companies and almost every major electric utility company see smart grid as the future. That interest got a boost with the availability of $4.5 billion in federal economic recovery money for smart grid technology.

But smart grid won't be cheap; cost estimates run as high as $75 billion. Who's going to pay the bill? Will consumers get the payback they are promised? Might "smart meters" be too intrusive? Could an end-to-end computerization of the grid increase the risk of cyberattacks?

Today's grid is seen by many as little different from one envisioned by Edison 127 years ago.

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The hundreds of thousands of miles of power lines that crisscross the country have been compared to a river flowing down a hill: an inefficient one-way movement of electrons from power plant to consumer. There is little way to provide any feedback of information to the power company running the system or those buying the electricity.

"The heart of a smart grid is to make the grid more flexible, to more easily control the flow of electrons, and make it more efficient and reliable," said Greg Scheu, head of the power production division at ABB North America, a leading grid technology provider.

"The meter is only the beginning," said Alex Huang, director of a grid technology center at North Carolina State University. He said that instead of power flowing from a small number of power plants, the smart grid can usher in a system of distributed energy so electricity "will flow from homes and businesses into the grid, neighborhoods will use local power and not just power flowing from a single source."

There are glimpses of what the future grid might look like.

On the University of Colorado campus in Boulder, the chancellor's home has been turned into a smart grid showhouse as part of a citywide $100 million demonstration project spearheaded by Xcel Energy. The home has a laptop-controlled electricity management system that integrates a rooftop solar panel with grid-supplied power and tracks energy use as well as equipment to charge a plug-in hybrid electric car.

Florida Power & Light is planning to provide smart meters covering 1 million homes and businesses in the Miami area over the next two years in a $200 million project. Smart meters are being distributed by utilities from California to Delaware's Delmarva Peninsula.

"We've got about 70 (smart grid) pilots all over the country right now," said Mike Oldak, an expert on smart grid at the Edison Electric Institute, which represents investor-owned power companies.

Center Point Energy, which serves 2.2 million customers in the metropolitan Houston area, expects to spend $1 billion over the next five years on smart grid. Residential customers are seeing an additional $3.24 a month on their electric bills, but Center Point says that should be more than offset by energy savings.

An Energy Department study projects energy savings of 5 percent to 15 percent from smart grid.

"This pays for itself through efficiency and demand reduction and if you don't look at it from that perspective you won't get your money back," said Thomas Standish, group president for regulated operations at Center Power Energy.

The cost and payback have some state regulators worried.

"We need to demonstrate to folks that there's a benefit here before we ask them to pay for this stuff," says Frederick Butler, chairman of New Jersey's utility commission and president of NARUC, the national group that represents these state agencies.

Energy Secretary Steven Chu, said the current grid stands in the way of increasing the use of renewable energy sources such as wind and solar that "will need a system that can dispatch power here, there and everywhere on a very quick basis."

But Chu and others also worry about security. "If you want to create mischief one very good way to create a great deal of mischief is to actually bring down a smart grid system. This system has to be incredibly secure."

And there is the issue of intrusion.

"Is the average consumer willing to pay the upfront costs of a new system and then respond appropriately to price signals? Or will people view a utility's ability to reach inside a home to turn down a thermostat as Orwellian?" Sen. Lisa Murkowski, R-Alaska, said at a recent hearing on smart grid.

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On the Net:

Interactive smart grid: http://tinyurl.com/o5qeep

WASHINGTON — Thomas Alva Edison, meet the Internet. More than a century after Edison invented a reliable light bulb, the nation's electricity distribution system, an aging spider web of power li...
WASHINGTON — Thomas Alva Edison, meet the Internet. More than a century after Edison invented a reliable light bulb, the nation's electricity distribution system, an aging spider web of power li...
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Our achaic system in the Northeast was taken down by Chinese government hackers just a few years ago, this smart gridis going to make it so much more susceptible to attacks.

    Favorite    Flag as abusive Posted 02:51 PM on 06/09/2009
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Maybe we can make an aggressive smart grid that steal energy from other countries over the internet...

    Favorite    Flag as abusive Posted 02:59 PM on 06/09/2009

What this will do, as I understand it, is send price signals to homes and appliances so that consumers can decide when best to turn thermostats up or down, run washers and driers, dishwashers, etc. Prices may vary from hour to hour for electricity, and consumers who produce electricity (home solar or wind, or in batteries of electric vehicles) may be able sell that back to the grid at some price signal. Much of this will have to be automated to be "smart". It could, I guess, provide a mechanism to turn down AC or turn off appliances if brownouts or blackouts were threatened by grid problems or very high demand. And I suppose it could force home power producers to sell to the grid for the greater good, but I'm not sure about that, and I would bet few if any others are either.

I think this is what this is about. It won't be free and consumers will have to be sold on the value in it for them since they'll also be paying for the cost of smart grid installation, whether directly or indirectly.

    Favorite    Flag as abusive Posted 12:12 PM on 06/09/2009

Your comment, though mostly correct, is limited to just the consumer perspective.

On the infrastructure end, the grid would be much more robust and less prone to brown/blackouts due to adaptive routing. Peak loads on any portion of a local circuit that threaten the stability of the grid would be adjusted to mitigate the strain until peak demand subsides.

And there won't be anybody forcing anyone into becoming a distributed generator (DG). This is a huge logistical nightmare for electricity utilities so they're somewhat reluctant already. Basically, legislation would be past that compels electricity utilities to buy DG at a subsidized rate to encourage adoption by individual households. The other option is similar just without the subsidies. The reason for the subsidies is to give renewable energy systems a leg up against oil and coal, which will still be the cheapest way to manufacture electricity for a while yet. This cost increase for the electricity utilities (from buying this DG energy) would be distributed among their customer base to lessen the price impact while still allowing for DGs to make a reasonable profit.

    Favorite    Flag as abusive Posted 07:13 PM on 06/09/2009

Caveats:

The Smart Grid is only tangentially related to energy conservation. Those smart appliances you mention. If a significant number of households program their appliances (like washing machines, or dishwashers) to only operate when energy rates are cheapest, this will likely increase coal usage, since it is by far the cheapest way to make electricity.

Electricity utilities have a fundamental problem with integrating renewables; there will be ever-diminishing returns as more renewables are integrated. At about 30 to 40%, they hit a wall and will begin to lose money. Most goals today are at 15 to 20% renewable integration by about 2020, so we might be able to solve these issues by then, but it's yet another logistical nightmare to overcome.

What makes the Smart Grid smart is software. Anybody who uses complex software should know that comprehensive reliability is non-existent. There will be privacy and security issues that could arise from this kind of system, especially when 3rd party service providers are put into the mix. A major smart meter program has already moved forward with IP protocols for their systems, so you're looking at a system that is as secure as the internet. Also, costs for software can run up to 40% of initial investment, so it's not like this will be a small obstacle.

If you live in an area with only one electricity utility, expect a slow and reluctant response. If your region has a competitive environment, you will be much better served.

    Favorite    Flag as abusive Posted 07:17 PM on 06/09/2009

Of course, 95 percent of consumers will want the cheapest electricity - whether from coal or not. It's just free electrons to them. One of the big political problems with climate change approaches and why pols want to hide behind the skirts of cap and trade deniability.

But generators don't get turned allt the way off and there is plenty of spare capacity in the baseload at 3 AM, while much more expensive peak shaving capacity comes into play at 2 PM. So power should be a lot cheaper at 3 AM than at 2 PM, especially if Smart Grid can help move demand from the afteroon to very early morning, reducing demand peaks and valleys over the 24 hour clock.

    Favorite    Flag as abusive Posted 05:32 PM on 06/10/2009
- sc300nc I'm a Fan of sc300nc 52 fans permalink

Of course they have that opportunity via the Patriot Act. what's that got to do with controlling my energy use?

    Favorite    Flag as abusive Posted 10:00 AM on 06/09/2009
- sc300nc I'm a Fan of sc300nc 52 fans permalink

Personally I don't want anybody deciding what my thermostat is set on except me. What's next? Deciding which tv programs you can watch? Deciding if you can take a shower in the morning? This Big Brother mentality that only the gov't knows what is best is troubling.

    Favorite    Flag as abusive Posted 08:23 AM on 06/09/2009
- pfrogger I'm a Fan of pfrogger 61 fans permalink

I don't see how you got all that from the article. Unless it's pure conjecture, which is what it seems like.
BTW, federal agencies are currently monitoring every phone conversation, internet usage, and any other personal information of Americans. They have the ability and its perfectly legal. It's called the Patriot act.
You didn't mention it, so I guess you don't really mind that. But keep their hands of your energy or else?
Don't tell me, Obama also wants to take away your guns.
Yada, yada, yada,

    Favorite    Flag as abusive Posted 09:15 AM on 06/09/2009

Currently, most of these sorts of programs are opt-in systems. Studies have shown, though, that the greatest adoption rates will occur under an opt-out system. Basically, if you don't want the utility company or whichever 3rd party service provider you use (but no government body, I don't know where you got that) to make these kind of decisions for you, you can opt out and go back to Time of Use rates, or some other alternative program.

    Favorite    Flag as abusive Posted 06:37 PM on 06/09/2009
- Dystopic I'm a Fan of Dystopic 20 fans permalink
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no one is going to control your thermostat, when you shower, etc ...

paranoid much?

    Favorite    Flag as abusive Posted 01:29 PM on 06/10/2009
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