Energy Biz - March/April 2008 - (Page 24) It’s the grId economy nearly $100 billion each year and often threaten personal safety and security. We still generate and deliver electricity much the same way we’ve done for more than a century. Thomas Edison would still recognize the meter spinning on the side of our homes today. It’s time for a change. The changes are rather simple conceptually, but represent a fundamental paradigm shift that when implemented will create a power delivery system that is as pervasive, intelligent and potent as the Internet has become for our 21st century economy. And similar to the Internet, with broad agreement on a few concepts and conventions, the changes will emerge rapidly and organically rather than being driven by traditional chain of command. Unleashed innovation will drive the paradigm shift. Industry consensus is already developing around certain concepts, while the details are still being discussed and evolve. The appliances, equipment, and electronics that eventually consume the electricity must be able to communicate and ultimately support the optimal operation of the entire grid. Each of these devices must have the ability to understand the condition of the grid to prioritize their operation and use of electricity. By creating a simple but smart interface, these devices can rather easily be operated in alignment with the overall operational priorities of the grid. In addition, grid operators can measure and verify the efficient and economical operation of this equipment and properly incentivize superior operation. Consumers themselves must also have the ability to understand grid operations and be able to adjust their consumption of electricity. This doesn’t mean that we all become grid experts or study grid operations. It means that we create simple, understandable interfaces between the grid and the consumer that allow them to support the needs of a 21st century grid, much as they’ve adapted to 21st century communications and commerce. Consumers must be provided with the ability to manage the energy consumption of their homes and businesses in harmony with their lifestyle choices, values, and unique and variable requirements. Critical information must be routinely communicated to all consumers in ways that allow them to easily make decisions that align with community, regional and national priorities, turning all of us into active participants in and beneficiaries of a smarter grid. We will create a grid that easily and effectively absorbs new technologies and systems that will inevitably be developed and deployed. Whether solar panels and wind turbines that generate clean power, fuel cells that run on carbon-free hydrogen, batteries that store electricity, plug-in hybrid vehicles that reduce tail-pipe emissions or technologies yet to be invented, the new, smarter grid must readily integrate them to ensure a healthy, growing economy. As we transition over the next decade or two to a less carbon-intensive economy, easily integrating a variety of new technologies will be critical to reaching our goals. The smart grid and smart electricity are already being created. Technologies that created the Internet and modern communications are already revolutionizing how we deliver electricity. From coast to coast, utilities are changing out traditional meters for new smart meters that will make the system more responsive. However, this is just the beginning. Appliances will soon be smart in a way that responds to grid operations and emergencies. Consumers will soon be able to understand their use of electricity like never before, and so be able to contribute in a tangible way to the health of the power grid and the health of the economy. A growing number of utilities, businesses, and homes across America are stepping up to this new paradigm, one in which they collectively participate in the efficient, clean and reliable operation of the electricity infrastructure. The GridWise Alliance is leading the effort to build national consensus for these changes representing The United States power grid includes 160,000 miles of high-voltage transmission laced between 14,000 substations and valued at $120 billion. iMagE cOurTEsy OF griDWisE aLLiancE a broad coalition of stakeholders seeking to educate key decision makers around the country on the framework and policies we need. The energy future of our economy, nationally and globally, depends on resolving the tension between the supply of energy, where drilling wells and burning coal continue to deplete the precious finite resources of the earth, and the use of energy. Relatively inexpensive and reliable energy has guaranteed the robust economy of the Western world for nearly 100 years. The challenge of building a modern grid has been the focus of research, innovation and analysis for more than two decades. None are new, but all have major impacts on the growing global consumption of energy resources. Fortunately, technology has evolved, as it often does, in the nick of time to offer us alternatives that we could have only imagined just a decade ago. While we expect the economy of the Western world to grow and continue to support our lifestyle with the level of security, health and comfort we’ve grown to expect, the economy of the developing world is only now awakening to expectations similar to ours. Social equity and environmental responsibility will demand a new paradigm — one that will support a new economy, a clean economy and an equitable economy globally. Steven G. Hauser Our new energy and electricity infrastructure PhOTO cOurTEsy must be much cleaner, more reliable, more efficient, OF griDWisE aLLiancE and more flexible than the one we created in the 20th century. Consumers must participate in this 21st century energy grid. Appliances, equipment and loads of all types must be designed and operated to maximize efficiency and minimize the environmental impact. And the financial cost and risk must be manageable, understandable and acceptable. It will take commitment, determination and innovation to realize the enormous benefits to consumers, to the economy and to the environment. But most of all it will take leadership. Congress recently demonstrated its willingness to lead by passing an energy bill containing a smart grid section. The U.S. Conference of Mayors demonstrated its leadership by passing a resolution in support of smart grids last summer. Now state legislators, regulators and utility executives across the country must demonstrate their leadership by aggressively moving ahead with large-scale deployments to fundamentally change the way we deliver power in the 21st century. Steven G. Hauser is president of the GridWise Alliance and vice president, strategy, of GridPoint Inc. 24 E n E rgyB i z March/April 2008
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