In Print
Below you will find notable quotes on the following topics...
Electricity Trends | Demand Response and Storage | Need for Smart Grid | Smart Grid
Electricity Trends
The U.S. electricity system and demands have grown in leaps and bounds in the past several decades, even as the U.S. has become more energy efficient. Of particular note is the increase in electricity use during the peak period of demand. This has grown faster than the rate of general electricity use overall, and this is expected to continue and present operational challenges for system managers. Also, the addition to the electricity system of increased amounts of renewable energy and distributed generation are making the system greener and more efficient and reliable but these options also can present integration and operational challenges.
Below are some facts, figures, statements, sources, etc., that will help you gain a better perspective on this.
"In 2007, wind power contributed over 1,400 GWh of electric energy to the AIES [Alberta Integrated Electric System] with an overall annual capacity factor of about 35%. The wind generation capacity factor may exceed 50% during some periods or it may have minimal or no capacity on some days during peak load periods (summer and winter peaks) due to prevailing weather conditions (i.e. cold temperature limitations or no wind during high pressure weather patterns). For example, on January 28, 2008 when the system winter peak was established (9,711 MW), wind generation varied from between 0 to 270 MW throughout the day and over the peak load hour, the hourly average wind generation was 1 MW. On August 18, 2008 when the summer peak was established (9,541 MW), wind generation was about 100 MW over that hour."
Alberta Electric System Operator, "Implementation of Market & Operational Framework for Wind Integration in Alberta," March 2009, view source website »
"While renewable energy proponents, and some elected officials, are saying that the U.S. needs to only add renewable power facilities such as wind farms, the annual capacity factor of wind generators is typically about 25 - 35 percent. However, the probability that wind generators are available at their rated value during annual peak periods is only between 5 - 20 percent and varies greatly from year to year and region to region. Wind cannot be considered a reliable baseload capacity resource."
NextGen Energy Council, "Lights Out in 2009?”, September 2008, view source website »
"...the projected U.S. demand in the next ten years is forecast to grow by 18 percent, far exceeding the projected eight percent growth in baseload generation capacity between now and 2016."
NextGen Energy Council, "Lights Out in 2009?”, September 2008, view source website »
"[US] summer peak demand growth is projected to increase 16.6 percent for 2008 -2017, compared to 17.7 percent forecast last year through the 2007 - 2016 period.... An increase in projected dispatchable demand response is responsible for most of this reduction."
North American Electric Reliability Corporation (NERC), "2008 Long-Term Reliability Assessment," October 2008, view source website »
“For starters, the wind does not blow all the time. When it does, it does not necessarily do so during periods of high demand for electricity. That makes wind a shaky replacement for more dependable, if polluting, energy sources like oil, coal and natural gas. Moreover, to capture the best breezes, wind farms are often built far from where the demand for electricity is highest. The power they generate must then be carried over long distances on high-voltage lines, which in Germany and other countries are strained and prone to breakdowns.
“In the United States, one of the areas most suited for wind turbines is the central part of the country, stretching from Texas through the northern Great Plains — far from the coastal population centers that need the most electricity.”
New York Times, “Sweden Turns to a Promising Power Source, With Flaws,” November 23, 2007, view source website »
“To get a greener grid, you need a Smart Grid. Solar and wind power are necessary and desirable components of a cleaner energy future. To make the grid run cleaner, it will take a grid capable of dealing with the variable nature of these renewable resources.”
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
“According to the European Wind Energy Association, integrating wind or solar power into the grid at scale – at levels higher than 20% – will require advanced energy management techniques and approaches at the grid operator level. The Smart Grid’s ability to dynamically manage all sources of power on the grid means that more distributed generation can be integrated within it.”
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
US power demand is projected to double by 2050.
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
“Currently, every wind farm and solar installation has to be backed up by a nearly equivalent amount of conventional fuel to keep the power grid running. That raises costs.”
The Wall Street Journal, “Unbridled Energy: Predicting Volatile Wind, Sun,” October 2, 2009, view source website »
“According to the latest data available from the DOE, generation increased by 2.3% in 2007. This increase represents 8673 MW. Almost 60% (5186 MW) of this new capacity is non-dispatchable wind generation.”
Transmission & Distribution World, “Energy Storage,” August 2009, view source website »
“Central air conditioning makes up about 44% of the residential peak demand. Similarly, cooling makes up 43% of the commercial peak.”
Transmission & Distribution World, “Energy Storage,” August 2009, view source website »
“[B]ecause resources such as solar and wind power are intermittent, the grid will require integrated monitoring and control, as well as integration with substation automation, to control differing energy flows and plan for standby capacity to supplement intermittent generation. Smart Grid capabilities will make it easier to control bi-directional power flows and monitor, control, and support these distributed resources.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“The U.S. Energy Information Administration predicts that, even with business as usual, electricity growth will cause worldwide generation to nearly double by 2030 – and require the equivalent of 25,000 additional 500MW coal-fired power plants to get there.”
Global Environment Fund and Global Smart Energy, “The Electricity Economy: New Opportunities from the Transformation of the Electric Power Sector,” August 2008, view source website »
“Changing from a standard TV to a larger plasma TV uses two to three times more energy.”
Global Environment Fund and Global Smart Energy, “The Electricity Economy: New Opportunities from the Transformation of the Electric Power Sector,” August 2008, view source website »
“Improved Environmental Protection. More and more states and provinces mandate utilities to generate a certain percentage of their power from renewable sources. Put simply, utilities will not be able to meet those mandates without a smart grid. All over the world, policymakers and utilities are waking up to the fact that they cannot connect, ship and control the green power they want without a modern, intelligent grid.”
Global Environment Fund and Global Smart Energy, “The Electricity Economy: New Opportunities from the Transformation of the Electric Power Sector,” August 2008, view source website »
“About a fifth of the electricity produced annually in Denmark is generated by wind…the world’s highest concentration of wind turbines per head of population. Of this, around a half can be used directly within national borders over the year. The rest must be exported (often at much reduced prices) to preserve the integrity of domestic grids.
“The need to backup variable amounts of wind power with electricity from conventional sources for internal use, and the necessity to export large surpluses of wind power, mean that domestic savings in carbon emissions are relatively small at the present time.”
Dr. V.C. Mason, “Wind Power in Denmark, December 2008, view source website »
“[T]he energy generated by incremental wind resources attributable to Smart Grid development is 33.4 to 66.8 billion kWh in 2030.”
Electric Power Research Institute(EPRI), “The Green Grid: Energy Savings and Carbon Emissions Reductions Enabled by a Smart Grid,” June 2008, view source website »
“Hidden within consumers' electricity bills are the costs of maintaining and operating aged and often dirty generating plants called ‘peakers.’ They may run 400 hours a year or less just to meet peak electricity demand when summer temperatures are highest. One out of every 10 generating plants is in that standby category, says [Rob] Pratt [of the Pacific Northwest National Laboratory], and they cost consumers billions of dollars in unnecessary utility bills annually.”
New York Times, “Consumer Response a Lingering Riddle for Backers of 'Smart Grid',” October 2009, view source website »
“However, with the integration of more variable generation, higher reserve margins may be needed to provide additional ancillary services to support the uncertainty and availability associated with these types of resources.”
NERC, “2009 Scenario Reliability Assessment,” October 2009,view source website »
Demand Response & Storage
One of the biggest operational challenges is the management and reduction of electricity use during peak periods. With few electricity customers receiving price signals as to the true cost to produce electricity at different times, electricity use during peak periods – when costs on the system are highest – can soar, with the result being increased costs, increased emissions and threats to reliability. As an example of the importance of peak demand, on average 1% of the total hours on the electricity system can be responsible for 10-20% of the costs that customers pay. By using Demand Response (i.e. incentivizing customers to reduce or shift their peak use) and/or storage (e.g. using off-peak renewable energy to store energy for use later during the peak period), the Smart Grid provides new options for managing peak demand and improving the overall efficiency of grid operations.
Below are some facts, figures, statements, sources, etc., that will help you gain a better perspective on this.
"Additional demand-side resources could be an effective option to preserve system reliability over the next ten years. In addition, they may facilitate the integration of renewable and variable resources."
North American Electric Reliability Corporation (NERC), "2008 Long-Term Reliability Assessment," October 2008, view source website »
"Consumer energy use management, also called 'demand response', refers to consumers reducing their usage at certain times that will result in improved grid efficiency. Consumer energy use management increases efficiency by reducing transmission congestion, enhances the amount of variable renewable energy such as wind that can be integrated into the grid, and reduces the need to run inefficient and costly generators. Thus, the incorporation of consumer energy use management into the operation of the electric grid will reduce consumer costs, and will reduce the carbon footprint of our electricity supply.”
Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission (FERC), testimony before the Committee on Environment and Public Works, United States Senate, August 2009, view source website »
"An additional benefit of demand-side resources is their ability to complement the variability of intermittent resources such as wind power and provide operational flexibility during the sharp down-ramps that can occur as output declines"
North American Electric Reliability Corporation (NERC), "Electric Industry Concerns on the Reliability Impacts of Climate Change Initiatives," November 2008, view source website »
"In other words, smart behaviors, smart choices, and smart planning should be thought of as an essential resource for achieving energy and climate goals."
ACEEE (American Council for an Energy-Efficient Economy), "Behavior, Energy, and Climate Change: Policy Directions, Program Innovations, and Research Paths," November 2008, view source website »
“The reduction in peak demand under [the Full Participation] scenario [which assumes that AMI was universally deployed and dynamic pricing was the default tariff] is 188 GW by 2019, representing a 20 percent reduction in peak demand for 2019 compared to a scenario with no demand response programs.”
Federal Energy Regulatory Commission (FERC), “A National Assessment of Demand Response Potential,” June 2009, view source website »
FERC’s estimated 20 percent reduction in peak demand “if realized, can reduce significantly the number of power plants needed to meet peak demand and thereby reduce carbon emissions by as much as 1.2 billion tons of carbon annually.”
Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission (FERC), testimony before the Committee on Environment and Public Works, United States Senate, August 2009, view source website »
The potential contribution of demand response programs in the U.S. increased more than ten-fold in only two years. In 2008, it is estimated at about 41,000 MW, or about 5.8 percent of U.S. peak demand, up from about 3,400 MW in 2006.
Federal Energy Regulatory Commission (FERC), “2008 Assessment of Demand Response and Advanced Metering: Staff Report,” December 2008, view source website »
“[D]emand response can be triggered quickly to compensate for the variable output of renewable resources. When dispatched by the California ISO, new eGrid technologies will allow the utilities and other companies to signal customers and/or their equipment directly to respond to supply and demand on the grid.”
California Independent System Operator (CAISO), “eGrid Technologies Help Achieve Environmental Goals,” December 2007, view source website »
“Demand response will be a powerful tool for meeting the environmental challenges ahead. It is not necessarily about using less electricity, but rather using it in a smart way. The demand response laboratory demonstrates ‘set and forget’ automation technology that helps consumers, large and small, make predefined changes to their electricity usage that will reduce the strain on the grid, while reducing the strain on costs.”
California Independent System Operator (CAISO), “eGrid Technologies Help Achieve Environmental Goals,” December 2007, view source website »
When wind-generated power dropped unexpectedly in Texas on February 26, 2008, the grid operator called for and received 1,200 MW of voluntary demand response in 12 minutes, thus avoiding rolling blackouts and ensuring that no one involuntarily lost their power during the emergency.
National Renewable Energy Laboratory and Oak Ridge National Laboratory, “ERCOT Event on February 26, 2008: Lessons Learned,” July 2008, view source website »
“One afternoon in early 2008, the wind stopped blowing in Texas. A leader in this renewable energy, the state experienced a sudden, unanticipated and dramatic drop in wind power – 1300 Mw in just three hours. An emergency demand response program was initiated in which large industrial and commercial users restored most of the lost generation within ten minutes, acting as a buffer for fluctuations in this intermittent resource. Smart Grid principles in action.”
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
“[T]he use of demand response / load management programs as a generation resource avoids building expensive peak generation. A Smart Grid is a key enabler in achieving demand response / load management; communicating peak prices to consumers; and integrating smart appliances, consumer storage and distributed generation, and smart building controls with the goal of peak reduction.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“[N]ew evidence from around the United States and abroad that has become available in the two years…increases confidence in the conclusion that DR reduces total electricity consumption, principally (but not exclusively) during peak periods, but consistently, and has the potential to be a major indirect factor in increasing overall energy efficiency nationally.”
Public Utilities Fortnightly, “The Green Effect,” March 2007, view source website »
Storage can offset wind generation variability, store wind energy during lower value periods, and prevent wind curtailment and avoid new transmission investments.
U.S. Energy Secretary Dr. Steven Chu, “Investing in Our Energy Future,” September 2009, view source website »
“Automated Demand Response saves capacity and energy.”
U.S. Energy Secretary Dr. Steven Chu, “Investing in Our Energy Future,” September 2009, view source website »
Participants in a 2008 pilot program conducted by Baltimore Gas and Electric tested how consumers would respond to time-of-use pricing with smart meters. “Participants reduced their consumption during peak periods by 26 to 37 percent, saving more than an average of $100 on energy bills. In all, 93 percent of the pilot participants indicated they were highly satisfied with the program and would participate again if given the opportunity. Based on these results, BGE is expanding the program and installing 2 million residential and commercial smart meters with smart pricing. The utility predicts that smart meters –and the clear financial incentives that time-of-use pricing offers – will save customers in excess of $2.6 billion over the life of the project.”
Galvin Electricity Initiative, “Smart Meters and Smart Pricing: A Win-Win for Communities and Consumers,” August 2009, view source website »
“Energy storage can provide…a way to facilitate power system balancing in systems that have variable or diurnal renewable energy sources [and facilitate] integration of plug-in hybrid electric vehicle (PHEV) power demands with the grid.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
“[E]nergy storage technologies [have] the potential to capture and store electricity from wind energy when there is a lack of transmission infrastructure. For example, wind curtailment has already become common in Texas because of a lack of transmission capacity to move that power from western Texas to load centers in other parts of the state [and] energy storage technologies may have potential value in the interim.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
Energy storage could serve a portion of the capacity needed to get to the scenario in which integration of 300 gigawatts (GW) of wind energy into the U.S. grid is achieved.
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
“Energy storage also affords the transmission owner/grid operator a chance to defer transmission expansion for a period.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
“Due to the nonlinear nature of T&D losses, diurnal peak shaving of energy storage devices would actually reduce T&D losses. The closer the energy storage is located to load, the greater the reduction in T&D losses, particularly given that a high percentage of the T&D losses are on the distribution circuits.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
“[E]nd-users may use their storage in net metering situations, as some renewable energy resources are used today, to sell power back to the grid at peak times.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
The “traditional” grid has little or no electricity storage. Demand must be forecast and generation brought on and off line to match. This requires extra generation capacity in the form of spinning reserves and standby plants.
Global Environment Fund and Global Smart Energy, “The Electricity Economy: New Opportunities from the Transformation of the Electric Power Sector,” August 2008, view source website »
“Air conditioning energy demand – typically 40-50% of a building’s electricity use during peak hours – can be reduced by as much as 95% during expensive peak hours with ice storage hybrid air conditioning.”
Ice Energy, Inc., “Ice Bear Distributed Energy Storage System,” view source website »
“Demand response, the heart of the ‘smart grid’ concept of a power system that can respond immediately to changes in supply and electricity prices, could account for a fifth of U.S. electricity, Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission, said in an interview.”
Reuters, “Smart Grid Good for Big Solar, Wind: US Regulator,” October 2009 view source website »
“Cutting demand by a few minutes or seconds also could let the U.S. grid cheaply incorporate renewable sources like wind and solar that otherwise would need backup from plants that stayed idle most of the time.
"‘I don't think we need shadow generation,’ Wellinghoff said, using the industry term for the backup power stations, which substantially raise the cost of a power supply based on alternative energy.”
Reuters, “Smart Grid Good for Big Solar, Wind: US Regulator,” October 2009 view source website »
“…demand response, in which utility customers act as a collective battery by allowing appliances to be remotely shut off when power demand peaks.”
New York Times, “Companies Race to Develop Utility-Scale Power Storage,” 9/28/09 view source website »
“Integrating larger amounts of renewable energy into the grid will require system operators to balance load and resources in a way that accounts for the variable nature of renewable energy resources such as wind and solar power. One important issue related to this need involves consideration of the use of demand response, energy storage, and other distributed resources to match variations.”
Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission (FERC), “Remarks of FERC Chairman Jon Wellinghoff CAISO Stakeholder Symposium October 7, 2009,” 10/7/09, view source website »
“And it turns out that demand response, local storage, and distributed generation are among the best ‘dance partners’ to ensure we can reliably integrate renewable energy resources into the grid. Indeed, it has been demonstrated that these distributed resources are more efficient than central station fast response natural gas fired generators at matching load variations and providing ancillary services needed to ensure reliability. They are even faster, generally cheaper, and have a lower carbon footprint than the traditional power plant provided ancillary service.”
Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission (FERC), “Remarks of FERC Chairman Jon Wellinghoff CAISO Stakeholder Symposium October 7, 2009,” 10/7/09, view source website »
Need for Smart Grid
There is widespread appreciation of the fact that we presently have an electricity grid that needs to be modernized. There is a “common-sense” understanding that available technology that allows new capabilities in the areas of monitoring, communications and control ought to be added to and integrated into the electricity system. What is less understood is the that there is a need to have the Smart Grid developed as quickly as possible because of the role it can play in stimulating greater energy efficiency by customers and enabling greater amounts of renewable energy to be put on the electricity system.
Below are some facts, figures, statements, sources, etc., that will help you gain a better perspective on this.
“That is a symptom of a broad national problem. Expansive dreams about renewable energy, like Al Gore’s hope of replacing all fossil fuels in a decade, are bumping up against the reality of a power grid that cannot handle the new demands.”
New York Times, “Wind Energy Bumps Into Power Grid’s Limits,” August 2008, view source website »
“The grid’s limitations are putting a damper on such projects [i.e. renewable energy generation] already. Gabriel Alonso, chief development officer of Horizon Wind Energy, the company that operates Maple Ridge [wind farm], said that in parts of Wyoming, a turbine could make 50 percent more electricity than the identical model built in New York or Texas.”
New York Times, “Wind Energy Bumps Into Power Grid’s Limits,” August 2008, view source website »
“Yet experts say that without a solution to the grid problem, effective use of wind power on a wide scale is likely to remain a dream.”
New York Times, “Wind Energy Bumps Into Power Grid’s Limits,” August 2008, view source website »
“‘We still have a third-world grid,” Mr. [Bill] Richardson [Governor of New Mexico] said, ‘With the federal government not investing, not setting good regulatory mechanisms, and basically taking a back seat on everything except drilling and fossil fuels, the grid has not been modernized, especially for wind energy.’”
New York Times, “Wind Energy Bumps Into Power Grid’s Limits,” August 2008, view source website »
“Smart meters are set to make estimated energy bills a thing of the past, but utilities are warning that delays in fitting the technology could hinder the country's progress in hitting its 2020 climate change targets.
“Some industry players claim that unless ministers allow firms to begin work soon, the UK could even miss 2020 by four years. . . .
“The government aims to install the meters by 2020, the same year in which ministers are trying to meet a target of generating 15 percent of energy from renewable sources.
“Experts say the technology will help Britain achieve its goal by allowing people to cut their energy use, reducing the need for new power stations and wind farms.”
Reuters, "Smart Meter Delay May Hinder 2020 Green Target," April 2009, view source website »
"But it is not enough to increase our use of low carbon energy generation sources. We must also transform the electricity grid itself, ensuring that it is equipped for the rapid connection of new forms of energy, able to adapt to the move to low carbon vehicles and increasingly efficient in the way it transmits and distributes electricity. Improving our grid architecture will be essential as we support more small-scale generation through the advent of our new Feed-in Tariffs. £5 billion of investment in the grid is already planned for the next five years, and we have set an aim of having smart meters installed in every home by 2020.
"The UK's Low Carbon Industrial Strategy will develop further our approach for delivering maximum economic benefits from the UK's shift to greater use of renewables, civil nuclear power and Carbon Capture and Storage. It will set out our strategy for making the UK's energy grid more efficient and 'smarter'."
UK Department for Business Enterprise & Regulatory Reform (BERR), "Low Carbon Industrial Strategy: A Vision," March 2009, view source website »
"Increasing the visibility of energy consumption is important, i.e. by providing information to energy users about the volume, cost and environmental impacts of their consumption, e.g. via smart meters backed up by IT systems to make them 'super smart.'"
UK Government Office for Science, "Powering Our Lives: Sustainable Energy Management and the Built Environment," November 2008, view source website »
“The results of the 2008 FERC Survey indicate advanced metering penetration (i.e., the ratio of advanced meters to all installed meters) has reached about 4.7 percent for the United States. This is a significant increase from 2006, when advanced metering penetration was less than 1 percent.”
Federal Energy Regulatory Commission (FERC), “2008 Assessment of Demand Response and Advanced Metering: Staff Report,” December 2008, view source website »
“[I]n an increasingly digital world, even the slightest disturbances in power quality and reliability cause loss of information, processes and productivity. Interruptions and disturbances measuring less than one cycle (less than 1/60th of a second) are enough to crash servers, computers, intensive care and life support machines, automated equipment and other microprocessor-based devices.”
Galvin Electricity Initiative, “view source website »,” quoted by the U.S. Department of Energy Electricity Advisory Committeein “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“By reducing peak demand, a Smart Grid can reduce the need for additional transmission lines and power plants that would otherwise be needed to meet that demand. The peak usage of the California Independent System Operator (CAISO) for 2005–2006, for example, is 50,085 megawatts (MW). However, usage exceeds 45,000 MW only 0.65% of the time annually. This means that California must build peaking plants, additional transmission lines, distribution lines, and possibly even additional baseload power plants to generate enough supply to meet demand that occurs less than 1% of the time. The ability to reduce peak demand via Smart Grid-enabled consumer demand response / load management can defer or reduce the need to build resources that would be unused much of the time.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“>25% of distribution and >10% of generation assets are needed less than 5% of the time ([representing] $100s of billions of investments)”
U.S. Energy Secretary Dr. Steven Chu, “Investing in Our Energy Future,” September 2009, view source website »
“Approximately two-thirds of the fuel burned to generate electricity is lost in the generation and delivery process. Or, to put it another way, our electric power system operates at approximately 33 percent efficiency.
“There has been no improvement in efficiency in the electric power industry since the 1960s.”
Galvin Electricity Initiative, “The Electric Power System is Inefficient,” view source website »
For every unit of energy that produces cool air in a traditional power grid-based air conditioner, 4½ units of energy are wasted.
Chris Hickman, Ice Energy, “Why is Storage Important and How Can We Get It Done?”, September 2009, view source website »
More energy is lost each year just in the generation, transmission and distribution of electricity in the U.S. than is consumed by all powerplants, buildings, factories, homes and cars in Japan.
US Energy Information Administration, view source website »
The U.S. power system is only 2/3 as efficient in producing electricity during the daytime than it is at night (approximately 24% efficient and 37% efficient respectively)
Chris Hickman, Ice Energy, “Why is Storage Important and How Can We Get It Done?”, September 2009, view source website »
“Wind farms typically generate most of their energy at night, when most electricity demand is lowest. So a lot of that ‘green’ energy is wasted.”
New York Times, “Companies Race to Develop Utility-Scale Power Storage,” 9/28/09, view source website »
Smart Grid
Development of the Smart Grid will not happen in one “big bang,” but instead by integrating many different technologies and practices at many points on the electricity system. It will happen by the increased use of data and communications to provide feedback and automated responses along with increased management control – all of which will make the operation of the system more efficient. Also, and importantly, the Smart Grid will provide new information and control options to customers, allowing them to choose to modify their use in ways that help them lower their consumption while also helping the grid become greener and more efficient.
"With two-way digital communications between power plants and users, smart grids can balance supply and demand in real time, smooth demand peaks, and make consumers active participants in the production and consumption of electricity. As the share of generation from variable renewable resources such as wind and solar increases, a smart grid can better handle fluctuations in power. It can allow electric vehicles to store power when needed or to sell it back to the grid. Smart meters can communicate with customers, who can then reduce costs by changing appliances or times of use."
World Bank, "World Development Report 2010: Development and Climate Change," September 2009, view source website »
“[Smart Grid-enabled] renewable energy resources are not only environmentally friendly; they create cost-saving opportunities for consumers who are able to generate electricity in excess of their own needs and sell the surplus back to the grid.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“Smart Homes and Smart Buildings are convenient, efficient, and can encourage consumers to make energy-efficient decisions that result in energy savings.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
"The alliance [aka, the Campaign to Protect Rural England] believes that the crucial elements of a 'smart grid' are that it makes the best use of available energy resources, particularly through actively managing demand for electricity, and avoids harm to our most important areas of countryside."
Campaign to Protect Rural England, "A Countryside Friendly Smart Grid," March 2009, view source website »
“Building the ‘smart grid’ will help save energy, flatten demand spikes and allow thousands of electrically fueled vehicles to provide some much-needed storage for intermittently produced renewable energy.”
NW Energy Coalition, "Bright Future: How to Keep the Northwest's Lights on, Jobs Growing, Goods Moving and Salmon Swimming in the Era of Climate Change," March 2009, view source website »
“The smart grid…helps utilities optimize their distribution networks and better incorporate renewable energy resources, small-scale distributed resources and load-management technologies.”
NW Energy Coalition, "Bright Future: How to Keep the Northwest's Lights on, Jobs Growing, Goods Moving and Salmon Swimming in the Era of Climate Change," March 2009, view source website »
"Deployment of smart metering technologies enables building occupants to track their levels of consumption and shape behavioural patterns in response to different time-of-use tariffs offered by utilities. Appliances are designed to enable efficient use and bills provide details of where heat and power is generated, what fuels are used and what carbon gases are emitted as a result."
UK Government Office for Science, "Powering Our Lives: Sustainable Energy Management and the Built Environment," November 2008, view source website »
"Reducing T&D losses in India's power sector by 30% is possible through better monitoring and management of electricity grids, first with smart meters and then by integrating more advanced ICTs [information and communications technologies] into the so-called energy internet. Smart grid technologies were the largest opportunity found in the study and could globally reduce 2.03 GtCO2e, worth €79 billion ($124.6 billion)."
The Climate Group and GeSI, "SMART 2020: Enabling the Low Carbon Economy in the Information Age," November 2008, view source website »
“Even if smart meters cut usage by only 5 percent nationwide with ‘time-of-day’ pricing, that would save about 625 combustion turbines from being built and reduce overall industry costs by about $3 billion a year, according to a study by The Brattle Group, a consulting firm.”
Christian Science Monitor, “Juicing Down for Global Warming,” July 2007, view source website »
“Being ‘smart’ isn't only for meters that alter electricity usage.
“It's for the planet, too.”
Christian Science Monitor, “Juicing Down for Global Warming,” July 2007, view source website »
“The U.S. Conference of Mayors urges mayors from around the nation to join this effort and to add intelligent energy systems to their climate change and energy efficiency efforts. Connecting smart buildings with a smart grid will have a greater impact on energy efficiency, further the reduction of GHG emissions, and increase the reliability, security and economic viability of the US Electric grid.”
US Conference of Mayors, Resolution No. 82, GridWise and Smart Grid Policies, “Adopted Resolutions: June 2007,” June 2007, view source website »
“According to the [U.S. DOE] Pacific Northwest National Laboratory, existing U.S. power plants could meet the electricity needs of 73% of the nation’s light vehicles (i.e., cars and small trucks) if the vehicles were replaced by plug-ins that recharged at night. Such a shift would reduce oil consumption by 6.2 million barrels per day, eliminating 52% of current imports.”
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
There are “[t]wo classes of benefits reducing in energy consumption and emissions resulting: directly from smart grid applications [and] indirectly from reinvestment of cost savings.” The energy and carbon reduction total savings are 12% from the direct benefits and another 5% from the indirect.
Pacific Northwest National Laboratory, “Potential Energy and Carbon Benefits of a Smart Grid,” September 2009, view source website »
The UK is installing smart meters in all homes in the country by 2020. This will make Great Britain the only country in the world of its size to have nationwide smart meters for electricity and gas. Energy and Climate Change Secretary Ed Miliband said: “The meters most of us have in our homes were designed for a different age, before climate change. Now we need to get smarter with our energy. Smart meters will empower all consumers to monitor their own energy use and make reductions in energy consumption and carbon emissions as a result.”
U.K. Department of Energy and Climate Change, “GB Smart Meter Roll Out Moves Forward,” May 2009, view source website »
“If the grid were just 5% more efficient, the energy savings would equate to permanently eliminating the fuel and greenhouse gas emissions from 53 million cars.”
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
“Full implementation of smart grid functionality will provide substantial reductions in U.S. energy consumption and carbon emissions: 9% direct reductions, 3% additional direct reductions by supporting additional EVs & PHEVs at very high penetrations (> 60%) by smart charging, 5% indirect reductions from reinvestment of $ from avoiding the addition of extra capacity for regulation and reserves to support a 25% renewable portfolio standard.”
Pacific Northwest National Laboratory, “Potential Energy and Carbon Benefits of a Smart Grid,” September 2009, view source website »
An early DOE smart grid demonstration project in Washington state reduced peak load by 15%, and enabled the installation of cleaner, more efficient technologies for supply.
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008, view source website »
“Implementing Smart Grid technologies could reduce carbon emissions by:
Leveraging demand response / load management to minimize the use of costly peaking generation, which typically uses generation that is comparatively fuel inefficient
Facilitating increased energy efficiency through consumer education, programs leveraging usage information, and time-variable pricing
Facilitating mitigation of renewable generation variability of output—mitigation of this variability is one of the chief obstacles to integration of large amounts of renewable energy capacity into the bulk power system
Integrating plug-in hybrid electric vehicles (PHEVs), distributed wind and photovoltaic solar energy resources, and other forms of distributed generation”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
An Enhanced Electric Power System can by 2025 reduce:
Electricity consumption (kwh) by 10-15%
Energy intensity (kwh/$GDP) by 29%
Peak demand (MW) by 10%
Carbon dioxide emissions (mmtce) by 20%
And increase real GDP ($) by 17
Electric Power Research Institute (EPRI), “Electricity Sector Framework for the Future Volume I: Achieving the 21st Century Transformation,” 2003, cited by U.S. Department of Energy Electricity Advisory Committee in “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“Up to a 30% reduction in distribution losses is possible from optimal power factor performance and system balancing… Smart Grid technologies [help utilities] deploy power-factor control devices.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“Smart Grid technologies offer consumers the knowledge and ability to manage their own consumption habits through in-home or building automation.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“Advanced meters tell consumers how energy is used within their home or business, what that usage costs them, and what kind of impact that usage has on the environment. They can manage their usage interactively or set preferences that tell the utility to automatically make adjustments based on those choices.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“The new energy paradigm does not just empower utility consumers to better manage their consumption, reduce demand, and help the environment; through distributed generation, it can enable them to become energy producers [using] onsite photovoltaic panels and small-scale wind turbines…emerging distributed generation resources include geothermal, biomass, carbon-free hydrogen fuel cells, PHEVs, and batteries for energy storage.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“[Smart Grid-enabled] improved awareness gives consumers incentives to reduce energy use by switching to more efficient appliances and light bulbs, adjusting thermostat temperatures, and turning off lights and other energy-consuming devices when not in use…Based on nationwide pilot data, consumers could reduce their electricity consumption by up to 25% during peak periods.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“Commercial and industrial consumers will benefit greatly from a Smart Grid. For example, electric motors account for about 65% of industrial electricity usage…a variable speed drive can be enabled to respond automatically to pricing signals from the utility; this could have a major impact on a firm’s total consumption requirements and costs, as well as energy-efficiency benefits for society at large.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“A Smart Grid presents opportunities for utilities and consumers to benefit from efficient management of energy and advanced equipment and devices. It offers significant opportunities to wisely manage the nation’s fuel resources by potentially reducing the national need for additional generation sources, better integrating renewable and non-renewable generation sources into the grid’s operations, reducing outages and cascading problems, and enabling consumers to better manage their energy consumption.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008, view source website »
“To meet the energy challenge and create a 21st century energy economy, we need a 21st century electric grid.”
U.S. Energy Secretary Dr. Steven Chu, “Investing in Our Energy Future,” September 2009, view source website »
“Smart microgrids are modern, small-scale versions of today’s huge centralized electricity system.
Smart microgrids increase reliability…lead[ing] to fewer rolling blackouts and brownouts during times of peak demand, like hot summer days…The resulting reliability and energy efficiency dollar savings to consumers are typically at least four times the cost of implementing a smart microgrid.
Smart microgrids make it easier to efficiently meet growing consumer demand…[and] can provide real-time price signals and automatically adjust electricity usage to most efficiently meet the power needs of each individual consumer.
Smart microgrids make it possible to get the most from clean, renewable energy. When the sun shines and the wind blows, microgrids can produce power for themselves and profitably sell the excess to others. When the weather does not cooperate, the microgrid reverts to stored power or power supplied by the central bulk grid.
Smart microgrids nurture major technological innovation. Microgrids represent the most consumer-friendly and lowest cost bail-out plan for our aging electricity infrastructure. They allow us to “smarten” the grid one piece at a time.
Galvin Electricity Initiative, “Smart Microgrids: The Foundation of the Perfect Power System, view source website »
“One of the most appealing benefits of deploying a Smart Grid is that the ‘smart’ technologies can be used to shift or control demand to reduce peaks.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008, view source website »
“[T]he nation that leads in the creation of a clean energy economy will be the nation that leads the 21st century global economy.”
President Barack Obama, “Weekly Address: President Obama Calls Energy Bill Passage Critical to Stronger American Economy” June 27, 2009, view source website »
“We’ll fund a better, smarter electricity grid and train workers to build it – a grid that will help us ship wind and solar power from one end of this country to another.
“Think about it. The grid that powers the tools of modern life – computers, appliances, even blackberries – looks largely the same as it did half a century ago.
“Just these first steps toward modernizing the way we distribute electricity could reduce consumption by 2 to 4 percent.”
President Barack Obama, “Remarks of President Barack Obama: Promoting the Recovery Plan with Secretary Chu”, February 5, 2009, view source website »
“As an example, smart grids, offering increased accuracy and real-time flexibility resulting in energy savings, have the potential to support higher penetration of renewable generation, more competition from the demand side and improved system operation; with higher reliability, improved quality of service and reduced energy losses.”
International Confederation of Energy Regulators, “World Energy Regulators’ Statement on Climate Change,” October 2009, view source website »
