Tags: smart grid
Smart Grids Hope and Reality?
August 6th, 2009We believe though the road to our safe, clean, renewable energy future will have twists and turns we are headed in the right direction. A brighter future includes safe, clean renewable energy generation and a smart way to move that energy around most efficiently.
The quest for a smart grid has its challenges. Jim Pierobon from Reuters wrote a wonderful piece chronicling the twists and turns in the road to evolve smart grid technology. Here is his summation of the eight lessons learned about the Smart Grid trials to date.
Lesson #1: Be skeptical of the fanfare. Smart grids sound downright sexy, if you will, but there are multiple dimensions to the challenge. The hurdle to achieve what the trade and even the mainstream media have been buzzing about is quite tall. We're talking about very complex systems here.
Lesson #2: Expect resistance from regulators and consumers alike. Outside of homeowners, business owners and government financial officers with very high solar IQs, consumers will be a tough sell, especially if they are not subject to variable pricing. And short of where time-of-use pricing is in place for certain users in California and New York, for example, there is no incentive today to assess the bottom line impact.
Lesson #3: Utilities want ratepayers picking up a big part of the tab. The headlong rush toward smart grids in certain cities without rate structures reflecting the costs involved may slow to a crawl. Funds from Federal Stimulus projects appear ready to flow to jump-start efforts for utilities with applications on file. But how far will this money really take us? And for how long?
Lesson #4: We need systems to handle a ton of new data and we've got a long way to go to develop most of them. To be sure, there are a LOT of smart IT, telecommunications and electrical engineers sharply focused on a variety of promising applications. Just be sure to temper your expectations.
Lesson #5: Free stuff from vendors will only take you so far. Mature and early stage companies scrambling for a sustainable share of the smart grid economy are willing to donate software, equipment and a panoply of "solutions." But demonstration projects don't make a business.
Lesson #6: The more you know about all the pieces - and the terminology - that comprise a smart grid, the better able you will be to see how they work and fit together. Let's start with advanced metering infrastructure (aka "AMI" and touted by some as "killer app") and networking / two-way communications; followed by demand response systems, grid optimization and distribution automation. There is whole new world of software, solutions and applications out there and then there are the home area networks and energy management systems emerging on the scene.
Lesson #7: It's never too soon to engage your local and regional officials, your local utility, together with county economic development officials interested in creating "green" jobs, about the steps necessary to make your grid smarter. We at Standard Solar are in the middle of an effort by Montgomery County, Maryland (just north of Washington, DC) to do exactly this, which leads to another lesson...
Lesson #8: Whatever the smart grid becomes, most, if not all, utilities want to play a major role in its development. If anything they want to protect and defend their way of doing business. But some might see more in the crystal ball. Within a matter of days last month, two utilities in Maryland serving economically ambitious jurisdictions - Potomac Electric Power Co. serving Washington, DC and the close-in Maryland counties, and Baltimore Gas & Electric Co. - announced smart grid initiatives. It was evident they want not only "stimulus" cash but also future rate increases from the Maryland Public Service Commission to help pay for them.
We at Solar Pie believe the most important lesson in our safe, clean, renewable energy future is that we show up, have trials, have demonstration projects, fund research because all of these elements make for a rich mix to fuel an evolution and a brighter future.

