Smart Grid 101
The North American electrical grid is considered to be the world’s largest machine as well as one of the 20th century’s greatest technological achievements. However, this same magnificent grid has grown old and out-of-date over the years and many believe it is not currently ready or able to meet the demands of the 21st century. While this presents many challenges, it also creates many opportunities. Smart Grids have been in existence to some extent for at least 25-30 years. Not surprisingly, it was only as the global energy crisis started rising on the horizon that it started to gain some attention amongst industry stakeholders. In the past few years, a handful of utility companies have started experimenting with ways to make their grids smarter, and the potential benefits are just beginning to be realized. Prior to the passage of the American Recovery and Reinvestment Act (signed February 17, 2009), the industry wasn’t sure if smart grids were the definitive future as it was unclear who would cover the projected $1-2 trillion it would take to modernize the entire grid. However, the $11 billion injection into the industry for the development of smart grids as well as the focus on this topic in some of President Obama’s speeches, have added fuel to the fire and given the industry some direction, confidence, and support. It is important to note that a national Smart Grid doesn’t currently exist. Parts of it only exist in a handful of cities throughout the U.S., and many of the potential benefits of the Smart Grid are only theoretical at this time. That being said, the technology and software – the building blocks – needed to reach a fully optimized Smart Grid do currently exist. There are many stakeholders involved in moving this industry and the concept of a Smart Grid forward. Presently, much more information is needed to be generated and shared within the industry, more support is needed from the government at all levels, and consumers need to be educated on how they can help. The information we’ve compiled below will hopefully provide some of the information to help get all stakeholders on the same page so the benefits of a Smart Grid can be more quickly realized. Below are links that provide additional detail regarding various components and issues of the Smart Grid:
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Smart Grid 101