Some Smart Grid Straight Talk

By Rob Day

Now that the subsector of “smart grid” is getting more popular and thus getting talked about more and more, it seems a good time to point out a couple of quick things about the concept:

1. “Grid automation” would be a better term for the category. Applying IT and communications to the electricity transmission and distribution system, for the purpose of automating functions like notifications, meter reading, and eventually automated demand response, energy efficiency and grid balancing.

2. It doesn’t end at the meter. Calling it “smart grid” makes it sound like it’s really all about the transmission and distribution system only. But given the list of applications from above, it’s pretty clear that any full smart grid perspective must include the systems on customer premises that allow for the curtailment of consumption when the utility needs to free up capacity.

3. It doesn’t have to be capital-intensive. I’ve spoken to a few people recently who have the natural, initial impression that smart grid projects are necessarily massive in terms of scale and capital requirements. Re-wiring long transmission lines, putting new smart meters on every home in a town, that kind of thing. But a lot of what falls into the category is more software-related in nature. Even when it’s a hardware/ software system that’s being deployed, it doesn’t have to be super-expensive, thanks to advancements in computing power and communications technologies.

That’s at least how one investor views “smart grid,” for what it’s worth.

Comments

[john s. gordon:]

good post.
> jack

Jan 27 08:36 AM

[Chemist29:]

Another problem...in basic physics you learn that V=IR (ohm's law), until we get better conductors...we're losing a lot of energy to resistance (heat).

Jan 27 06:37 PM

[TinyTim:]

Smart Grid is a bunch of hype and this article is full of contradiction.
Forget "grid", this subsector is all about improving communication, info and feedback at the consumption end.

Except when it's jerked around by the likes of Enron, the grid is extremely reliable. And software will not improve local outages due to lightning strikes and blown splices.

"Applying IT and communications to the electricity transmission and distribution system, for the purpose of automating functions like notifications, meter reading, and eventually automated demand response, energy efficiency ..."
These cited functions are not T&D.
" Calling it “smart grid” makes it sound like it’s really all about the transmission and distribution system only."
When in fact, it has basically nothing to do with T&D.

As far as I can tell, "Smart Grid" is simply ways for electrical utilities to save administrative costs at the consumption end (meter reading, billing), provide consumers with continuous real-time energy, power and cost feedback (conservation) and possibly improve capital utilization and / or peak fuel costs through demand curtailment at the commercial / industrial level.

Because of the large cost incentives in wasted energy, utilities long ago learned to optimize pushing around power on the transmission grid. The tradeoff between "hanging more aluminum" (adding other or bigger conductors) and transmission losses is heavily skewed toward losses. The ampacity of lines is typically temperature limited at the point of permanent damage to the aluminum. The most modern replacement conductors don't conduct better, they handle the heat better. Losses are about the same.

So regarding "capital intensive", don't expect to see a lot of emphasis on restringing transmission lines at the current ROI levels. I do expect to see "new smart meters on every home in a town" because this is the gist of the Smart Grid.

Jan 28 01:05 AM

[Asquared:]

I wonder, is there such a device that would capture energy from the grid during off hours to be used during peak hours, or is that technology just not feasible for the home?

Jan 29 03:02 PM