Energy ... Electricity
The changing grid

Can the future smart grid have plug and play architecture?

Burgess COMMENTARY

Peter Burgess

Can the future smart grid have plug and play architecture?

Power transmission lines flickr.com

Economic growth, measured by gross domestic product (GDP), leads to an increased demand for electricity. Global energy demand is projected to increase by close to 85 percent by 2040. About half of the projected growth in electricity demand would come from the industrial sector, supporting an increased need for producing goods, as well as advanced manufacturing technologies, automation and operations management, which continue to transform the industry. The U.S. Energy Information Administration (EIA) projects that through 2040 U.S. energy use and economic growth will continue to be linked.

The future smart grid requires interoperability between the existing, century old networks, and the new comprehensive, distributed power system. New ways to generate, distribute and deliver energy in a scalable manner while improving reliability, efficiency and service and reducing environmental impact are a major challenge.

Integrating the old and new into a smart grid is essentially about how customers use energy and which choices they make. Supporting the wide spectrum of alternatives effectively and optimizing operations are key. Advances today in technology, renewable systems, distributed generation, energy storage solutions, and information technology are all part of the power grid modernization.

The smart grid brings value in these areas:

• 1. Real time visibility to grid operations, enabling fast acting capacity monitoring and management, with the ability to perform best at the right time, location and with the optimum level of amounts.

• 2. Better reliability and quality and better handling of voltage frequency issues and proper distribution.

• 3. Visibility and control of all assets at grid edge; i.e. visibility behind the customer meter, as well as addressing voltage, current and frequency on distribution lines.

Can we build an integrated grid with a customer-enabled plug & play architecture?

Industry experts at the Grid Edge Live conference agreed that consistent, transparent, efficient and scalable systems are fundamental in developing the future smart grid. Catering to individual customers and the notion that consumers would be able to customize their solutions is appealing.

We need to look at what has changed and how would the future power system look:

• Today, consumers have become energy producers

• We need load systems that are more interactive and dynamic

• Base load generation becomes more flexible in utilizing assets

• Transmission & Distribution (T & D) becomes more controllable and therefore resilient.

• Is it doable to build plug and play architecture solutions?

At Grid Edge Live experts examined whether the real question is how do we promote a customer-enabled smart grid or is it the challenge of decarbonizing the grid at a cost effective and affordable cost, while enhancing or maintaining grid reliability in light of the growing power needs of U.S. markets.

Most industry experts are in agreement that one size doesn't fit all. Decarbonization involves all customers, including accommodation of low income customers. Modernizing the grid is not so simple. Our existing grid systems are not going away and we will always face the challenge of blending old and new, and patching them for many years.

NEWS

The California Public Utilities Commission (CPUC) voted last Friday to change the state's current residential four-tier electricity rate structure to two-tier with a 25% cost difference between the two levels. The decision was a compromise between the three large utilities in the state and energy efficiency proponents. However, solar and efficiency advocates expressed opposition to the new regulation, since the existing four-tier structure charges customers per their demand: the more you use, the more you pay. Therefore, customers have been more inclined to invest in rooftop solar and incorporate energy efficiency behavior changes as well as pay for efficiency upgrades. With the new ruling, the CPUC claims that utilities should institute new business models and programs to incentivize consumers to use energy at non-peak time intervals.

ADDITIONAL INFORMATION

Grid Edge Live is a Greentech Media (GTM) event.

GTM is a market research company that focuses on global clean energy markets and delivers business-to-business news, market analysis and conferences. The firm focuses on solar power and the electric utility market's evolution.