“Smart Grids: An Introduction,” is a report published by the Department of Energy, or “DOE,” to introduce U.S. consumers to the goals, benefits and smart technology underpinning the multi-billion dollar government smart grid investments planned for the coming decade. The report lays out, in simple terms, the state of the grid, its vulnerabilities and a path forward.   It differentiates between what it refers to as a smarter grid, which is based on technology that exists now and can be deployed in the near term, and a smart grid, which will be highly intelligent, immense in scope and ubiquitous in deployment.   A smarter grid can have immediate impact in terms of efficiencies, cost reduction and impact on the environment. The smart grid will, the DOE predicts, “spur the kind of transformation that the internet has already brought to the way we live, work, play and learn.”

 

 We are acutely aware of how the internet has changed our lives, but the distribution of electricity has remained, by and large, unchanged for decades. As the report points out,  “if Alexander Graham Bell were somehow transported to the 21st century, he would not begin to recognize the components of modern telephony – cell phones, texting, cell towers, PDAs, etc. – while Thomas Edison, one of the grid’s key early architects, would be totally familiar with the grid.” Much of the work being done toward the “smarter grid” is aimed at making the distribution network more reliable and efficient.   Even small steps toward being “smarter” can reap huge rewards. The report estimates that a grid “just 5 percent more efficient, the energy savings would equate to permanently eliminating the fuel and greenhouse gas emissions from 53 million cars.”     

 

While the burden of improving the reliability and efficiency of the distribution network rests on the utility companies, changing consumer behavior is a key component of reducing energy usage.   Smart meters, now being deployed by various electric companies across the country, have the potential to make a great impact on how and when we use energy.   Smart meters allow two-way communications between the consumer’s home and the power company and give the utility company the ability to monitor usage and to bill based on supply and demand. 

 

While having the data is a first step, the ability for the consumer to be able to react to the information is instrumental in changing behavior.   In order to access data in a way that is actionable, the consumer needs to invest in smart devices. There devices make it possible for appliances to communicate with smart meters and adjust usage based on time of day and load on the grid. A dishwasher, for example, would be able to determine the best time of day to turn itself on.    There are wireless “dashboard” devices that provide real time monitoring of usage and give the consumer to react to grid loads and change their consumption to decrease their bills.  

 

This leads to the question of whether we are facing another “digital divide” as consumers who cannot pay for the latest smart energy technology will lag behind. Record numbers of low income and senior citizens report they are unable to pay for heat this winter and funding for Low Income Home Energy Assistance Program, or “LIHEAP,” is expected to be over $5 billion this year. They’re thinking about staying warm, not about smart devices. 

 

The immense potential of a national smart grid is dependent on changing consumer behavior and that requires that all Americans have access to the tools to monitor energy consumption and lower their usage and bills.   Ubiquitous use of computers, the internet, even mobile phones, once thought to be the domain of the tech savvy and wealthy, have been made affordable by innovation and public policy.    The evolution of the telecommunications industry over the past decade, including the availability of open standards and provides a model for creating the Smart Grid consumer benefits envisioned by the government.