Smart Grid
AMR/Real-time Pricing
Distributed Energy Resources
Power Quality/Energy Sensing
Demand Side Management/Direct Load Control
Coal based electrical generation is the most heavily utilized form of electrical generation in the U.S. making up a majority of base-load generation. Coal based generation is also the most pollution intensive form of electrical generation. In 2006, U.S. coal plants were responsible for 83% of U.S. energy related carbon-dioxide emissions, and 33% of total U.S. carbon-dioxide emissions. All forms of electrical generation in the U.S. combine to make this one industry responsible for 40% of total U.S. carbon-dioxide emissions, and our electric power industry a greater contributor to global green house gasses (GHGs) than any other country's total carbon output, with the exception of China.
As global warming becomes a more serious reality and the U.S becomes subject to increasing international pressure to conform to a carbon cap and trade system, local governments and utilities are focusing on what they can do to reduce their carbon footprints. Many states have mandated renewables and even joined voluntary carbon reduction programs such as the Regional Greenhouse Gas Initiative (RGGI), the Western Climate Initiative, and the Climate Protection Agreement amongst others.
The North American Electric Reliability Corporation predicts an 18% increase in electrical demand in the next ten years, and increased renewable energy portfolios are not alone sufficient to meet this growing energy demand. Even with commitments to renewables and clean energy, there are over 100 new coal fired plants on the drawing boards for U.S. electric utilities. The most environmental and financially viable way for the U.S. to meet our growing energy demand is not to build additional generation capacity, but to use the existing capacity more efficiently.
The Electric Power Research Institute (EPRI) projects that smart grid-enabled distribution systems in the U.S. could reduce electricity consumption by 5% to 10%, carbon dioxide emissions by up to 25%, and the costs of power-related disturbances to business by 87% through the use of AMR and real-time pricing, distributed generation resources, real-time energy sensing and direct load control. The EPRI has also estimated that a $4.2BB investment in energy efficiencies such as those mentioned above, could reduce peak demand by 6.4%, or 45,000MW. Building new generation capacity to generate the same 45,000MW would cost $8.5BB annually and result in increased carbon emissions of 100 million tons a year.
A supporting Pacific Northwest National Laboratories (PNNL) study shows that the smart grid's capability to smooth out peak power demands alone could eliminate the need for $46 billion to $117 billion in power plant and power line investments over the next 20 years. The Ambient Smart Grid® communications platform provides utilities the needed dedicated two-way communications network that will carry smart grid-enabled technology and application to fruition.
AMR/Real-time Pricing
Today many utilities lack a real-time view as to where the electricity they are sending out onto the grid ends up. Without a real-time view of distribution grid operations, utilities often rely on manually reading analog meters on a monthly basis to get a picture of end-users' electrical usage. Under this model, utilities are able to see the total amount of energy consumed by an end-user, but not when that energy was consumed. Read more...
Distributed Energy Resources (DER)
The U.S. electrical generation and distribution follows a model established during the industrial revolution, which continued unchallenged until the 1970's energy crisis. This model capitalized on the combination of economies of scale and cheap fuel, and resulted in the construction of large capacity generation plants located close to fuel sources and away from populated areas. Generation was connected to load centers via High Voltage (HV) Transmission lines and Medium and Low Voltage (MV and LV) Distribution lines. Read more...
Power Quality (PQ)/Energy Sensing
Today's grid is outdated and results in many economical losses for commercial and residential end-users. These losses come in many forms, from basic outages to more complicated power quality disturbances, which are becoming more and more serious in an economy dependent upon digital processes. It is one aim of the smart grid is to utilize multiple technologies to reduce PQ issues, which cost the U.S. economy over $100BB a year. Read more...
Demand Side Management/Direct Load Control
Electric utilities are charged with meeting the combined electrical demand of end-users by increasing and decreasing generation accordingly. Baseload generation is the lowest level of generation required to meet electrical demand over a twenty-four hour period. As electricity demand increases above baseload, utilities produce more electricity in active generation facilities, and also activate reserve additional generation resources often referred to as peaker plants. Peaker plants are activated to meet periods of peak demand when the electrical load the utility must supply is at its highest point.
Electric utilities are charged with meeting the combined electrical demand of end-users by increasing and decreasing generation accordingly. Baseload generation is the lowest level of generation required to meet electrical demand over a twenty-four hour period. As electricity demand increases above baseload, utilities produce more electricity in active generation facilities, and also activate reserve additional generation resources often referred to as peaker plants. Peaker plants are activated to meet periods of peak demand when the electrical load the utility must supply is at its highest point. As peak demand increases narrowing the gab between the utilities electrical demand and the utilities maximum generation capacity, the threat of brownouts increases at the same time the distribution grid's backup reliability is compromised (See DER and Order 888).
The national average load factor (the degree to which physical facilities are being utilized) is only about 55% but many utilities are finding they are reaching dangerously uncomfortable peak demand levels multiple times a year. Utilities are now looking into demand side management and direct load control to actively shift load from peak periods to non peak periods, and ad a level of grid security with the ability to reduce the distribution grid's load in case of equipment failures or excessive electrical usage.
Close to one third of energy is used for HVAC systems. NYC has estimated 5.6Million AC units that can draw up to 5,600 Megawatts. In periods of peak demand direct load control and demand side management can enable a utility to cycle down non essential electrical demand such as AC units for short periods of time to reduce grid wide demand. In the case of NYC, if a utility were to cycle through blocks of 20% of all AC units and shut them down for 12 minutes apiece, demand would be reduced by 1,120 Megawatts, or two coal fired power plants.
The Shpigler Group estimates annual benefits from a fully implemented smart grid with demand-side management of 135kWhr per meter energy reduction and cost savings of $7 Million annually for a utility.