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Smart Grid: Promises and Challenges
Energy Business Reports, Oct 2007, Pages: 79
Today’s power grid is composed primarily of central generating stations and electromechanical power delivery systems operated from control centers. However the system is transforming itself into a smart grid that integrates a multitude of distributed energy resources, uses solid state electronics to manage and deliver power, and employs automated control systems. The power industry, trailing behind other economic sectors already revolutionized by computerization (e.g. retailing and manufacturing), will see inexpensive computing power and low cost bandwidth infuse every element of the grid with digital intelligence in coming decades.
The grid will achieve greater throughput, thus lowering power costs. Grid upgrades that increase the throughput of the transmission grid and optimize power flows will reduce waste and maximize use of the lowest-cost generation resources. Better harmonization of the distribution and local load servicing functions with interregional energy flows and transmission traffic will also improve utilization of the existing system assets.
The vision of the smart grid is to break down barriers between transmission and distribution, communications, and back office systems to create a fully integrated network that provides diagnosis and resolution of problems as they arise and enables real time exchange of information between the utility and its customers.
Advanced metering plays a major role in any smart grid infrastructure, and wireless applications are at the heart of advanced metering communications systems. The wireless communications networks that will support advanced metering systems in the future will provide faster and more accurate use, load, and disruption information, which will help utility companies plan and manage their resources more efficiently and effectively.
This report analyzes the concept of the smart grid and takes a dispassionate look at what the impact of this revolutionizing technology is having on the U.S. power transmission industry. The report analyzes the various technologies involved in the development of the smart grid, the industry groups involved in the development process, present activity related to this, the major players associated with various aspects of the smart grid – that is an analysis of the utilities deploying smart grid as well as an analysis of the major technology providers of this technology. The major regulatory changes required in order to effectively sustain and carry on the development of the smart grid are also identified in this report.
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