BLOG POST: U.S. Energy Grid

The U.S. Energy Grid

The American energy grid consists of a wide range of independently owned power plants and transmission lines, spanning across the country. The infrastructure is aging, and electricity demand has surged in previous decades due to technological advancements. With this, there has been increased scrutiny on the health and sustainability of the system.

The three major sectors of the energy grid are the eastern and western sectors, in addition to the Texas (ERCOT) section of the grid. Different states are powered in vastly different manners, as indicated by US EPA and US DOE information. For example. Missouri’s electric power is fueled by coal by a whopping 85% portion. On the other hand, Vermont’s electricity is powered by 71% nuclear power! Dotted between the two extremes are many variations of hydro, natural gas, oil, and other sources of power. The many sources of energy are carried to major cities through high-voltage transmission lines.

Another interesting element of the US energy grid are the locations of different kinds of power plants. This not only has an environmental impact, but a huge political impact when bringing up the discussion of climate change. For example, states like Kentucky and Ohio are dotted with huge coal power plants. The ability for these states to slash carbon emissions are vastly different than a state that has multiple nuclear power facilities. In addition, that draws in the employees of the power plants and the companies independently owning each plant into the discussion. The overall point is that the energy grid is part of the broader discussion on how to power the country. While an “all-the-above” energy policy has worked to bring down costs, the energy grid itself is symbolic of the divergent views and positions that varying states carry.

Lastly, on the point of sources of energy, the grid is undergoing a big change. New wind power transmission lines are being built across the country, allowing for further investment into that source of energy. Furthermore, other forms of energy (such as coal), are under increasing regulatory pressure to become more efficient. New standards by the EPA will likely have a big impact on the US energy grid as power plants are forced to modernize and cut emissions.

Part of the solution to make the energy grid more efficient is the introduction of the smart grid. When the energy grid was first put into place, focus was primarily on localizing energy and having a one-way interaction where power plants would send energy into homes. The smart grid would create a two-way dialogue between consumers and energy providers. Different automation tools and computers would allow for the grid to be “smart.”

A wide range of goals have been discussed with the introduction of the smart grid. There are hopes that it would bring about greater efficiency, allow for quicker response to energy disruptions, reduce costs for consumers in the long term, and allow for the introduction of more renewable energy. Furthermore, the increased standardization of the energy grid may allow for increased security measures to be put into place against potential attacks. The smart grid would allow for things such as energy rerouting to areas where power has been dropped, permitting increased response efficiency.

The implementation of smart grid technologies has been compared to the construction of the American highway system. While the benefits to society may be great, the upfront costs are also massive. The American government has allocated around $5 billion dollars for smart grid technologies in recent legislation, however experts have speculated that the necessary investment may run well beyond $200 billion dollars. Such a high price tag is a deterrent for private investors and taxpayers alike. Furthermore, unexpected delays and project cost overruns are expected as the existing infrastructure is so old and cannot easily adopt the smart grid technology. It can be argued that the projected $2 trillion in consumer savings over a 20 year time span justifies the initial cost, but the economic debate around the smart grid continues to rage today.

Tying back into the climate discussion prior, the smart grid allows for plug-in vehicles to be more largely utilized. Consumers will have more information at their disposal to make more efficient decisions. Furthermore, it will permit greater usage of renewable energy and allow for more effective energy storage techniques. With the movement towards a more green society, it’s likely that the smart grid will be discussed often as part of a larger solution. The Obama administration has made a shift from the old energy grid into a smart grid a top priority. The President has spoken often, such as in a 2009 speech about the then-proposed stimulus bill, about the benefits of investing in the energy grid. He tied the implementation of the smart grid to jobs growth and a goal of having 20% of US energy powered by renewable sources by 2020. We will have to see whether the investment into the energy grid continues in a tight budgetary environment.

References:

  1. http://smartgrid.ieee.org/highlighted-papers/493-smart-grid-a-smart-idea-for-america
  2. https://www.smartgrid.gov/the_smart_grid
  3. http://energy.gov/oe/services/technology-development/smart-grid
  4. http://www.npr.org/2009/04/24/110997398/visualizing-the-u-s-electric-grid
  5. http://www.energy.gov/articles/top-9-things-you-didnt-know-about-americas-power-grid