What is a smart grid?
The answer is simple. Think about what a smart phone is: a phone with a computer in it. Much like a smart phone a smart grid operates using a computer system. These grid systems are using electricity and integrating it with technology.
What is the smart grid capable of?
Smart grids can gather data, detect faults, and sense voltage. This allows for better energy efficiency and allows the utility to adjust and control each individual device or millions of devices from a central location. For example, during warmer months, an individual does not need his water heater on a high temperature. A smart grid can detect this and can turn down the temperature to save energy. This being done to multiples homes can aid in the reduction of energy consumption.
What are the benefits of smart grids?
Smart grids increase energy efficiency, and enhance cyber security. Smart grids can be monitored through computers instead of physical labor, and most of the times can fix problems from a computer as well.
Who uses smart grids?
Smart grids are used in power plants, and in windfarms, they are also found in homes and in businesses. Pretty much anything can upgrade its electrical system to be “smart”.
The US Energy Grid
The US energy grid is the biggest machine in the world. It consists of 3200 utilities. These power companies sell 400 billion dollars worth of electricity a year. The electricity is distributed over 2.7 million miles of power lines. Unfortunately the energy is most generated by burning fossil fuels.
Many believe that green energy will reduce the use and income of these utilities. David Crane, CEO of NRG Energy claims that “the grid will become increasingly irrelevant as customers move toward decentralized homegrown green energy” This is back by the fact that solar panels are increasingly turning home and businesses into power producers. It is projected that revenue from the installation of solar power systems will climb to 112 billion dollars a year. The move to greener energy is posing a serious threat to the utility grid and its distributors.
http://energy.gov/oe/technology-development/smart-grid
http://www.energybiz.com/article/13/09/microgrids-would-enhance-smart-grids