What is the Smart Grid?

Lauren Harris
Consultant
September 3, 2015

The word “grid” is increasingly used when discussing the state of our electricity and energy systems and sustainability.

The need for better communication between user and supplier, combined with the increasing complexity of our electrical needs has led to the creation of the Smart Grid.
Credit: Peter Nijenhuis via Flickr

For instance, in extreme green building scenarios going “off the grid” is seen as the ultimate in energy efficient operation, facilitated by renewable sources of energy such as solar.

But what is the grid? And what is meant by the term “smart grid”?

Electrical Grid

The electrical grid refers to transmission lines, substations, transformers and much more, all working together to deliver electricity from the power plant to a specified location.

Built in the 1890s and upgraded along the way, the power grid consists of transmission lines spanning 300,000 miles and has a generating capacity of over one million megawatts.

It has evolved into three large interconnected systems that move electricity around the country. These tracking systems also make it possible to manage renewable energy certificates (aka RECs), which must be monitored and certified.

Mandatory reliability standards have been developed by the electric power industry and approved by the Federal Energy Regulatory Commission (FERC) to ensure coordinated electric system operations.

However, as our understanding of climate sustainability and our technologies have rapidly advanced, our demand for energy has increased dramatically.

Smart Grid

The need for better communication between user and supplier, combined with the increasing complexity of our electrical needs has led to the creation of the Smart Grid.

The intelligence of the “Smart” Grid comes from the two-way communication between a device and the utility.

Smart devices include sensors that gather data which is transmitted back to the utility in near real time. With this data the utility can adjust and control individual devices from a central location.

This communication enables utilities to learn more about how the consumer is using electricity, and respond accordingly, while giving consumers a greater level of transparency and control over their energy use.

The Smart Grid allows for increased reliability and efficiency, along with numerous additional benefits and solutions, such as demand response, which can help resolve or reduce common utility issues such as spikes in electricity demand that can cause power outages or brown outs.

Projected benefits of the smart grid include reduced costs of operations and management leading to lower costs for consumers, reduced peak demand, and improved security.

Perhaps the most intriguing benefit for the sustainability-minded consumer is the increased integration of large scale and customer-owned renewable energy systems.

Smart Grid, Renewables and Green Vehicles

Our current grid infrastructure is inadequate for supplying large scale renewable energy throughout the country. However, with the Smart Grid, operators are better equipped to reduce power demand quickly if a renewable power source dips. Such features are enhanced by the growing number of peak shaving technologies and energy storage systems that can capture excess energy and deliver power regardless of time of day or availability of renewable energy.

Additionally, we will be able to rely on renewables on a larger geographic scale. The smart grid is also beneficial for plug-in electric vehicles (PEVs), as it allows for more efficient charging, by timing the charge with lower power demands and renewable production peaks.

Smart technologies also allow for a more streamlined payment system, where PEV owners are billed directly instead of needing to use credit card or cash at the time of charge.

Smart Grid Legislation

While it will take quite a bit of time before the entire nation operates under a Smart Grid, there have been several steps taken by lawmakers to facilitate the process.

In December 2007, Title XIII of the Energy Independence and Security Act of 2007 was approved providing support to the Department of Energy’s Smart Grid initiatives.

Included in this bill was a call for the creation of a Smart Grid Advisory Committee and Task Force, the development of an Interoperability Framework, and a Federal Matching Fund for Smart Grid Investment Costs.

There has also been a strong and successful push for stakeholder participation, and the continued improvement of the overall vision of the Smart Grid.

As we continue into the 21st century, the implementation of the Smart Grid will help to support our heavy use of technology and the transition to a reliance on renewable energies.

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