Transmitting energy from wind farms and solar panels is only possible with smart grid infrastructure in place that applies networking concepts to the distribution of energy.
7% of power generated in the US is wasted because of defective transmission lines and other mechanical problems, or theft. Inefficiencies at the transmission end lead to a loss of around $20 billion in revenue.
The costs are even higher when unused power plants have to be fired up in order to meet demand or when new plants ahve to be built.
smart grid helps the electrical distribution and transmission system to operate much more efficiently by conserving energy and saving money for consumers at the same time. Utilities can then better manage the energy supply using a technique called demand response.
Utilities no longer have to rely on their customers that an outage has occurred – since the smart grid is constantly monitored in real-time personnel are instantly notified that a problem has occurred, or is about to occur in some cases. Further down the road, plug-in hybrid vehicle technology can be introduced to the smart grid, in addition to the integration of renewable power.
“The new administration hasn’t taken office, and already we see a sign that momentum is building for utilities and other stakeholders to adopt the smart grid,” said Michael Jung, policy director for Silver Spring Networks, said. “Utility regulators are very cautious, so for them to see this leadership coming from the policy front, this is a vote of confide and will encourage them to see it’s not just R&D, it’s the real thing.”
Smart grids are gaining a lot of importance in the US where a majority of communities are now expressing interest in deploying the technology. “It has to be an ubiquitous kind of thing,” added Jung. “If the smart grid technology only reaches 40 percent of the grid, it wouldn’t provide enough of a benefit, whereas solar and wind can come on in different increments.”
