In the expansive $787 billion United States stimulus bill, $4.5 billion has been directed toward smart grid development. In Boulder, Colorado, Xcel Energy recently implemented the nation’s first smart grid system.

Xcel Energy’s initiative, referred to as Smart Grid City^TM, has several key objectives:

• Transformation of existing metering infrastructure to a robust, dynamic communications network, providing real time, high-speed, two-way communication throughout the distribution grid.
• Conversion of substations to “smart” substations capable of remote monitoring, near real-time data and optimized performance.
• Installation of thousands of in-home control devices and the necessary systems to fully automate home energy use.
• Integration of infrastructure to support up to 1,000 easily dispatched distributed generation technologies (including plug-in hybrid electric vehicles with vehicle-to-grid technology; battery systems; wind turbines; and solar panels).

The potential for smart grid systems across the nation offers the possibility of reduced energy expenditures for consumers, a more efficient distribution of power, and an overall cleaner grid. By reducing the need for electricity generated by coal-fired power plants, the grid becomes greener. In addition, the “smart grid” can better integrate renewable energy and inform consumers of the optimal time to power energy intensive devices, which decreases the need for base load power.

As mentioned in previous posts on the “Smart Grid”, consumers will be empowered to make informed choices. Smart meters provide residents with instant feedback as to their power consumption, including which appliances consume the most energy. Homeowners will also receive information on energy costs in real time. This data allows people to decide if and when to power devices that require larger amounts of energy, such as electric dryers and heaters. Access to this information will create an informed consumer group and potentially lead to more efficient use of electricity.

- Eric Wilson