YEAGER

As the economy reels from its oil hangover, most Americans do not realize that they face another energy crisis—one resulting from an electricity system that has been starved of innovation for decades. Despite being an engineering marvel of the 20th century, our electricity infrastructure, the grid itself, has become obsolete, unreliable, inefficient, and far too vulnerable to serve the needs of 21st century consumers. Today’s electric power system desperately needs an upgrade. It wastes more energy each year than Japan consumes, and power outages alone cost Americans more than $150 billion a year. The U.S. regulated electricity monopolies, like other regulated monopolies, also must transform themselves, if they are to resolve their problems sustainably. They need to move away from the antiquated, supply-oriented “business” models to true demand-driven businesses that provide highly innovative and reliable services in a real-time environment.

Fortunately, the problem with the grid is unlike the oil crisis in one important way. There is a direct and available solution—we can upgrade the grid and make it smarter. In the simplest of terms, this renewal involves overlaying the grid with digital communications and control technology. Replacing today’s analog, electromechanical controls with power electronics will allow the system to adapt—in real time—to shifts in demand, supply, and the unexpected. As a result of this fundamental transformation, the grid will become more secure, reliable and environmentally responsible. A smart grid is more efficient and allows us to get the most out of clean, but intermittent sources of energy, such as wind and solar.

To help the next-generation electricity system reach its full potential, the Galvin Electricity Initiative developed an open-system smart grid architecture, modeled after the Internet. Once fully implemented, this “electranet” would be an array of new, scalable technologies that address the quality, reliability, and resilience deficiencies inherent in today’s bulk electricity system. These technologies could be used in a single building or throughout an entire power generation and distribution system, making it easy for consumers to find the best combination of technologies to meet their needs.

In our view, the only smart grid worth building is one that strives for perfection. With a foundation in Six Sigma quality principles, the Galvin Electricity Initiative’s blueprint for reaching this goal is aptly named “Perfect Power.” To achieve Perfect Power, the Initiative is working to help the entrepreneurial business community implement local smart microgrids which incorporate technology to best advantage. The ultimate goal is to create an intelligent, instantaneously self-correcting and self-optimizing power system that incorporates distributed power generation, renewable energy, and storage resources, including plug-in hybrid electric vehicles (PHEV), as practical reliability and capacity assets. This capability also will enable consumers and suppliers to take full advantage of 2007 Energy Independence and Security Act provisions encouraging all consumers to have advanced net metering systems for real-time tailored service and efficient demand response.

The resulting energy and cost savings for consumers, communities and utilities alike will be profound. For a university, a system that will not fail means saving priceless experiments that are destroyed by just a momentary outage. For a hospital, it can mean saving something even more priceless—life. For consumers at home, Perfect Power offers a level of consumer-friendly control that is inconceivable today. Using time-of-use pricing with advanced metering, consumers can purchase power at actual cost, rather than at an averaged rate calculated far in advance. In addition, consumers can use smart appliances and devices, such as dishwashers and battery chargers that turn on automatically when electricity prices reach a predetermined low.

Critics may falsely condemn the expense of making the grid more intelligent, but the real criticism should be directed toward them for ignoring the major economic, security and environmental costs that today’s power system imposes on all citizens. They fail to admit that the electrical emperor has no clothes. The U.S. electricity enterprise continues to be trapped in extended turmoil created by the lack of a stable policy structure and resulting conflicts among federal and state regulatory bodies. Despite so much promise, government leadership on this issue has been disappointing.

To help government policies and regulations come up to speed with today’s needs, federal, state and local leaders need to talk about electricity transformation. Engineers can start the conversation. They have the training and knowledge to show that there is more to electricity than flipping a switch or installing a wind turbine. Engineers can explain the hidden crisis we face, and because modern life depends on having power when it is needed, the public will listen. The result will be a discussion leading to engineering accomplishments rivaling those of the grid’s first designers.

Kurt Yeager is the executive director of the Galvin Electricity Initiative and co-author with Bob Galvin of the upcoming book "PERFECT POWER: How the Microgrid Revolution Will Unleash Cleaner, Greener, More Abundant Energy", published by McGraw Hill. He can be reached at 650-855-2400 or kyeager@epri.com.

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