We are about to see the convergence of two of the most influential technologies in the history of men. This statement may sound bold, but it is absolutely based in fact. The emergence of a nationwide utility infrastructure for delivery of household electricity revolutionized life as we know it in the United States. It paved the way for the media and computing revolutions, and the all-important networking infrastructure that ties them together. These technologies, one antiquated, the other in it's infancy, have changed the human landscape tremendously. Possibly as much as the development of firearms, or even the invention of the wheel.
The merging of our electrical grid with networking capability has seemed somewhat inevitable. Scientists and engineers have understood the benefits that could be provided by incorporating real time data into our power management scheme for years. Primarily, combining these technologies promotes a more stable utility system, by addressing the current grid's major problem: the speed at which production and delivery issues can be fixed. Real time data would tell computers, not employees, when and where energy transmission troubles arise, and deal with them accordingly. This system would reduce if not eliminate blackouts and brownouts which can cost our economy billions, as they have in the Northeast in 2003 and California in 2005. The eventual benefit to updating our grid system reads like a laundry list of positives. The new "Smart Grid" or "Intelligrid" as it has been called, would be more efficient, perhaps saving as much as 20% of the electrical energy that we produce today. Our networked utilities would rely less on power from one source, effectively decentralizing the grid, thereby making it more resilient and less attractive as a target for attack. A benefit of this decentralization is the ability to connect more and varied renewable energy sources, which further promotes our nationwide energy independence plan. This new structure would also allow consumers to be more involved in their electrical use, by incorporating devices which could be programed to operate only when demand-based utility rates are low, signaled by information available through their connection to an outlet.
Of course there exist many hurdles for this infrastructure change to occur. Three of the largest are the resistance and inability of utility companies to change, public concerns over increased governmental control of energy and household privacy issues. Certainly for any of these points to be addressed, there will need to be legal mandates that will bring financial muscle to bear upon the problem. This process has already begun, surprisingly in the previous presidential administration. After the strikes of 9/11, president Bush made a clear gesture that improvement of the grid was necessary, mainly to strengthen our defenses, which was then re-emphasized after the above mentioned blackouts. President Obama has picked up this torch, and carried it one step further. As a part of his administration's energy policy, the DOE's Energy Efficiency and Renewable Energy office has received $2.3 billion in funding, partly to aid in the development of smart-grid technologies. The recent economic stimulus package granted the DOE an additional $38 billion, much of which is earmarked to solving the renewable energy integration issue, in which grid limitations play a great role.
The final hurdle to a smarter grid lies partially in the technology itself. Costs of metering equipment for the home must be made affordable. Latency, or the delay in transmission of information within the network, must be reduced to within reasonable levels for the system to work at all. The argument could be made however, that we did not wait to perfect the personal computer before bringing it to market, and sales did not lumber along until someone deemed them perfected. Much of this technology may be refined as time passes, and we see it's real weaknesses. Business too must play catch up, and the practicalities of engaging a workforce must be embraced. In this era of unemployment rates in the near double digits, businesses only need to hang out their shingle and the workers will arrive, not to mention cash. In 2009 the Cleantech market received over half of the venture capital in the U.S. The Energy Independence and Security Act of 2007 put forth $100 million in matching funds per year through 2012 to get smart grid projects going on the state level.
This could be the single largest change to occur within my generation. Experts are saying that a significant portion of the grid modernization project may be in place by 2030. It will involve the unprecedented cooperation between the entities of government, the utilities, and the public, and it will be vastly expensive. The question is, can we afford not to enact this change?
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