The modern electric grid is hardly modern; it has barely changed in seventy-five years. Most electric grid systems today consist of transmission and distribution networks that connect power plants to end users. These systems rely on centralized power generation and feature bottlenecks and choke points where damage to the infrastructure can disrupt service to thousands of customers if not more. Todays electric grids are poorly equipped to handle the demands of the post-modern economy, which due to the ever increasing use of digital devices requires higher load demands and uninterruptible power.

Part of the problem is information–information in current power systems flows only one way, from consumers to the power utilities. The utilities know what the power loads are and where they are, but they struggle to meet power spikes with marginal success. Consumers have no idea (besides learning about it on the nightly news report) what the load demands on the power grid are and thus are unable to make usage decisions based on that information.

The other part of the problem is logistical: Current power systems rely on centralized generating stations that send power over transmission networks to several distribution substations, which then send power over distribution networks to end users. To meet increased peak demand in local areas excess, generators must be kept on standby so they can be brought online as needed. Power, for the most part, cannot be routed from another area to help meet the demand. Since as much as 10% of total power capacity is needed as little as 1% of the time, this means that a large number of small local emergency generators are needed to meet rapidly changing demand (as larger generators take too long to startup).

Smart grid systems are an attempt to address the shortcomings of the current electric grid by changing the flow of information and logistics. The new grid systems use internet connections between power stations, power meters, and appliances ultimately drawing power to make the flow of information about the state of the grid a two-way process between utilities and consumers. This enables consumers to make better decisions about their power usage; which they can even do automatically via the smart power meters.

Smart grid systems change the logistical nature of the grid from the centralized transmission and distribution system to a decentralized network model where excess power can be transmitted from one area to another as needed. Even better is the ability to use energy storage devices in households (such as plug-in hybrids) and power generating devices such as residential solar panels to supply energy back to the grid during hours of peak demand.

The goal of the smart grid system is to increase the reliability and efficiency of the power transmission systems on two fronts: (1) It decentralizes power generation with households that are both clients and suppliers; (2) It improves power consumption. Consumers are now in the driver seat and are better able make more precise decisions about how they consume power.

Test programs of smart grids have been steadily increasing over the last few years. Enel S.p.A. of Italy built a smart grid serving 27 million Italians in 2005. Essentially Enel invented the concept by installing smart meters that enabled two-way communication between the utility and energy consumers. Austin Energy, a Texas power utility, has been working on a similar initiative to replace all its power meters with smart meters by December 2008.

The GridWise Olympic Peninsula project, a study conducted by the Pacific Northwest National Laboratory, equipped homeowners with digital thermostats and computer controllers on their water heaters and clothes dryers. Participant homeowners were then able to set performance preferences of these devices according to their own preferences. The average household in the study saved over 10% on its yearlong electricity usage. A subset of the program used price-sensitive settings with the price of electricity varying as a function of power load on the grid and the performance of the appliances being set to respond to the price of electricity–these customers saved even more.

For businesses looking to leverage future developments in smart grid technology, it would be worthwhile to review all the power uses in their companies. Gaining an understanding of what power usage can be time shifted as well as coming to an understanding of inventory opportunities to sell power back to the grid will help businesses position themselves to take advantage of green grid technology to lower costs and even gain new revenue streams.

Given that the growing energy crisis is having a dramatic effect on the global economy, there is an urgency to begin planning NOW to help protect your business from rising energy costs.

Austin, Texas consistently places in the various lists of the greenest cities in the US and the world.  The Green Guide, affiliated with National Geographic, chose Austin as number 2 on its list on Top Green Cities in 2006.  Criteria for its choices included air quality, electricity use and production, environmental perspective, environmental policy, green space, transportation and water quality.

A commitment to solar energy and green building is what won Austin its place on Green Guide’s list.  The city offers some of the most generous rebates in the country for customers who use solar energy.  It also buys significant amounts of wind energy from wind farms in West Texas and plans to meet 20 percent of its energy needs with renewable sources by 2020.  Austin also has established high standards for energy efficiency for its central business district and has initiated progressive policies to preserve water quality, ensure proximity to mass transit, and maintain a pedestrian-friendly urban design. 

But it’s not just the city government that promotes green urban living.  Many of Austin’s creative citizens are becoming known around the country and the world for their initiative and success in creating local, community based projects that promote green lifestyles and a more healthy, cleaner urban environment.

The Rhizome Collective was founded in 2000 as a center for community organizing and urban sustainability education.  The collective took an old warehouse with an asphalt parking lot and have turned it into gardens, ponds and greenhouses that support tilapia, catfish, turkey, ducks and chickens.  They host weekend workshops and seminars to teach people from around the world that they don’t have to wait on governments and corporations to go green, but they can start implementing their own projects with little background in engineering or the sciences.

Austin has permitted a number of private individuals to employ alternative construction methods to build homes inside the city limits, notably straw bale construction.  In 2001, there were about a dozen homes in the Austin area that were built from straw, including at least three inside the city limits.  In addition to such progressive construction methods, the city has also permitted some people to recycle old buildings, such as warehouses into condos and upscale or innovative commercial properties.

Another citizen-initiated project that has contributed to the eco-quality of the area is the Carshare initiative.  This company allows members to pick up a car for a day at various locations around town.  In this way, members can save money by not having to pay for their own private car (and consequently not having to pay for insurance, gas, maintenance and parking!).  It also helps reduce the amount of air pollution in the city by reducing the amount of automobile traffic in the city.

Finally, there is Good Common Sense, an online store founded by well-known and highly respected Austin musician Chris Searles.  Formerly a drummer for such notable artists as Alejandro Escovedo and Shawn Colvin, Searles founded Good Common Sense in an effort to help consumers make the kinds of choices that will help make the world a greener, safer place to live and work.  His store offers products that are environmentally friendlier than many products consumers might find in regular stores and shops.  Consumers can find home weatherizing products, compostable dinnerware, fuel enhancer devices, and all kinds of recycled products.