The heat wave in which much of the nation remains mired comes as a handful of communities across the country take their first steps toward implementing smart grid technology. The new meters, electricity distribution management systems, network management software and other technologies are designed to add intelligence to the way power is generated, distributed and used.

Already, smart grid pilot projects are up and running in places such as Harrisburg, Pa., Richland, Wash. (pdf), and Boulder, Colo.). As these regional smart grids expand, their eventual integration into a national smart grid should help make blackouts and brownouts (which of course can be devastating to a region's health and economy) easier to avoid and could possibly lead to discounts on consumer electric bills, provided consumers do not mind handing over some control of their home meters and appliances to their utility companies.

However, regional smart grids will not be in place until long after this summer's strings of consecutive above-90 degree Fahrenheit days are over—with adoption set to roll out over the next five years or so, provided consumers get on board. Still, the smart grid—which at its essence enables two-way communication of how electricity is generated, distributed and consumed—is expected to have a major impact on how we cope, energy-wise, with many long, hot summers to come, leveling peak demand for electricity with the help of smart appliances (including home chargers for the fleet of electric cars on the way) programmed to dial down energy usage when the grid is threatened with an overload.

Today, even without regional smart grids, utilities are able to cut energy consumption by businesses automatically through what are called demand response systems. These systems, usually arranged on a contractual basis, empower utilities to reduce the distribution of electricity to businesses that sign up for this service. This might include resetting a business's air conditioning thermostat to a higher temperature (typically only a few degrees) if the utility is seeing too much demand on its network. In return, the business saves money on its energy bill. Such arrangements are expected to expand significantly, especially into the residential sector, as smart grid technology proliferates, says Steve Minnihan, a research associate with Lux Research Inc. in Boston.

Tough social contract
"The challenge is that we've been operating with an implied contract with users that no matter how much energy they need, the utility will provide it for them," says Steve Hauser, vice president of grid integration at the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) in Golden, Colo. It has even gotten to the point where, if the utility is not able to meet consumers' demand, the utility can be penalized. Expectations that utilities will keep their customers' air conditioners running even during prolonged heat waves will not change, so power companies are seeking better ways to meet this demand, in part via smart grids.

The ability to offer demand response systems is in a more nascent stage for homes than it is for businesses because it requires homeowners to install smart meters, a key component of the smart grid infrastructure. Once these meters, which communicate directly with the utility company via a network, are installed, consumers will be able to get detailed information about the variable cost of electricity at different times of the day. The goal is to enable consumers to better manage their electricity usage and thereby save money. The utilities benefit by experiencing fewer sharp spikes in demand when, for instance, commuters get home from work and simultaneously turn on air conditioners, clothes dryers and dishwashers. Eventually, consumers may likewise be able to make contractual arrangements, as some businesses already do, to hand that management over to utility companies during heat waves and other extreme weather conditions.

Storing electricity
Demand response systems that automatically scale back the consumer pull on the grid can conserve enough energy to allow utilities to cut their peak capacities by 10 percent, or several gigawatts, according to a Lux Research report released last week. Another way for utilities to avoid having to generate or buy large amounts of additional electricity to satisfy surges in demand during heat waves and other extreme events is to find better ways of storing energy on the grid when demand is low. Although the ability to store electricity is not essential to creating regional smart grid pilot projects, it will become more important for managing the distribution of electricity as these grids grow, Hauser says. In addition, the ability to store highly intermittent renewable energy from sources such as solar panels and wind turbines makes them a much more feasible component of the grid.

5 Comments

1. 1. lakota2012 12:51 PM 7/27/10

   Actually, those of us living off-grid, already have in essence, a "smart grid," using excess energy produced during the daytime for higher-energy chores or by storage used at a later time. Even those with grid-connected PV systems, are able to pump excess energy into the grid during the daytime when it is needed most, running their meters backwards, and then using power from the grid at night when usage drops.
   
   As more and more renewable energy is installed around the world as it has been over the past decade, there should be less blackouts and brownouts due to excessive usage during heat waves. More demand is put on the grid during the day in the summer, due to cooling both houses and businesses, and that is when PV power is at its maximum.

   Reply | Report Abuse | Link to this

2. 2. JohnSciNew 01:25 PM 7/27/10

   TVA started a program with similar intent, through it's electricity distributors, about 20 years ago. It's still going on, although I don't know how well it is doing.
   
   We had a device hooked to our electric hot water heater. The utility company could turn the power off at times of peak electricity demand.
   
   The incentive for the homeowner was, if I remember correctly, that TVA would pay for the device as well as subsidizing installation of insulation to improve a home's energy efficiency.
   
   The insulation is still doing its job. We had the device disconnected from our water heater a few years ago. We were getting about $1 per month off of the utility bill, and running out of hot water in the morning (showers/baths).
   
   The next version of active electric control in homes, by utility companies, needs to give the homeowner considerably more control over how the system is implemented - as well as a significant incentive to use it.
   
   

   Reply | Report Abuse | Link to this

3. 3. JamesDavis 10:39 PM 7/27/10

   If it is really a Smart Grid, why wouldn't it be able to handle a heat wave? I'm not all that smart and I can handle a heat wave just fine.
   
   Isn't the purpose of a smart grid to handle bigger loads of electricity and provide that electricity when you need it? How smart does it have to be to do that?

   Reply | Report Abuse | Link to this

4. 4. kittiposte 01:45 PM 7/14/11

   My question is if (example) during a Heat Wave - will the utilities cut back on EVERYONE'S power or just those who are using a lot? F'rinstance: We put the a/c on when the indoor temp at home is 83* and set the thermostat for 78*. My neighbors keep their's on all summer and set the thermostat for 68*. Will the Utility "penalize" our house even though we don't use much electricity as it is? Or will they go after the folks who are really pulling the juice? That would be cause for us to lower our thermostat (and use more power) just so we won't lose in the end.
   Do I understand the principle or am I missing something?

   Reply | Report Abuse | Link to this

5. 5. kittiposte in reply to JamesDavis 01:52 PM 7/14/11

   Likewise - we handle our power just fine. If everyone were on the "smart grid", would those of us who already keep thermostats higher in summer and lower in winter be "penalized", as well, because our neighbors do the opposite? Won't that encourage folks such as ourselves to waste more power so we don't end up too hot in the summer and cold in the winter?

   Reply | Report Abuse | Link to this