Smart Grid. Energy Solution or Security Risk?

Why Care?

The Energy Literacy Imperative

By: Patty Durand
April 29, 2011

So where do you stand? What are the challenges we face in creating a smart energy grid? Would you be willing to use digital technologies to more actively control your energy use? Patty Durand, executive director of the Smart Grid Consumer Collaborative, thinks that connecting consumers and utilities via digital smart grid technologies will reduce costs and electricity waste. On the other side of the argument: people who think a more connected digital grid could create security risks and privacy concerns.

Our century-old power system is due for an upgrade that can help us improve efficiency and cut costs. Digital smart grid technologies — the tools behind mobile phones and the Internet — will modernize our grid, creating a two-way connection between utilities and customers. So you’ll get detailed data that can help you control how you use energy — and how much you spend. And when we’re all communicating, we can work together to manage our resources and use energy more efficiently.


Pros

• Consumers can save money by using off-peak energy. With digital grid smart technology, utilities can adjust rates based on anticipated demand to give users greater control over costs. So running your dishwasher or dryer in the evening (when demand generally goes down) could mean savings on your electric bill.
• We could reduce overall energy use. The U.S. Department of Energy says an automated electricity network could cut power consumption by up to 15 percent.
• We can use more renewable sources. Our current grid isn’t equipped to handle large amounts of wind or solar power — but grid modernization will allow us to make better use of renewables.
• Power will be more reliable. Grid improvements will help utilities pinpoint disruptions and redirect power from other locations, limiting or preventing outages.
• The smart grid will accommodate electric cars. As plug-in electric vehicles (PEVs) gain popularity, they’re also putting a growing burden on the grid, particularly in cities with high PEV ownership and at popular charging times. With a smart grid, utilities can identify PEV charging spikes and adjust the flow of energy accordingly so owners can “fuel” without interruption.

Cons

• Energy could cost more when demand is high. To encourage conservation and help meet elevated demand, utilities may increase power rates for peak-time use.
• Modernization could cost up to $165 billion. That’s according to the Electric Power Research Institute, which figures major smart grid expenses will be spread out over the next 20 years.
• Some people say smart meters impact health. Some wireless digital technologies emit low-level radio waves (like those sent out by cell phones) to retrieve customer energy usage information at frequent intervals. While no one knows the long-term health risk, a few people have expressed concerns.
• A digital network creates privacy and security concerns. To help ease strain on the grid, consumers already can authorize power providers to remotely control water heaters, A/C units or other appliances during peak-use times. Participation is optional and helps consumers save money, but some see that approach as invasive. Others say it will be difficult to protect a digital grid from viruses, hackers or terrorists.
• Our energy needs may outpace smart grid development. Grid modernization is an enormous undertaking — and while regulators, utilities, technology vendors and others are updating our system as rapidly as possible, demand could grow faster.

The U.S. Department of Energy projects electricity demand will increase 30 percent by 2030. Where will all of this new energy come from? I believe that energy transformation is more important than any other issue before us. Our country needs to make a transformation from the unsustainable sources of energy we use now into a model where sustainability and efficiency are the cornerstones of how we produce and consume energy.
How will that be done? Through the smart grid. The integration of digital communication with the power grid will allow people to become energy literate and enable utilities to communicate with consumers in ways never before possible. This partnership will launch a new age of energy literacy similar to the age of computer literacy we have just experienced. One of the best aspects of a smarter grid is the ability to automate energy efficiency to help save consumers money and reduce waste.

In addition, increases in energy demand and new laws in more than 30 states requiring utilities to produce a certain percentage of electricity from renewable energy means that utilities must integrate new electricity sources into the power grid. Smart grid technology will help make this possible.

These changes — integration of more renewables into the power mix, less waste, new ways of communicating with consumers, a population that is energy literate — can only occur with the advent of new digital technology. Yet, these changes are likely to be difficult in many cases, and slow-coming in others.

First, consumers are not used to thinking about energy, and may not want to. Second, new pricing models are needed to bring electricity consumption in line with the real electricity market instead of the flat rate pricing that occurs now, which is inefficient and does not match reality. Work will have to be done to educate and engage consumers in these changes.

Every nonprofit exists for a reason, usually to address a social or public good. The reason for the Smart Grid Consumer Collaborative is to listen to consumers and find out what they know and what they want; educate consumers, utilities and regulators; and assist the smart grid industry in understanding and supporting consumer reactions to the technology upgrade. We hope to bring industry leaders and consumer advocates together to address the gap in consumer education. With a smarter grid, we can reach the goal of sustainable, affordable energy.

https://www.sheddingalight.org/smart-grid/