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What is a Smart Grid?
A smart grid is a modern power generation, transmission and distribution system that can automate and manage the increasing complexity and needs of electricity in the 21st century. The technology aims to; integrate and support renewable energy sources like solar, wind and hydro, empower consumers with real-time information about their energy consumption and assist utility companies to reduce outages.
Just like traditional grids, smart grids have a number of moving components. However, smart grids have parts that are more efficient in terms of design and functionality. For instance, there are intelligent appliances that are capable of deciding when to consume power based on the pre-set user preferences. There are also smart substations that control critical and non-critical operational data, such as power factor performance, breaker, battery and transformer status.
Another critical component of a smart grid is the smart power meter that is capable of two-way communication between the consumer and power provider. This makes detection of power outages, billing, data collection and dispatching of repair crews easier and faster. There is also smart distribution characterized by automated monitoring and analysis tools, superconducting cables for long-distance transmission, self-healing, self optimization and self balancing.
Smart generation is another key component of a smart grid. The system is capable of “learning” the unique behavior of power generation resources to optimize energy production and to automatically maintain voltage, frequency and power factor standards based on feedback from multiple points in the grid. There is also universal access to affordable, low-carbon electrical power generation and storage solutions.
The smart grid technologies market in the United States is booming. The market is driven by incentives from the federal government, which has funded R&D programs to the tune of billions of dollars. In 2014, spending on smart grid technologies stood at $2.5 billion. By 2017, spending is expected to increase to around $3.3 billion. The number of smart meter shipments in the United States is expected to increase to 13.3 million in the year 2016. In North America, nonresidential smart meter penetration is expected to be around 71.7% by 2020.
The number of smart grid technology companies in the world is estimated to be around 150, 77.4% of which are based in the United States. The cumulative market capitalization of the largest 25 smart grid vendors stands at around $2.03 trillion. By 2020, the cumulative smart grid technology market is expected to surpass the $400 billion mark, with a compound annual growth rate of 8% worldwide. In the United States alone, the market is expected to continue growing by double digit to reach $26.7 billion by 2017. To date, General Electric, Honeywell, Itron and Trilliant Networks have received between $60-$300 million in funding.
Smart grids are not only aligned perfectly with the needs and demands of our time, they are also predicted to have significant long-lasting effects. For instance, the technology will overhaul aging equipment and bring things up to speed. This will help to reduce the likelihood of blackouts, burnouts and power surges. The technology will also reduce both the cost of energy consumption and production. With its full implementation, smart grids will make renewable power feasible and equip the grid to meet increasing energy demands. More importantly, however, the technology will give consumers near real-time control of their energy bills and facilitate large-scale electric vehicle charging.
Electricity is arguably the most valuable resource we have in our mode
Electricity is arguably the most valuable resource we have in our mode
