Everyone from automobile manufacturers to fast food companies are following the latest trend and attempting to “go green.” However, switching to hybrid engines and recyclable packaging are small scale attempts to help the environment compared to the Smart Grid system, a technology that will revolutionize the nation’s energy usage. Recently, “the American Recovery & Reinvestment Act has allocated $4.5 billion in grants and loans through the Energy Dept. for the smart grid”(Energy 2). “The aim of the money is a far-reaching upgrade of the system that distributes energy to homes and businesses across the U.S., adding two-way communications and control technologies throughout the newly networked grid” (Regulations 1). The technology also hopes to reduce consumption. “Smart grids aim to replace demand destruction with a practice called demand response. Utilities intentionally reduce overall demand by sending signals to customers to turn down energy use in exchange for financial rewards. For example, a utility might offer a discount to users who run their dishwashers in other than peak-demand hours,” thus decreasing high volume usage (1). This demand response concept essentially means that it will be easier for customers to identify periods of economical energy usage. This will benefit the energy providers as well, minimizing the amounts of high demand periods.
Through reduced consumption this new technology also reduces energy costs which make the system appealing to companies that consume energy in large quantities. Cargill, a food producer, is one such company. The organization plans to overhaul its current energy supply system and replace it with a Smart Grid. Cargill “handles about 50,000 turkeys a day, electricity bills run more than $2 million a year. But the company thinks it can cleave $680,000 from the total by using its own generators on high-demand days” (Energy 1). Using the new system the Cargill hopes to lower its bills significantly. “Many utility vendors set rates for industrial customers based on peak-use patterns. So in a common practice known as peak-shaving, Cargill taps its own generators to keep its 365,000-square-foot Springdale plant cool on summer's hottest days rather than use energy from its electricity vendor, PowerSecure” (1). Currently, Powersecure monitors closely Cargill’s pattern of high and low energy usage periods. During periods of high usage, like hot weather days, Powersecure automatically fires up Cargill’s generators. With the Smart Grid system, Cargill hopes to be able to cycle the generators on and off more frequently reducing its dependency on Powersecure.
Like Cargill, other households will have more flexibility to chose their power source as the government overhauls the Smart Grid system. “Customers may soon get more leeway in determining the nature of the power they purchase, more easily opting for renewable energies such as solar and wind, says Matthew Trevithick, a partner at venture capital firm Venrock” (Energy 2). The increased information passed through the Smart Grid allows companies and homes to consume energy more efficiently. The Smart Grid also provides for increased flexibility in power source options. This new technology, while expensive, will have a major impact on the nations effort to build a more eco-friendly environment with reduced energy consumption.
Through reduced consumption this new technology also reduces energy costs which make the system appealing to companies that consume energy in large quantities. Cargill, a food producer, is one such company. The organization plans to overhaul its current energy supply system and replace it with a Smart Grid. Cargill “handles about 50,000 turkeys a day, electricity bills run more than $2 million a year. But the company thinks it can cleave $680,000 from the total by using its own generators on high-demand days” (Energy 1). Using the new system the Cargill hopes to lower its bills significantly. “Many utility vendors set rates for industrial customers based on peak-use patterns. So in a common practice known as peak-shaving, Cargill taps its own generators to keep its 365,000-square-foot Springdale plant cool on summer's hottest days rather than use energy from its electricity vendor, PowerSecure” (1). Currently, Powersecure monitors closely Cargill’s pattern of high and low energy usage periods. During periods of high usage, like hot weather days, Powersecure automatically fires up Cargill’s generators. With the Smart Grid system, Cargill hopes to be able to cycle the generators on and off more frequently reducing its dependency on Powersecure.
Like Cargill, other households will have more flexibility to chose their power source as the government overhauls the Smart Grid system. “Customers may soon get more leeway in determining the nature of the power they purchase, more easily opting for renewable energies such as solar and wind, says Matthew Trevithick, a partner at venture capital firm Venrock” (Energy 2). The increased information passed through the Smart Grid allows companies and homes to consume energy more efficiently. The Smart Grid also provides for increased flexibility in power source options. This new technology, while expensive, will have a major impact on the nations effort to build a more eco-friendly environment with reduced energy consumption.
To view slide show with additional info on Smart Grids http://images.businessweek.com/ss/09/10/1005_smart_grid_101/index.htm
"The Coming Energy Revolution - BusinessWeek." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 02 Nov. 2009..
"The Coming Energy Revolution - BusinessWeek." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 02 Nov. 2009.
"The Smart Grid Needs Smart Regulations - BusinessWeek." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 02 Nov. 2009. .
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