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all transformers. Also, upwards of 60 percent of all circuit breakers are more than 30 years old.30 While hundreds of thousands of high-voltage transmission lines cross the country, only 668 additional miles of interstate transmission have been built since 2000.31 The single mission of the contemporary grid seems to be keeping the lights on. Today’s transmission system is not capable of addressing important modern concerns such as energy efficiency, environmental impacts, and customer choice. In a way, running today’s digital society through yesterday’s grid is like running the Internet through an old telephone switchboard. Drastic improvements are necessary. “Smart Grid” Description and State of Development The future electricity infrastructure is commonly referred to as the “smart grid.” The term represents a vision for a digital upgrade of distribution and long distance transmission to optimize current operations and open up new markets for alternative energy production. While specific and proven smart grid technologies are in use today, “smart grid” is an aggregate term for a set of related technologies rather than a name for a specific technology. The smart grid technology most commonly referenced is the smart meter. While a conventional electricity meter only collects data on the total amount of energy households and businesses consume, this device maps energy consumption in real-time throughout the day and communicates this information back to the utility. A nationwide smart grid would transform the way Americans live and work. Constructing such an intricate system has been compared in significance to building the Interstate Highway System and the development of the Internet. Modern smart grid technology will revolutionize electricity infrastructure by incorporating the following seven functions, which the DOE describes in its “Modern Grid Initiative” report:32 • Accommodate generation options: Smart grids seamlessly interconnect with fuel cells, renewables like wind and solar, microturbines, and other distributed generation technologies at local and regional levels. • Allow consumer participation: A smart grid incorporates consumer equipment and behavior in grid design, operation, and communication. Consumers will be able to tell “smart appliances” and “smart equipment” when and at what price they should operate, and interconnect energy management systems in “smart buildings,” thus managing energy use effectively and reducing energy costs. At the same time, the grid will be able to tell devices when to reduce performance or power off temporarily during peak demand. Furthermore, homes or small businesses that use small generation technology locally will be able to sell power to their neighbors or back to the grid. Larger commercial businesses that have renewable or back-up power systems will be able to do the same. This participation by smaller entities is often referred to as the “democratization of energy.” 91PDF Image | Shaping Energy Technology Transition
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