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• Enable an open electricity market: Improvement in transmission capacity and management will help create an open marketplace where energy producers of all sizes using different types of generation technology can sell electricity to geographically distant locations. • Heal itself: Embedded sensors and automated controls will anticipate, detect, and respond to system problems in real time, thus avoiding or mitigating power outages, power quality problems, and service disruptions. • Resist attack: Real-time information enables grid operators to isolate areas affected by natural or man-made disruptions to redirect power flows around damaged facilities. • Provide high quality power: Outages and power quality issues cost U.S. business billions of dollars each year. Cleaner, more stable power with less downtime will prevent such high losses. • Optimize assets: The main goal of the modern grid will be the delivery of desired functionality at a minimum price. It will help utilities reduce their maintenance and operations costs, reduce waste, and maximize the flow of lowest-cost generation resources on local, regional, and national levels. Enactment of EISA 2007 made implementing smart grid technology U.S. policy. The law allocates $100 million in funding per fiscal year from 2008 to 2012. In addition, it establishes a matching funds program for states, utilities, and consumers to build smart grid capabilities, and creates a Grid Modernization Commission.33 Recently, the American Recovery and Reinvestment Act contained $4.5 billion in smart grid investments.34 Austin, Texas, has been developing a smart grid since 2003. Its municipally owned utility, Austin Energy, first replaced one third of its manual meters with smart meters that communicate via a wireless mesh network. It currently manages 200,000 devices in real time, including smart meters, smart thermostats, and sensors across its service area. By the end of 2009, the utility expects to support as many as 500,000 devices. Boulder, Colorado, completed the first phase of its smart grid project in August 2008. U.S. utilities that are currently developing smart grids include Pacific Gas & Electric, Florida Power & Light, Oklahoma Gas & Electric, and American Electric Power.35 Incentives for Developing a Smart Grid Developing a smart grid would have a profound impact on the U.S. economy. It would limit financial losses due to power outages, reduce electricity prices and the need for expensive fuels, and encourage job creation through private investment in the energy sector. Finally, financial savings would only increase as environmental costs are factored into economic equations. 92PDF Image | Shaping Energy Technology Transition
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