What is Smart Grid
A smart grid is an electrical grid that uses information and communications technology to gather and act on information, such as information about the behaviours of suppliers and consumers, in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity
Watch this video for a simple explanation
An electrical distribution grid builds in head room for future energy needs and for unexpected large demands like a cold snap in the weather where demand increases as people head for the electrical heaters.
But during the 1980s and 1990s the lack of infrastructure spending by Governments and Utility companies has reduced the head room required for a reliable system.
Over the same time increasing demand for electrical energy has mean't the head room further reduces.
We have seen the results of this lack of infrastructure spending and increasing demand show up around the world. In 1998 the 40 year old cables failed in Auckland City resulting in a 5 week power crisis.
This year (2012) has seen 620 Million residences in India Been left without power.
The problem remains as any infrastructural spending is only maintaining a limited head room in the National Grids.
One of the advantages of the Smart Grid System, will allowing two way communication of the network system between electrical generators, lines companies and users. This will allow better matching of electrical demand with electrical generation, and automatic fault finding and correction in the Grid. This will help reduce the overall cost of the infrastructure spending as the current grid becomes more efficient. Instead of having generators pumping out electrical power just in case someone turns on an appliance, the two way communication will allow the network generators the ability to bring on power when required.
Most people have heard of the smart meter. This is a very small part of a smart grid system. It currently allows the electrical retailer to read your energy usage and save a physical reading of the meter. Currently some retailers allow you to log on to their website and check you daily, weekly and monthly readings. In the future the ability through application will allow businesses to check current usage and find out the exact cost.
This is another advantage of the smart grid system, the ability to make decisions based on the actual cost of electricity at the time.
Having this knowledge about the real live time cost will be one of the biggest drivers towards energy conservation and an increase in energy and business efficiency as businesses make better use of this knowledge. For example there may be a move to preform certain manufacturing or industrial processes during time when power is not as expensive such as night times.
The ability of the network operators to turn off individual smart devices will mean less money will need to be spent in the near future on increased transmission capacity therefore increasing th current life expectancy of the network. For example this may mean on a very hot day, the network operator could turn off all the air conditioning units to ensure there is enough generation and capacity in the network to supply businesses. This is similar to what is already happening in New Zealand with domestic Hot Water Cylinders. Network operators since the 1950's can turn off the hot water cylinders through the use of a ripple control. This part of the smart grid system is an extension to that, and current uses for it include some electric powered cars charging only when network demand is not near peak etc. Instead of ripple control switches being installed on the switchboard or meter board, smart devices will have this built into them. Currently businesses in the North Island, who take part in a Transpower smartgrid project are offered a discount on power to compensate them. This has mean power supply remains reasonably secure using existing infrastructure and smart grid applications.