The Economic Bonuses of Smart Grid Technology: Smart Grid Technology Articles: Eco20/20

The Economic Bonuses of Smart Grid Technology

The bonuses of the smart grid to the environment are obvious. If the usage numbers are broken down to before and after smart grid, the benefits to consumers are just as obvious. What about the economic bonuses of smart grid technology? How does it benefit companies and consumers both financially?

The benefits of smart grid would include:

* The supply and demand management. Knowing when and where more energy will be needed and being able to meet that demand will be key to preventing waste. A rural electric company must boost energy amounts sent from the substation to make it all the way to outlying customers, leading to huge amounts of waste, especially if Farmer Johnson and his family have set up and kicked on a wind farm operation. Without this waste, energy generation and delivery would become far more efficient and cost effective.

* The multi-tiered energy program. Smart grid would allow for power charges to be at varying levels throughout the day. Instead of paying one, flat rate that may not be fair to all customers, a higher amount would be paid for energy usage during peak times and less for use when demand is not as great. Again, this would reduce wasted energy as well as create smarter consumers.

* Vehicle integration. Most people use their vehicles to get around during the day when power costs are higher and then charge them at night during off peak times. Integrating the vehicle to the smart grid would allow it to either charge during off peak times or at scheduled times. It would also allow it to give back energy to the grid at times.

* Consumer controls. Old meters only monitor how much energy has been sent into the home and may not reflect realistic usage at all. New meter types would not only allow for more accurate detailing of how much energy is being used, but in real time. Outdated and energy sucking appliances could then be replaced, because each consumer would be able to see how much they are actually costing to keep.

All of this means that the customers will get smart about how much energy is being used and where it is coming from, saving the utility company money. A lower need for new lines and wires will save additional money, as will reducing the need for more substations and electrical plants. Government grants and subsidies will offset some of the cost for the smart grid upgrades, but many questions still remain to be answered before they are universal or even nationwide.