71
71
7
Smart Grid
Abstract
The smart grid is a recent development that evolved as the marriage of
our electronic communication abilities and the need for better grid management (balancing supply and demand for electricity across increasingly
diverse sources and consumers). Managing the electrical grid now includes
distributing electricity generated by wind and solar that flows into the grid
as it is generated by the utility and others. Energy storage in batteries is
also increasing, and this becomes an important operational option for the
grid manager. Automation may be used to assist smart grid operators and
customers with grid management. Adjustable (dynamic) prices can be used
in a smart grid to provide incentives that reduce use at peak demand times
and increase use at times of low demand but high supply. With the smart grid
and dynamic prices, customers have the opportunity to reduce the cost of
their electricity by making decisions that help balance supply and demand.
7.1 Introduction
One of the greatest logistical needs related to reducing greenhouse gas
emissions through the use of wind and solar energy is the development of a
smart grid. To understand why this matters so much, it is useful to first take
stock of how our electrical grid is set up now. Historically, the electrical grid
manager was the energy producer, and they were concerned with generating
an appropriate amount of electricity, at the necessary times, to supply electricity sufficient for the demand. It is a fairly simple arrangement: Demand
information flows one way, and energy supply flows back. One analogy
would be a parent trying to care for the needs of a small child – the child
signals what it needs and the parent provides it.
Because the wind blows when it happens to blow and the sun shines when
it shines, electricity generation from wind and solar energy fluctuates over
the course of hours in a day and across days. These fluctuations, of course, do
not always match up with consumer demands for electrical power, so wind
71
7
Smart Grid
Abstract
The smart grid is a recent development that evolved as the marriage of
our electronic communication abilities and the need for better grid management (balancing supply and demand for electricity across increasingly
diverse sources and consumers). Managing the electrical grid now includes
distributing electricity generated by wind and solar that flows into the grid
as it is generated by the utility and others. Energy storage in batteries is
also increasing, and this becomes an important operational option for the
grid manager. Automation may be used to assist smart grid operators and
customers with grid management. Adjustable (dynamic) prices can be used
in a smart grid to provide incentives that reduce use at peak demand times
and increase use at times of low demand but high supply. With the smart grid
and dynamic prices, customers have the opportunity to reduce the cost of
their electricity by making decisions that help balance supply and demand.
7.1 Introduction
One of the greatest logistical needs related to reducing greenhouse gas
emissions through the use of wind and solar energy is the development of a
smart grid. To understand why this matters so much, it is useful to first take
stock of how our electrical grid is set up now. Historically, the electrical grid
manager was the energy producer, and they were concerned with generating
an appropriate amount of electricity, at the necessary times, to supply electricity sufficient for the demand. It is a fairly simple arrangement: Demand
information flows one way, and energy supply flows back. One analogy
would be a parent trying to care for the needs of a small child – the child
signals what it needs and the parent provides it.
Because the wind blows when it happens to blow and the sun shines when
it shines, electricity generation from wind and solar energy fluctuates over
the course of hours in a day and across days. These fluctuations, of course, do
not always match up with consumer demands for electrical power, so wind