Reducing Greenhouse Gas Emissions and Improving Air Quality
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Managing the variability associated with wind and solar generation and
the high power flows of BEV fast charging is easier with a smart grid that
has good communication features and battery storage. The communication features allow customers to have a better understanding of how they
can be beneficial to the balancing of supply and demand. Intelligent customer decision making is very beneficial in smart grid management. It may
also involve an EV aggregator (either a person or a computer program) that
manages a parking lot with solar panels, charging stations, and a microgrid,
and that works to carry out the wishes of the EV owners who have parked
and connected their EVs to charging stations.
7.4 Regulatory Topics
Electric utilities in many places may be a regulated monopoly that must
work with a commission on rates and rate structure. Because of smart grid
developments, renewable energy, and the rising prevalence of EVs, there
is a need to transition to dynamic rate structures that have higher electricity prices at peak power times when demand is large. Some of this is not
actually novel; parts of California developed and implemented time- ofuse pricing over three decades ago. In other areas of life, price is naturally
a reflection of supply and demand. For example, fruits and vegetables
cost different amounts depending on the season and time of year; electricity can be the same (and, in both cases, you may be able to grow your
own!). There is a need for those serving on regulatory commissions to
find good ways to manage prices in ways that are equitable and that
encourage efficient use of smart grids to balance supply and demand. The
power generated by solar panels on customer homes and in parking lots
must be appropriately valued so all of the electricity that is generated can
be delivered to locations where it is needed or can be stored. Storage can
include behind- the- meter storage by prosumers who both generate and
use electricity.
7.5 Seasons and Demand
One of the smart grid issues is how to balance supply and demand across
seasons. If renewable energy is used to generate most of the electricity, there
may be challenges of balancing supply and demand in spring and fall, when
demand for electricity is often lower because of reduced needs for heating or
air conditioning. Some of this fluctuation may be offset by decreasing output
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76
Managing the variability associated with wind and solar generation and
the high power flows of BEV fast charging is easier with a smart grid that
has good communication features and battery storage. The communication features allow customers to have a better understanding of how they
can be beneficial to the balancing of supply and demand. Intelligent customer decision making is very beneficial in smart grid management. It may
also involve an EV aggregator (either a person or a computer program) that
manages a parking lot with solar panels, charging stations, and a microgrid,
and that works to carry out the wishes of the EV owners who have parked
and connected their EVs to charging stations.
7.4 Regulatory Topics
Electric utilities in many places may be a regulated monopoly that must
work with a commission on rates and rate structure. Because of smart grid
developments, renewable energy, and the rising prevalence of EVs, there
is a need to transition to dynamic rate structures that have higher electricity prices at peak power times when demand is large. Some of this is not
actually novel; parts of California developed and implemented time- ofuse pricing over three decades ago. In other areas of life, price is naturally
a reflection of supply and demand. For example, fruits and vegetables
cost different amounts depending on the season and time of year; electricity can be the same (and, in both cases, you may be able to grow your
own!). There is a need for those serving on regulatory commissions to
find good ways to manage prices in ways that are equitable and that
encourage efficient use of smart grids to balance supply and demand. The
power generated by solar panels on customer homes and in parking lots
must be appropriately valued so all of the electricity that is generated can
be delivered to locations where it is needed or can be stored. Storage can
include behind- the- meter storage by prosumers who both generate and
use electricity.
7.5 Seasons and Demand
One of the smart grid issues is how to balance supply and demand across
seasons. If renewable energy is used to generate most of the electricity, there
may be challenges of balancing supply and demand in spring and fall, when
demand for electricity is often lower because of reduced needs for heating or
air conditioning. Some of this fluctuation may be offset by decreasing output