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8
Electric Power Management
Abstract
Electric power management is changing because of the growth of renewable
power production. Demand for energy, of course, fluctuates over time and
has some flexibility. For example, electric vehicle batteries can be charged
when supply exceeds demand as part of an organized power management
plan. On the other hand, solar- and wind-generated electricity are produced
when the sun shines and wind blows, producing supply unconditional
of demand. Electrical power demand management is needed because it
is necessary to balance supply and demand at all times. Batteries have a
critical value in this management as a place to store excess energy that is
produced. The batteries are able to hold the excess energy and then supply
it at peak power demand times. Time-of-use prices and real-time prices can
be used to help regulate the balance between supply and demand. With
modern electronics (smart meters and a smart grid) power companies have
the capability to reduce demand at peak power times and increase demand
when that is needed. To do this, mutually beneficial agreements are needed
with customers.
8.1 Introduction
In the past, the electric power industry managed supply and demand by
generating the amount of power (i.e. supply) that was needed to meet the
demands of the system. With the growth of solar and wind generation,
though, issues of supply and demand management have become more
complex. One complicating factor is that solar and wind energy generation
can create situations in which supply exceeds demand, a balance issue not
typically addressed before. Another reason power management gets more
complicated is because of a growing issue that arises when residents put
solar panels on their roofs and those panels generate more energy than
the household demands (e.g. during the day, while the residents are at
work). The solution in this case is either for the power to flow into the
79
8
Electric Power Management
Abstract
Electric power management is changing because of the growth of renewable
power production. Demand for energy, of course, fluctuates over time and
has some flexibility. For example, electric vehicle batteries can be charged
when supply exceeds demand as part of an organized power management
plan. On the other hand, solar- and wind-generated electricity are produced
when the sun shines and wind blows, producing supply unconditional
of demand. Electrical power demand management is needed because it
is necessary to balance supply and demand at all times. Batteries have a
critical value in this management as a place to store excess energy that is
produced. The batteries are able to hold the excess energy and then supply
it at peak power demand times. Time-of-use prices and real-time prices can
be used to help regulate the balance between supply and demand. With
modern electronics (smart meters and a smart grid) power companies have
the capability to reduce demand at peak power times and increase demand
when that is needed. To do this, mutually beneficial agreements are needed
with customers.
8.1 Introduction
In the past, the electric power industry managed supply and demand by
generating the amount of power (i.e. supply) that was needed to meet the
demands of the system. With the growth of solar and wind generation,
though, issues of supply and demand management have become more
complex. One complicating factor is that solar and wind energy generation
can create situations in which supply exceeds demand, a balance issue not
typically addressed before. Another reason power management gets more
complicated is because of a growing issue that arises when residents put
solar panels on their roofs and those panels generate more energy than
the household demands (e.g. during the day, while the residents are at
work). The solution in this case is either for the power to flow into the