■ Reduced Generation Capacity Investments: Utilities and grid operators ensure
that generation capacity can serve the
maximum amount of load that planning
and operations forecasts indicate. The
trouble is, this capacity is only required
for very short periods each year, when
demand peaks. Reducing peak demand
and flattening the load curve should reduce the generation capacity required to
service load, and lead to cheaper electricity for customers.
■ Reduced Ancillary Service Cost: Ancil-
lary services including spinning reserve
and frequency regulation could be re-
duced if generators could more closely
follow load. Ancillary services are neces-
sary to ensure the reliable and efficient
operation of the grid. The level of ancil-
lary services required at any point in time
is determined by the grid operator and/or
energy market rules. The functions that
provide this benefit reduce ancillary cost
through improving the information avail-
able to grid operators.”
It will be interesting to see how quickly the
use of this approach is adopted and whether
or not the DOE uses it to hold grant recipi-
ents accountable.
More on Smart Grid
Definitions and
Developments
For smart grid definitions and overviews
of smart grid project activity in the U.S.
and around the world, see these stories
in our January 2010 issue:
■ U.S. Smart Grid Forecast: Flurries of
Activity
■ What Do Customers Expect from the
Smart Grid?
■ Which Country’s Grid Is the Smartest?
borders. Zpryme notes that “Just recently,
GE aligned itself with Yangzhou, China to
construct a smart grid demonstration center. Similar steps forward are being echoed
from industry-leading players such as
Cisco, Accenture, Hewlett-Packard, ABB,
Westinghouse, and Oracle—which are
buying into a generous stake of China’s
smart grid market. What’s more, Business
Week recently reported that IBM expects at
least $400 million in smart-grid revenues
in China over the next four years. Fitting
TRANSMISSION & DISTRIBUTION
testimony as IBM remains the only corporation that provides hardware, software
and consulting for smart grid infrastructure projects in China.”
Demonstrated Benefits of Smart
Grid Costs
For details about costs and benefits of one
of the most comprehensive smart grid roll-outs, in Italy, see this February interview
with Livio Gallo, director of Enel’s Infrastructure and Networks Division: http://
tinyurl.com/yhejhk5. Enel invested € 2
billion (roughly US$2.7 billion) in its six-year deployment of 32 million electronic
meters. Among the benefits to date: a 62%
reduction in minutes of service interruption per customer and a 61% reduction in
distributor meter management costs per
customer.
A November 2009 Business Week story re-
ported that the Italian utility is saving $750
million per year as a result of the project.
Furthermore, “improved data on consumers’
electricity habits permit Enel to run its power
plants more efficiently.”
Needless to say, this story is far from the
final word on smart grid costs. Stay tuned. ■
—Gail Reitenbach, PhD is POWER’s
managing editor.
Governments Pouring Money into
Smart Grids
The U.S. government isn’t the only one lending a hand to “smart” national grid projects.
According to a Jan. 27 report by Zpryme,
China is already outspending the U.S. in
terms of federal dollars devoted to smart grid
projects. Here’s its ranking of 2010 investments (in US$ millions):
1. China: $7,323
2. U.S.: $7,092
3. Japan: $849
4. South Korea: $824
5. Spain: $807
6. Germany: $397
7. Australia: $360
8. UK: $290
9. France: $265
10. Brazil: $204
Granted, China is starting with a blank
slate in many respects, whereas the U.S. has
a head start. The flip side of that dynamic:
The very presence of any existing transmission and distribution infrastructure creates a
larger hurdle for grid improvements because
it can create a false sense that the status quo
is just fine.
Meanwhile, U.S. companies are taking
note of where R&D and project implementation opportunities lie—beyond U.S.
energy revolution Get ready for the new
The TurboCare Magma™ 5000 geothermal re-rateable steam turbine provides the flexibility to assure asset performance and value through the life of your geothermal plant.
www.turbocare.com
