The US is gearing up to change to the smart grid, a planned network that will use 21st century information technology to deliver electricity to American homes and businesses. And copper – one of the best conductors of electricity – is positioned to be part of the power solution, according to the Copper Development Association (CDA). “We’re keeping on top of smart grid developments and if copper has a role, the CDA is uniquely positioned to support and promote its use,” says David Brender, CDA national program manager.
Copper has properties that make it an important material in our daily lives. Copper is flexible, yet tough. Connections are reliable and secure. Copper is a long-lasting and durable material that needs little or no maintenance. Connections stay tight.
The Obama Administration recently gave momentum to the implementation of the smart grid by authorising $3.4 billion in government support for 100 projects. The projects include installing ‘smart’ electric meters in homes, automating utility substations and installing thousands of new grid sensors.
Copper wiring can bring voice, data and other information quickly and efficiently into homes and businesses. More than any other non-precious metal, copper is the best conductor of electricity (other than silver), packing more power into a given diameter of wire than competing material
Administration officials say the time is now to turn the smart grid from vision to reality. The US power grid is likened to an ecosystem, made up of more than 9,200 electric generating units with more than a million MW of generating capacity connected to more than 500,000 km of transmission lines, according to the US Department of Energy. Although its electricity system is more than 99.97% reliable, power outages and interruptions still cost America at least $150 billion annually – about $500 for every man, woman and child, according to the DOE.
An analysis by the Electric Power Research Institute estimates the implementation of the smart grid could reduce electricity use by more than 4% in 2030, a $20.4 billion savings for businesses and consumers nationwide.
The top 10 reasons why consumers are talking about the smart grid. Proponents say the smart grid likely will be characterised by these qualities:
1. Reliable: The smart grid is more likely to provide interruption-free power with fewer disturbances
2. Efficient: The smart grid would reduce both overall and peak energy use rather than generating new strains on power system operations
3. Green: The smart grid could help reduce greenhouse gases and other pollutants by supporting distributed and renewable energy sources, such as solar and wind
4. Consumer-focused: Consumers, an integral part of a smart grid system, will have more information and choices in how they use and purchase electricity
5. Identifies and fixes problems: Today, if there’s a power outage, some companies won’t know until a consumer calls to report it. A smart grid would be designed to independently identify problems and, if possible, would correct them automatically with little or no human interaction
6. Resilient: A smart grid would respond to natural disasters that can damage its physical infrastructure or a cyber attack. It also will move us toward energy independence from foreign energy sources, which may themselves be targets of attack that are outside our control
7. Power quality: Its supporters say the smart grid would be capable of delivering the power quality necessary to power our increasingly digital world
8. Lead consumers into the future: A smarter grid would help meet the needs of the next generation of cars, including plug-in hybrid electric vehicles
9. Improve the national economy: Opening the grid, supporters say, would help innovation flourish in the US economy
10. Expand global reach: A smart grid would help the US take the lead in providing energy-efficient power worldwide.
“Smart meters form an integral part of a smart grid,” notes Frost & Sullivan Research Analyst Vikas Ravindran. “Moving forward, complete automation of the grid is set to become the norm with real-time information at the customers’ fingertips.”
New analysis from Frost & Sullivan (http://www.energy.frost.com), European Smart Meter Markets, estimates the markets to reach $11 billion by 2015. The study covers automated meter infrastructure (AMI), IT systems and communication technologies.
Members of the Smart Green Grid Initiative (SGGI), which includes the heavyweights General Electric, Landis+Gyr, Echelon and Google to name a few are expected to hold smart grid focussed events at the UN talks in Copenhagen. Europe being a front-runner in the smart grid space with Italy leading the way since 2005 has seen continuous development. Denmark currently generates close to 20% of its electricity from wind power. It has developed the most intelligent grid to manage this clean power load. The government is also simultaneously working on strategic alliances with major firms towards building better infrastructure for smart grid. The country is sure to act as an important case study for most of the investors and venture partners.
Smart meters represent the first step towards energy management. The European smart meter markets have experienced significant progress over the last few years when compared to those in the rest of the world, and they are now moving towards total grid automation.
However, challenges such as interoperability and data security are restraining the markets’ growth. Another issue is the lack of clarity regarding their business case, which causes utilities to delay investments and large-scale deployments.
“Communication is the backbone for a smart grid operation and to have interoperable solutions is of paramount importance,” explains Ravindran. “A system which runs on multiple standards is one of the best ways to distinguish one’s product over the competition.”
As competition intensifies, it is important to have high product differentiation. The business case would need to traverse the range from product- to service-based benefits, thereby achieving a competitive edge.
“Smart meter manufacturers need to move from a product- to a services-based model,” advises Ravindran. “Investments in meters alone will not yield higher returns. In order to rapidly gain market share, manufacturers need to customise their entire AMI solution for consumers.”