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 "The Monterey Bay International Trade Association recently hosted a Global Smart Energy Bilateral Trade and Investment Opportunities conference that covered a range of topics from renewable energies to the Smart Grid.  Speakers included solar and electric utility experts, a representative from the US Department of Commerce, and businesses engaged in innovative Smart Grid technologies.   One of the most important takeaways from the conference is that there is no one solution for the enormous mess we have created with a fossil fuel-based economy.  But there are many creative people proposing, building, and deploying solutions that range from new technologies for existing problems to new applications of existing technologies.   

The recent headlines about the International Energy Agency being pressured to distort oil capacities generated some speculation about whether or not we have already hit “peak oil”.  The entire global economy is built on oil, and changing to other fuel sources will trigger disruptions….but then again, Silicon Valley likes disruptive technologies.  At least one disruptive energy source is abundant, free, globally available, and emits no greenhouse gas emissions.  It is called solar.  The electric grids around the world will need a dramatic increase in solar energy as well as other renewable energy sources to continue to meet electricity requirements as the population grows and adds more electricity-consuming devices.  There is a wide range of job possibilities focused on solar – from development of new or improved technologies to harvest energy from the sun to deployment of appropriate solutions across the grid – which means not only utility-scale generation but also microgrid installations to achieve true distributed generation.

You can’t just talk about energy sources without also discussing the electrical grid, its current status, and future evolution.  The Smart Grid is predicted to be bigger than the Internet in terms of its global impacts, based on the broad range of world-wide government mandates to replace existing electrical grids or build out new infrastructure.  In some ways, the countries that do not have an existing electrical infrastructure may have an easier path to a complete Smart Grid buildout.   In the USA, it could take up to 20 years to convert all electrical facilities to a fully bi-directional electrical and communications network.  The costs are estimated to range from $65B USD to $1.5T USD over a 20 year time span.  Of course, the benefits are large numbers too.  From saving anywhere from $100B in improved electricity delivery and avoided costs caused by power disruptions to creation of 280,000 US jobs in the next few years, these alone could be compelling justifications for businesses and federal, state, and local governments.  However, the real bottom line must factor in the reductions in greenhouse gas emissions.

The US government is actively involved in accelerating the deployment of Smart Grid technologies to achieve these goals.  The American Recovery and Reinvestment Act ( ARRA) stimulus money gets lots of attention, and sometimes at the expense of other more critical activities.  For instance, there are many standards that need to be defined or refined in order to achieve a fully interoperable and secure electrical grid.  The National Institute of Standards and Technology, part of the US Department of Commerce, is engaged in this work, not only on the domestic front but internationally as well to ensure that the most effective (and cost-effective) solutions can be adopted globally. 

 Two sessions in the conference focused on Smart Grid system architectures, which offered interesting perspectives on how we can view the Smart Grid as building blocks.  There are different functional layers to consider, starting with power systems, control systems, communications systems and IT infrastructures that are topped off with an application layer.  This is a particularly interesting intersection of innovations that can equally impact utilities and end user customers, and help create an “internet of things”.   The California Energy Commission has been investigating Smart Grid architectures, and continues its role propelling California as a primary state “laboratory” for not only technologies, but policies as well.  There is recognition that the Smart Grid must be viewed holistically, with careful consideration of the tradeoffs in different forms of energy – particularly intermittent renewables, the balance between consumption and demand management, and environmental impacts of any solution. 

This conference delivered thought-provoking presentations and spirited discussions between attendees, and it is clear that all participants want to contribute their knowledge, skills, and energy to solving the global energy crisis that is upon us.  Now, if only we could connect all that energy to our grid…." - CHRISTINE HERTZOG

ABOUT CHRISTINE HERTZOG:
Christine Hertzog is author of the Smart Grid Dictionary and Managing Director of the Smart Grid Library. She is currently researching Home Energy Management Solutions (HEMS).

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