Bullet Points: Efficiency and the Electric Grid

EFFICIENCY AND THE ELECTRIC GRID
John Wellinghoff (commissioner, Federal Energy Regulatory Commission); Mike Warwick (Pacific Northwest Laboratory)

• Smart Grid: how to take advantage of the new competitive technological advances in the delivery of electric services to improve productivity and lower bottom line energy costs
• The consumer sees the utility as power on demand:
  • Unlimited amount
  • Constant frequency
  • Minimal interference or harmonics
• Demand for energy services — including from the grid — are increasing globally
• Nearly 50% of US grid electricity is from coal-based plants; problems will increase in coming years if basic operating principles are not changed to a diversified and distributed grid from the current centralized model
• Smart Grid: two-way power and interconnection data flow and self-generation with transformation to unit voltage and frequency
  • Consumer ability to integrate home-based renewables (e.g. wind, solar, etc.) straight into the unit
• Consumer ability to use loads as grid resources (like plug-in hybrid electric
• vehicles (PHEVs)) for improved grid efficiency and lowering consumer costs
• Recommendation: Generate a price-based demand management network wherein the consumer plays a greater role in diversifying the grid and increasing efficiency while lowering consumer energy service costs