By Sara Wright
Sustainability requires a structural shift towards a balanced interaction between consumers, producers and resources. This is nowhere more obvious than in our use of energy. Up to now, attempts to find a solution have been numerous and disconnected. Renewable energy supply, energy-efficient appliances and energy-saving publicity campaigns are just a few among a host of innovations. Yet while all the parts are there, the overarching structure has so far eluded us.
It is therefore exciting to see significant levels of stimulus funding in the US, the EU and China going towards the development of a ‘smart grid’. Indeed, the portion of the US package going to smart grid development is estimated at USD 4.5 billion. While the US appears to have the clearest and most robust strategy, China and Europe are allocating significant funds towards this area as well.
Smart grid refers to the digitalisation of electric grid infrastructure and the development of associated technologies and applications. With regards to energy supply, one of its key features is the ability to incorporate all forms of power generation and storage such that renewable energy becomes an integrated element of the grid instead of a bolt-on attachment. With regards to energy demand, smart grid allows consumers to actively monitor their energy use and participate in energy markets: ‘smart’ electric meters in homes and businesses allow real-time monitoring of energy use per application and their cost. By giving consumers direct information on their energy use, market pricing mechanisms will become more efficient, the volatility of demand will be reduced and waste will be minimised.
As always, such a panacea must be handled with care. Smart grid as a concept is still maturing and key issues are being debated that have significant implications. The questions of open or closed architecture, consequences for energy and data security, and a top-down vs. bottom-up approach to industry integration have not yet been answered. Nonetheless, smart grid clearly has the potential to shift the energy paradigm like no other innovation seen to date.
Like the concept of sustainability itself, smart grid is an inherently inclusive idea, inviting information sharing and participation. We glorify personal choice, but forgo it as soon as we flick a switch. Thanks to smart grid, that is about to change.
