“Our electric power system has been in a sub-prime mortgage-like era for decades,” said Yeager, referring to the current state of the US mortgage industry. “There are no technological or economical obstacles to modernizing the U.S. electric grid, only policy and regulatory barriers that must be eliminated,” he said. “If states open up the electricity market and offer utilities incentives for integrating smart grid technology and giving consumers control of their own energy use, everyone will win. Consumers gain better service and a smaller carbon footprint while utilities gain much-needed upgrades and a system that is less vulnerable to cyber-attack.”
Yeager highlighted the Initiative’s main proposals that will lead the way towards an efficient and modern electrical grid in America during the panel discussion. Among those proposals:
The American power industry must embrace modern technology to modernize the largely 1950s-era electrical grid into a smart grid that is both reliable and highly-efficient. State lawmakers must lead the way by removing regulatory policies that are inhibitive to developing and implementing a smart grid.
Lawmakers must incentivize smart grid development for the utility industry. This will drive the huge effort that is needed to properly get the job done. Providing the right incentives is essential, considering that utilities make money by selling electricity, not by helping consumers become more energy efficient. States must create new regulations that will separate utilities’ profits from the sale of energy. Only after this is accomplished will the electric industry be motivated to provide customers with the tools they need to reduce their energy consumption.
Smart meters, once installed in the home, give consumers precise billing for energy consumed, at variable rates according to aggregate grid demand – resulting in a reduction of peak demand that is taxing the limits of the electrical grid. A reduction in power consumption also results in less carbon emissions released into the atmosphere.
Energy consumers must be treated as individuals with differing needs. As proven in other industries that have been opened up to market competition, consumers will reduce their individual energy consumption when given the choice.
Bringing renewable, cleaner energy resources into the electric grid are an important aspect of the fight against climate change. However, renewable resources will not eliminate dirtier power generation sources like that from coal-fired plants. States must examine what renewable resources are available for power generation, such as wind, solar, biomass, and geothermal, and bring them online to the electrical grid.
America’s primary sources of energy will remain to primarily come from coal-fired and nuclear plants even as the industry addresses pollution, security, and waste issues. At some point the industry will develop carbon capture technology to the point where it is feasible, but this is a long-term goal not to be counted on in the short-term. One day, if the CO2 output from coal-fired plants were captured, the amount saved would equal the total volume of oil consumed on an annual basis in the United States. Still, technology is a long ways off from finding a practical method for transporting and storing these captured emissions.
The last option for grid modernization should be with the transmission lines. There is technology available that can increase the capacity of existing power lines. By adding smart controls to monitor the wires, the lines can work at their rated capacity limits without the risk of overloading the system. Adding these devices also takes away major security threats and makes the grid less vulnerable to sabotage.
The National Electricity Delivery Forum is the foremost national forum that examines the problems and challenges facing the nation’s energy infrastructure and power transmission methodologies. The discussion is annually funded by the National Association of Regulatory Utilities Commission (NARUC) and the U.S. Department of Energy. This year’s forum also addressed America’s role in addressing the challenges of climate change, growth in demand, and power grid security.
The Galvin Electricity Initiative was started by Robert W. Galvin, former CEO of Motorola, and is spearheading a campaign to modernize the American electrical grid into one that can meet the demands of consumers in the modern age. Galvin’s vision – a failsafe, efficient power system that has embraced modern technological advantages is the best and only option available. The first grid following Galvin’s ideals is currently being constructed at the Illinois Institute of Technology campus.
