Smart Green Grid Initiative

The Smart Grid

Definitions abound for the Smart Grid, but all contain common elements. 

The Smart Grid refers to the introduction of new information and control technologies to the electricity system that allow the system to be planned and operated in a dynamically-optimized manner.  An example of such technology is the smart meter, which provides new information and communication ability for utilities to use to better manage and reduce the cost of their business operations.  Another example is new technology that automates and increases the operational efficiency of substations and other parts of the utility infrastructure.   

The smart grid is not limited, however, to infrastructure or the smart meter.  It goes into the home or business by way of new pricing, control, and information options that help users reduce their usage and their bill.  It will also connect to smart appliances that will automatically accept price and control signals that allow them to be used in a way that better supports grid optimization and attainment of climate change goals. 

Demand Response, for example, is the practice of incentivizing customers to modify their electricity usage in ways that help make the electric grid more efficient and reliable, particularly during periods of peak demand.  Because demand response reduces peak demand, it complements resources that tend to be available during off-peak periods, such as wind energy.  Demand response, in this way, supports the use of greater amounts of renewable energy. 

The smart grid also includes important new technologies such as energy storage and plug-in hybrid electric vehicles (PHEVs).  Energy storage is a form of demand response that allows renewable energy to be used not only when it is produced but also when it is needed. With storage options, peak demand can be met by renewable energy generated during off-peak periods.  PHEVs, meanwhile, have the potential to be mobile energy storage units. They charge from the grid, store electricity they don’t use, and have the ability to return excess electricity to the grid during peak demand periods.  

While no official definition of the smart grid exists, Section 1301 of the Energy Independence and Security Act (EISA), passed by Congress and signed into law by the President in 2007, is considered to be a good description of the types of technologies and practices that compose the Smart Grid. 


“To get a greener grid, you need a Smart Grid.”
U.S. Department of Energy, “The Smart Grid: An Introduction,” 2008

“…smart behaviors, smart choices, and smart planning should be thought of as an essential resource for achieving energy and climate goals."
ACEEE (American Council for an Energy-Efficient Economy), "Behavior, Energy, and Climate Change: Policy Directions, Program Innovations, and Research Paths," November 2008

“Demand response will be a powerful tool for meeting the environmental challenges ahead.”
California Independent System Operator (CAISO), “eGrid Technologies Help Achieve Environmental Goals,” December 2007

“Energy Storage is critical to grid operations.”
U.S. Energy Secretary Dr. Steven Chu, “Investing in Our Energy Future,” September 2009

“The dirty secret of clean energy is that while generating it is getting easier, moving it to market is not.”
 New York Times, “Wind Energy Bumps into Power Grid’s Limits,” August 2008

“Pairing another environmentally friendly resource—demand response—with renewable power will help the [California] ISO maintain grid reliability.  Demand reduction is just as effective, and often less expensive, than adding megawatts onto the grid and it doesn’t add a single pollutant.”
California Independent System Operator (CAISO), “eGrid Technologies Help Achieve Environmental Goals,” December 2007

“One area in which energy storage technologies could provide great benefits is in conjunction with renewable energy resources. By storing energy from variable resources such as wind and solar power, energy storage could provide firm generation from these units, allow the energy produced to be used more efficiently.”
U.S. Department of Energy Electricity Advisory Committee, “Bottling Electricity: Storage as a Strategic Tool for Managing Variability and Capacity Concerns in the Modern Grid,” December 2008

“Smart Grid technologies will allow the grid to better adapt to the dynamics of renewable energy and distributed generation, helping utilities and consumers more easily access these resources and reap the benefits.”
U.S. Department of Energy Electricity Advisory Committee, “Smart Grid: Enabler of the New Energy Economy,” December 2008

The Smart Green Grid Initiative
The Smart Green Grid Initiative (SGGI) is a non-profit coalition focused on development and dissemination of information about how the smart grid can support attainment of climate-change goals. 
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1615 M Street, NW, Suite 900, Washington, DC 20036
info@smartgreengrid.org 
202.296.1686

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