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. 


The Smart Grid can reduce emissions by 60 to 211 million metric tons of CO2 a year by 2030.
Electric Power Research Institute. The Green Grid: Energy Savings and Carbon Emissions Reductions Enabled by the Smart Grid, June 2008.

If the electrical grid were 5% more efficient it could displace the equivalent of 42 coal-fire power plants.
Commissioner Wellinghoff, U.S. Federal Energy Regulatory Commission testifying to the House Energy and Commerce Committee, May 7.

The Smart Grid empowers consumers to control their own carbon footprints.
North American Energy Reliability Corporation. Special Report: Electric Industry Concerns on the Reliability Impacts of Climate Change Initiatives; Nov. 2008.

According to one utility, installing smart meters will take 114 meter reading and maintenance vehicles off the road and avoid 1.2 million miles of driving and eliminating 1.5 million pounds of CO2.
Portland Gas & Electric. “PGE Moves forward on Smart Meter Installation Territory-Wide,” April 15, 2009.

Smart Grid technologies can help families save 10% on their power bills
Pacific Northwest National Laboratories. Pacific Northwest Gridwise Test bed Demonstration Project, October 2007.

The Smart Grid helps reduce emissions by managing electricity peak load, CO2 emissions on peak can be 230% higher than off peak.
San Diego Gas & Electric and Southern California Gas Company Before the Public Utilities Commission of the State of California. “Proposed Energy Efficiency Risk Reward Incentive Mechanism and E M&V Activities,” May 22, 2009.

Expanded development of the Smart Grid would result in a 16% drop in CO2 emissions by 2030, the equivalent of taking 90 million cars off the road.
Ryan Hledik , The Brattle Group Inc. "How Green Is the Smart Grid?"

Studies show that consumers who receive information about their electricity usage through Smart Grid devices use up to 20% less energy.
The Brattle Group Inc. “The Impact of Information on Energy Consumption,” May 2009.

"Demand response [is] a 'dance partner' for variable renewable generation, such as wind power. Demand response can ... manage the down 'ramps' that occur in wind plant output."
Rick Sergel, President and CEO North American Electric Reliability Corporation, Executive Remarks to the Energy Future Coalition Working Group, November 21, 2008.

Wind tends to blow hardest at night instead of the time when people have the most demand for electricity
“Unbridled Energy: Predicting Volatile Wind, Sun,” Wall Street Journal, October 2, 2009, p. A14

"Currently, every wind farm and solar installation has to be backed up by a nearly equivalent amount of conventional fuel to keep the power grid running. That raises cost."
“Unbridled Energy: Predicting Volatile Wind, Sun,” Wall Street Journal, October 2, 2009, p. A14

Demand Response programs in Texas helped prevent a major blackout there in 2008 when there was a sudden drop in wind capacity
"ERCOT Event on February 26, 2008: Lessons Learned," National Renewable Energy Laboratory, July 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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