Other than the worst, most befuddling Super Bowl ad in history, what is this?
When I first saw this ad, I was confused, and I am involved in the industry. The reason I'm writing about it now, seven months later, is that I can actually answer some of the questions this ad posed while refusing to answer. And there is so much to explain that it is going to take a few days. So sit back and relax as we embark on Smart Grid Week here at ObscureCraft.
I can already feel you tingling with excitement.
What is the smart grid?Plug something into your wall outlet, and it comes on. Magic, right? Sorta. But how did the electricity get there, and where did it come from? This question is at the heart of understanding the smart grid.
Let's compare electricity to another utility, water. Somewhere in your area there is a reservoir filled with water. When you turn on the tap, you are taking a little bit of water out. When it rains, the reservoir fills back up. Because there is a reservoir,
it does not have to be raining the instant you want water.
In the electric grid, there is no reservoir.
When you turn that TV on and ask for that electricity, somebody, somewhere, at that exact moment, has to make a little more electricity for you. What? Yes. Really. How does that work?
It works through the use of peak load generation equipment. There are types of generators that must be on all the time (like a nuclear power plant) and there are types of generators that you can turn on and off (like a gas turbine). Because there is a minimum amount of electricity that is always being used somewhere, those huge "base load" plants can stay on. Then, when its a hot day and we all start turning on the air conditioning, regulatory agencies that monitor use on the grid can call up the guy with the gas turbine and tell him to fire it up.
This system is riddled with inefficiency. There is a huge time lag between when you turn on the AC, and when the gas turbine finally comes online. The regulators monitor the health of the grid by reading its voltage. As more and more demand occurs, the voltage on the grid drops. Regulators respond to this drop by calling the gas turbine guy.
So anytime they call the gas turbine guy, its an emergency. These emergencies happen all the time. Because its an emergency, peaking generation equipment is not held to the same emissions standards that base load equipment is. When you turn on your air conditioner in the afternoon, you are using the dirtiest electricity imaginable.
Furthermore, the laws of supply and demand dictate that, when demand goes up, prices do to. Real-time prices for electricity move during the course of the day - except residential consumers typically have a rate that is locked in during the month. Therefore, the cost of electricity you pay has already factored in that you will use a certain amount of this more expensive electricity.
The smart grid would use digital technology to report on energy supply and demand in real-time. Consumers, producers, and regulators could all act on this information immediately, instead of minutes, hours, or in some cases, days later. The consequences of this change are wide reaching, and will have impacts on renewable energy implementation, efficiency of existing generation assets, and energy costs. How, exactly?
Sorry, this is only part one. Tune in tomorrow for more.
