The term is shorthand for a set of automation and telecommunications technologies and processes that, when properly integrated and supported, will enable utilities to communicate with other utilities, with their customers and with the devices that deliver electricity. The smart grid will include new technologies in the bulk power system, the electric distribution system, at the customer meter and in the customer’s home or business. Vast amounts of data will be communicated instantly and without human intervention. The data exchanged along the smart grid will include power usage, price and conditions of the various system components.
The benefits of a smart grid include:
• The ability to increase energy efficiency at the consumer level and on the electric transmission and distribution systems.
• The ability to reduce power consumption during peak hours and shape the load.
• Provide more information for consumers about power prices.
• Facilitate interconnection of small generation resources, including renewable resources such as wind and solar.
• Reduce the frequency and impact of power outages.
It’s important to realize that not all of the technologies needed for a true smart grid exist yet and that developing the smart grid is a gradual process. Appliance manufacturers are beginning to place chips in home appliances so the appliances receive signals from the utility through the advanced meters. To move toward a smart grid, public power districts and cooperatives are installing advanced meters that allow two-way remote communications. Rural utilities are also investigating and installing smart devices in distribution substations and along transmission lines.
Source: National Rural Electric Cooperative Association; Our Energy Our Future
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