Here’s a piece from our new intern Kevin Kuttumkal, covering the latest development in smart grid and smart cities, and how they affect energy markets. Enjoy. -ed
With smart phones, smart TVs, smart cars, smart water, smart homes, it wasn’t too long ago that we started hearing the word “smart” integrated into cities and grids. A smart city is a municipality that harnesses the benefits of information technology to increase operational efficiency and improve information sharing with its citizens, all of which contributes towards improving the quality of life in the governmental services of that municipality. A smart grid is one of various components that contribute to making a city “smart.”
But what, in fact, makes a smart grid smart? The ability of a system to talk and listen without human involvement. The U.S. Department of Energy proposes three types of technology that will help establish smart grids:
• Automated communication between components of the electric grid for adjusting power supply, monitoring energy outages and for distribution and repairs.
• Use of smart sensors and measurement technology.
• Management dashboards, i.e., software that assists in decision making.
While grids are getting smarter, the efficient use of energy has a profound impact on energy markets. There have been introductions of new products and services that have clearly assisted governments in creating new policies and regulations. Examples of such services are demand response software, smart electric vehicle charging, virtual power plants, real time electric sales, and clean tech export products. In terms of regulations, we have legislation on advanced/net metering and demand response.
More to come soon.
