The subject was brought before a congressional panel just recently. The PJM Interconnection was among those that testified, pointing out that the smart grid must become a true network to enable connectivity from fuel sources to end users while employing the right technologies to go from an electro-mechanical to a fully digitized system. At the same time, it must enable two-way communications within the grid community so that customers can, if they choose, move from passive to active participation.

It's tantamount to the linkage of all computer networks to the Internet, adds Rep. Nick Lampson, D-Texas, who chairs the House Energy and Environment Subcommittee. That type of coordination is threatened, however, because the 2008 budget request from the Department of Energy contains significant cuts to existing grid-research programs.

The trick is to develop a common protocol that could become compatible with the more than 1,000 electric utilities that now exist. That's something that can only be accomplished if the whole industry participates.

"Common protocols are needed to ensure communication of prices and system conditions to `smart' appliances in the home, as well as to renewable and other generating sources," testified Audrey Zibelman, chief operating officer at PJM, an independent system operator functioning in the Mid Atlantic states.

Much work remains. Consider that the U.S. Energy Information Administration says that the demand for power is expected to grow by 43 percent by 2030 and that the nation's transmission system must grow accordingly to be able to handle that load. On most days, there are no issues. But, summers are different. On the hottest days, the grid gets constrained while centrally located power generators are kept running just in case they are needed. That's expensive.

No doubt, an intelligent grid is also pricey. But those kinds of technologies could eliminate the need for the billions necessary to build new generation to meet peak demand over the next 20 years. In a 2005 report, Climate Solutions says that would amount to anywhere from $46 billion to $117 billion

Purring Along

The research and development arm of the electric utility industry, EPRI, is leading the charge. It's harnessing the energy from power companies nationwide to put workable ideas into action. The problem, the Palo Alto-based organization admits, is that many utilities are remiss to devote resources to projects in which the payoff is years away.

"The intelligent grid will come from the gradual confluence of innovative projects undertaken by individual companies," says a feature story in the EPRI Journal. Billions, obviously, are required to get there -- money that EPRI says is worth every penny because it would avoid costly outages and create a modern-day grid.

Smart grid applications include automated substation design and the upgrading of communications systems between control centers and power plants. Consider the New York Power Authority, which installed a "solid state switch" that controls power flow: What this does is permit utilities to change the characteristics of their lines to direct the flow of electrons in a way that is more conducive to their needs -- not the path of least resistance. The power authority thereby has increased the capacity of its system and as such, avoided constructing new transmission lines.

The Energy Department is furthermore working to develop the creation of an eastern interconnection "phasor" -- a practical monitoring system to avoid the type of blackout that occurred on August 14, 2003. The idea is to use high-speed communications technology so that all those who operate the power systems can get a bird's eye view of what is taking place on their grids.

IBM and CenterPoint Energy are implementing components of a self-healing grid, which they say are being studied by utilities around the world. In CenterPoint's case, it is now conducting field trials that use automated equipment, which should permit the utility to anticipate problems, find solutions and optimize performance of its wires. For customers, it simply means they will get improved electric service reliability, as well as better and quicker responses to outages.

"The Intelligent Utility Network will transform the way power is delivered, managed and used," says Guido Bartels, general manager for IBM's global utility business.

The development of the tools to build a modern electric grid -- along with the ultimate deployment -- is 20 to 30 years away. But, the steps to get there are being taken now. The benefits of those endeavors will far outweigh the costs, proponents say, noting that an economy that is kept purring along is more productive than one that is repeatedly interrupted because of an outdated infrastructure.

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