Smart Grid Architecture Reduces Costs, Emissions
Environment - Environment
Written by Daniel Stouffer   
Tuesday, 16 June 2009 07:34
Smart grid architecture enables the delivery of electricity from supplier to consumer through digital technology. The U.S. and foreign governments are working towards developing a more modern and efficient electricity network to promote energy independence and reduce global warming.
by DanielStouffer


Smart grid architecture enables the delivery of electricity from supplier to consumer through digital technology. The U.S. and foreign governments are working towards developing a more modern and efficient electricity network to promote energy independence and reduce global warming.

Many different organizations benefit from the use of smart grid architecture, most especially production facilities, universities, warehouses, retail stores, hospitals and multilocation facilities. The use of electricity is monitored through the use of automated and metered systems.

By combining smart grid architecture with energy management software that provides real time energy use, businesses can better manage their energy consuming equipment and their cost of electricity use. Since the price of electricity increases during high demand periods and decreases during off-peak times, enterprises that use energy management services can reduce their demand during high cost times.

The twin technologies of procurement and design come together within a smart grid architecture to more efficiently manage an energy system and track usage. Two Acts of Congress -- the US Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009 actually provide incentives to those enterprises who seek to develop capabilities to make their use of electricity more efficient.

The electrical grid, which includes electric generation, transmission, distribution and electricity use, is the major contributor of pollution in North America. Production of electricity emits greenhouse gases into the environment, thus contributing heavily to global warming. Many countries, including the United States, are in the process of developing standards to produce clean energy.

It is now known that by using an automated, digital grid, those countries who are keen to reduce pollution could see significant savings, in addition to reduce costs, enhancing reliability, seeing more efficient demand response and realizing the ability to produce a renewable energy. The United States Department of Energy reckons that the use of smart technology within the country's electrical grids would save between $46 billion and $117 billion in the next two decades.

As education about smart grid architecture expands, more enterprises are expected to be part of the smart grid. Areas of opportunity include industrial enterprises, large complexes like hospitals and universities, small businesses, transmission and distribution systems, and residential customers.

The use of smart grid architecture will enable companies to become much more energy-efficient. By incorporating different facets of their infrastructure, including generation, delivery and consumption, the use of energy management software will enable critical savings and cost reductions. Energy use can be monitored in real time, the effect of weather incorporated and a company's critical systems involved. Smart technology thus allows businesses to realize the best possible energy rates.

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