Urban Ecoist

“Smart Grid” is quickly becoming a buzzword among politicians, environmentalists, and utility companies. But what exactly is a Smart Grid and how it is going to save the planet?

The “smart grid” is not a single thing, but rather a whole host of technologies that can be used to create or upgrade an electric grid using digital devices to keep track of usage and monitor peak usage as well as controlling the usage within a home or building to ensure that high-energy devices are switching on during off-peak times when possible. A smart grid may include monitors within buildings that allow users to better manage their energy usage. Smart grids will also become necessary to allow individual sources of energy, like home solar panels or geothermal systems, to upload to and feed the grid. And electric cars that you plug in at home? Yeah, those will need smart grid technology to work.

It’s not like a Smart Grid will solve all of our problems, but it may help us use energy more efficiently, and that is something that is becoming extremely important as the world’s thirst for cheap power grows. Even a small percentage of efficiency in a major city’s electrical grid means big savings in terms of carbon emissions. The US’s electricity grid was first developed and built in the early part of the 20th century, so yeah, that’s not outdated or anything.

Leave it to the Dutch to take the lead in converting the first major city to full smart grid technology. The city of Amsterdam may provide us with a useful case study on how a large city can install and benefit from a smart grid. Amsterdam is currently restructuring its energy infrastructure to be “smart” and hopes to have it all done in the next few years.

All told, the municipality, energy outfits, and private companies are expected to invest more than $1 billion over the next three years. That figure includes a $383 million investment by local electricity network operator Alliander in so-called “smart grid” technology that uses network sensors and improved domestic energy monitoring to trim electricity use. Also part of the plan: up to $255 million to be spent by local housing cooperatives on boosting household energy efficiency, and $383 million from companies including Phillips (PHG) and Dutch utility Nuon to be invested in other energy-efficient technology.

“In the next year and a half, we expect to be the leading smart city in Europe,” says Ger Baron, senior project manager at the Amsterdam Innovation Motor, a public-private joint venture that is overseeing the project. “We’re in the right place at the right time.”

The focus on cutting cities’ emissions could have a major impact on the battle against global warming. As of 2006, more people now live in urban areas than in the countryside, and the sprawl surrounding megacities such as Mumbai and Saõ Paolo is only likely to increase. Consultancy Accenture (ACN) reckons cities produce almost two-thirds of total global carbon dioxide emissions through a combination of car fumes, household energy use, and industrial manufacturing. In the coming years, policy shifts from the U.S. and elsewhere will put even more pressure on controlling carbon output.

“Until now, there’s been an underemphasis on what cities can do to cut emissions,” says Mark Spelman, Accenture’s global head of strategy. –Business Week

Global technology companies like IBM and Cisco are also getting in on Amsterdam’s plans to change the way the city uses energy. And Dutch banks are going to provide small loans to homeowners to purchase and install green improvements around the house, with the intention that the costs saved from energy efficiency will pay for the cost of the loans.

The Business Week article also mentions that Xcel Energy is working in the city of Boulder, Colorado to connect 60,000 homes to a smart grid.

Considering that in most cases, smart grids are being pushed by energy companies and that is a positive move. Whether it is just to make more money or not, moving forward in innovation is what this world needs, rather than trying to squeeze more money from the planet’s dwindling resources.

Smart Grid, electricity, energy, Amsterdam, technology, efficiency, homes, usage, solar panel, geothermal, electric car, IBM, Cisco, Xcel Energy, Boulder, Colorado