Smart Microgrids: A Model for Reducing Electricity System Waste
The Galvin Electricity Initiative demonstrates the feasibility of a new approach to electricity generation and distribution that minimizes waste and better addresses consumers’ needs: smart microgrids. These community-based systems use consumer choice and competition among power providers as a strategic lever for innovation — a significant shift from the current practices of electricity producers, regulators and others in a position to change the grid.
In these community-based systems, consumers can choose more efficient, more environmentally friendly power. Entrepreneurs are inventing new technologies and solutions, such as efficient and renewable local power generation, that would replace our reliance on inefficient and distant coal-fueled plants. These local generating facilities can be fueled by the sun, bio-fuels, natural gas and other low-carbon sources, and can be hidden from view in buildings that look no different from others in the area. Line loss is greatly reduced, and even the heat that is normally lost in the generation process can be captured and used for other purposes.
By incorporating smart technology and new configurations in addition to on-site generation, smart microgrids are much more reliable than the centralized grid. These systems also can be networked together so that they back each other up. When something happens to a power line, smart switches re-route power around problem areas and help technicians pinpoint the location of the fault instantly. And when the power stays on, consumers pay less for repairs.
On the community level, smart microgrid development is most often coordinated with local governments, and thus can coincide with other major capital projects such as roads, sewer and water. For instance, when other infrastructure projects are under way, above-ground power lines can be buried underground where they are less vulnerable to the elements.
In sum, smart microgrids can reduce the costs of waste so that consumers truly pay only for the power they use.
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