Special Report: 10.1.2009

By Joe Salimando 

GridWeek , held 9/21 to 9/24 in Washington, D.C., was all about "the smart grid," which I like to abbreviate TSG. And, folks, TSG is hot, hot hot. GridWeek's attendance doubled from 2008 (which was, I think, a double from 2007).

First, note that TEDMAG includes three blogs written from GridWeek as "live" reporting --

Day 1:  Energy Secretary Chu's keynote 

Day 2: What's Going On In Austin & California (and more) 

Day 3: Decoupling, Washer-Fridge Conversations & Smart Grid City 

For most, Day 4 ended at lunchtime. Gary Locke, Secretary of Commerce spoke, as did Rep. Markey of the controversal Waxman-Markey legislation.

In what follows, I'd like to first share links, then delve into storage a bit. But before all that, let's cut to the chase -- what does all of this mean to you? My thoughts after four days of listening and asking questions:

1. The electricity industry is changing, on the power-generation and T&D size. What we have right now would make Edison and Westinghouse comfortable. What we're transitioning to will be somewhat different.

2. There haven't been major changes of any sort in generation/T&D in 100 years. Think about that! There is opportunity here.

3. The federal government is putting BIG money behind TSG and renewables, and more. Depending on which speaker you listen to -- and what he/she was talking about -- the sums ranged from $4.5 billion to $200 billion (I am NOT kidding).

4. If TSG doesn't work, the power companies, the national grid, and 300 million-plus electricity users (including you and me) are in deep trouble. Why? We're adding renewables to the power supply, in big numbers, over the next 15 years. We, as a people, aren't so sure about building more coal-fired plants, and nuclear power plants still aren't welcomed by local communities. Electric vehicles are going to increase in number (perhaps in local clusters), putting strains on the grid. Plus, the grid itself is getting older and older, with ancient transformers all over the place and all kinds of strains possible on local systems and interties.

Add to all that the fact that the grid was not designed for two-way power flows. Add also the lack of communication. Almost all power companies in the U.S. do not know the status of their local T&D systems; most do not know how much power is being drawn at this moment. Without TSG, we're going to be in big trouble. We might be in big trouble anyway, you know?

5. With TSG in place locally, there are opportunities for electrical contractors and distributors. I'm not assuming you are selling products for power plants or transmission/distribution lines. Contractors are going to be needed to install electric vehicle charging stations -- in public places and in houses. Technology that makes best use of TSG's capabilities is going to be bought and used by commercial and industrial users . . . and perhaps even residents.

MORE INFORMATION

Links you might follow

The DoE came out during GridWeek with a slew of publications under the heading The Smart Grid: An Introduction . The cover below is from one of them. The pubs, downloadable free as PDFs, are targeted to different groups -- consumer advocates, environmentalists, utilities, and technology providers.

DoE release on Secretary Chu's speech 

DoC release on Secretary Locke's speech 

Four-part podcast series on TSG & renewables  (from 4/30/09)

From WSJ: High-Tech Firms Seek Out Utilities As They Upgrade 

From WSJ: Appliances Shift To Energy-Save Modes When Told 

Benefits of Smart Grids include fighting climate change 

New TSG stock index 

Efficiency is the 'smart' in power grids  (The Hill newspaper)

Finally, in the "links" category, there is an outstanding place to go -- the GridWeek  website itself. Access to PDFs of presentations are available by speaker or by day (you go to the event's schedule and you click, and you can download whatever is there). Additionally, there are videos  of selected sessions posted now, with the promise of more to come. This is all FREE. And: It's an outstanding service (I'm not aware of another conference that does this). Assuming you've developed an interest in TSG, you can get one heck of additional information.

ENERGY STORAGE 

On-topic & off-topic

GridWeek is about TSG. Energy storage is a key issue, but it has nothing to do with TSG . . . or does it?

I have developed an interest in storage, and batteries -- and now, thanks to this session , other stuff. Here are my reasons (which happen to make sense, and are really the ideas of others reflected here):

1. It makes no sense to build wind energy systems (for one example) and let the electricity generated go to waste. One speaker at GridWeek noted that 70% of the electricity generated by Denmark's windmills is discarded. I can hardly believe that. If it's true -- or if the actual number is 40%, let's say -- it's big-time WASTE. It doesn't have to be, if we can figure out how to store the energy.

2. The wind doesn't always blow. If it blows at night, when electricity consumption is typically much lower than during the day, the power could go to waste.

3. Note that the Sun shines during the day. We should be able to make use of every electron, of course. But let's say that you put solar PV panels on your house, and it generates a lot of electricity -- more than the house needs during the day, as you and your family are usually not at home (at least, not during the work/school week). What happens to the electrons? You might be able to sell them to the utility and "run the meter in reverse" -- but this is wasteful, too. If you had a storage system (a bunch of batteries?) in your basement, you could store the unused power, and make maximal use of it when you got home, and you, your wife, and your kids all plug your iPods, Blackberries, cell phones, etc., into the wall to recharge.

4. Speakers made the case that because renewables -- on a grid-scale (big solar, big wind) -- are so unreliable, you have to have energy storage to supplement them. If the wind will stop blowing in 5 minutes, the power companies/grid needs to RESPOND quickly -- ramping up another source of power. Is that going to be a coal-burning power plant? Is it going to be a natural gas plant? Maybe and maybe. But it would be better if the needed electros came from a grid-scale (big storage!) energy storage facility or facilities.

Interestingly, one of the speakers was Brad Roberts of S&C Electric, a name that might be familiar to some. He was appearing with two hats -- as power quality systems director for S&C, and also as president of the Energy Storage Association . In a very interesting presentation, he noted that reducing power needs via TSG "can't be all done with demand response," and that energy storage was one of a set of tools that will enable the power grid to be responsive to changing supply/demand scenarios.

OK, to cut to the chase: Is there a role for electrical distributors and their contractors customers in storage? Much of the storage discussed is on a grand scale -- dams, compressed air, etc. But there already have been in-home battery storage exhibits at The NECA Show -- courtesy of NECA's Los Angeles Chapter and IBEW Local #11.

Is this going to happen on a wide scale? I believe the battery company with which those Westerners are working is building a manufacturing plant here in the U.S. And Roberts did talk about "community energy storage" -- which would be "small low voltage storage units very near residential/commercial customers in a typical utility pad-mount" arrangement.

SUMMARY: MOTIVE, MEANS & OPPORTUNITY

TSG now has what it takes

I did not do a count, but I believe I heard the words Exciting and Excitement spoken (into microphones) at least 15 times during the four days of GridWeek. A quadrupling of attendance in three years; lots of companies exhibiting; big-name corporations in evidence all over the place.

But most of all, what TSG has now is the basic element you need for success: MONEY. There is federal money behind it. And there's a lot of it.

A lot of what I heard at GridWeek might not be directly relevant to electrical distributors and their contractor customers. But -- depending on where you operate -- this is going to become more and more important. It's going to have an impact on what you sell and how much of it you can move.

Bottom line: With the need for TSG, utilities certain they will need it to cope with renewables and EVs (and more), and the standards and technology coming together, this might actually be something in the coming years. Oh, it's true -- we won't get a smart grid with the snap of our fingers; there's a lot of work to be done (and the federal $$$ commitment is not even a downpayment!).

But go back and read Secretary Chu's speech. In addition to $4.5 billion (out of the stimulus) for TSG demonstration projects, the nation is committing as much as $40 million to "develop models on how to train or retrain workers in the electrical power sector," another $60-$65 million to train new hires/retain electric utility workers, and $44 million for state utility commissions to cope with the demands TSG will place upon them.

In essence, TSG is happening. I can't tell you how long it will take, or whether it will succeed. But we need it. And it's here.