Microgeneration Smart grids Generation next
As low-carbon technologies become more popular, a new type of grid will be needed to truly revolutionise the way in which we make, transport and use energy. But, says Tom Idle, implementation could take a while
T
he UK hopes that smart technology will solve its energy supply problems in the future. In fact, the development of a worldwide smart electricity grid, combined with the use of smart meters, is considered by many to be the panacea to global warming. Currently, electricity is generated by a small number of coal- and gas-fired power stations and distributed via a grid to a large number of users. It is a reliable system but changes to the way in which we create our energy in the future will cause problems. In order that it meets its climate change targets of cutting emissions by 80% by 2050, the UK will need to significantly increase the amount of elec- tricity it generates from clean energy sources, like nuclear, wind and solar. As the popula- tion grows by 16M in the next 40 years, our transport system is electrified, more people generate energy on site and electric cars take off, the demand for electricity is set to soar. It is the intermittent and unpredictable nature of generating clean energy coupled with our demand for electricity at different times of the day that calls for a more intelligent grid. By applying information and communica- tions technology to the grid, network opera- tors can control power flow better, automati- cally re-route electricity to where it is needed most and shift loads to reduce outages. And by observing what is happening on the grid in real-time, operators can see where energy is being wasted. At the other end of the supply chain, smart meters installed at the energy user’s home or business, automatically send accurate electricity readings back to the energy supplier, with a real-time energy use
display encouraging consumers to be more energy efficient. The smart grid concept is not new, but the Department for Energy and Climate Change (DECC) hopes that by man- dating that the UK’s energy suppliers roll out smart meters to every home and small busi- ness in the country by 2020 will help speed up the transition to a smart grid.
“In an ideal world, smart meters and smart grids go hand-in-hand. Unfortunately, we don’t live in an ideal world,” says Logica’s Chris Beard, who says that the integration between the UK’s smart grid and smart meter programmes is not as good as it should be. The problem, he says, is that the Government has allocated the responsibility for installing smart meters to the suppliers and the responsibility for implementing smart grids to the distribu- tors. According to Logica’s Smart Grid Study, the majority of distributors still do not see the business case for upgrading the network.
Smart meter take-up
According to research firm Berg Insight, smart meter installations across Europe will increase 17.9% by 2015, reaching a total of 111.4M. Major roll-outs of the technology have already taken place in Italy and across Scandinavia – and the UK is keen to catch up. Secretary of State for Energy, Chris Huhne, has announced that the mandatory smart meter roll-out will begin in 2013 – sooner than originally planned. The energy companies charged with bringing about the revolution seem excited, rather than concerned, by the challenge. British Gas has set a target to install smart meters in two million homes by 2012
14 | Sustainable Business | Microgeneration | October 2010
and has already started recruiting 2,600 new staff to install the equipment.
E.ON says it has already invested £12M in smart meters, while EDF Energy is currently trialling 3,000 smart meters across the country. DECC estimates show that smart meters will save energy suppliers around £306M a year and although the utilities won’t be allowed to charge customers for their new smart meters, they do have the right to recoup the costs of installation through higher energy bills. So, getting the smart meters in place should not be a problem; the real challenge will be marrying the meters up with the grid so that the information collected on the ground will prove worthwhile to the smart grid operators. There are a number of options; telecoms firm BT plans to build a long-range radio network to offer nationwide coverage, while Vodafone has signed a deal with British Gas to make use of its GPRS (general packet radio service) technology. A number of the 3G operators will also look to provide services too. Smart grids have the potential to revolu- tionise the way in which energy is generated, distributed and used – not only on a national level. A ‘super smart grid’ could see electricity generated in one part of the world, transmit- ted across continents and used in another. The Desertec project envisages a solar and wind park in the Sahara Desert that transmits elec- tricity back to Europe via a super grid of high voltage direct current cables.
Implementing a truly smart grid is likely to be as much a commercial and regulatory revo- lution as a technological one – and it could take decades to come to fruition.
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