Energy researchers and experts in the Pacific Northwest have proposed a plan to accelerate "smart grid" growth in their region through a program of demonstration projects and regulatory reforms.

Their report, to be issued tomorrow under the title "Powering Up the Smart Grid: A Northwest Initiative for Job Creation, Energy Security and Clean, Affordable Electricity," calls for a Northwest Smart Energy Initiative and sets out recommendations for governors and congressional delegates.

The term "smart grid" refers to using computing technology to improve reliability, keep electric bills in check, make power use more efficient, and bring new renewable power on line more rapidly.

The growing wave of power disturbances are evidence of the need for a smart grid, the report says, citing the infamous east coast blackout on August 14, 2003 that turned out the lights on 50 million people and cost an estimated US$6 billion. Previous blackouts affected Chicago, Delaware, Atlanta, New Orleans and New York in 1999, and San Francisco and Detroit in 2000.

"Today’s grid is mostly composed of traditional technologies. Thomas Edison would recognize most of it," said Climate Solutions' Patrick Mazza, the report's primary author. "Meanwhile our economy is going digital while the stress on our electrical power system is growing. The smart grid can meet these challenges while providing substantial economic opportunities to regions and companies that lead in smart grid deployment."

Grid upgrades in the national economic interest
"Without a major national effort, the U.S. economy will decay for lack of proper energy to power it for the potential growth ahead," said Steve Hauser, executive director of the GridWise Alliance, a national smart grid acceleration effort that includes smart grid leaders such as Areva, General Electric and IBM.

Tens if not hundreds of billions of dollars will be invested in the U.S. power grid over coming decades. Sixty percent of our energy system’s aging infrastructure will need to be replaced in the next decade or two.

A Pacific Northwest National Laboratories (PNNL) study shows that the smart grid’s capability to smooth out peak power demands alone could eliminate the need for $46 billion to $117 billion in power plant and power line investments over the next 20 years.

The Climate Solutions report says this and other smart grid economies will help keep the lid on power bills and preserve jobs in all industries dependent on reasonably priced electricity. A RAND Corporation study found smart grid technologies could reduce power disturbance costs to the U.S. economy by $49 billion per year.

The smart grid will also make it easier to bring on-line varying power flows from wind farms, solar panels and other renewable power sources, and to integrate vast numbers of small-scale localized generators such as fuel cells and microturbines. The diversification of power sources, plus the capability to manage end-use demands, provides new security against blackouts.

Initiative would strengthen regional economy, energy leadership
Wayne Embree of Cascadia Partners, an Oregon venture capital firm, says, "Accelerating smart grid development in the Northwest will position us well to capitalize on the inevitable growth and market transformation underway in North America and especially the booming Asian economies expanding their power systems."

Local leaders say the smart grid is vital for their region. Port of Seattle Commissioner Lawrence Molloy notes, "It is hugely important for the Port that regional power networks are upgraded with smart grid technologies."

The report notes that the Northwest is already a global leader in this smart energy industry. Regional companies hold a US$2 billion share of the smart energy industry’s global $15 billion in annual sales. Northwest utilities and research institutions are also staking out advanced positions in smart grid deployment.

Among Northwest smart grid leaders are Spokane-based Itron, world’s largest maker of digital power meters; Schweitzer Engineering Laboratories of Pullman, Washington, a global leader in digital power switches; and Areva T&D, Bellevue, operating around the world to automate power delivery networks. Public sector leaders include Pacific Northwest National Laboratory, a major player in GridWise. The Northwest Energy Efficiency Alliance is extensively demonstrating energy-saving digital control systems in local power distribution. And the Pacific Northwest GridWise Testbed, made up of PNNL, Bonneville Power Administration (BPA), Portland General Electric and PacifiCorp, starts up a series of smart grid demonstration projects this summer. BPA is also engaged in one of the transmission industry’s most advanced efforts to replace traditional line upgrades with digital information technologies.

The report and related materials will be available for free download at www.climatesolutions.org.