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1.0 Introduction The U.S. Department of Energy (DOE), Office of Electricity Delivery and Energy Reliability’s (OE’s) mission is “...to lead national efforts to modernize the electric grid; enhance security and reliability of the energy infrastructure; and facilitate recovery from disruptions to energy supply.” One key element of OE’s strategy for modernizing the electric grid (http://www.oe.energy.gov/1165.htm) is to take advantage of the potential for information technology to change the operational and control strategies it uses to help keep electricity affordable by improving the cost-effectiveness of grid infrastructure investments and increasing the reliability of electricity supply and delivery to customers. OE has played a leading role in identifying this opportunity, which has come to be known generically as the “smart grid,” by articulating its benefits to industry, policy makers, customers, and other stakeholders, by advancing key technologies and funding field demonstrations to prove its performance advantages (http://www.oe.energy.gov/smartgrid.htm). As part of its efforts to quantify benefits from the smart grid, OE’s Smart Grid Research and Development Program tasked Pacific Northwest National Laboratory (PNNL) to develop an estimate of the potential energy and carbon benefits that will result from deployment of the smart grid. The goals of this project are to: • Define the mechanisms by which the smart grid can contribute to energy efficiency and the integration of renewable generation to provide carbon benefits to the United States. • Quantify, to the extent possible, those benefits and contributions in terms of reductions in electricity consumption and CO2 emissions. This report articulates nine mechanisms by which the smart grid can reduce energy use and carbon impacts associated with generating and delivering electricity. To the extent possible, it presents quantitative estimates of potential impacts for each of the mechanisms through a detailed search of published results and by conducting simple analyses of the potential effects. This report does not attempt to justify the cost effectiveness of the smart grid, which to date has been based primarily upon the twin pillars of cost-effective operation and improved reliability. Rather, it attempts to quantify the additional benefits inherent in the smart grid’s potential contribution to the nation’s goal of mitigating climate change by reducing the carbon footprint of the electric power system. OE’s smart grid effort, formally established by the Energy Independence and Security Act (EISA) of 2007, is characterized by the 10 points shown in the text box (EISA 2007). The electricity and CO2 reductions that may be obtained by implementing smart grid technologies estimated in this report will help identify the benefits associated with goals 3, 4, 7, and 8. In addition, the assessment provides a number of recommendations and issues to consider in the formulation and conduct of OE’s research program that addresses: 1) technology development to modernize the delivery of electricity, 2) policy coordination and implementation to facilitate electricity system modernization, and 3) the ability for stakeholders to prepare for and respond to electricity supply disruptions. 1.1PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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