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manage peak load wholesale operations ancillary services renewables integration reliability energy efficiency Smart PHEVs Meters Networks Enabling Assets Value Streams Incentives to Engage Assets DR DG DS Primary Assets DA/FA EVs & Comm. ... DR = demand response, DG = distributed generation, DS = distributed storage, DCA/FAi=t dlisItributiotn automt ation/feeder automation, EVs & PHEVs = electric vehicles/plug-in hybrid electric vehicles Figure 2.3. The Business Case: Weighing the Capital Investments for Assets vs. the Value Streams from the Functions They Support More recently, DOE released announcements to fund modernization of grid infrastructure and conduct demonstrations as part of EISA. One of the goals of the infrastructure grants is to spur mass production and deployment so that costs at scale can be determined. The goal of the demonstration grants is to build the business case by expanding the scope of smart grid functions into unproven areas, and quantifying their benefits. Commensurate with identification and quantification of the energy and environmental benefits, efforts are also underway to improve the monetization and allocation of the economic benefits to stakeholders. The literature describing the smart grid concept, operation, and benefits is growing. A number of documents that provide the reader a more detailed discussion of the concept and the multi-faceted benefits are: • DOE. 2008. The Smart Grid: An Introduction • Electric Advisory Committee. 2008. Smart Grid: Enabler of the New Energy Economy • Pacific Northwest National Laboratory. 2007. Pacific Northwest GridWiseTM Testbed Demonstration Projects, Part I. Olympic Peninsula Project • EPRI. 2008. The Green Grid: Energy Savings and Carbon Emissions Reductions Enabled by a Smart Grid. Electric Power Research Institute, Palo Alto, California: 2008. 1016905. This report does not attempt to monetize and include the energy and carbon-management benefits into the business case to help justify a smart grid. Rather, smart grid deployment will be justified on operational merits in its early stages, and the additional benefits treated here provide an enhancement to this value at little or no additional cost. The associated marginal costs are expected to be low, because 2.8 FunctionsPDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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