The Smart Grid: An Estimation of the Energy and CO2 Benefits

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to the energy manager in cases of performance issues. The estimate is based on its application to large commercial buildings (>100,000 ft2 in floor area) with the provision of electricity savings of 9% and market penetration ranging from 5% to 20%. • Reducing Line Losses through voltage control and compensation for reactive power and line drop. The estimate is based on application of voltage control to the residential sector with voltage reduction of 1% to 4% and market penetration of 25% to 50%. • Energy Savings Corresponding to Peak Load Management achieved through demand response and load control programs that utilize dynamic prices and automated demand response technologies. The estimate is based on other studies, results of field work and expert judgment. • Direct Feedback on Energy Usage to consumers through advanced meters and display devices. The estimate is based on energy savings of 2.5% in the commercial and industrial sector, and 5% in the residential sectors with market penetration of 25% to 75% in all three sectors. • Accelerated Deployment of Energy Efficiency Programs through M&V to reduce uncertainties regarding the performance and cost-effectiveness of energy efficiency measures, thereby increasing their deployment. The estimate is based on estimates of the maximum and realistic achievable levels of savings and expert judgment. • Greater Integration of Renewables through communication and control strategies to compensate for temporal and intermittency factors. The estimate is based on the estimated fraction intermittency that the smart grid will resolve (12.5% to 25%) for the integration of electricity generated by an additional 50 MW of wind capacity in 2030. The reductions in CO2 emissions are based upon EPRI’s estimated generation profile for 2030, which provides CO2 emissions of about 12%, slightly lower than the emissions based on the 2006 generation profile. • Facilitation of PHEVs through price signals and behavior modification to encourage overnight charging, thereby improving the system load factor and utilization of base-load generation resources. The estimate is based on other studies and expert judgment. 4.1.2 Climate Group/Information and Control Technologies Report One focus of the Climate Group report (often referred to as the ICT report) examined reductions in CO2 emissions in four sectors (smart grid, road transportation, buildings, and travel substitution) that could be enabled by information and control technologies (ICT). This section provides the reduction in CO2 emissions for the three topic areas in the smart grid sector. The buildings sector topic is not included in this discussion because the reduction is achievable without connection to the smart grid, although the ICT enable interaction with the smart grid, which may help ensure or further increase the estimated buildings’ sector reductions. Estimates of the reductions in energy consumption and CO2 savings for the three topic areas for the year 2020 are summarized in Table 4.2. The estimates are based upon literature review and expert judgment, although the assumptions and analytical methodology underlying the estimates are not clearly stated. 4.2

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