Smart grid could reduce carbon emissions and mitigate climate change by reducing carbon footprint

A recent report by Pacific Northwest National Laboratory articulates mechanism by which the smart grid can reduce energy use and carbon impacts associated with electricity generation and delivery. The report was done in part to help technology producers focus their financial models not just in the energy savings involved in smart grid technologies, but the reduction in carbon emissions as well.  The quicker technology producers can grasp the big picture the better. This could also be useful in mitigating climate change by reducing the carbon footprint inherent in the current electrical grid infrastructure. The top 4 energy saving mechanisms are listed below:

1. Conservation Effect of Consumer Information and Feedback Systems-3%
2. Deployment of Diagnostics in Residential and Small/Medium Commercial Buildings-3%
3. Support Additional Electric Vehicles and Plug-In Hybrid Electric Vehicles-3%
4. Support Penetration of Renewable Wind and Solar Generation (25% renewable portfolio standard [RPS])-5%

The magnitude of these reductions suggests that, while a smart grid is not the primary mechanism for achieving aggressive national goals for energy and carbon savings, it is capable of providing a very substantial contribution to the goals for the electricity sector. Further, a smart grid may help overcome barriers to deployment of distributed solar renewables at penetrations higher than 20%.

Customer feedback is necessary for the effective implementation and communication of energy efficiency and demand response management programs to maintain sustained levels of reduction. Central to effective feedback is to understand and reduce the uncertainty associated with consumer behavior and response in order to design effective feedback mechanisms.

Coupled with feedback, the effectiveness of customer-side programs can be increased by leveraging smart grid assets to provide long-term M&V and diagnostics at little additional cost for the required analysis capabilities. The focus of this need is for analytic methods and software technologies, with decisions to locate the capability centrally or on the customer’s side of the meter.

Integration of renewable resources above the 20% RPS through a combination of demand response, renewable resources, and storage technologies, 2) addition of increased levels of
electric vehicles to best utilize generating assets, and 3) management of voltage control and losses within the transmission and distribution system to reduce losses and increase reliability.

A key issue that will impact the penetration of the smart grid technology, at least components of
the technology that bear upon its functionality, is the acceptance by federal and state regulatory bodies.
A major driver for this acceptance is the extent to which the smart grid technology proves to be a cost-
effective replacement for traditional grid infrastructure while providing equal or improved levels of power quality and reliability.

This highlights the need for a quantitative method to define and monetize improvements in power reliability and quality that would be enabled by smart grid technologies. In conjunction, is the need to involve stakeholders in adapting the business and regulatory models (planning, monetary, risk, incentives, etc.) from a centralized power system to a more decentralized system.