Smart grid architecture

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Efficient smart grid architecture reduces the cost of energy for consumers and also reduces greenhouse gas emissions.

Smart grid architecture enables the delivery of electricity from supplier to consumer through digital technology. The U.S. and foreign governments are working towards developing a more modern and efficient electricity network to promote energy independence and reduce global warming.

Smart grid architecture is effective in any type of enterprise, but is more advantageous in retail stores, warehouses, production facilities, hospitals, universities and other large or multi-building ventures. Because all systems are automated and metered, they track when and how much electricity is used.

By combining smart grid architecture with energy management software that provides real time energy use, businesses can better manage their energy consuming equipment and their cost of electricity use. Since the price of electricity increases during high demand periods and decreases during off-peak times, enterprises that use energy management services can reduce their demand during high cost times.

A smart grid architecture relies on technologies of design and procurement to manage an energy system and automatically track usage. The U.S. Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009 provide financial incentives to utilities and enterprises to encourage the development of capabilities that make the use of electricity more efficient and greener.

The electrical grid, which includes electric generation, transmission, distribution and electricity use, is the major contributor of pollution in North America. Production of electricity emits greenhouse gases into the environment, thus contributing heavily to global warming. Many countries, including the United States, are in the process of developing standards to produce clean energy.

A Smart Grid for Intelligent and Efficient Energy Use

By going green using an automated, digital grid, countries can reduce pollution with a more efficient operation. Among the benefits are reduced costs, energy savings, enhanced reliability, more efficient demand response, and the ability to use renewable energy. According to a study by the U.S. Department of Energy, the modernization of electrical grids in the country with smart technology would save between $46 billion and $117 billion over the next 20 years.

As education about smart grid architecture expands, more enterprises are expected to be part of the smart grid. Areas of opportunity include industrial enterprises, large complexes like hospitals and universities, small businesses, transmission and distribution systems, and residential customers.

Smart grid architecture helps companies and other enterprises become more energy efficient by enabling interaction throughout the entire infrastructure, including electric generation, delivery and consumption components. Energy management software is the key to saving energy and reducing costs because it automatically monitors real time energy use, weather data, and other critical systems across the entire enterprise. This smart technology enables businesses to procure the best energy rates for their sites.

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