“SMART GRID" Technology - The Jetson's approach to energy conservation

Another component of the energy solution is the development of a “Smart Grid”. So what is a “Smart Grid”? Well the idea is to take digital technology and apply it to the electrical transmission grid. It will be like the digital cable boxes that you hook up to your television and receive “on demand” movies. Basically, the new digital technology will allow two-way communication via that big transmission grid, which brings electricity to your home.

Jim Roger’s, CEO of Duke Energy, told a large crowd at NCSL recently that after extensive review, polling and research he believes the new “smart” technology will need to work in the background, in order to be effective. When he says, “work in the background”, he means the technology will work in a way that requires little human interaction. He explained most people only think about electricity only when they flip a switch and the light doesn’t come on. He contends if consumers are asked to understand why their usage patterns must change to conserve electricity and what changes have to be made, they will become frustrated and not take the necessary steps required. But if the changes can be made in the "background," as he describes, then two-way communication between the source of the electricity and the smart “gadgets” in our homes, will allow the necessary changes to be made automatically.

What are these “smart” gadgets? You might have appliances that are interconnected so that when one is on the other one shuts itself down. For example, when the dishwasher is running the refrigerator will not cycle as often. Or the refrigerator will automatically increase its thermostat by two degrees during peak electricity demand times. Washing machines, dryers and dishwashers can be scheduled to run at the time of day when there is the least amount of demand on the grid. Most people do not understand that electricity is far cheaper to deliver at 3:00 am than it is at 3:00 pm. Smart technology can help ensure that your home is making the best use of the electricity available.

According to extensive polling done by Duke Energy, Mr. Rogers said only 10% to 15% of the public makes electricity-purchasing decisions based on the environmental impact. These are the folks that will want an app on their iPhone that allows them real time access to monitor their “smart meter” from anywhere in the world.

He argues, this “Smart Grid” technology is critical for the average consumer. These new “smart meters,” which are currently a rarity in Kentucky, can be used as a dramatic teaching tool. The “smart meters” can tell you in real time how much electricity you are using and how much that electricity is costing. These devices are designed for the budget conscious. An individual may not understand using less electricity decreases the impact on the environment, but with a "smart meter" they will see that using more electricity is going to take more of their income."

The new “Smart Grid” technology can also send signals back to the source of the electricity generation, giving power companies a signal that could indicate a potential outage.  Power outages may potentially be avoided altogether.

 

There is tremendous potential for this new technology, but there are some concerns, as well. Cyber security is one of the most important. We all know computer hackers are lurking behind every web page and with this new technology they will be lurking behind every meter. The developers, energy companies and regulators are all focused on this critical area. It is also important that utility rates are structured so that utility companies have an incentive to invest in these types of technologies. And finally, these new technologies need to incorporate future changes in electricity production, such as individual solar panels, the development of electricity storage devices and/or facilities and other developments that are only a glimmer in an engineers eye right now.

 

The “Smart Grid” technology can make a difference at the individual level, and after all, that is where the rubber meets the road, or the electricity meets the switch, so to speak.

 

 

What is Carbon Sequestration?

The “signature issue” of our time is requiring the private sector, public policy makers, government research programs and individuals to look at the issue from a different perspective. Today at the NCSL conference in Philadelphia there was a forum dedicated entirely to the issue of carbon sequestration.  Unlike so many terms used today, this actually says pretty much exactly what it is. Basically, you capture the carbon that is a by-product of burning coal, contain it, and then inject it into the ground. Okay the ground is a loose term. Actually the idea is to inject the CO2 safely and economically into geologic formations far below the earth’s surface, which will be used as a large permanent storage facility.

 

So why is this important? Well, it is widely believed that carbon dioxide is a major contributor to the global climate change. While there is still discussion around this issue and the contribution human advancement has played, it is clear that this is going to be addressed by policy makers.

 

Today, the discussion at NCSL centered on the development and regulation of this technology. The U.S.  Department of Energy, the Office of Fossil  Energy and the National  Energy Technology Laboratory have been working on the development and deployment of this CO2 solution. In addition, private concerns and universities are devoting research dollars and time to the development of this technology. Why? To ensure the future of fossil fuels as an energy source.

 

The Department of Energy has been working on this initiative since 1997 and today said that based on the progress they are making with projects across the country they believe the technology will be available for commercial deployment by 2020. By 2020? Wait a minute, Congress is considering “cap and trade” legislation today. While the implementation date is still a moving target most believe if the legislation is passed Kentucky consumers will have to buy credits, expensive credits, long before 2020.  This means that the cost of consuming coal-based electricity will have to increase and the increase will be significant. That is the purpose of “cap and trade”, create an economic disincentive to use carbon-based fuels.

 

Many of the supporters of “cap and trade” come from states that have abundant non-carbon based electricity. For example, hydro power and nuclear are non-carbon based sources of electricity. States like New York, Oregon, California and Idaho will actually make money on the “cap and trade” program. That means while Kentucky consumers’ electricity bills increase, there will be a transfer of wealth to other states. New York, California and other states will see a big influx of Kentucky, Indiana, Illinois and Ohio’s money in order to facilitate those decreases.

 

So what does all this mean? Well, I will just remind you again that Lisa Jackson, the EPA administrator, told a congressional committee recently if we do everything in the current “cap and trade” legislation and China and India do nothing there will be no impact on global warming. So for now all we will do is redistribute the wealth and force some large consumers of electricity such as aluminum smelters, steel plants, paper mills and automotive plants to go out of business in Kentucky. And those jobs will move to, probably India and China. And of course, we will see our coalmines reduce production and eventually close.

 

There is still more information to come on this important issue. If you would like to follow me on Twitter you can find me under the user name “melodieshrader”.

We Need to Encourage Energy Efficiency

Energy Secretary Ken Salaza, called reducing green house gases “the signature issue of our time” at today's NCSL  Energy Policy Summit on Energy Efficiency. The day has been full of good speakers and important information, but the most important lesson learned today was investing in energy efficiency costs less than producing a new kilowatt hour of electricity. In other words, significant strides can be made in stabilizing the world's output of green house gases by developing and deploying energy efficient technology in the United States and across the globe. The United States could easily reduce the need for additional power plant production by focusing on retrofitting buildings and requiring a higher standard of energy efficiency in all new construction. Wow! There’s something we haven’t heard a lot about in the recent discussions in Washington. Yes, it’s there. And there were funds in the stimulus package to encourage movement in this area. But we would have to see a complete public policy overhaul to force a move in this direction.

 

Let’s define energy efficiency for the purpose of this discussion. Energy efficiency is doing the same amount of work with less energy. Energy conservation on the other hand is actually doing less work with less energy. In other words, we can replace a gas furnace with a new geothermal unit and keep the house at the same 72 degrees with less energy. Or we can turn the thermostat back to 65 and reduce the amount of energy we use. If done consistently, both would reduce the need for existing energy resources but one requires a cash outlay for the new technology and one requires us to be uncomfortable. An incentive is required to push adoption of either.

 

Did you know that your house causes twice as much pollution as your car? In 2007 the average utility growth rate was approximately 1.5%. It is this growth rate that drives the need for new power plants, more natural gas exploration and the building of nuclear power plants. Some experts say that broad scale adoption of an energy efficiency program for our buildings alone could reduce our overall energy needs by 30%. Chris Mathis, President of MC2 Mathis Consulting, quoting the Department of Energy, said that a 30% improvement in the efficiency of the all the buildings in the U.S. would reduce energy bills by $75 billion in 15 years and eliminate the need for 80 new nuclear plants over the next 20 years.

 

So how do we increase energy efficiency in our buildings? We increase the level of insulation, install better windows, seal our air ducts, install heat pumps and geo-thermal units, replace old light bulbs with new CFL’s. And we invest in performance testing. A public policy that encourages these behaviors will create jobs. Local jobs. Jobs that cannot be shipped overseas.

 

Chris Mathis goes on to say that for the price of one nuclear power plant you could increase the energy efficiency of every home in North Carolina (4 million homes at a cost of $5,000 - $10,0000 each) and decrease the demand for 4000 megawatts of power. That is the equivalent of two nuclear plants or twenty 200 megawatt coal fired plants.

 

There was a lot more information given today on various programs and public policies that focused increasing our energy efficiency. Over the next few days I will be posting additional articles and links to encourage an ongoing discussion. If you would like to receive live tweets from the conference on this issue, follow me on twitter. My user name is melodieshrader.

We need Clean Affordable Kentucky Energy

The answer is “All of the above”. Thank goodness the answer is simple because understanding the question is so complicated you must learn a whole a new vocabulary. The question? What does the United States need to do in order to reduce global warming, reduce our reliance on foreign oil, and transition to a clean energy economy?

 

While Congress is off in Washington debating this very issue, many Kentuckians set their thermostat to a comfortable temperature and go off to their job.  In our area of the country, many of those jobs rely heavily on affordable electricity. If you work at an aluminum plant, a paper mill or a steel plant you need to understand the impact this legislation will have on your future employment.  Actually the energy bill being debated now, whether you work in one of those industries, on a farm or rely on social security, will impact every household.

 

Kentuckians have enjoyed low electric rates and the jobs that those rates have brought to the Commonwealth. Those jobs will be in jeopardy. Coal, a major economic resource in our state, will be negatively impacted by this “cap and trade” legislation.

 

While there is still debate about the severity of global warming and what can be done to reverse its impact, there is a great deal of agreement that reducing environmental pollution and becoming an energy independent nation would be a positive step.  SO, if your job is going to be lost don’t you think the legislation should actually make considerable progress toward these important goals? Yet, Lisa Jackson, the United States Environmental Protection Agency Administrator, said last week, if the United States acts alone, the measures in the legislation currently being considered will have no impact at all on global warming. Why? Because China is now a great emitter of carbon and other harmful pollutants than the United States. China does not meet the United States current standards for burning coal, and while they are bringing new power plants on line every day to meet their growing needs, they have made it clear, they will not increase their clean air standards. However, they are happy to take all of our aluminum, steel and other electricity intensive jobs that we care to send to them.

 

Secretary Ken Salaza, Secretary of the Interior, called this issue, “the signature issue of our time.” I agree. And every citizen of the Commonwealth needs to understand that a quick Washington fix is not going to reverse global warming, but it will impact our standard of living much sooner than you may anticipate. 

 

So the answer, “All of the above” means we have a lot of work to do. We have to invest in clean coal technology. We must demand cars that get better gas mileage or use alternative fuels. We need to make our homes more energy efficient. And as a country, we must spend the time, talent and resources to develop new technology that can make us a more energy independent country. And always remember, the cheapest way to decrease your “carbon footprint” is to never waste any of our energy resources. Turn off the lights. Car pool. Purchase energy efficient appliances.

Every Kentuckian needs to understand the impact that the “clean energy” (cap and trade) legislation will have on them and their family. It is important to your future. Remember the answer is "All of the above".