Smart Grid: A Green Solution for a Better Tomorrow

In this age of digital control over everything from entertainment to utilities, the Smart Grid has gained immense popularity in many countries in the West.

It helps control appliances at the consumer point, thus saving energy and increasing reliability while being cost effective. The smart grid enables digital communication between suppliers of electricity and consumers. Yet it is nothing but an electricity network working on digital technology.

The grid will be comprised of an information and net metering system with smart meters and is expected to offer energy independence and check global warming. Even domestic consumers will be able to adjust their power consumption based on the grid condition. Like utility grids, the smart grid has an intelligent monitoring system to check on the flow of electricity in the system.

It can also incorporate alternative sources of energy like solar power and wind power. It enables consumers to use appliances selectively in order to reduce demand, depending on peak times and other factors.

Across the world smart grids are making waves, and are now becoming popular in the Asia-Pacific region. Australia, New Zealand, South Korea, Japan and Singapore have been fast adopters of this technology, with more countries soon to follow suit. This is underlined by the fact that the 2nd Electricity Innovation Smart Grid 2011 conference is scheduled to take place in Seoul, South Korea between April 12th and 13th, 2011. Transformational forces that can bring winds of change in countries desirous to implement smart grids will be examined during the event.

The reasons for smart grid deployment include electrification of the transport sector and the ready availability of real time information about energy creation, storage and use. The conference is expected to discuss such factors and share technological knowledge, along with studying the efficacy of existing projects as well, said conference sources.

In March, 2011 IBM announced that two new utilities - TEPCO from Japan and KEPCO from Korea- have joined the Global Intelligent Utility Network Coalition comprised of utility companies that are promoting the adoption of smarter energy grids. TEPCO serves around 28 million customers in the Tokyo area.

As Korea’s sole electric power company, KEPCO owns a comprehensive smart grid test bed in Jeju Island, which applies smart technologies in the areas of generation, power grid, electrical service, buildings and transportation. Kim Woo-kyum, Executive VP and COO of KEPCO, said, “By joining the Global IUN Coalition, we expect to actively collaborate and make exchanges with international electric companies. Through this group we can participate in new projects and smart grid business opportunities worldwide.”

The coalition member companies like NDPL of India offer the perspective of providing power to an emerging market. India offers a scenario where reliability and full access to electricity for the entire population is in the developmental stage. Using inputs given by the coalition, Essential Energy created a smart grid demonstration center in Queanbeyan, Australia.

Pike Research published a report entitled “Smart Meters in Asia Pacific” which revealed that the installed base of smart meters in Asia Pacific will grow from 52.8 million to 350.3 million by 2016, indicating a compound annual growth rate (CAGR) of 37 percent. Advanced metering infrastructure (AMI), which employs two-way communication and real-time monitoring, is being deployed in many parts of the region. China is projected to represent more than three-quarters of the installed bases of smart meters in Asia Pacific by 2016. The Chinese government will deploy smart meters through to 2020. Japan, South Korea and Australia also form significant markets for smart meters.

The smart grid technology will spur growth for businesses like that of metering companies, network and software solution providers, system integrators, consultants and equipment manufacturers. Although expensive to implement, in the long run smart grids give greater return on investment. This should serve as an impetus to other countries that are yet to join the band wagon.