Today's Date: Friday, August 29, 2008
Efficiency Infrastructure

November 30, 2007
Page 13 of 15
Efficiency infrastructure focuses on developing smart grid technology that supports varied generation sources and varied service models. Enhancing the efficacy and efficiency of power systems is dependent primarily on creating a data-rich, multi-modal smart grid. Moving the grid off analog, one-way communications and toward a networked, distributed operating model represents a crucial step in supporting the mainstream, end-user-oriented adoption of green power-generation sources. Efficiency infrastructure also focuses on applications that monitor power usage and output. These applications seek out system inefficiencies and reduce power usage.
Key Components
- Monitoring - Consumer monitoring of energy and resource use is an important means of driving down consumption. Efficiency technologies and applications operate regardless of the type of power generation (coal, wind, solar, biomass, etc.). Efficiency monitoring companies work to help consumers reduce their environmental impact while also keeping costs down.
- Energy IT - Programmers and installers of system-optimization software for residential and commercial applications are creating investment opportunities in end-user-driven energy monitoring. Energy IT software identifies energy waste in electrical or networking systems and prescribes ways to eliminate it. More advanced software automates the waste-reduction process, and works to optimize the distribution of energy around the system.
- Sensoring - Sensors monitor integrated systems in commercial buildings, factories, house, farms and utilities. They are programmable devices that monitor and regulate the use of electricity, lighting, water, HVAC, fertilizer and almost any other resource needed for integrated systems operations. Advances in nanotechnology are leading to new classes of autonomous, self-powered sensors that allow for efficiency gains in resource use.
- Smart-Grid Infrastructure - Higher-demand loads and varied-generation sources require an updated grid infrastructure to manage new capacity. Central control systems linked to networked, distributed meters provide the information hardware and software backbone for new smart-grid systems. Advanced materials for power transmission and distribution will help the smart grid bear higher load capacities, become self-healing, and flex between alternating- and direct-current generation sources.
- Grid Management Systems - Analog electricity grids are controlled from a centralized mainframe -- usually a SCADA system -- that relies on information bursts to distribute power load. Digital, information-rich grid management assumes a two-way connection between the central system and the nodes of a distributed generation network. Integrated communication through broadband-bearing power lines, for example, will allow for real-time data transfer and efficient asset allocation, load switching and monitoring of multiple power sources feeding into the grid. New grid-management systems will allow utilities to take advantage of different pricing models and power surpluses available from net metering and demand response.
- Intelligent Network Devices - Intelligent devices installed in homes and businesses that monitor energy production and consumption serve both the needs of both homeowners and utilities. These devices allow utilities to efficiently integrate demand response and net-metering programs within their decentralized smart-grid infrastructure. They allow homeowners the possibility of creating their own power and distributing that into the grid, streamlining income from demand response and net metering. Because communications between the smart-grid management systems and the intelligent home devices are networked, customers are able to track their energy consumption and production patterns online, in real time.
- Advanced Materials and Components- New generations of superconductive cables and power electronics will facilitate the increased load demand and increasing variety of power sources taking advantage of the smart grid. Intelligent hardware and networking software are only one component of the smart-grid infrastructure -- actual infrastructure is a necessity. New transmission and distribution materials will be switched between alternating- and direct-current load, be self-healing and incorporate communications architecture into the grid infrastructure.