In Michigan, a Smart Meter Plan Gets Scaled Back

Outstanding article! Ironically I finally met Prof. Massoud Amin. He gave a terrific presentation and stayed to answer about two dozen questions. Here are a few related quotes from him, which he just sent with his presentation to many of us who requested it:

“We must modernize the electric power and make it into a smarter, more secure and more resilient system, as it is a lynchpin of our economy and quality of life. I am all for electrons that are available, affordable, eco-friendly, secure and home grown in America.. The overall goal of enabling the smart grid is being missed. It’s not just about the meters, we need to think about the overall end-to-end energy system’s efficiency, security, reliability and resilience.”

He talked about the costs of “... full implementation for a nationwide Smart Grid over a 20-year period (2010-2030):
1) According to his work (1998-present): Cost of about $100-150 billion ($10-$13 billion per year for 10 year or longer).
2) Electric Power Research Institute (EPRI) published a study in January 2010, the actual costs will come in closer to $165 billion over the course of 20 years.
3) Brattle Group, an energy consulting firm: $1.5 trillion spread over 20 years (~ $70-$75 billion per year, an over-estimate or upperbound?).”
“My recommendations are:
Despite the daunting costs of implementation noted above, integration of the Smart Grid will result in:

1) A greater than 4% reduction in energy use by 2030; translating into $20.4 billion in savings;

2) Costs of outages > $80 billions/year (and up to $180 billions/yr), reduced by about $49 billions per year;

3) Increased efficiency, and reduced emissions by 12-18% per year (PNNL report, January 2010);

4) Increased cyber/IT and overall energy security;

5)  Transition from fossil fuel-based power generation to fluctuating energy sources such as wind, sun, and wave power as well as advanced nuclear power introduces challenging demands on the storage, dispatch, operation and integration with the power grid. From an overall energy system’s perspective, with goals of efficiency, eco-friendly, reliability, security and resilience, we’ll enable a stronger, smarter and greener power grid as a backbone to efficiently integrate intermittent renewable sources into the overall system;

6) More efficient to move electrical power through the transmission system than to ship fuels the same distance; in addition the integration of renewable and distributed energy resources and demands will require a smarter and stronger backbone of interconnected high-voltage transmission network and distribution systems.
7) Economic growth and job creation: Electricity’s unique capability to be produced from a wide variety of local energy sources, along with its precision, cleanliness, and efficiency, make it the ideal energy carrier for economic and social development.

From a broader perspectives, in a single century, electricity became the foundation and prime mover of our modern society.  Not just as a clean and convenient form of energy, but as the toolmaker’s dream.  Electricity opened the doors of invention to new technologies of incredible precision, intelligence and communication, and to new forms of instrumentation and innovation.
For the developing parts of the World, the good news is that electricity has been extended to over 1.3 billion people over the last 25 years.  As we have found in South Africa, for every 100 homes electrified, 10 to 20 new businesses are started.  Electricity frees up human labor—hours per day spent in mindless tasks such as carrying water and wood—and it provides light in the evening to read and study by.  These simple basics are the stepping stones to a better life, and a door into the global economy. Electricity is the lynchpin and enabling infrastructure for all knowledge- and innovation-based economies.”

and he asked: “What are the costs of “business as usual” and not implementing change?”