Efficiency is the ‘smart’ in power grids

When you hear the term “energy efficiency,” what comes to mind? Most of us would probably think of compact fluorescent light bulbs, EnergyStar-certified appliances or maybe hybrid cars, all consumer products that have been engineered to use less energy. Efficiency is understandably largely associated with the consumer.

It’s not surprising given the number and variety of new energy-efficient products that are available today, but it also can limit the efficiency discussion unnecessarily to one sector of the economy.

In fact, there are enormous energy savings to be had that don’t directly involve consumers at all. I’m speaking about energy efficiency in our electric power systems, both in how electricity is produced and transported and also in how it is used in industrial settings. In both cases, the introduction of more sophisticated controls, new materials and advanced monitoring and communication systems can produce tremendous results that save money while reducing emissions of CO2 and other pollutants associated with power generation from fossil fuels.

A greener energy infrastructure is one of the most-cited benefits associated with building the smart grid. What exactly falls under that category varies depending on whom you ask, but an inclusive definition would extend the “smarts” from meters and IT systems to the equipment that actually carries the power from generation plants to our homes and businesses.

Take for example distribution transformers, the ubiquitous grey cylinders on top of utility poles and the green boxes mounted on cement pads in many suburban neighborhoods.  The Department of Energy recently implemented new standards for improved efficiency in these devices, and while the gains may seem small — around 4 percent — they will be multiplied across the more than 40 million units currently in service across the country.

Today, around 6 to 8 percent of the electricity leaving a power plant never makes it to the outlet in your wall due to “line losses” in the transmission and distribution system, which uses mostly alternating current (AC). Direct current (DC) transmission can cut those losses by 25 percent, but historically it has only been cost-effective for moving large amounts of power over long distances.

The technology has advanced to the point now, however, where high-voltage DC transmission is viable for shorter distances, and is particularly suited to delivering power from remote locations like offshore wind farms.

Lower losses, greater efficiency — that certainly sounds like a “smart” grid.

Of course, much of the attention focused on smart grid technologies is aimed at the monitoring, control and communication systems used to operate the grid itself. Here, advanced computer applications already allow grid operators to locate downed lines, optimize power flows across the system, and load transmission lines closer to their physical limits using precise measurements of real-time grid conditions. All of this allows us to get more out of the equipment we already have.

Making use of proven technologies also extends to improving efficiency in how we use electric power. Electric motors in industrial plants account for more than 20 percent of all the electricity used, yet the vast majority run at full speed all the time, whether they need to or not. Applying a motor control device known as a variable speed drive can cut the energy used by industrial motors by anywhere from 20 to 50 percent, which makes for a compelling cost-benefit analysis. Imagine the impact of a 20 percent reduction on a six-figure utility bill.

Solving the energy-climate challenge will require us all to change the way we look at and use energy. The individual will not be exempt from the solution.

However, as these examples demonstrate, there are proven technologies available today that can be applied at the utility and industrial levels to achieve tremendous gains. Energy efficiency is the most expedient way to reduce our carbon footprint, but it also comes with a built-in business case. It may not be the most glamorous part of the solution, but it certainly deserves the spotlight.

Santacana is president and CEO of ABB Inc. ABB is the world’s largest supplier of power systems and equipment, and is involved in a wide variety of smart grid development projects around the world ranging from monitoring and control systems to advanced transmission technologies and energy efficiency.

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