A smart grid can be compared with a modern IP-based broadband telecommunications network. It is an intelligent, managed, controlled, and ultimately self-healing IP overlay on top of the existing electric distribution network, capable of closely matching supply with demand while improving efficiency and reliability.! p0 P+ n" C0 x' r! ^6 J3 H
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9 L+ g6 \1 X- n IBPL technologies, sensors and control devices combined with integrated high-speed communications and advanced analytic software provide utilities with actionable intelligent reports and information.6 w# `! I6 t4 x4 ~' Q: i+ [2 ^6 m
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- q7 c, w; L/ |" ~: | n1 x7 p1 `; T/ h) `A smart grid will also offer all the smart meter features which will allow users and utilities to utilise information about usage, supply, real-time price as well as allowing them to better manage energy use both from an end-user and a supply perspective. Full active and passive demand side management, especially in periods of high-demand, is available to the utilities.) E5 @( D$ D+ q( V8 l. J; T' X2 E
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Smart grids can also enable and manage the effective use of a diverse and highly dispersed portfolio of renewable distributed generation sources, within an overall energy system. * q: h6 Y, Y& {5 F0 p# |1 \, | 2 ]7 S# T, J/ V* J ( O( u0 J6 y3 l0 u) q. A; x 4 {' n) X* O+ t* T) R$ j0 o9 ]4 gExcess capacity can also be used to deliver voice, data and video-based broadband services to people’s homes and businesses.( p5 h; Q3 j8 A: [4 v5 t, T$ s: y
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Smart Grids originated, a few years ago, from the utilities’ need to be able to capture electricity usage in 30-minute intervals. This enables differential pricing by time-of-day and enables utilities to discourage certain types of ‘non-time-critical’ use during periods of high demand. Reducing peaks has a major impact on electricity generation costs – alleviating the need for new power plants and cutting down on damaging greenhouse emissions." b( c$ t2 L2 p! a5 Y5 A
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It soon became clear that the additional information these meters generate can no longer be kept in the meter to await a bi-monthly or quarterly meter reading! ; \& |; D! V- |; I7 ~ 1 Z' X( u& p9 B, T1 v" n * ^' c% h h' S
6 j& m, S5 z4 [3 p2 a# @% vSo what had been a metering problem became a communications problem (unfortunately in most utilities these two activities are dealt with in separate divisions). However, utilities are increasingly accepting the fact that they will have to consider the deployment of communications technology to enable the information to be sent electronically on a regular cycle. 8 r% x- m7 S6 c/ ^% B' m6 u, G# @* k
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Global warming – a new important political consideration, T4 X4 B0 Y5 U4 p/ @2 h
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The key reason the smart meter issue has been raised around the globe was the understanding that one can’t go on building power stations forever, and that a far more efficient use of energy was required for modern societies. On top of that are the environmental considerations, and the responsibilities that rest upon both the utilities and the state and federal governments. " ^6 W" ~& y6 V2 n% @: [' B- x, \ @: ?" I, Z
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" x' ~/ A S# f- H$ jSeventy per cent (70%) of the cost of the smart grid overhaul is associated with the physical replacement of the meters in residential homes. We can afford to pay a bit more for a smart meter that can be left there for the next 15 years. Furthermore, smart meters are gateway products; home-owners can link other applications also, and upgrading simply becomes a software update, not a meter replacement.. b$ L7 V$ y" I
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7 y1 u! `" ~' h i B ; N! s$ C6 B. e. RThis is all the more reason to go for an open standard, which will allow customers and utilities to add plug-and-play devices to the smart grid connection in the home or on the utilities’ infrastructure. Already many new energy saving and reliability improvement applications are becoming available and this will only increase over this market over the next few years. Interoperability should be a key element in the technology selection. Globally the IP standard is accepted by every single company in the communications industry, it therefore simply also has to be the standard of any smart grid network.0 A/ h0 W$ P4 P5 r+ |+ A
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40-year-old proprietary solutions are not smart) \+ s5 R5 i, K/ I( a* d$ x
9 m# I8 T. c; F9 ?, ^5 E/ yFrom a strategic point of view it is obvious that meter reading constitutes only a small part of a much bigger process of modernisation – one that is being undertaken by the leading utilities all over the world to deal with those economic and environmental issues. The term ‘smart grids’ is rapidly gaining currency – it involves embedding computer and communications technology throughout electricity networks to deliver significant benefits in operational efficiency, fault anticipation, problem isolation/service restoration, asset management and the like.) ?" f2 G4 }) _' ~! N
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In the rush to get energy saving plans underway, proprietary system - containing 40-year-old technologies – and based on narrowband, are sometimes suggested. This would address the 30-minute interval reading, but it does not take into account the smart grid options that are required to create all the other economic and environmental benefits. This is an inadequate solution that would exclude smart solutions for another 15 years (changing meters in people’s homes is not something you would wish to do every few years)." m; k* `9 @0 B
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Countries should go for smart solutions 6 Y1 s$ b9 Y$ {" L, X" n! [# _7 C& x+ i/ N2 L) N+ ~
The potential benefits of a full smart grid implementation are dramatic. Some US studies have suggested that savings of between 10% and 25% in electricity demand (and greenhouse emissions!) are achievable. Given that electricity consumption is the cause of around 40% of greenhouse emissions in the USA there are few initiatives that promise such significant benefits at a time when global warming has become one of the hottest issues confronting humanity., l) [* O/ J) d y1 i* A* B0 e. Y3 J
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On a more everyday level, efficient electricity networks ultimately flow through to tangible savings to the consumer.7 N5 `# p* H+ Q) k
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So what is the solution? ( N; F' c6 L6 K, t# f( _9 F4 F + m6 V' H% N8 KThis raises the question of what level of communications will be needed to support advanced smart grid deployments. Some will argue that a low performance ‘narrowband’ solution is all that is needed to read meters, and the sooner we get on with this the better! As mentioned, the risk in this approach is that, since utilities can only upgrade meters every 15 years or so, the communications solution that is deployed today is what the utility will be stuck with for the next generation of investment.- H3 Z0 E- P6 ?" [; T* a; A& J
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A limited, narrowband communications solution will not support the real-time information flows that are involved in a smart grid deployment. It will not have the capacity to support communication between the utility and the plethora of increasingly intelligent appliances that we can expect to see in coming years. One only has to think back 15 years to see how progress would have been limited if the decision had been taken to lock into that old 486 computer with its 32 Mbytes of memory and 20 Mbytes of hard disk capacity for the next 15 years!* m1 k& M1 {9 y
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Let’s make smart decisions1 N5 y8 \: x( ^( H* S3 T6 b
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The pressure to modernise electricity grids is commendable! However, if in our rush to make progress we take short-sighted decisions that foreclose our future for the next 15 years or so, the environment will be the loser. ) [: Z: |3 V0 }" f. } # w, F3 r- Z7 _6 ~' q& f $ L; |: a! B5 d& X+ g) S) I1 I- I; [. p+ H# I) _
We needs politicians to lead the way in this important area, with a clear and far-sighted vision for the future.. ~5 F/ h8 l% y' A m! t
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) r: \; l* w, \* HThe meter manufacturers would be only too happy to come back in few years’ time and do it all again, with proper smart meters next time, but this is about our future. If we get it right now, it will be our communities who will profit from lower prices and a cleaner environment. If we install dumb meters it will be their tax money that will be wasted. Furthermore, they will not be able to profit from the cost savings that a smart grid can deliver. * {2 ~0 j+ r# `+ j# ~5 k2 a# n8 W 6 Y( v. Q' B( K- q9 r 5 B5 k7 m! ^) o/ X5 G0 l7 S; n. M* E1 X: p/ T7 M/ A* t- ~( {( F
The broader picture 7 c) n; k. o3 V8 i% j; b! G1 y9 x4 P' z( b
Finally, the benefits of smart grids go beyond the utility. Governments are able to make decisions on the basis of a societal cost/benefit analysis and could therefore recommend solutions which a utility alone may not. The multi-utility and non-utility potential of high speed communications to the house delivered in conjunction with electrical infrastructure is another benefit of a smart grids, this could help developing compelling business models. ! K0 ~0 y% g3 X+ i 9 X) G) D3 \+ ~$ _; O5 [% D M6 V 7 K) ]3 J1 V4 x+ T9 G5 U! T( a8 D; P: N/ g
Building on this, we shouldn’t try to solve communications for last mile requirements in isolation from other network communications needs and thus preventing synergies from being obtained. Other initiatives such as regional broadband and national Fibre-to-the-Home networks are all closely connected to each other as well as to Smart Grids.# l2 ?& C) y# z1 p' c) ~& k
1. Pinc Australia’s first smart grid 9 x4 p% _, ]4 W. m4 s, g . ]" q' R7 f9 W3 u# ?In mid 2007 Energy Australia’s launched it new infrastructure project ‘Pinc’ (Platform for Intelligent Network Communications), based on an IP-based intelligent telecommunications network built by Alcatel Lucent. " a- l& X& i" ? |$ Q) t4 m 1 }8 c! T: T z% d: J+ j4 ]4 a4 R ^5 h6 l/ u1 u) L, z
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It is Australia’s first smart grid (the backbone component of it) and the company is well advanced in rolling this out throughout its footprint; 700km of fibre will link 200 substations. This smart grid will eventually be extended to include smart meters at customer premises, using World Interoperability for Microwave Access (WiMAX) and other broadband access technologies. - H5 I2 H; R; ^% ^ D" n# P, r% n( u6 e7 q
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And other utilities, such as Etsa/Powercor and CitiPower, as well as Ergon, Integral and Aurora, are not far behind. This is proof that the concept of a smart grid is not just a theory but is seen as the way forward, at least by our leading utilities.