Tuesday, June 16, 2009

Efficient Smart Grid Architecture

By Daniel Stouffer

The delivery of electricity between a supplier and consumer is made possible through the use of smart grid architecture. The United States is working with several overseas countries to develop an efficient network which will help to reduce global warming, by promoting the independent use of energy.

Smart grid architecture is effective in any type of enterprise, but is more advantageous in retail stores, warehouses, production facilities, hospitals, universities and other large or multi-building ventures. Because all systems are automated and metered, they track when and how much electricity is used.

Companies have found that they can manage their energy consuming equipment much more effectively when they combine smart grid architecture with software that tracks energy management. Although the cost of electricity fluctuates during periods of different demand, companies that use energy management software have found that they can reduce their demand during high peak times.

The twin technologies of procurement and design come together within a smart grid architecture to more efficiently manage an energy system and track usage. Two Acts of Congress -- the US Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009 actually provide incentives to those enterprises who seek to develop capabilities to make their use of electricity more efficient.

Electrical generation, transmission, distribution and usage combine within the electrical grid to represent one of the major contributors of pollution in the United States. The production of electricity is known to lead to the emission of greenhouse gases into the environment, representing a heavy contributor to the problem of global warming. Most developed countries are keen to raise standards when it comes to the production of clean energy.

The use of a digital grid can lead to a significant reduction in pollution, in addition to cost-reduction, enhanced reliability, potential for renewable energy, and efficiencies in demand response. Through the use of smart technology within the country's electrical grid, the United States Department of Energy has estimated a saving of between $46 billion and $117 billion over the next 20 years.

As education about smart grid architecture expands, more enterprises are expected to be part of the smart grid. Areas of opportunity include industrial enterprises, large complexes like hospitals and universities, small businesses, transmission and distribution systems, and residential customers.

Smart grid architecture helps companies and other enterprises become more energy efficient by enabling interaction throughout the entire infrastructure, including electric generation, delivery and consumption components. Energy management software is the key to saving energy and reducing costs because it automatically monitors real time energy use, weather data, and other critical systems across the entire enterprise. This smart technology enables businesses to procure the best energy rates for their sites.

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