Smart grids : Wiser wires Economist October 10-16, 2009

An excellent introduction to smart grid technology, this Economist article explains its basic elements and how it works. The grid becomes smart because, contrary to the way it currently functions, the system itself will alert operators of malfunctions. With the use of computers, system operators would be able to repair a damaged grid. Additionally, consumers, similar to what large corporations now obtain, would receive information on peak, and therefore costly demand, and could change their consumption schedules accordingly. Writers label this behavior as 'demand response'. More fundamentally, the article claimed that smart grid technology underpins the 'green' revolution. "Without it, most of the other green technology won't work," says Ben Kortlang of KPCB, a Silicon Valley venture-capital firm" (p. 71).

Demand response by the general public would have multiple impacts on how utilities function. First, with lower peak demand, utilities would require less expensive back-up capacity. Second, utilities could more easily integrate renewable energy with conventional energy sources. Aging utility infrastructure facilitates the development of the smart grid.

The article clarified the "three different strata of technologies, known as stacks" (p. 72). The first stack builds on the major information gathering device, the meter. The stack, the advanced metering infrastructure or AMI, records the type, amount, occurrence, and the price of energy. These meters, like smart phones, "have a powerful chip and a display" (p. 72). Networks form the backbone of the AMI. Two Silicon Valley firms supply this equipment, Trilliant Networks and Silver Springs Networks. The writer anticipated that Cisco and other established firms would enter this market. The remaining stacks included the technology that enables the grid to collect data and set rates and the "home area network", the portion of the technology that applies to the home. With the third stack consumers will know household consumption and which controls and thermostats connect to the network.