Energy Independence
Green Jobs
Rising Costs
Power Reliability
Modern Infrastructure
Modern Infrastructure
Issues

Today, the United States uses the most energy per capita—the average American consumes 50% more than the average European and ten times more than the average consumer in China, India, and Africa.1 In fact, we produce 25% of the world’s carbon emissions but account for only 4% of its populace.2 The production of the electricity accounts for 40% of these greenhouse gases.3 And of that, half is still produced by burning coal—the biggest culprit in carbon emissions and airborne pollution.4 In fact, coal and other fossil fuels are still the most widely used sources of energy, accounting for about 72% of our net electricity generation today.5

Currently, renewable sources, such as wind and solar, supply less than 10% of the energy consumed in the United States, with wind and solar accounting for only 5% combined.6 Of electricity generated, hydroelectric power accounts for 6%, and other renewables account for only 2.5%.7

We have the ability to generate much more, but today’s electrical infrastructure cannot maximize the benefits of renewable resources. Today, wind and solar resources connected to the grid are not optimized as a reliable first-tier energy sources. Grid congestion can act as a barrier to full utilization, and renewable variability can cause reliability challenges at relatively high levels of penetration.

Additionally, as more renewable energy is generated by alternative sources, power will be entering the network from multiple locations, including the distribution network (i.e. distributed generation). The current grid was not designed with multi-directional power flow in mind.

Some of the underutilized forms of renewable energy include:

  • Wind
  • Solar
  • Hydroelectric
  • Geothermal
  • Biomass

As renewable portfolio standards are adopted, and as many states are mandating that a greater percentage of renewable energy sources be introduced, renewable generation will likely become a more prominent part of our generation mix.

 
 
  Opportunities

Investing in the smart grid now is a great way to make a "down payment" on the reduction of our carbon emissions. Improving energy efficiency throughout the grid and increasing the ability of the system to more easily accept non-carbon-based clean energy resources are just two of the ways the smart grid can help now.

Research indicates that carbon emissions could be reduced by 25% in America if smart grid technologies are implemented.8 If the grid allowed energy production to be just 5% more efficient, the energy savings would equate to eliminating the fuel and greenhouse gas emissions from 53 million cars.9

Smart grid technologies will also enable higher percentages of centralized and distributed renewable generation to enter the grid efficiently and reliably so they can become significant contributors to our overall energy platform, helping us reduce carbon emissions and defer the need to build more generation.

 
 
  1) InterAcadamy Council. "Lighting the Way." A report on energy.
2) U.S. Department of Energy. "The Smart Grid: An Introduction." Page 13.
3) Energy Information Administration. "Greenhouse Gasses, Climate Change, and Energy." May 2008.
4) Environmental Protection Agency. Climate Change - Greenhouse Gas Emissions. "Human-Related Sources and Sinks of Carbon Dioxide." 2006.
5) Energy Information Administration. "Net Generation by Energy Source by Type of Producer." Data for 2007. 21 January 2009.
6) Energy Information Administration. "Renewable Energy Consumption and Electricity Preliminary 2006 Statistics." Data for 2006. August 2007.
7) Energy Information Administration. "How is my electricity generated, delivered, and priced?". 2007.
8) Electricity Technology Roadmap: 2003 Summary and Synthesis - Power Delivery and Market. EPRI document number 1009321, November 2003.
9) The Smart Grid: An Introduction. Prepared for the U.S. Department of Energy by Litos Strategic Communication under contract No. DE-AC26-04NT41817, Subtask 560.01.04.