This past weekend, I went with about 25 other UNC Kenan-Flagler MBAs to the Net Impact annual conference, which was up at Cornell in Ithaca, NY. Over 2000 people attended the conference, which had great speakers such as GE’s CEO Jeffrey Immelt and Grameen Foundation’s head Alex Counts.
My favorite session of the packed two-day conference was entitled, “Innovations in Electricity: The Smarter Grid of Tomorrow, Today”, and had the following three expert panelists:
• Ted Howes, Global Lead of Energy Domain, IDEO
• Cameron Brooks, Senior Director, Tendril Networks
• Michael Jung, Policy Director, Silver Spring Networks
IDEO is a leading product design firm, while the other two companies are emerging firms with demand-response technologies that help make our electric grid “smart.”
Defining the “Smart Grid”
Before jumping in, the panelists defined the smart grid. To paraphrase, the panelists described the smart grid as “the confluence of information technology into the electric sector.” It is bringing networking technology, which already exists, think internet and telecom, to all the devices (e.g., microwaves, refrigerators, air conditioners) linked to the electric grid. Networking technology could help utilities and customers better understand the needs of end-consumers so that electricity use can be lowered when power is not needed, and provided when it is.
Using network technology to create a demand-response system could substantially reduce future energy demand. By demand-response, the panelists explained that when power use is high across a utility’s user area – typically during the afternoon – lights and other devices could be turned off or reduced in houses, stores or buildings. Target, among others, already uses a demand-response system to dim lights in their stores during peak times. According to a recent Dept. of Energy (DOE) report, building out such a system across the U.S. could reduce energy needs by about 30%.
What would a 30% reduction in energy requirementss mean for the U.S.?
With our current energy infrastructure, according to the same DOE study, energy demand/use will increase 30% over the next years, which means we would need to build 188 GWs in new generation (that’s about 188 coal plants!). Smart grid could eliminate this need by using network technology to better gauge demand, and then respond by providing only the electricity needed by end-users.
The transformation will not be easy, because of regulatory and technical challenges (we haven’t toyed with the grid in 100 years!), but it’s doable. Reducing the need for the equivalent of 188 coal plants sounds like reason enough to try.
- Michael Chasnow
Class of ‘11



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