Washington, DC was flooded this week with energy industry veterans and newbies alike at the GridWeek 2009 conference.  The nation’s biggest annual smart grid event brought together consultants, vendors, utilities, and individuals from across the spectrum who share one common goal: to upgrade our electrical grid and bring it into the 21st century.

Many are in agreement that once policy is in place, the first step to enhancing our grid is for utilities to install advanced meters.  And while we’re in agreement that an advanced metering infrastructure (AMI) is critical in developing a smart grid, we’re also interested in the backbone of the grid itself: the transmission and distribution infrastructure.  On the second day of GridWeek I sat down with GE’s John McDonald, general manager of Marketing for GE Energy Transmission and Distribution, to talk about what is going on with the backbone of our grid and what solutions GE has to offer.

Aging transformers are one of the most serious problems facing our current T&D infrastructure.  What exactly is a transformer?  Well, transformers essentially step up voltage when it leaves the power plant and step down voltage before it enters localized distribution lines and our homes and business.  This graphic from the Energy Information Agency does an excellent job of showing exactly where transformers “fit” within our power grid.

According to GE, more than 50% of the transformers currently in use in the United States are at or approaching the end of their design lifecycle.  The average age of a transformer is 42 and the failure rate of these critical devices increases with age.  When a transformer fails, individuals and businesses can lose power.  Such failures, depending on the scale, can come at a serious cost to the ratepayer, let alone the negative effects that a power outage can have on the economy as a whole.

Since 1990, utilities have not invested very heavily in transformer maintenance.  According to McDonald, we are essentially “playing catch-up” to make sure our transformers are healthy and operational for years to come.  To address the issue, GE has launched the Smart Grid Asset Optimization program, which can apparently reduce the risk of unplanned outages and unexpected failure by up to 80% for a full range of transformers simply by monitoring existing equipment.

What GE offers is appealing to utilities because it can save money and safely squeeze what we can from our current infrastructure.  Utilities are unable to replace all aging transformers immediately.  McDonald says that instead of buying new transformers, which can cost anywhere from $2 – $5 million, we can assess the health and essentially “extend the lifetime” of currently held assets.   While many in the smart grid world are focused on installing new components at fairly high price tags, it’s refreshing to hear of a strategy that focuses on working with what we have.  Extending the lifetime of our transformers will give utilities the time to better plan for whole-system upgrades in the future.

For more information on GE and the role it is playing in making the smart grid a reality, visit the newly launched interactive website www.itsyoursmartgrid.com.  We’ll be bringing you more stories from our interviews and encounters at the GridWeek conference over the next few weeks.  As we’re learning, upgrading our grid is key to bringing more solar, and other renewable energy resources, online.