In the United States, electricity is generally something that we take for granted.  We flip a switch and a light illuminates the room.  Yet the system behind that switch is extremely complex and increasingly inefficient.  Luckily, entrepreneurs, utility owners, and policymakers are collaborating to address such inefficiencies with the application of digital technology.  The smart grid.  You’ve probably heard the term before.  In this four-part series, we will explore what exactly the smart grid is, why our current grid is inadequate, how we will benefit from a smart energy grid, and exactly where we stand today in upgrading our electrical grid.  The final section will also look at what this all means for solar energy.  First, let’s try to understand what the news media and policymakers mean when they talk about the smart grid.

As the summer of 2009 enters full swing, the term “smart grid” is popping up everywhere.  Capitol Hill, General Electric, Google, Cisco, the Obama Administration, and maybe even your local utility have started talking about building out the smart grid.  Major dictionaries and encyclopedias have yet to define the term, yet those operating within the sector have each attempted to describe exactly what the smart grid is.  After culling through various public and private sector reports, the smart grid can best be defined as the application of 21st century information technology to bring about more efficient use of electricity from production to consumption.

Companies such as Google, Tendril, Silver Spring Networks, GE, and more have all begun to bring innovative technologies to the smart grid table.  Many of these companies are beginning to forge partnerships with utilities in order to see the application of smart grid technology.  A perfect example of this is Tendril, which has partnered with Xcel Energy to create a “Smart Grid City” in Boulder, CO.  The purpose is to use the Boulder pilot as a platform in which to learn more about how advanced meters work, how to improve the information loop between consumer and utility, and if consumers will indeed alter behavior and become active participants in energy consumption.

Now that we have an idea on what the smart grid entails and who some of the major players are in the industry, the next step is to understand why we need to upgrade our energy grid and, in essence, get smart with regard to our electrical network.

Next Week

The Smart Grid, Part II: Why We Need It