The Smart Grid: An Estimation of the Energy and CO2 Benefits
This report articulates nine mechanisms by which the smart grid can reduce energy use and carbon impacts associated with electricity generation and delivery. The quantitative estimates of potential reductions in electricity sector energy and associated CO 2 emissions presented are based on a survey of published results and simple analyses. This report does not attempt to justify the cost effectiveness of the smart grid, which to date has been based primarily upon the twin pillars of
... lars of cost-effective operation and improved reliability. Rather, it attempts to quantify the additional energy and CO 2 emission benefits inherent in the smart grid's potential contribution to the nation's goal of mitigating climate change by reducing the carbon footprint of the electric power system. A key issue that will impact the penetration of the smart grid technology, at least components of the technology that bear upon its functionality, is the acceptance by federal and state regulatory bodies. A major driver for this acceptance is the extent to which the smart grid technology proves to be a costeffective replacement for traditional grid infrastructure while providing equal or improved levels of power vii quality and reliability. This highlights the need for a quantitative method to define and monetize improvements in power reliability and quality that would be enabled by smart grid technologies. In conjunction, is the need to involve stakeholders in adapting the business and regulatory models (planning, monetary, risk, incentives, etc.) from a centralized power system to a more decentralized system.