eNotes

17 May 2011

A summary of:

21st Century Grid Modernization: Enabling an Intelligent Energy Future

U.S. Department of Energy (DOE), Energy & Environment Directorate (EED), Pacific Northwest National Laboratory (PNNL)

1. The new grid will benefit from two-way communications. The real-time price of electricity must be visible to all users. The price must reflect the true cost of power. Price incentives will then drive electricity demand. 2. A modern transformed electric grid must: Carry a higher load. Integrate renewable generation. Support new electric vehicle transportation systems. Store energy. Provide two-way communications to manage demand. Provide grid-wide data on supply, demand, price, and carbon credits. Oversee electricity transactions. Operate seamlessly. 3. The 21st Century Grid will deliver reliable electricity and maximize customer choice. The 21st Century Grid should have 25% renewable sources. 40% of new demand will be mitigated by energy efficiency rather than new capacity. 4. In a transformed electricity market, demand will be a product of cost, source, rate and need. Market signals will be immediate and accurate, and easily accessible to consumers and providers on the internet. Appliances will adjust demand, consumers will be empowered to choose rates and sources. Major market opportunities will be available for service providers.

McBreen eNote: This PNNL report clearly identifies market factors, not government guidance, as being the critical enabler for Smart Gird developments and deployment.

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