However, smart meters need to fit within a greater network of smart meters, acting as a smart grid in which the utility company can careful balance a range of energy sources, to best handle demand and supply. This technology is what will be greatly needed continued conversion to renewable energy sources. Xcel Energy, a Minneapolis-based energy company, estimated that it will cost less to overhaul the entire grid to increase efficiency rather than build new power plants. The ultimate goal is to ease the peaks and valley in electrical grid demand by wirelessly monitoring and controlling peak energy usage. In order to attain this goal, consumers need to begin to shift their perspective on who should control energy consumption. Until now, customers have become accustomed to controlling demand, however to make use of a smart grid system and avoid further introduction of power plants customer must be prepared to relinquish some control to the utilities.
California's own Pacific Gas and Electric plans to roll out 10 million smart meters by 2012. However, this plan has been met with some backlash against conversion to a smart meter system. A smart meter system does allow the utility companies to monitor a customers energy usage in 30-minuet intervals, which has lead to some consumer's electricity bills skyrocketing due to this new ability to monitor peak-demand usage. This is only one of the barriers obstructing a quick conversion to a smart-grid system. Others include cost, grid compatibility and the fact that there are no set industry smart-grid standards. An example of one difficulty is that if a resident takes the step to install their own means of renewable energy (ie. a wind turbine or solar panels) they must still use a conventional meter. Smart meters are so far unable to 'roll back' when the there is excess electricity being fed back into the system. Until these challenges are met, it may be prudent to hold off on complete conversion.
To get the government perspective, visit the Department of Energy's website on Smart Grids.
To see a smart-grid in action, check out Xcel Energy's $100 million SmartGridCity project in Boulder, Colorado.
