Next100 - A Dialogue on the Next Century of Energy

Nov 11 2008

Everyone Loves Smart Grid

In a much-discussed op-ed column in Monday's New York Times, Nobel laureate and former Vice President Al Gore declared his support for a crash program to modernize the nation's electrical system:

We should begin the planning and construction of a unified national smart grid for the transport of renewable electricity from the rural places where it is mostly generated to the cities where it is mostly used. New high-voltage, low-loss underground lines can be designed with "smart" features that provide consumers with sophisticated information and easy-to-use tools for conserving electricity, eliminating inefficiency and reducing their energy bills. The cost of this modern grid -- $400 billion over 10 years -- pales in comparison with the annual loss to American business of $120 billion due to the cascading failures that are endemic to our current balkanized and antiquated electricity lines.

Gore's vision sounds surprisingly similar to that expressed by the Bush administration's Department of Energy in its publication, Grid 2030:

The Nation's aging electro-mechanical electric grid cannot keep pace with innovations in the digital information and telecommunications network. Power outages and power quality disturbances cost the economy billions of dollars annually. America needs an electric superhighway to support our information superhighway.

Change of this magnitude requires unprecedented levels of cooperation among the electric power industry's many stakeholders. Hundreds of billions of dollars of investment will be needed over the coming decades to accomplish modernization of the electric system. National leadership is needed to create a shared vision of the future and to build effective public-private partnerships for getting there. Imagine the possibilities: electricity and information flowing together in real time, near-zero economic losses from outages and power quality disturbances, a wider array of customized energy choices, suppliers competing in open markets to provide the world's best electric services, and all of this supported by a new energy infrastructure built on superconductivity, distributed intelligence and resources, clean power, and the hydrogen economy.

But as DOE itself noted, "national leadership is needed" to turn vision into reality. President-elect Barack Obama says he's ready to step up to the plate. Here's what Obama told MSNBC host Rachel Maddow on October 30:

One of, I think, the most important infrastructure projects that we need is a whole new electricity grid. Because if we're going to be serious about renewable energy, I want to be able to get wind power from North Dakota to population centers, like Chicago. And we're going to have to have a smart grid if we want to use plug-in hybrids then we want to be able to have ordinary consumers sell back the electricity that's generated from those car batteries, back into the grid. That can create 5 million new jobs, just in new energy.