The emergence of the smart grid and smart grid standards are expected to the benefit of all citizens, yet few fully understand the true meaning of a smart grid and how it will deliver energy more efficiently. Charles O’Donnell, vice president of AC Power Engineering with Emerson (News - Alert) Network Power, recently spoke with Jon Arnold (the full interview is printed below) to share his insights on the smart grid, key players, the Smart Grid Summit and pressing issues facing utilities right now.

 

The Smart Grid Summit’s focus on converging energy, telecom and IT together is an innovative concept, especially in terms of improved efficiencies. O’Donnell is excited about the opportunities that this will present for Emerson in the world market. Such a move could also help to improve the quality of energy delivered to all customers, as this is an ongoing challenge in the industry.

O’Donnell hopes that attendees leave the Summit with an understanding of three key trends that include the widespread distribution of information, the increased penetration of distributed generation and energy consumption management that will maximize efficiency while also lowering costs. He fully expects that 2010 will be the year for the smart grid to be proven and quantified.

 

Their conversation follows.

 

Charles O’Donnell (pictured left): The initiation of the development of smart grid standards under the direction of NIST is a key step in defining the structure of the smart grid. As these standards solidify, equipment manufacturers will gain a clearer understanding of how their products can incorporate smart grid functionality to offer additional value for their customers. If done correctly, the smart grid architecture will serve as a foundation for market-driven innovation. In parallel, the awarding of $3.4 billion in demonstration project grants will prime the pump and provide additional incentive for OEMs to add smart grid capabilities.

 

 

CO: Emerson is closely following this funding opportunity as well as other related opportunities. While we were not the beneficiaries of smart grid Phase 1 funding, we have submitted or participated in proposals under federal funding opportunities for data center energy efficiency, building energy efficiency, and carbon capture and sequestration, which have yet to be awarded. In many of these proposals, there are opportunities for incorporating smart grid functionality in the proposed solutions. We expect our future product development plans to include market requirements for smart grid rid integration.

 

 

CO: A key market for Emerson Network Power (News - Alert) is data center and telecomm infrastructure, including reliable backup power, power distribution, precision cooling, and IT infrastructure monitoring and management applications. With the energy consumption of data centers growing at an annual rate approaching 15 percent, there are numerous opportunities to coordinate energy management within the data center with smart grid functions. So that would be a direct opportunity to offer additional value to our customers through management of their energy consumption. But as smart grid development drives additional demand for IT and telecomm services, the role of Emerson Network Power in delivering reliable infrastructure to support these services represents an additional indirect opportunity.

 

 

Our customers, of course, rely on absolutely clean and reliable power. Utilities face challenges in delivering power with quality that meets the requirements of 21^st century energy consumers, particularly with 20^th century infrastructure built in part from 19^th century technology. Our products help fill that gap. But we see other opportunities to integrate with utilities to manage energy consumption in response to grid conditions, and to provide ancillary services, such as voltage and frequency support and reactive power compensation. These sorts of services will become even more important as distributed generation, such as wind and solar power, gains additional penetration.

 

 

CO: I see the smart grid as the end point of three key trends, first, the widespread availability of information on generation, consumption, transmission, and distribution of electrical energy, and the ability to use that information productively, second, the increased penetration of distributed generation, including energy storage, and third, the management of energy consumption to maximize efficiency and minimize costs. Energy consumers can look forward to products and applications that simplify the analysis and control of their energy use, energy producers will have many more options to meet energy needs with greater efficiency and reliability, and equipment manufacturers and service providers will find many opportunities to add value to their offerings by building on the smart grid platform.

 

 

The first steps taken this year will generate momentum in the further development of standards, as well as demonstration of smart grid technologies. 2010 could be the year that the real value of the smart grid can be proven and quantified. If done correctly, we could reach a tipping point after which the marketplace will drive innovation, if not in 2010, in the years beyond.