Advancing technologies and proliferation of wide ranging electrical and electronic gadgets are driving up the consumption of electricity at a high rate, market research firm TechNavio Insights reportedly found.

 

The researcher predicted that the electricity in North America to make up for 16 percent of the total energy consumption in 2009 as compared to 9 percent about 20 years ago.

 

But the TechNavio hopes that advancing smart grid technology and increasing adoption of smart meters might play a greater role in securing enough electricity for the future.

 

Smart grid technologies provide better ways to track the power transmission and distribution systems. They are the need of the day because existing grids are vulnerable to transmission losses and power thefts. Also, in the current grid structure, various grids are interdependent; so, failure in one grid can lead to a cascading series of failures.

 

“Implementation of smart grids can help avoid such blackouts,” the research firm said.

 

Therefore, the U.S. government has set a target of installing around 40 million smart meters and 3,000 miles of transmission lines by 2012 for an efficient transmission network. This initiative from the government will encourage commercial players to invest more in smart grid technologies and products.

 

 “The efficiency of a traditional electric grid is only around 33 percent,” the researcher said in the report focused on North American smart grid market. “However, with the implementation of some advanced technologies, the efficiency can be improved to around 60 percent.”

 

 Smart grid is the modernization of the transmission and distribution aspects of a traditional electrical grid; transforming the grid from centralized producer controlled network to less-centralized and more consumer interactive network. It delivers electricity from suppliers to consumers, using digital technology which provides more efficient, reliable, responsive, and environment-friendly electrical system.

The report forecasts the size of North American Market for smart grid over the period 2008-2012, and discusses the key market trends, major drivers and challenges for smart grid technologies in the continent.