Clare Doyle

Abstract

There are many forms of energy which have a role to play in the ‘Renewable Energy Strategy for Ireland’; wind and ocean energy have become manifest as the most feasible forms to lead the way, but biomass, solar and nuclear energy can also play their part. The integration of these new, renewable energy forms into the existing network is crucial to shifting towards a low-carbon, efficient and clean energy system. A ‘Smart Grid’ will be a necessary enabler of this transition. This page investigates Ireland's Smart Grid which will bring intelligence and standardisation to the way electricity is transmitted, distributed, managed and kept secure and will enable Irish consumers to manage their own energy usage.

Introduction

The importance of renewable energy in the years ahead is underlined by European Union (EU) targets. In March 2007, European leaders signed up to a binding EU-wide target to cut greenhouse gas emission by 20% (from baseline 1990 levels) and to source 20% of their energy needs from renewable energy sources, including biomass, hydro, wind and solar power, by 2020. This would be an increase from 8.5% in 2008. To achieve this objective, the EU adopted a new ‘Renewables Directive’ in April 2009, which set individual targets for each of the twenty-seven member states. Ireland’s target is to achieve a 16% renewable energy penetration by 2020. In 2010, gross final energy use from renewable energy had reached 5.5%, as shown in Fig.1. [1, 2]

Fig. 1 Ireland’s Renewable Energy (%) Contribution to Gross Final Consumption [2]

Currently, Ireland’s electricity needs are catered for by a mix of energy sources, as shown in Fig. 2. In addition to the EU Directive targets for overall renewable energy, Ireland has set a national target of 40% for electricity generation from renewable sources by 2020. The renewable generation as a percentage of gross electricity generation had reached 14.8% in 2010. [3, 4]

Developing Ireland’s Smart Grid is integral to effectively incorporating the renewable generators that will be connecting to the grid. It will also facilitate entry of new participants into the electricity generation and supply sectors.

Electricity Transmission and Distribution

The Electricity Supply Board (ESB) currently operates seven thermal stations and ten hydro stations in the Republic of Ireland (see 'A' in Fig. 3 below). [5]

The electricity transmission system, often referred to as “The National Grid”, is a meshed network of approximately 6,500km of high voltage, 110kV, 220kV and 400kV, overhead lines and underground cables and over 100 transmission stations. (B) At the transmission stations power is transmitted from the grid, transformed into medium and low voltages, 38kV, 20kV and 10kV, and diverted into the lower voltage distribution system or directly to large industrial operations. (C) This design ensures that power can flow freely to where it is needed and that if one power station, power line or transmission station is non-operational, whether due to a fault, for maintenance or for any other reason, there are other options or routes available. High voltages are used to reduce or minimise energy losses which would otherwise occur when transferring power over long distances in a lower voltage system. For every doubling of the transmission voltage, the amount of power wasted in the form of heat is reduced by 75%. EirGrid, an independent state-owned body, is the transmission system operator (TSO) for the Republic of Ireland and is responsible for the operation, development and maintenance of the system. [6]

The distribution network (D) is the medium and low voltage electricity network used to deliver electricity from the transformer stations to domestic, commercial and industrial connection points (F) and street lights, and is owned by ESB Networks. ESB Networks is also the distribution system operator (DSO) and is responsible for building, maintaining and operating all the distribution level network infrastructure. This includes all overhead electricity lines, poles and underground cables. (E) Consumers can purchase the electricity from different electricity suppliers who can purchase power on a wholesale basis and resell it. ESB Networks has responsibility to all electricity customers, irrespective of their supplier, for:

Connection to the network
Reading meters and passing these readings to the different supply companies
Restoring supply in cases of interruptions and emergencies [7]

Fig. 2 Gross electricity consumption by fuel source [4]

Grid capacity has remained largely unchanged in the last twenty years, a period that has seen a growth of 150% in the electricity demand being carried by the system. The electricity demand growth forecast in Fig. 4 is based on the Economic and Social Research Institute’s long-term forecast of moderate growth in economic activity. [9]

Fig. 3 Graphical representation of Ireland’s electricity network [8]

Fig. 4 Electricity demand growth, 1985-2025 [9]

To facilitate the necessary increase in renewable generation and to adequately meet the demands of the Irish electricity customers, the capacity of the bulk transmissions system will need to be doubled by 2025. This is where the opportunity and necessity to create a Smart Grid for Ireland becomes apparent.

What is a Smart Grid?

The IEEE defines a Smart Grid as follows: A "smart grid" has come to describe a next-generation electrical power system that is typified by the increased use of communications and information technology in the generation, delivery and consumption of electrical energy.

Fig. 5 Electrical and information infrastructure integration [10]

Specifically, a "smart" grid must be capable of providing power from multiple and widely distributed sources, e.g., from wind turbines, concentrating solar power systems, photovoltaic panels and perhaps even plug-in hybrid electric vehicles. Moreover, since all renewable energy sources invented so far vary greatly with time, a Smart Grid must be capable of flexibly storing electric power for later use, e.g., in batteries, flywheels or super-capacitors or again even in plug-in hybrid electric vehicles. Last but not least, to improve power reliability a Smart Grid must make use of new and highly sophisticated adaptive generation and distribution control algorithms. [11]

In response to the need for such a system, the European Technology Platform (ETP) ‘SmartGrids’ was set up in 2005 to create a joint vision for the European networks of 2020 and beyond. The platform includes representatives from industry, transmission and distribution system operators, research bodies and regulators. It has identified clear objectives and proposes an ambitious strategy to make a reality of this vision for the benefits of Europe and its electricity customers. In Ireland, in 2010, a Smart Grid Roadmap Working Group was established to address the critical needs for a Smart Grid in Ireland. [12, 13]

Smart Grid Components

Some typical components of a Smart Grid include:

Intelligent appliances capable of deciding when to consume power based on pre-set customer preferences. This can go a long way toward reducing peak loads which has a major impact on electricity generation.
Smart power meters featuring two-way communications between consumers and power providers to automate billing data collection, detect outages and dispatch repair crews to the correct location faster.
Smart substations that include monitoring and control of critical and non-critical operational data such as power factor performance, breaker, transformer and battery status, security, etc.
Smart distribution that is self-healing, self-balancing and self-optimizing including superconducting cables for long distance transmission, and automated monitoring and analysis tools capable of detecting or even predicting cable and failures based on real-time data about weather, outage history, etc.
Smart generation capable of "learning" the unique behaviour of power generation resources to optimize energy production, and to automatically maintain voltage, frequency and power factor standards based on feedback from multiple points in the grid.
Universal access to affordable, low-carbon electrical power generation and storage. [11]

Smart Grid Technologies

The technologies of the Smart Grid can be grouped into the following five areas:

Integrated Communications include data acquisition, protection, and control, and enable users to interact with intelligent electronic devices in an integrated system.
Sensing and Measurement technologies support acquiring data to evaluate the health and integrity of the grid and support automatic meter reading, elimination of billing estimates, and prevent energy theft.
Advanced Components are used to determine the electrical behaviour of the grid and can be applied in either standalone applications or connected together to create complex systems such as microgrids.
Advanced Control Methods are the devices and algorithms that will analyze, diagnose, and predict grid conditions and autonomously take appropriate corrective actions to eliminate, mitigate, and prevent outages and power quality disturbances.
Improved Interfaces and Decision Support convert complex power-system data into information that can be easily understood by grid operators. [11]

Fig. 6 Representation of a Smart Grid of the future [12]

Smart Grid Benefits

The Smart Grid has benefits for consumers, businesses, utilities and the country as a whole [11, 14, 15]:

Motivates and includes the consumer

A Smart Grid will allow consumers have access to greater levels of information on their electricity use and facilitate their efforts in managing electricity more efficiently. This can be implemented with informative in-home display devices, on-line billing information and more detailed paper bills. It will also allow consumers adjust their usage to take advantage of the most cost effective renewable generation sources and encourage them to transfer some of their electricity usage away from times of the day when demand for electricity is at it’s peak (and most expensive to produce and with the highest levels of carbon emissions).

Accommodates all generation and storage options

A Smart Grid enables interconnection to multiple and distributed sources of power and storage supporting much greater levels of renewable generation, such as wind and ocean energy. The Smart Grid is better designed to manage these renewable but intermittent sources of electricity as well as providing more control over low carbon conventional generators. It also facilitates the greater use of electric vehicles, which reduces dependence on imported fossil fuels, reduces personal energy consumption and exhaust emissions.

Provides power quality

A Smart Grid provides power free of sags, spikes, disturbances and interruptions. It is suitable for use by data centres, computers, electronics and robotic manufacturing. It ‘self-heals’; automatically detects and responds to routine problems and quickly recovers if they occur, minimizing downtime and financial loss.

Optimizes assets and operates efficiently

A Smart Grid helps the companies that own the generators and the grid infrastructure maintain and improve the existing services efficiently, use their equipment more efficiently and significantly reduce the environmental impact of the whole electricity supply system.

Enables markets

By providing consistently dependable operation, a Smart Grid supports energy markets that encourage both investment and innovation and fosters market integration towards a European integrated market.

Smart Grid Challenges

The following are some challenges that must be faced in the creation of a Smart Grid:

Consumer adjustment

As mentioned, consumer involvement is imperative to maximising the benefit of a Smart Grid. Education and awareness is crucial in empowering the consumer to make the right energy decisions. It will also alleviate fears surrounding privacy and security of energy usage information.

Compatible equipment

Some older equipment must be replaced as it cannot be retrofitted to be compatible with Smart Grid technologies. This may present a costly problem for utilities.

Policy and regulation

Due to the lack of Smart Grid standards at present, alignment of initiatives with market, regulatory and stimulus requirements will be an issue.

Government support

The industry may not have the financial capacity to fund new technologies without the aid of government programs to provide incentives to invest.

Cooperation

The requirement of numerous utilities, businesses and consumers to co-operate and exchange information freely may prove a time-consuming and costly challenge.

Ireland’s Smart Grid

As mentioned, the Irish Government has set an ambitious target of 40% of electricity to come from renewable sources by 2020. This is the highest target in the EU for variable renewable electricity within a single electricity system. [16] There are also targets in place for 10% of transport energy to be renewable and 10% of passenger vehicles to be electric and for an overall 20% increase in energy efficiency, all by 2020.

Ireland has some positive factors that are contributing to the introduction of the Smart Grid system. The fact that Ireland has a Single Electricity Market (SEM) means that the speed at which the rollout of new technologies can be achieved is significantly increased. In conjunction with this, Ireland has an acknowledged ICT and research infrastructure in place and a growing number of Irish companies have started to apply their knowledge to Smart Grid applications.

Smart Meters

Ireland has commenced the process of empowering consumers, educating them in their energy use and enabling them to use energy more efficiently. The Commission for Energy Regulation (CER) in association with ESB Networks, Sustainable Energy Authority of Ireland (SEAI) and Bord Gáis Energy conducted a national trial of Smart Meters. This was one of the largest and most comprehensive trials of it’s kind in the world to date. From early 2009, 6,500 electricity users (both residential and commercial) began using Smart Meters. In 2010 a number of stimuli were introduced to the participants, including various time of use prices, and new smart bills containing detailed consumption and cost information. The statistical evidence from the Residential Customer Behaviour Trial is that the deployment of Time of Use tariffs in combination with other Demand Side Management (DSM) stimuli results in a change in energy consumption. Specifically, the residential trial participants achieved reductions in electricity consumption, both overall and at times of peak usage. [17]

Several DSM stimuli are already available to industrial customers. EirGrid currently operates a ‘Winter Peak Demand Reduction Scheme’ which incentivises businesses to reduce electricity consumption during the peak hours of 5-7pm in winter. They also run ‘Powersave’, which encourage large and medium sized customers to reduce their electricity demand on days when total system demand is close to available supply, and ‘Short Term Active Response’ (STAR) whereby electricity customers are contracted to make their load available for short term interruptions. [18]

Electric Vehicles

A grant scheme has been launched to accelerate Electric Vehicle (EV) deployment. From 2011, car buyers can get a grant of up to €5,000 for the purchase of an EV. New EVs are also exempt from vehicle registration tax for the first three years. The scheme aims to get 6,000 EVs on the road by next year. ESB Networks in conjunction with the Electric Power Research Institute (EPRI) and University College Dublin (UCD) are carrying out a detailed study on the level of electricity charging that can be accommodated on existing low voltage networks. ESB Networks have trialled smart home charging systems for EVs, and 1,500 publicly accessible charging stations and 2,000 domestic charging points have been installed in Ireland. [19]

Sustainable Energy Communities Programme

The aim of this SEAI programme is to demonstrate a range of customer-behaviour technologies along with a comprehensive programme of efficiency upgrades and renewable technology demonstrations in six exemplar communities throughout Ireland. Dundalk, Tralee, Dublin City and Tallaght have so far been identified as four of these ‘Sustainable Energy Zones’. The programme hopes to stimulate a national move towards sustainable energy practice. [20]

Micro Generation Programme

Since 2007 it has been possible for home owners to generate their own low carbon electricity using micro generation technologies. They are then paid to export it back to the grid. Electricity customers who install a small generator on site are referred to as ‘micro-generators’.

A micro-generator might use any one of the following technologies to generate electricity:

Micro-wind-turbine;
Photovoltaic panels (also known as solar electric panels);
Micro-hydro (scaled down version of hydro-electricity station);
Micro-CHP (Combined Heat and Power, fuelled by biofuels, natural gas combustion or fuel cells).

Table 1 below shows the total metered micro-generation in Ireland at the end of 2010. [21]

Table 1 Total Installed Capacity of Micro-generators [21]

Other generation-focused projects are now being undertaken by world-leading developers currently in Ireland. Companies such as WaveBob and Openhydro are investigating tidal and wave technologies in conjunction with SEAI’s Ocean Energy Development Unit, which supports developers of wave energy devices through concept validation, model design optimisation, testing and deployment. [22]

Integration of Wind Energy

EirGrid has completed a study to examine the potential impact of high instantaneous shares of wind power within the entire island’s electricity system. This study is one of the first to significantly model grid behaviour at very high levels of wind penetration. The research shows that with a combined installed capacity of just over 6,000 MW, Ireland and Northern Ireland can reach the 40% target. However, it will at times be necessary to curtail wind farm output in order to maintain the appropriate system inertia to operate a secure power system. [23]

At present, EirGrid is working on the deployment of a Wind Security Assessment Tool (WSAT) in the National Control Centre to help grid controllers manage the increasing levels of wind-generation in real-time. [24]

EirGrid is also a key partner in the EU project to develop a next-generation wind resource forecasting system called ‘Anemos’. A key part of Anemos is the use of high-resolution meteorological forecasts. Anemos software is currently being trialled in Ireland. [25]

Fig. 7 Anemos software schematic [26]

The All-Island Grid Study in 2008, jointly commissioned by the Department of Communications, Energy and Natural Resources (DCENR) and the Department of Enterprise, Trade and Investment (Northern Ireland), included a comprehensive initial study on the extent and cost of the network reinforcements that will be needed to accommodate the renewable energy target. A great deal of network activity is already underway and significant investment has been allocated to it. [27]

Grid25

EirGrid’s ‘Grid25’ strategy proposes to deliver a world class infrastructure for Ireland while striking a balance between costs, reliability and environmental impact. Grid25 comprises a capital investment in the network of €3.2billion, doubling the grid capacity by 2025. Grid25 also aims to enable the different regions in Ireland to develop their potential in attracting new high tech industry and to accommodate population growth. See Fig. 8 for the proposed expenditure by region.

Fig. 8 Grid25 proposed expenditure by region [9]

The 220 kV network was first introduced in the early 1960s in Ireland and the 400 kV network was built in the early 1980s; little has changed with either since. The 110 kV network, which brings power from the bulk networks to individual towns and large loads, also needs to be substantially upgraded. Approximately 1,150 km of new circuits will be required. This represents an increase of about 20% on the total length of the existing network. Of this, 800 km will need to be at 220 kV or higher; the other 350 km will be at 110 kV.

In addition to these circuits, others will be needed to connect many of the new generators to the grid. 2,300 km of the existing transmission network will need to be upgraded to provide greater capacity. This includes 1,100 km or 70% of the existing 220 kV network and 1,200 km of the 110 kV network. New transmission lines will be built at 400 kV and at 110 kV. Building at 400 kV rather than 220 kV is more efficient and provides greater power carrying capability. Building one 400 kV circuit avoids the need for building a multiplicity of 220 kV lines and so has less long-term impact on the environment and on local communities. In the longer term it may be appropriate to upgrade the 220 kV network to 400 kV for similar reasons of efficiency and capacity. In certain limited circumstances, selected 110 kV circuits will be put underground to minimise the impact of new build in a region. This will be considered in areas where there is congestion of urban development, a multiplicity of overhead lines, a relatively wide expanse of water or an area of unique natural beauty. A 110 kV underground solution would not be advanced where the ground conditions were unsuitable either because of the risk to the environment or because of construction difficulties.

The largest investment project within Grid25 - GridLink - is a 400kV development project linking counties Cork, Wexford and Kildare and will facilitate:

Long term demand growth;
The connection of 1,630MW of Gate 3* renewable generation;
The potential for future interconnections with either Great Britain or France;
The efficient use of thermal generation in the south; and
Cater for Network support requirements. [9]

*[The Gate 3 Offer Project refers to the third round of connection offers that are currently being issued to generators under the Group Processing Approach (GPA). The GPA allows for strategic processing of generation applications for grid connection and was introduced by the Commission for Energy Regulation (CER) in 2004. It allows applications to be processed by the System Operators (EirGrid and ESB Networks) in groups or batches known as ‘Gates’.] [28]

East-West Interconnector

EirGrid is building an electricity link called the East-West Interconnector between the electricity grids of Ireland and Britain. The Interconnector is a 500 MW regulated high-voltage direct current (HVDC) link which will provide an increased opportunity to market participants to trade electricity between the SEM on the island of Ireland and British Electricity Trading and Transmission Arrangements (BETTA) market in Great Britain. The connection is being built between Rush North Beach, Co. Dublin in Ireland and Barkby Beach, North Wales in Britain, see Fig. 9 below.

Fig. 9 The East-West Interconnector location

The East-West Interconnector will connect the Irish power system to the electricity grid in Britain through undersea and underground cables and will have a capacity of 500 MW. The cables will connect underground to converter stations at Woodland, County Meath and Deeside, North Wales. The cables go underground from Rush to Woodland mainly along the public road network and avoid urban areas as far as possible. The East West Interconnector will represent an investment of €600 million. EirGrid were granted a loan of up to €300 million from the European Investment Bank. The balance of the EirGrid East West Interconnector will be funded by a combination of further capital investment from commercial banks, EirGrid equity and a €110 million grant from the EU Commission for interconnection.

By connecting to the grid in the United Kingdom (UK), Ireland can access power from right across Europe (via an interconnector from Britain to the continent). This will create a more competitive market and help reduce the price of electricity for consumers. Once the interconnector is in place, Ireland can increase it’s reliability on wind generated electricity as UK suppliers can be used as a back-up for wind power and can be called on during calm days in Ireland. Likewise, when Ireland has excess electricity (including wind generated electricity) it can be exported to the UK. Energy can also be imported from the UK when it is cheaper.

There was some unease in relation to the effect of the static magnetic field generated directly above the interconnector, however, as the field generated is similar to the earth’s natural magnetic field, there should be no cause for concern.

This project requires that a cable be laid onto the seafloor between Ireland and Wales. This cable also needs to be placed underground for some distance on land. In order to alleviate the environmental impact of this project, studies were carried out to choose the route with the lowest possible impact. A fulltime Marine Mammal Observer is also employed to ensure no harm is caused to animals such as seals, dolphins or whales during installation. When the undersea cable arrives on land it will be placed underground until it reaches its local converter stations. The route of the underground cable is being planned to avoid as many environmentally sensitive places as possible.

Construction of this project is well advanced with 95% of road ducting installed in Wales and 86% in Ireland as of 10 December this year. It is scheduled to be operational in Q3 2012. [29]

Distribution Network Improvements

The ESB has set out its own zero emissions corporate plan for 2030 and a related €22 billion long term investment budget. ESB Networks is piloting Self Healing Networks technology. Existing network switches are being allowed to act autonomously in the event of a fault, so that supply is restored to the affected parts of the network from multiple sources and the actual faulty circuit is isolated. In this way supply can be automatically restored to the vast majority of customers without delay or intervention by the central control centre. [30]

ESB Networks is also currently converting the existing 10 kV network 20kV with a view to having all rural networks operating at 20kV by 2025. Extensive SCADA (Supervisory Control and Data Acquisition) controlled distribution automations systems have also been installed. [30]

ESB Networks are also working on other projects to further reduce losses in the system:

Dynamic re-configuration of networks
Re-conductoring
Amorphous core transformers
Installation of capacitor banks
Lower average supply voltage using line drop compensation [31]

Research Initiatives

In addition to investing in the infrastructure to implement a Smart Grid here in Ireland, there is also significant investment being made in areas of energy research. In May this year, the Minister for Enterprise, Richard Bruton, announced a €6 million investment in an applied research centre for energy and Smart Grids under the Strategic Research Clusters (SRC) programme. This new centre will be hosted at UCD and will support the employment of forty high-quality research personnel. It will partner with twenty-five industries involved in developing the Smart Grid, such as ESB, EirGrid, Bord Gáis, Intel, Ericsson, Siemens and many others. These industry partners have committed a further €2.3 million in funding over five years. [32]

Another SRC in place is ‘Information and Communication Technology for Sustainable and Optimised Building Operation’ (ITOBO), whose goal is to develop an anticipating (smart) building that operates on an energy-efficient and user-friendly basis while reducing its maintenance costs. [33]

In April 2010, United Technologies Research Centre (UTRC) established it’s European research base on the grounds of the Tyndall National Institute, University College Cork, at an investment worth €15 million, supported by IDA Ireland. The objective of the Irish research centre, UTRC-I, is to accelerate technologies addressing renewable energy, energy efficiency, and integrated energy systems as well as security systems. [34]

Also in 2010, United Technologies, General Motors, IBM, NXP, Bord Gáis and ESB established the International Energy Research Centre (IERC) supported by an investment of €20 million by the Irish government. The centre is also hosted at the Tyndall National Institute, Cork. The goal of the IERC is to direct research to develop integrated sustainable energy systems. [35]

Smart Grids Worldwide

Ireland is not alone in implementing a Smart Grid. There are many other projects taking place all over the world, with countries investing large sums of money seeking the Smart Grid solution which best suits them. Some details of Smart Grid investment and projects for a number of these countries are given below.

Europe

The ‘SmartGrids European Technology Platform’ was set up in 2005 with an aim of formulating and promoting a vision for the development of European electricity networks looking towards 2020 and beyond. It describes how Europe plans to integrate solar power from the South, wave power from the West and wind power from the North to build the "smart grids of the future" capable of readily transferring bulk power across national boundaries. [15] Ireland is instrumental in providing this wind power. To meet the EU targets, the ‘Dispower’ project was conceived with many partners and a large budget, and the Dispower team has participated in the following smart grid pilot projects: [36]

Settlement “Am Steinweg” in Stutensee, Germany

This pilot represents a typical residential area. It presents only residential loads in a low voltage grid connected to one transformer. The site is a good example of distributed generation with a large percentage of renewable energy into a low voltage grid. One experiment called, “washing with the sun”, consisted of alerting 22 families as to which time periods they could make optimal use of solar energy. Families who responded were credited with a financial bonus on their electric bill. The report states that, “large percentage of these families responded favourably to this opportunity.”

San Agustin del Guadalix, Spain

This pilot includes both residential and commercial consumers. It consists of power supplied to building loads as well as to an experimental grid that supports the installation and re-configuration of a number of distributed components, and incorporates a variety of different power generating units such as photovoltaic panels, wind turbines and diesel generators. The energy management system enables power quality to be monitored and tested with varying configurations of distributed generators, storage systems and loads.

Supply Centre East, Germany

This pilot incorporates both commercial and industrial loads in six different buildings. Power sources include a battery system with a bi-directional inverter and a 5.5 kW co-generation plant. It also includes a high-bit-rate communication system that supports messaging between units solely via their power line connections. The utility can readily check to see how much it saves by managing the battery operation, and it can thereby benchmark future pricing to a privately owned Combined Heat and Power (CHP) facility.

United States

The United States (US) also has some Smart Grid projects in place and it is estimated to have spent $7 billion on Smart Grid technologies to date. [37]

Oncor

In March 2007, Oncor became the world's first utility to install S&C Electric Company's new TripSaver Dropout Recloser™ as a part of a Smart Grid initiative in which the electric grid will monitor, think, act, repair and prepare itself to respond quickly to consumer needs. The Smart Grid will heal itself, sense outages as they occur, monitor equipment performance, report back on needed maintenance, and more, all of which will result in an increase in reliability and service quality. [38]

Southern California Edison

Between 2009 and 2012, Southern California Edison plans to replace more than 5 million existing traditional electric meters with next-generation smart devices, making possible money-saving time-differentiated rates and demand response options as well as home area connectivity with appliances of the future. The new meter system will allow Edison customers with smart, communicating thermostats and appliances to set them to respond automatically to periods of peak pricing and grid emergencies, potentially reducing overall peak demand on Edison's grid by as much as 1,000 MW. The company also has a joint program with the Ford Motor Company to explore the plug-in hybrid vehicles and vehicle-to-grid technology. [39]

Pacific Gas & Electric

Pacific Gas and Electric is partnering with Tesla Motors to further evolve vehicle-to-grid (V2G) technology by researching smart charging - a form of V2G designed to allow remote control charging of electric vehicles connected to the power grid. [40]

American Electric Power

American Electric Power is currently deploying advanced metering and an enhanced infrastructure. Systems will be fully deployed by 2015 to more than five million customers. The company is also collaborating with General Electric to address the full energy pathway from the power plant to the home. [41]

San Diego Gas and Electric

San Diego Gas and Electric is currently deploying smart metering technology that will enable customers to remotely control many different automated digital devices. For example, a homeowner on vacation can use a cell phone to switch appliances on or off, arm a home security system, control temperature gauges, control lighting or program a home entertainment system. On a hot day, the smart meter can send a signal to the home area network to help conserve energy, e.g., a smart refrigerator could reduce energy consumption for the duration of the conservation effort. [42]

It has been suggested that the approach Europe is taking to implement a Smart Grid system is superior to that being taken by the US. Some of the reasons for this are that Europe is:

Using Smart Grids to incorporate increased levels of renewable energy. The US is, so far, focused on energy efficiency and providing consumers with usage information.
Improving system efficiency in order to present a more attractive proposition to encourage consumer behaviour changes. The US is focusing on consumer change first.
Encouraging co-operation between countries in order to lower the cost of smart devices and systems. [43]

It has also been suggested that, as impressive as these European and US schemes may be, emerging economies could surpass these existing leading nations in the implementation of new strategies and infrastructure. [37]

India

India’s Smart Grid spending is projected to increase from $1.1 billion in 2011 to $1.9 billion in 2015. The government has laid out an ambitious effort to upgrade its electricity sector, including a $26 billion commitment over the next five years, separate from the funds allocated for smart grid improvements. India’s Ministry of Power (MoP) is the central government agency that is working most closely on electricity development and it set up the India Smart Grid Forum, a public-private partnership uniting utilities, industry, and academia. The government has also created an inter-departmental task force called the Smart Grid Task Force (SGTF). [44]

China

In 2007, the MIT Forum on the Future of Energy in China took place in Shanghai. This led to the formation of the Joint US-China Cooperation on Clean Energy (JUCCCE), a Non-Governmental Organization (NGO) dedicated to bringing together the international expertise and technologies to accelerate the use of clean and efficient energy in China. The nation’s energy needs are expected to double by 2020. By that time, they project they will have spent $96 billion in smart grid technology. Many of the changes are going to happen in homes, with the nation accounting for 18.2% of global smart grid appliance spending by 2015. [37, 45]

South Korea

South Korea is a step ahead of China in the building of intelligent power distribution networks and is also ramping up Smart Grid investment. The country aims to spend $23.7 billion by 2030 on implementing Smart Grids nationwide to help meet its emissions reduction target, and is building the world's largest smart grid test-bed in Jeju island, in the south of the country. This $65 million pilot program is implementing a fully integrated grid for 6,000 homes, a series of wind farms and four distribution lines. [37, 46]

Analysts see challenges ahead for Asian firms if the United States or Europe are first to set up global standards. Asian firms would have to spend a lot to develop technologies and systems to meet those standards, therefore their participation in the early development stages is vital. [46]

Other Emerging Markets

In addition to the emerging markets in China and India, a group of twenty-five countries in Central and Eastern Europe, Latin America, the Middle East and North Africa, South Africa and Southeast Asia have been identified as representing a $27 billion smart metering market that could reach $49 billion by 2020. All are expected to begin Smart Grid deployments in the next ten years and eleven are expected to begin large-scale deployments within one to three years. The countries expected to begin relatively early Smart Grid deployments include Brazil, Bulgaria, the Czech Republic, Hungary, Mexico, Poland, Romania, Singapore, Slovakia, Slovenia and the United Arab Emirates. Automated metering infrastructure (AMI) deployments will be the bulk of Smart Grid implementation, but there also is strong potential for distribution and substation automation and home energy management technologies such as distributed solar generation and EV supply equipment. [47] Brazil, specifically, is planning for a 16% to 34% increase in renewable energy from sources like hydro, biomass and wind. [37]

The graphic in Fig. 10 below shows the top ten countries for federal Smart Grid investment in 2010, with countries’ sized relative to investment amount. [48]

Fig. 10 Top ten countries for federal Smart Grid investment, 2010 [48]

Conclusions

As can be seen by the graphic in Fig. 10, the value of the Smart Grid industry worldwide is immense and in the next five years it is expected to grow to $171 billion. [49]

In Ireland, the Smart Grid industry including the renewable energy sector and the products, systems and services for generation and collection of such energies are now seen as a key driver of future economic growth. A Forfás report on the green economy, published this year, stated that employment in the sector as of November 2010 stood at 18,750, and is projected to rise to either 23,350 or 29,000 by the end of 2015, using two different projections. [50]

With regard to renewable energy generation, difficulties remain in the form of a backlog of foreshore licence applications, barriers to micro generation, public acceptance of grid development and perceived over- generous on-shore wind supports. [51]

The next few years will be crucial for the renewable energy sector. With immediate action on removing the remaining barriers, the Forfás report claims, the employment target of 29,000 green sector jobs could be reached. [50]

Another barrier which I think will be most important to overcome in the development of Ireland’s Smart Grid will be the successful integration of the Irish consumer into the energy forum. The possible reluctance of the Irish consumer to let their energy information be used or their lack of participation in the efficiency schemes will need to be addressed carefully. Successful education and awareness schemes will be pivotal in ensuring the user interaction section of the Smart Grid functions correctly.

It has become clear how vital it is for Ireland to lessen it’s dependence on imported fossil fuels. The Smart Grid, with it’s increased capacity for renewable energy, together with interconnection with the UK, and over the next decade with Europe, can be seen to be an essential component in the ‘Renewable Energy Strategy for Ireland’.