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Smart Grid Architecture Reduces Costs, Emissions PDF   E-mail
Written by Daniel Stouffer   
Sunday, 21 June 2009
The delivery of electricity between a supplier and consumer is made possible through the use of smart grid architecture. The United States is working with several overseas countries to develop an efficient network which will help to reduce global warming, by promoting the independent use of energy.
by DanielStouffer


The delivery of electricity between a supplier and consumer is made possible through the use of smart grid architecture. The United States is working with several overseas countries to develop an efficient network which will help to reduce global warming, by promoting the independent use of energy.

Smart grid architecture is effective in any type of enterprise, but is more advantageous in retail stores, warehouses, production facilities, hospitals, universities and other large or multi-building ventures. Because all systems are automated and metered, they track when and how much electricity is used.

Companies have found that they can manage their energy consuming equipment much more effectively when they combine smart grid architecture with software that tracks energy management. Although the cost of electricity fluctuates during periods of different demand, companies that use energy management software have found that they can reduce their demand during high peak times.

A smart grid architecture relies on technologies of design and procurement to manage an energy system and automatically track usage. The U.S. Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009 provide financial incentives to utilities and enterprises to encourage the development of capabilities that make the use of electricity more efficient and greener.

It is known that the production of electricity leads to the emission of greenhouse gases into the environment. A number of countries, most prominently the United States, are keenly involved in the development of standards to produce cleaner energy. The electrical grid is one of the major contributors of pollution in North America, through electrical generation, distribution, transmission and usage.

By going green using an automated, digital grid, countries can reduce pollution with a more efficient operation. Among the benefits are reduced costs, energy savings, enhanced reliability, more efficient demand response, and the ability to use renewable energy. According to a study by the U.S. Department of Energy, the modernization of electrical grids in the country with smart technology would save between $46 billion and $117 billion over the next 20 years.

As education about smart grid architecture expands, more enterprises are expected to be part of the smart grid. Areas of opportunity include industrial enterprises, large complexes like hospitals and universities, small businesses, transmission and distribution systems, and residential customers.

Smart grid architecture helps companies and other enterprises become more energy efficient by enabling interaction throughout the entire infrastructure, including electric generation, delivery and consumption components. Energy management software is the key to saving energy and reducing costs because it automatically monitors real time energy use, weather data, and other critical systems across the entire enterprise. This smart technology enables businesses to procure the best energy rates for their sites.

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