Smart Grid: Fewer Blackouts, More Greenbacks for the Northwest
New Report Calls for Regional Smart Grid Acceleration
An emerging revolution in electricity holds tremendous potential for the Pacific Northwest
economy and environment, a new report concludes.
The "smart grid" uses computing technology to dramatically improve reliability, keep electric
bills in check, make power use more efficient, and brings new renewable power on line more
rapidly, says Powering Up the Smart Grid: A Northwest Initiative for Job Creation, Energy
Security and Clean, Affordable Electricity. Issued by Olympia, Washington-based Climate
Solutions with input from leading researchers and experts, the report notes that the Northwest is
already a global leader in this smart energy industry. Regional companies hold a $2 billion share
of the smart energy industry's global $15 billion in annual sales. Northwest utilities and research
institutions are also staking out advanced positions in smart grid deployment.
"Today's grid is mostly composed of traditional technologies. Thomas Edison would recognize
most of it," said Patrick Mazza, author of Powering Up the Smart Grid. "Meanwhile our
economy is going digital while the stress on our electrical power system is growing. The smart
grid can meet these challenges while providing substantial economic opportunities to regions and
companies that lead in smart grid deployment."
The report calls for a Northwest Smart Energy Initiative to accelerate regional smart grid growth
through a program of demonstration projects and regulatory reforms. It sets out
recommendations for Northwest governors and congressional delegates to achieve those ends.
The report is available for free download at www.climatesolutions.org.
The need for a smart grid is evidenced by the growing wave of power disturbances, including the
infamous east coast blackout on August 14, 2003 that turned out the lights on 50 million people
and cost an estimated $6 billion. Columbia University power grid researcher Roger Anderson
notes that "since 1998, the frequency and magnitude of blackouts has increased at an alarming
rate...Blackouts in Chicago, Delaware, Atlanta, New Orleans and New York in 1999, San
Francisco and Detroit in 2000...If present trends continue, a blackout enveloping half the
continent is not out of the question."
"Without a major national effort, the U.S. economy will decay for lack of proper energy to
power it for the potential growth ahead," said Steve Hauser, executive director of the GridWise
Alliance, a national smart grid acceleration effort that includes smart grid leaders such as Areva,
General Electric and IBM.
Local leaders say the smart grid is vital for our region. Port of Seattle Commissioner Lawrence
Molloy notes, "It is hugely important for the Port that regional power networks are upgraded
with smart grid technologies." Wayne Embree of Cascadia Partners, an Oregon venture capital
firm, says, "Accelerating smart grid development in the Northwest will position us well to
capitalize on the inevitable growth and market transformation underway in North America and
especially the booming Asian economies expanding their power systems."
Tens if not hundreds of billions of dollars will be invested in the U.S. power grid over coming
decades. 60% of our energy system's aging infrastructure will need to be replaced in the next 10-
15 years. A PNNL study shows that the smart grid's capability to smooth out peak power
demands alone could eliminate the need for $46 billion-$117 billion in power plant and power
line investments over the next 20 years. This and other smart grid economies will help keep the
lid on power bills and preserve jobs in all industries dependent on reasonably priced electricity.
And the smart grid can do more than preserve jobs that would otherwise be lost because of
unreliable and overpriced electricity. It can create brand new jobs creating brand new products
for use in the Northwest and for sale to the rest of the world. Indeed, the Northwest is already
taking a forward position. Among its smart grid leaders are Spokane-based Itron, world's largest
maker of digital power meters; Schweitzer Engineering Laboratories of Pullman, Washington, a
global leader in digital power switches; and Areva T&D, Bellevue, operating around the world to
automate power delivery networks. Public sector leaders include Pacific Northwest National
Laboratory (PNNL), a major player in GridWise. The Northwest Energy Efficiency Alliance is
extensively demonstrating energy-saving digital control systems in local power distribution. And
the Pacific Northwest GridWise Testbed, made up of PNNL, Bonneville Power Administration
(BPA), Portland General Electric and PacifiCorp, starts up a series of smart grid demonstration
projects this summer. BPA is also engaged in one of the transmission industry's most advanced
efforts to replace traditional line upgrades with digital information technologies.
The smart grid will also offer new capabilities to bring on-line varying power flows from wind
farms, solar panels and other renewable power sources, and to integrate vast numbers of small-
scale localized generators such as fuel cells and microturbines. The diversification of power
sources plus the capability to manage end-use demands provides new security against blackouts.
A RAND Corporation study found smart grid technologies could reduce power disturbance costs
to the U.S. economy by $49 billion per year.
Learn more about Smart Grid technology at the Climate Solutions website. Climate Solutions is an Earth Share of Washington organization.
