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Smart grid

IMS Research reported a huge surge in solar PV module shipments so far this year. A forecast from ABI Research anticipates that in the next five years, smart grid spending could reach almost $46 billion, with much of that for upgrades to our outdated transmission and distribution infrastructure. Just the other day, Wall Street expressed more interest in smart grid components.  Smart grid initiatives and investments have far reaching implications on multiple markets. The Smart Energy Source consortium launched by Central Rural Electric Cooperative, Oklahoma State University, the City of Stillwater and C.H. Guernsey continues to make strides in identifying the overriding risks and benefits to all smart grid stakeholders.

The current partners believe that it is imperative to consider key areas for future sustainability and added value to the consumer. Examples of the benefits include:

  • Economies of scale:  Spreading fixed capital, operation and maintenance costs over a larger consumer base will lead to lower per unit costs and subsequent lower rates for consumers. 
  • Increased financial opportunities:  Access to capital continues to become an increasing challenge as the economic conditions continue to decline. 
  • Elimination of duplicate services:  Greater efficiencies can be achieved by consolidating and, in many cases, increasing overall capacity or output.
  • Increased reliability:  Meeting consumer needs and industry demands with leveraged resources instead of independent sources leads to increased reliability.
  • Increased flexibility:  Because of the greater resources available and the improved economies of scale, consolidating efforts and services opens new possibilities for expanded value and enhanced overall technology. 
  •  Skill improvements:  Independent systems may not have the resources necessary to hire the highly skilled labor force that is necessary in today’s energy environment.  Being able to provide higher salaries could attract highly qualified employees.

The current phase of this evaluation process includes an inventory of smart grid investments and initiatives that are taking place with respect to each partner. Consideration and evaluation will be given to how these assets and resources can better be optimized for value to the organizations, the community and, ultimately, the consumer. 


Written By: jzweiacker
Date Posted: 7/28/2010
Number of Views: 181

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