Access Economics Pty Limited. 2009. The Economic Benefits of Intelligent Technologies. April.
"This report reviews the potential economic benefits that may flow from the adoption of smart technologies and systems in different parts of the economy...The amount of all forms of data that are regularly collected throughout the community rapidly expand on a daily basis. Intelligent systems have the capacity of using these data to improve decision-making and co-ordination throughout society, thereby lifting economic efficiency and living standards" (i).
"Overall, the adoption of smart technologies and systems in the five areas identified are conservatively estimated to result in:
• an increase in the net present value (NPV) of Gross Domestic Product...of between $35 billion to $80 billion over the first ten years, with precise estimates depending on how much spare capacity is in the economy;
• in the case where the economy is operating at full employment, an increase of labour productivity of around 0.5% as the deployment of the technologies becomes widespread; and
• in the case where the economy is operating at less than full employment the impact on jobs is more pronounced as the technologies become widespread. In 2014 alone this results in more than 70,000 jobs being added to the economy" (ii).
This report explores different areas in which smart technology can have profound effects, specifically electricity, transport, health, water and high-speed broadband (HSBB).
"The rollout of high speed broadband both enables the more effective implementation of smart technologies in other areas of the economy-including electricity, water, transport and health-as well as providing other direct and substantive benefits to individuals, businesses and the environment through the availability to deliver a range of commercial, government and information services more efficiently" (1).
The report reviews the literature on the topic, and then explores smart-technologies in an equilibrium model. Two scenarios are then explored: an economy at full employment and an economy with less than full employment.
Showing posts with label Smart-Grid. Show all posts
Showing posts with label Smart-Grid. Show all posts
Wednesday, August 19, 2009
Friday, July 31, 2009
Hledik: How Green Is the Smart Grid?
Hledik, R. 2009. How Green Is the Smart Grid? The Electricity Journal 22, no. 3: 29-41.
"A simulation of the US power system suggests that both conservative and more technologically aggressive implementations of a smart grid would produce a significant reduction in power sector carbon emissions at the national level. A conservative approach could reduce annual CO2 emissions by 5 percent by 2030, while the more aggressive approach could lead to a reduction of nearly 16 percent by 2030" (29).
Two scenarios are examined, as the concept of "smart grid" has not been fully concretized. Scenario one explores technologies that are currently available. The second explores an expansion of possible future technologies.
"At a basic level, the smart grid will serve as the information technology backbone that enables widespread penetration of new technologies that today's electrical grid cannot support. These new technologies include cutting-edge advancements in metering, transmission, distribution, and electricity storage technology, as well as providing new information and flexibility to both consumers and providers of electricity. Ultimately, access to this information will improve the products and services that are offered to consumers, leading to more efficient consumption and provision of electricity" (30).
A key aspect of smart grid technology is advanced metering infrastructure (AMI). This leads to dynamic pricing of energy.
There are a variety of pushes to produce more energy from renewable sources. These each have different goals. Doubling the Renewable Portfolio Standards (RPS) would lead to 19% of energy being produced by renewables in 2030. T. Boone Pickens calls for 20% from renewable by 2020, as does the EU. The New Apollo program wants 25% by 2025. Google's energy plan calls for 60% by 2030. Repower America suggests that 75% come from renewables in the next 10 years.
The Brattle Group's RECAP model is used to explore these scenarios using EIA data and assumptions.
"Among the key outputs of RECAP is a forecast of the CO2 emissions from both existing and new power plants. This forecast depends on both the projected mix of new plants that will be added to the system, and the operation of all power plants that are connected to the grid. Implementation of a smart grid will influence both of these. In this study, there are four specific smart grid impacts that have been modeled" (37). These are: peak demand reduction, conservation, increased penetration of renewables and reduced line loss.
Three scenarios are explored out to 2030. Firstly, a business as usual forecast, which shows average annual increases in CO2 emissions of 0.7%. Secondly, the Conservative Scenario, which posits the effects of existing ICT technology on CO2 shows an average annual growth of 0.5%. Finally, the Expanded Scenario shows an average annual growth rate of -0.1%.
Overall, dynamic pricing leads to a nominal improvement in overall CO2 emissions. The combination of dynamic pricing and information displays leads to a 5% reduction in annual CO2 emissions. "By far, the single largest reduction comes from the cleaner mix of generating capacity that is enabled by distributed resources and an expanded transmission system, amounting to a 9.9% reduction in CO2 emissions" (39).
"A simulation of the US power system suggests that both conservative and more technologically aggressive implementations of a smart grid would produce a significant reduction in power sector carbon emissions at the national level. A conservative approach could reduce annual CO2 emissions by 5 percent by 2030, while the more aggressive approach could lead to a reduction of nearly 16 percent by 2030" (29).
Two scenarios are examined, as the concept of "smart grid" has not been fully concretized. Scenario one explores technologies that are currently available. The second explores an expansion of possible future technologies.
"At a basic level, the smart grid will serve as the information technology backbone that enables widespread penetration of new technologies that today's electrical grid cannot support. These new technologies include cutting-edge advancements in metering, transmission, distribution, and electricity storage technology, as well as providing new information and flexibility to both consumers and providers of electricity. Ultimately, access to this information will improve the products and services that are offered to consumers, leading to more efficient consumption and provision of electricity" (30).
A key aspect of smart grid technology is advanced metering infrastructure (AMI). This leads to dynamic pricing of energy.
There are a variety of pushes to produce more energy from renewable sources. These each have different goals. Doubling the Renewable Portfolio Standards (RPS) would lead to 19% of energy being produced by renewables in 2030. T. Boone Pickens calls for 20% from renewable by 2020, as does the EU. The New Apollo program wants 25% by 2025. Google's energy plan calls for 60% by 2030. Repower America suggests that 75% come from renewables in the next 10 years.
The Brattle Group's RECAP model is used to explore these scenarios using EIA data and assumptions.
"Among the key outputs of RECAP is a forecast of the CO2 emissions from both existing and new power plants. This forecast depends on both the projected mix of new plants that will be added to the system, and the operation of all power plants that are connected to the grid. Implementation of a smart grid will influence both of these. In this study, there are four specific smart grid impacts that have been modeled" (37). These are: peak demand reduction, conservation, increased penetration of renewables and reduced line loss.
Three scenarios are explored out to 2030. Firstly, a business as usual forecast, which shows average annual increases in CO2 emissions of 0.7%. Secondly, the Conservative Scenario, which posits the effects of existing ICT technology on CO2 shows an average annual growth of 0.5%. Finally, the Expanded Scenario shows an average annual growth rate of -0.1%.
Overall, dynamic pricing leads to a nominal improvement in overall CO2 emissions. The combination of dynamic pricing and information displays leads to a 5% reduction in annual CO2 emissions. "By far, the single largest reduction comes from the cleaner mix of generating capacity that is enabled by distributed resources and an expanded transmission system, amounting to a 9.9% reduction in CO2 emissions" (39).
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