Implementing Grid Enhancing Technologies Could Save $5 Billion Annually
Could so-called grid enhancing technologies represent the saving grace of the energy industry? According to a new report from The Brattle Group, the answer is a resounding “yes”! But what exactly are “grid enhancing technologies” and how could they help? Read on for the full scoop.
The Nuts and Bolts of Grid Enhancing Technologies
The objective of grid enhancement technology is to unlock untapped capacity within the grid. Sounds pretty ambitious, so let’s take a deeper dive.
The Brattle Group report modeled the benefits of deploying a set of grid enhancing technologies within the infrastructure serving Oklahoma and Kansas. The analysis suggests that a $90 million outlay would generate savings of more than $175 million annually. I’m no math whiz, but this implies that payback period on a $90 million investment would be less than a year. Um, color me skeptical.
The paper’s hypothesis is that the portion of the grid evaluated (operated by the Southwest Power Pool) would benefit from the introduction of such technologies because these solutions could increase the renewable energy capacity of the grid.
Specifically, the technology would allow the green-lighting of multiple solar and wind energy projects in the region that have been held up over concerns that they would overwhelm the grid. Doing so would more than double the region’s generation capacity, while replacing fossil-fuel sources with more environmentally-friendly renewable energy sources.
Because Oklahoma and Kansas generate approximately 8% of the nation’s wholesale energy, the paper did the math to come up with an estimate of $5.3 billion in potential cost savings across the U.S. This is the equivalent of taking 20 million gas-fueled vehicles off the roadways.
So, what exactly constitutes grid enhancing technologies? Well, this could include dozens of things, including dynamic line rating tools, topology optimization technology, advanced power flow control mechanisms, and similar items.
The burning question is, will the grid enhancing technologies covered in the research ultimately become ubiquitous? Probably not anytime soon, as utilities are not currently rewarded for the efficiency of their systems. Utilities in general are rewarded for reliability, not innovation. But hey, it’s fun to dream right?
