That would reduce what is now the tragedy of more than 34,000. Currently, a smart grid environment relies heavily on standards, mainly to guarantee interoperability among systems. The smart grid can cut air pollution from the electric utility sector as much as 30 by 2030. People who are more focused on human health than on environmental sustainability also have compelling reasons to support the smart grid. From the point of view of the power grid manager, effective management of user demand can help. In two-way communication, users benefit from changes in the way they use and buy power. Consideration was also given to whether government policy is required to move parties to incur costs that benefit others. The smart grid can also save thousands of lives. Smart grid implements two-way real time communication, so users can not only receive information, but also feedback their own demand information to the system.
SMART GRIDS BENEFITS FULL
The analysis of ‘social cost and benefits’ encompassed the full range of costs and benefits of smart grids, regardless of the party or parties bearing the costs. Until now it had been assumed that smart grids are above all useful and necessary in the context of a radically green energy system, but the SCBA shows that even an energy system not underpinned by robust climate policy would benefit from such grids. A number of ‘Pilot Smart Grids’ were recently established in the Netherlands to assess actual consumer response to time-indexed price incentives. This is due above all to the changes in user behaviour anticipated when variable energy tariffs are introduced and to cost savings on grid construction and power production.
In virtually all the scenarios smart grids have a positive effect, regardless of whether these build on robust climate policy, involve modest or extensive use of locally generated power, and other variations. The advantages of this type of solution are clear: management of resources is immediately more efficient and optimised, as the grid is capable of preventing.
In the analysis a number of energy scenarios were run through to 2050. This is the conclusion of a social cost-benefit analysis (SCBA) performed by CE Delft and KEMA on a commission from the Dutch Ministry of Economic Affairs, Agriculture and Innovation. Creating ‘smart’ electricity grids would have benefits for the energy supply of the future, leading to lower prices for both private and industrial consumers.
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