What's the Buzz on Smart Grids?

Chapter 1: What's the Buzz on Smart Grids?

1. How do smart grids differ from the current electricity infrastructure in the United States?

One of the main differences between smart grids and present electricity infrastructure in the U.S. is that smart grids provide electricity by utilizing digital technology in order to save energy, to reduce costs, and to increase reliability as oppose to present electricity grids provides electricity which is obsoleted and inefficient (Laudon & Laudon, 2012).

Another difference is that current electricity grids do not deliver any information about how people utilize energy which makes even more difficult to create approaches to distributions in the efficient manner (Laudon & Laudon, 2012). Since current electricity grids do not provide useful information, distributors and consumers may not be able to make proper decisions about how they use energy efficiently (Laudon & Laudon, 2012). Conversely, smart grids provide information to both energy provides and consumers so that they can make decisions for better efficiency (U.S. Department of Energy, 2012).

Additionally, smart grids deliver information from the house to the power provider and can monitor the electricity usage to lower the cost to the consumers and save energy by using them more efficiently (Laudon & Laudon, 2012).

2. What management, organization, and technology issues should be considered when developing a smart grid?

The management issues that need to be considered during the development of smart grid would be to convince the consumer to switch over to the smart grid system (Laudon & Laudon, 2012). The need for smart grid must be relayed to the consumer and shown how the utilization of the smart grid will benefit both the power provider and the consumer by being able to utilize power more efficiently (Laudon & Laudon, 2012). Consumers will like to have their privacy protected, and the management of the power provider must assure their consumers not to feel intruded by the power company but focus on the benefits of the smart grid system such as lowering their electricity bills though the information feedback system that can relay how the energy is being used and the ability to analyze it (Laudon & Laudon, 2012).

The organizational issue that the smart grid system will have to overcome would be the high cost of the smart grid system to be put into place. The meter that needs to be installed in each household may range from $250 to $500 per unit (Laudon & Laudon, 2012). Some consumers are not willing to initially spend the money to have the meter installed especially when they know that to save energy they need to turn off lights and other appliances or electronics when they are not being used (Laudon & Laudon, 2012). Additionally, once the smart grid system has been successfully been set up, the power provider may risk losing revenue as more consumers are able to use their energy more efficiently (Laudon & Laudon, 2012).

The technology issue would be the fact that in the initial installation of the system, it will be time and money consuming on both the consumer and the power provider (Laudon & Laudon, 2012). A completely new system must be put into place and replace the old system. With the advancement of technology, this may become vulnerable to forms of cybercrimes as with any other advanced forms of technology may be attacked (Laudon & Laudon, 2012). Also, the complicated technology may not be user friendly to everyone especially to the elders or someone who is not as technologically aware.

3. What challenge to the development of smart grids do you think is most likely to hamper their development?

The challenges that smart grids face that may hinder their development would be the fact that first of all the startup of the system is very expensive and time consuming (Laudon & Laudon, 2012). The complete infrastructure must be changed in order for smart grids to be fully replaced (Laudon & Laudon, 2012). It is also expensive for the home or business owners to install the meter necessary to monitor the electricity use and have to figure out who will pay for the initial installation of the meter, when the power provider will have to cover the cost of the system running which may be as high as $75billion (Laudon & Laudon, 2012). As mentioned in previous question, the consumers must also be assured that they do not have to worry about being a victim of a cybercrime and their privacy will be protected. Additionally with the advancement of technology, they must make sure it is user friendly to everyone as some consumers are already making claim that they had a hard time figuring out how to read and analyze the meters (Laudon & Laudon, 2012). The hardest part of the power providers starting up with the grid system is to solve all of the issues mentioned above and convince the entire nation to switch over to the smart grid system.

4. What other areas of our infrastructure could benefit from "smart" technologies?

Smart technology can monitor, assess and analyze any form of data and optimize the consumption of resources to be able to utilize them effectively. Smart car can effectively monitor the consumption of gasoline and use it to minimize the consumption and extend it in order to get the maximum miles per gallon ratio to save money and gasoline (McGlaun, 2012). Some cars automatically shuts their engine off while the vehicle is not in motion and automatically turns itself back on when it needs to move (McGlaun, 2012). Hybrid vehicles use gasoline and combine it with electricity to further increase the miles to the gallon ratio.

Other smart technologies that are used in cars would be the two way communication technology that will tell cars where other cars are at and what path they are taking. In that way the computers inside the cars can know exactly where each other are at and avoid collision (McGlaun, 2012). Smart technologies are being utilized in automobiles and other areas not only limited to houses but also electricity in order to maintain and preserve the nonrenewable resources (McGlaun, 2012).

5. Would you like your home and your community to be part of a smart grid? Why or why not? Explain.

I personally would not like to be a part of the smart grid system. I think that the grid system is a great idea for someone who needs to be reminded and guided on how to effectively utilize electricity. In addition, I also believe that it is important for the environment to conserve power; however like many other consumers I know how to conserve electricity. For example, I turn off electronics and unnecessary appliances