Utilities could use this as an opportunity to build partnerships with environmental protection agencies and air quality management districts, which represent the interests of clean air. This will become increasingly important as more states adopt stricter air emissions standards, mimicking California’s model. In addition to the use of demand response for the control of peak load, some organizations in New England have looked at the possibility of using demand response to reduce emissions for the purpose of improving public health. In the North East, ISO NE estimates projects that their peak electricity demand will increase by 13-20% between 20. These peaks often correspond with high electricity use, which is a prominent cause of urban air pollution in many places. Levels of ozone and particulate matter sometimes reach levels that are harmful to human health. Demand Response for Managing Air Pollution – Part of the problem of urban air pollution is that it follows “peak hour” patterns, in many areas exceeding EPA’s allowable levels only for a few days or hours during the year.Appliance manufacturers will be able to market grid-friendly appliances for a premium to consumers. The Grid-friendly appliances program from Pacific Northwest National Laboratory gives appliances the ability to sense grid stress and reduce their power use to prevent grid emergencies. Support for more intelligent appliances at the demand-side – A Smart Grid means intelligent appliances.Car manufacturers will benefit from having an integrated, simple charging solution for customers with electric cars. Smart chargers, time-of-use rates, and advanced meters will be key players, helping to manage a very complex control problem on already constrained grids, especially in places such as California. The lack of an integrated communications infrastructure with corresponding price signals will make it difficult to handle the increased load of plug-in hybrids and electric vehicles. Support for PHEVs and V2G – The Smart Grid is a necessity for enabling the next generation of automotive vehicles.Consumer incentive for conservation – With the rollout of advanced metering and real-time pricing customers will finally see the economic incentives for reducing power consumption.This is a benefit to clean power producers. Clean power sources will be able to participate in the market even though they may have a stochastic energy output. Clean power market – The ability to stabilize the power consumption over time for an area using demand response will make it easier to establish a power market. This is a key message for wind and solar producers, as it increases the size of their potential market. The EWEA recently published a report recommending the use of demand response as a natural tool for managing variability in wind resources. These include load curtailment, demand response, and energy storage. Mass-scale renewables – According to the European Wind Energy Association (EWEA) Integrating wind or solar power into the grid at levels higher than 20% will require advanced energy management techniques.This would benefit utilities in managing distributed generation as well as firms that would benefit from improved reliability. While not all distributed generation is clean or efficient, the possibility for distributed solar and wind power is important. Distributed generation – The ability to dynamically manage all sources of power on the grid means that more distributed generation can be integrated with the grid.This could allow utilities to delay additional investments into new transmission lines and generation facilities. Delaying new power plants and transmission lines – The ability to effectively manage load with existing T&D infrastructure means that utilities no longer have to build infrastructure for the peak hours of the year.Utilities stand to benefit from a higher rate of return on capital investment and lower costs. Energy efficiency – Increased asset utilization made possible by smarter energy management means more efficient power plant operation and fewer peaking units.What are the environmental benefits of the Smart Grid? It takes a Smart Grid to deliver PHEV, demand response, energy efficiency and reduced pollution - stating the benefits.
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