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SMART GRID -- Education + Information + Knowledge = End of Monopoly
- Posted on January 4, 2011
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With the entire "Transmission Network Interconnected", the end of the Monopoly will ultimately depend on some regulatory rules. The consumer can choose which Utility to buy energy and what energy source will buy. For example, Consumers, Community, Cooperative, City or State located in the area of distribution of a utility, you can buy electricity from any Utility. If the "Tariff Structure" of a Utility is cheaper than that of its region, it can make the choice of which is cheaper.
The trade in energy will have changed their rules to allow "all classes" of consumer access to what we call the "Free Market". Consumers can buy power in the market through a contract or auction, the Utilities sell their energy in this market and the "consumer or group of consumers" will buy the energy by the lowest bidder. The contract of sale shall contain the amount of energy, its source and will have a specified period, which would be renewed or not.
These auctions were held from time to time, Regulatory Agencies set the rules and duration of these contracts.
If the purchase is renewable energy, even if the Utility in your area delivered to your home energy from fossil, you'll know that somewhere a consumer is receiving power from renewable sources -- We recall that the entire transmission network will be connected.
The local Utility in which your house is connected will be responsible for delivering energy and do any service requested, the Utility that sold the energy, put in the "Transmission Network Interconnected" the amount of energy purchased -- Fossil or Renewable. The Utility that sold energy will pay the operator of the network, and the Utility of their region a "Toll" for using their network, the energy bill Consumer be paid to the Utility sold energy.
This possibility is easy to implement and gives consumers the power to choose who to buy the energy that is being used in your home. In the beginning we have some confusion or unforeseen situations, but with time things will work fine.
This model is already used in some countries for consumers of High Voltage and with demand above a certain value.
Prepare for an electric system that is cleaner and more efficient, reliable, resilient and responsive -- a Smarter Grid.
The Smart Grid transforms the current grid to one that functions more cooperatively, responsively and organically smart. Open architecture, Internet protocol, Plug and play, Common technology standards, Non-proprietary and Interoperability.
Fine concepts all, yet one of the reasons the electric industry has been slow to take advantage of common technology standards -- which would speed Smart Grid adoption -- is a lack of agreement on what those standards should be and who should issue them.
The role of the Regulatory Agency is to act as an objective facilitator, allowing the best ideas to prove themselves. Smart Grid efforts are well underway on several key fronts, from forward-thinking utilities to world.
We will offer the consumer some smarter choices, in addition to changing habits and behavior. Surely, this is the least that we expect of an intelligent network?