Smart Grid
If we are not careful, smart grids are in direct collision with the bill of rights. Some smart grid activities define or enable business practices for balancing energy supply and demand. There is a direct link between commonly accepted business practices and some definitions of our constitutional rights. With the best of intentions, we may be casually removing significant barriers to some of our most cherished freedoms...
But there’s no way to store energy, he said. What he should have said is that there are few ways to store energy at grid scale. Grids, and microgrids, have two approaches to storing energy. They can store it in something that produces electricity, or they can store it in any format that provides a service to its customers. The closer we get to the end users of energy, the more options we have to store energy. The most critical short term goal of smart grids might be to transfer as many incentives for energy storage to the end nodes of the grid as possible as soon as possible.
It is no secret to readers that I think we can best balance energy supply and demand using pure economic transactions. Whatever you feel about flash trading, those markets with millions of 14 millisecond transactions prove that we know how to run markets fast enough to manage even the most demanding decision making on smart grids. Free energy, that is energy markets unencumbered price and reliability arbitrage, is certainly the fastest path to the technologies we need to balance supply with the increasingly volatile supple we foresee. But today’s utilities serve a social justice purpose that I have been unable to reconcile...