Comments on: Xcel Energy’s Smart Grid http://www.cleanenergydigest.com/2008/05/10/xcel-energys-smart-grid/ Clean Energy News, Analysis and Opinion Tue, 06 Jan 2009 21:02:17 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Rob Safuto http://www.cleanenergydigest.com/2008/05/10/xcel-energys-smart-grid/comment-page-1/#comment-213 Rob Safuto Thu, 22 May 2008 00:23:32 +0000 http://www.cleanenergydigest.com/?p=151#comment-213 There are several components to a successful smart grid strategy in my opinion. You need the right hardware at the customer. You need a strong communications network. You need robust data centers and software. You need transparent pricing that rewards a shift of load to the off-peak hours. If Xcel doesn't move to dynamic pricing right away they can always do so later. The really big investment comes in building out the meter and communications network. So Xcel will still be out in front of many utilities who are considering making investments in baseload generation as opposed to demand response resources. There are several components to a successful smart grid strategy in my opinion. You need the right hardware at the customer. You need a strong communications network. You need robust data centers and software. You need transparent pricing that rewards a shift of load to the off-peak hours.

If Xcel doesn’t move to dynamic pricing right away they can always do so later. The really big investment comes in building out the meter and communications network. So Xcel will still be out in front of many utilities who are considering making investments in baseload generation as opposed to demand response resources.

]]> By: David J Phillips http://www.cleanenergydigest.com/2008/05/10/xcel-energys-smart-grid/comment-page-1/#comment-210 David J Phillips Wed, 21 May 2008 15:48:12 +0000 http://www.cleanenergydigest.com/?p=151#comment-210 The only problem is that Xcel assumes that a better understanding of real-time electricity usage will be enough to encourage businesses and residential customers to voluntarily cut back on their power consumption, particularly during peak hours when the grid in many cities operates at close to maximum capacity. In fact, though, there’s good reason to think that most people won’t change their consumption patterns unless they have an economic incentive to lower their bills by avoiding peak hours. Unfortunately for Boulder, Xcel plans to keep charging a flat rate for electricity instead of instituting “dynamic pricing” that would provide such incentives. http://industry.bnet.com/energy/2008/05/20/how-smart-is-xcels-smart-city-grid/ The only problem is that Xcel assumes that a better understanding of real-time electricity usage will be enough to encourage businesses and residential customers to voluntarily cut back on their power consumption, particularly during peak hours when the grid in many cities operates at close to maximum capacity.

In fact, though, there’s good reason to think that most people won’t change their consumption patterns unless they have an economic incentive to lower their bills by avoiding peak hours. Unfortunately for Boulder, Xcel plans to keep charging a flat rate for electricity instead of instituting “dynamic pricing” that would provide such incentives.

http://industry.bnet.com/energy/2008/05/20/how-smart-is-xcels-smart-city-grid/

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