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After years of preparation and delays, National Grid's smart grid pilot program took a big step forward in February when the utility completed the installation of 14,800 smart meters in homes and businesses in Worcester.
Now, the next step is making sure customers know what the meters are all about. National Grid has begun sending information to pilot program participants about the meters, which provide much more detailed information on their energy-usage patterns than a monthly bill does, and about additional technology that can make the meters even more useful. The participants will be able to get free delivery and installation of units that will allow them to more easily adjust their energy usage. That could mean a device that lets a homeowner turn off an appliance they mistakenly left on remotely with a smartphone app, or an add-on to climate control systems that automatically turns the air conditioning down a bit on hot days when the grid is getting maxed out.
“If you give more information to customers, customers will be more sensitive,” said Carlos Nouel, director of customer strategy for the pilot program.
The plan is to get customers used to the technology before October, when National Grid will formally begin a two-year test to see if raising prices on high-load days can bring demand down.
The pilot program is the product of the state's 2008 Green Communities Act, which called for all utilities to experiment with ways to modernize electric grids. David W. Cash, commissioner at the Department of Public Utilities (DPU), said that even reducing demand just a little on the hottest summer days could have a big effect. That's because the total amount of generation capacity needed for the region's electricity system depends on how much is used on the hot summer days when demand peaks.
Cash said a full quarter of the combined generating capacity of New England power plants is only needed 5 percent of the time, on days when demand ramps up.
“If we could shave that peak, then we can save a lot of money by not having to build more generation,” he said.
If a utility can raise its rates during the hottest hours of the hottest days, and if customers have the necessary information to respond to higher rates by turning up the thermostat or holding off on running the dryer, it could make a big difference in the local economics of energy.
In fact, pilot studies by NStar and Unitil showed a reduction of peak demand by 5 percent or more, Cash said. But those studies were far smaller than the one National Grid is doing.
Beyond shaping demand, the pilot programs are designed to help utilities gain more real-time information about their grids, with devices on electrical lines that can keep track of the flow of power and raise an alert immediately if something goes wrong.
Ultimately, the data gained through the pilot programs will help shape the modernization of electrical systems across the state, Cash said. In December, the DPU called on utilities to develop 10-year plans to reduce the effect of outages, optimize demand, improve workforce and asset management and integrate distributed resources. That last point is particularly interesting as the state works to rev up alternative power sources and reduce its dependence on natural gas. More modern grids are more capable of integrating small power sources like rooftop solar panels.
Ultimately, Cash said, a modernized grid paired with pricing incentives could allow for much more efficient use of power. The owner of an electric car could program it to draw down electricity only when the price is low. Then, after driving to work, the owner could plug the car in at a nearby station and program it to sell the power from its battery when the price is high, but leaving enough for the return trip.
“Imagine 30,000 [electric] cars,” Cash said, “It's as if there's a generator in the middle of Worcester.”
That vision is a long way off. Even the far more modest National Grid pilot program has faced significant delays and obstacles in getting off the ground. The utility submitted a $56-million version of its plan in 2009 but withdrew it two years later — then, in 2012 — sought more community feedback and resubmitted a $44-million version designed to incorporate new technology.
Since then, the company has distributed the meters, added new technology to its power lines, and, in conjunction with Clark University, opened a “Sustainability Hub” where customers can try out new technology and get information about the smart grid program.
The latest stumbling block has come in the siting of a communications tower that helps devices on the utility's lines communicate. William F. Jones Jr. program director of the smart grid program, said National Grid had to install 14 of the communications nodes, but it was able to place most of them on existing towers or buildings. After facing opposition from neighbors, the company is considering other options. It's scheduled to return to the city's Zoning Board of Appeals on May 5.
The concerns about the tower are part of a general unease some residents have with the smart grid. Vocal opponents say they're worried about possible safety issues with the radio frequency transmissions used to send data, and some also worry about the security of personal information.
National Grid argues that there's no danger in the radio waves used in the meters, and both the American Cancer Society and Worcester's Division of Public Health agree. But Nouel said customers who don't want the smart meters around them are free to opt out. So far, about 1,000 have. He added that the utility already has strong policies in place to guard customers' data.
Ultimately, though, he said both allaying concerns and making the pilot program a success depend on good two-way communication with customers.
“We're having the dialogue with our communities, with our neighbors, to try to find the solution,” he said.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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