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The Smart Grid is good for the environment, good for business, good for the bottom line. Sounds great but what does that really mean to your business? We’ll take a look at the Smart Grid in terms of the costs, advantages and steps required to deploy Smart Grid strategies for small to medium sized businesses. Created for MNREM (Minneosta Renewable Energy Marketplace) for Blandin Foundation-led, ARRA supported MIRC (Minnesota Intelligent Rural Communities) project
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©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
The Intro• What is the Smart Grid?• What are the benefits?• How can you take advantage?
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Intro to Smart Gridfor Businesses
Ann Treacy broadband.mnrem.com
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
What is the Smart Grid?• Two-way communication along the electricity
supply-use chain opens the door to better automation, interoperability, management at all levels (end user and utility)
Smart Meters
Smart Appliances
Smart Transport
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
What the Smart Grid Isn’t…• Half of the energy in the
US is lost in the way we produce, transmit and use electricity
• Outages cost $150 billion a year
• The system today was built for peak consumption of yesterday
The Smart Grid allows for more fluidity
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
What are the benefits?• You will have access to your smart meter stats in real
time and over time. • Interoperability of power generation means you can
mix and match your power generation sources• A self-healing, redundant system means greater
stability for your electricity• Storage cells and improved transmission means you
can get/give power over greater distances
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
How can you take advantage of the Smart Grid?
• Understand your current situation• Use info to find potential for cost saving• Prepare your office/floor/systems for the
smart grid• Investigate options to take it further
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Understand your Energy Bill1. A kWh (kilowatt-hour) is
a measure of production: capacity x time.
• A 1,000 watt window unit air conditioner turned on for 1 hour uses 1 kWh (1,000 watts x1 hour)
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Understand your Energy Bill2. Delivery fees cover the
utility’s maintenance costs of lines and meters and administration.
• There may be an algorithm used to set these rates
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Algorithm for Fees• Delivery fee may be based on actual use and
peak use• Delivery fee may be tiered based on actual use• Delivery fee may be based on time/day of use
You will need to talk to your Utility company to get the specifics – but this is where knowledge is power!
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Understand your Energy Bill
3. Generation charges reflect the cost to the utility of either generating or acquiring the electricity it delivers to you.
• The national average of $0.113/kWh.
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Average Retail Price of ElectricityCensus Division and State
Residential Commercial1 Industrial1 Transportation[1] All Sectors
West North Central 8.98 8.31 7.6 7.1 5.77 5.38 6.44 6.03 7.64 7.12
Iowa 9.64 8.87 7.44 6.78 5.11 4.64 -- -- 7.26 6.62
Kansas 9.74 9.27 8.27 7.97 6.41 5.79 -- -- 8.3 7.85
Minnesota 10.24 9.6 8.14 7.92 6.2 6.28 7.62 7.91 8.28 8.05
Missouri 8.32 7.4 7.15 6.29 5.47 4.74 5.52 4.56 7.39 6.53
Nebraska 8.03 7.9 7.47 7.24 5.57 5.31 -- -- 7.09 6.88
North Dakota 7.31 7.05 6.88 6.66 6.2 5.91 -- -- 6.86 6.62
South Dakota 8.3 7.99 7.39 7.11 6.01 5.77 -- -- 7.56 7.28
Statistics from February 2011
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Understand your Energy Bill
4. Average Daily Use can fluctuate month to month. Bear this in mind when making decisions.
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Smart Grid Mentality in PracticeCustomer-monitoring changes• $3 Car Wash was able to reduce electricity
bills by 20% by reducing electric demand (aka peak usage).
The Smart Grid takes it one step further
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Create Efficiencies• Spread out turning on equipment• Use compact fluorescent light bulbs (CFLs)• Use LEDs• Use a Compacitor (Reduces spiked usage)• Viable Frequencies Drives (VFDs) allow motors
to ramp up to start, stop when you want and reduce spike usage
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Understand Your Usage• The Smart Meters
will allow you to see in real time and over time what your usage is
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Contact Your Utility Company• Get an energy audit• Ask about their Smart Grid offerings/plans• Ask how your energy bill is determined
– Talk about possible savings by reducing peak usage or altering time of use
• Ask about how to gain more info into your own usage
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Contact Your Utility Company• Xcel http://tinyurl.com/3e9yz7p• Great River Energy http://tinyurl.com/3ljlg3q• Southern MN Municipal Power Agency http://
tinyurl.com/3ozoej7 • MN Power http://tinyurl.com/3c4kptg
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Prepare your Office/Floor/System• As you upgrade, consider smart appliance and
smart applications– Remote access and monitoring may allow you to
balance your energy workload– Automated responders may decreased “up time”
• Talk to equipment, machinery, ERP providers about smart appliances
• Talk to your electrician
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Prepare your Office/Floor/System• Talk to utility providers about smart
appliances– Some may provide rebates for energy efficient
machinery– The providers are motivated to work with you to
minimize their peak usage times• Talk to Energy Star http://tinyurl.com/3sqz5ja
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Side Note: US Policy • The ARRA allotted $4.5 billion for increased energy
efficiency– Those projects may be publishing results and unveiling
products soon– The federal government continues to list energy efficiency
and dependence as a priority. There may be more funding in the future
• Get more info on incentives http://tinyurl.com/4xgtly6
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Going Green• Consider your energy consumption• Does it make sense to deploy renewable
energy generating solutions • Recognize that the smart grid makes it easier
and more beneficial to go green.
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Going green for the environmentMiller’s Modern Garage in Mankato• The 10.34kW solar electric system
produces about 12,500kWh of electricity on average per year. Producing 12,500kWh of electricity annually from coal emits about 25,000 pounds of carbon dioxide.
• Preventing this much carbon dioxide from being released to the atmosphere is equivalent to adding 1,250 trees to our forests. Over a 30-year span, IPS expects this system will offset 750,000 pounds or 375 tons of carbon dioxide.
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Solar Power for Economics• Generates clean
energy from its new 124kW solar electric system.
• System will pay for itself in 6 years
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
Get more info• http://mnrenewables.org/• http://www.cleanenergyminnesota.org/• http://www.renewable.state.mn.us/
©2011 Minnesota Renewable Energy Marketplace. All Rights Reserved.
QUESTIONS?If you have an interest in further training on in your area, please let us know.Session will be posted online: http://www.mnrem.com/blog/
