The Blue Economy - CASE 70: the Local Smart Grid
This article introduces a creative approach to energy consumption as one of the 100 innovations that shape The Blue Economy, known as ZERIʼs philosophy in action. This article is part of a broad effort by the author and the designer of the Blue Economy to stimulate open-source entrepreneurship, competitiveness and employment. Researched, Written and Updated by Professor Gunter Pauli.
The Blue Economy Inspired Series
Empowering Sustainable Living:
The Rise of Smart Grid Technologies
and the Future of the Blue Economy
Written by; Shelley Tsang, 2024.
In the pursuit of sustainable development, the expansion of smart grid technologies represents a vital shift in how we produce, consume, and manage energy. By 2014, the market for smart grid technologies was estimated to reach $171 billion, driven by demand for efficient energy management and bolstered by developments in real-time monitoring, data sharing, and optimized energy use. The smart grid concept is based on a collaborative energy network that incorporates digital and automated solutions to streamline power distribution and consumption. By enhancing communication between utility companies and consumers, smart grids empower households and businesses alike to make informed decisions that conserve energy and reduce environmental impact.
This article explores how innovations like Opower, a U.S.-based company founded by Dan Yates, and Chile’s eKeeper system are transforming energy use. Both companies provide accessible, data-driven insights that encourage individuals to minimize their consumption without sacrificing comfort. Together, these advancements illustrate the potential for a new kind of smart grid that not only monitors but also integrates renewable energy sources on a local scale. Such a future grid, envisioned by the Blue Economy model, could significantly lower global energy demand and environmental footprints by enabling smarter, more localized power management solutions.
The Booming Market for Smart Grid Technologies
Smart grid technology has evolved as a powerful solution to the modern challenges of energy consumption. Traditionally, utilities in industrialized nations were built to handle the immense energy demand generated by massive fossil fuel power plants. However, the drive toward sustainable energy, along with mandates to reduce greenhouse gas emissions, requires a new kind of infrastructure that can manage energy from intermittent renewable sources such as wind and solar power. Smart grids address these challenges by enabling efficient and flexible energy distribution, which is essential for integrating renewable energy into the grid.
By 2014, the smart grid market was valued at $171 billion, with the highest growth anticipated in smart sensors. These sensors were expected to increase from a $37 billion market in 2009 to $85 billion by 2014. The market for IT hardware and software associated with smart grids was also projected to grow from $15 billion to $40 billion in the same period, while communication systems were set to expand from $10 billion to $27 billion. The fastest growth rate, however, was expected in smart metering hardware and software, projected to triple in value, reaching just under $20 billion in 2014.
The biggest driver of this growth is the increased need for detailed, real-time data to manage energy consumption. Devices such as smart meters allow utility companies to gather data on household energy use, helping consumers understand when, where, and how they are using energy. This demand has encouraged companies like General Electric, Siemens, IBM, and Landis+Gyr to invest heavily in smart grid technologies, installing millions of energy management systems in homes worldwide.
Opower: The Power of Personalized Energy Insights
Among the companies leading this shift, Opower stands out for its innovative approach to engaging consumers with their energy usage. Founded in 2007 by Dan Yates, Opower developed a platform that translates complex energy data into personalized, easy-to-understand insights for consumers. Opower’s tools help people see when they are consuming the most energy, why their bills may be higher during certain months, and provide actionable advice on how to save.
Yates was motivated by his travels through North and South America, where he witnessed firsthand the environmental impact of unchecked energy use and vowed to dedicate his career to sustainable business. Opower’s platform bridges the gap between utility companies and their customers, transforming websites into interactive energy management portals. By doing so, Opower has successfully engaged over three million households, creating savings equivalent to 40% of the energy produced by the U.S. solar industry.
One of Opower’s key innovations lies in its ability to provide context. Rather than bombarding users with raw data, Opower focuses on making the information relatable and actionable. Alerts about high consumption periods come with tips to reduce usage, making it easier for consumers to change their behaviour. Through personalized reports, Opower encourages people to make simple adjustments that collectively yield significant savings.
eKeeper: Real-Time Energy Management in Chile
While Opower has been instrumental in the U.S., Chile’s eKeeper system takes the smart grid concept to a new level. Developed by engineers Gabriel Antonio Villalón Sepúlveda and Robinson Eduardo Gálvez Herrera, the eKeeper system offers real-time data not only on total household consumption but also on individual appliances. This level of detail allows users to see exactly how much energy each appliance consumes, its cost, and how that compares with expected performance.
The eKeeper system’s interface goes beyond monitoring; it enables users to take action in real-time. If an appliance is using more energy than expected, users can switch it off remotely through a mobile app. The system also calculates carbon savings, giving users a concrete understanding of their environmental impact. By allowing users to control their energy consumption at such a granular level, eKeeper empowers them to make conscious choices and further reduce their energy footprint.
This innovative approach aligns with the principles of the Blue Economy by using existing resources more effectively. The eKeeper system demonstrates that sustainable energy use does not require cutting-edge infrastructure; rather, it leverages what is already available and puts control in the hands of consumers.
Toward a Smarter, Sustainable Grid: The Blue Economy Vision
As smart grid technology advances, the next step is integrating localized, renewable energy sources into a cohesive system. This vision for a “local smart grid” aligns with the Blue Economy model, which emphasizes using locally available resources and reducing waste. A local smart grid would not only monitor energy consumption but also manage energy production from multiple renewable sources, such as rooftop solar panels, biogas from organic waste, and even energy generated from flowing water.
Incorporating these diverse energy sources requires an advanced smart grid capable of balancing fluctuating supply and demand. For instance, solar panels produce electricity only during the day, while biogas and water flow generators operate on different schedules. An integrated smart grid would distribute energy among households and businesses based on real-time demand, storing excess energy for use during peak hours. This decentralized energy production approach is more resilient and less reliant on fossil fuels, reducing strain on large power plants and decreasing greenhouse gas emissions.
Beyond homes and businesses, this approach could also be implemented in community centres, schools, and hospitals, creating mini-grids that meet local needs. These self-sustaining energy networks would make communities less vulnerable to power outages, increase access to renewable energy, and contribute to the larger goal of reducing dependence on non-renewable resources.
The Future of Smart Grids in a Blue Economy World
Smart grids represent a fundamental shift in how we think about energy. By providing detailed, real-time data, companies like Opower and eKeeper are transforming energy from a static, unchangeable expense into a dynamic, controllable resource. Consumers are empowered to make informed choices, reducing their bills and environmental impact without sacrificing comfort. At the same time, the rise of local, renewable energy sources challenges traditional power structures, enabling a decentralized model of energy production and distribution.
The potential for smart grids extends beyond individual households. Large-scale implementation of smart grid technology can fundamentally change how energy is produced and consumed on a global scale. Future grids will likely integrate multiple renewable sources, balancing production and demand in real-time to ensure a continuous, clean energy supply. Such an approach embodies the ideals of the Blue Economy by leveraging what we have, minimizing waste, and creating sustainable solutions that benefit both people and the planet.
In this future, homes, offices, and entire communities can generate, store, and share their power. By combining traditional grid power with localized renewable sources, the smart grid of the future will offer a reliable, resilient, and sustainable energy model. The implementation of smart grid technologies marks a transformative step toward a greener world where communities are empowered, resources are conserved, and environmental impact is minimized.
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