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Smart Grid Primer - International Society of Sustainability ...

The Smart Grid Defined i

Not Feeling So Smart About

The Smart Grid

A Primer for

Sustainability

Professionals &

Policy Makers


Table of Contents

Why The Smart Grid Matters ............................................................................................................2

The Challenge of Conversion: Electrical Energy Generation..................................................4

The Architecture of the Smart Grid: Transmission, Distribution, and Storage ...............9

Energy Consumption: Use Management and Smart Buildings ........................................... 12

Developments in Building Energy Technology........................................................................ 14

Smart Building Challenges.............................................................................................................. 16

U.S. Smart Grid Business Opportunities..................................................................................... 18

Government Support ........................................................................................................................ 19

Smart Grid Policy Issues.................................................................................................................. 19

Conclusion............................................................................................................................................ 23

References............................................................................................................................................ 24

About the Authors.............................................................................................................................. 27

© Copyright 2011 International Society of Sustainability Professionals. All rights reserved.

www.sustainabilityprofessionals.org

Cover image: © Corbis. All Rights Reserved. Royalty-free

Not Feeling So Smart About The Smart Grid 1


Not Feeling So Smart about the Smart Grid

A primer for sustainability professionals and policy makers

By Ben Drury, Alex Horne, Mark Kammerer, Jr., Jeff Lancaster, Patrick T. Rost and Luisa

Walmsley, MBA students at Bainbridge Graduate Institute

Why The Smart Grid Matters

Experts believe that the smart grid is a

critical piece of solving the climate change

conundrum. The existing electrical grid is a

well-established system that few people think

about until it ceases to function. Much of the

architecture of the grid uses principles that date

back to Edison, with much of the infrastructure,

generation, transmission and distribution

equipment dating back to post-World War II

1940's. Although there were various

improvements added during the 1950's and 60's,

our existing system is at a crossroads. Due to

our increasing demand for power, increased

availability of local generation via renewable

sources, and a need for decentralization in case

of catastrophe, the current transmission system

is sorely in need of an update.

This is going to be a disruptive technology with

Internet companies like Google and Microsoft

playing as much of a role as the electric utilities.

It’s no accident that Berkshire Hathaway has

been buying up sleepy old utility companies.

This is a new frontier of opportunity.

___________________________________

What is the smart grid

Think Internet +

interstate highway system

_______________________

The Smart Grid is shaping up to be an

interconnected network of electrical generating,

distribution, and consumption devices governed

by economic markets and government policy.

Its implementation as a working system will not

come without challenges. These include but are

not limited to technological, behavioral,

political, and supply/demand curve factors.

Why we need a Smart Grid

• increasing demand for power

• increasing distributed and renewable

sources

• increasing concern for national

security and resilience in the face of

catastrophe

Not Feeling So Smart About The Smart Grid 2


The challenge is

not only to solve

these conflicts,

but also to

integrate them

into a dynamic,

efficient, interindustry

system

that is capable of

reliably

delivering

electricity where

it is most needed

and the ability to

heal itself in

times of peak

demand and

disaster.

The

current model is a

one-way startopology,

with

power plants

generating energy

that travels long

distances,

incurring

transmission and

distribution losses

at each branch

until it finally

reaches the enduser.

This model

doesn't allow for

easy integration

of local, renewable sources such as solar, wind

and geothermal. Optimally, in the smart grid,

the end-user will also be a supplier. As more

businesses and individuals realize they can

offset or supplant their grid usage by generating

their own power locally, they face a quandary as

to how to implement multi-directional energy

flow solutions.

As the prospect of the utilities not being

the sole producer of electricity grows, the

electricity market

must evolve.

With constant

data of energy

consumption,

production and

losses provided

by this

interconnected

network, up to

the second

pricing of power

becomes

possible. As

consumers

realize the

expected 5%

(Litos Strategic

Communication,

2009, p.11)

efficiencies

gained by the

Smart Grid, and

are able to view

their own usage

patterns

remotely using

computers, smart

phones and the

Internet, they

will form a feedforward

loop of

further

conservation.

Many varied

business stand to benefit from the adoption of

the Smart Grid from manufacturers of smart

meters to the communication industry.

The role of local, state and federal

government currently defines the adherence to

the existing grid. There is little federal control

of the existing grid, with states regulating the

utilities within their borders. Recently, in an

attempt to achieve consensus, the US

Department of Energy has issued RFIs

(Requests for Information) to the various

Not Feeling So Smart About The Smart Grid 3


stakeholders in the grid, received feedback and

released two reports defining the Smart Grid.

The tenth condition in this report identifies

lowering any monopolistic or other impeding

barriers to the adoption of the Smart Grid.

However, the federal government has not

challenged the response from the private Edison

Electric Institute and other private stakeholders

as to how it will recover the cost of

implementation.

Although one of the top engineering

achievements of the twentieth century, the

architecture of the current transmission,

distribution and storage modalities of the grid

can be vastly improved. Efficient use of energy,

demand/response, diverse fuel sources, temporal

redundancy and back-up equipment form the

building blocks of a smarter transmission

system. The current distribution infrastructure

locations currently

don’t match the

locales of readily

usable renewable

energy generation.

Temporary

electricity storage

solutions such as

Plug-in Hybrid

Electric Vehicles

promise to develop

an innovative,

mobile and

dynamic method of

energy

distribution, but

need more

development to

become practical and affordable.

Consumers comprise the "final

destination" of energy in the current grid. With

the advent of sensors and on-site energy

generation, this end-point now becomes the

middle of a bi-directional arc of electricity and

data to and from the consumer and utilities.

Many technological hurdles exist in terms of

USA GHGe Producon by

Sector

Residen2al

6%

Power

Plants

40%

communication methods and media (wiring,

wireless, etc.) planning energy usage with

computer simulations, using software to actively

manage energy demand and consumption, and

integrating Plug-in hybrid electric vehicles as

their market share expands. This is the area with

the most development required, as standards for

communication, distribution, billing, and

regulation all need to be agreed upon by the

disparate vendors, utilities and governmental

entities before a nation-wide Smart Grid can

exist.

The Challenge of Conversion:

Electrical Energy Generation

When discussing the smart grid and

sustainability one must take into account how

and where energy is

Commercial

/ Industrial

20%

Transpor-­ta2on


34%

generated. The

energy generation

model that exists

today is the same

one that has been in

place for the last 60

years or so. It is

based upon a

centralized power

generation

structure. That is to

say that energy is

produced at a

limited number of

large-scale

industrial

power plants.

According to the U.S Energy Information

Administration there are about 5,400 power

plants in the U.S. today, comprised of a variety

of types. These plants send electricity on a one

way journey through the transmission grid to the

over 138,000,000 electric meters around the

country. Today renewables generate less than

10% of the energy consumed in the U.S., with

USA GHGe Production by Sector (U.S. Energy Information Administration, 2010)

Not Feeling So Smart About The Smart Grid 4


wind and solar combined contributing

approximately 5%. (General Electric, 2009)

The grid infrastructure that distributes

this power was built in the U.S. in the 1940’s

and 1950’s. It consists essentially of large power

lines leaving the power plant, traveling long

distances, and splitting up into smaller and

smaller lines throughout the grid, ultimately

reaching the consumer. Conceptually the current

energy generation and distribution model looks

like a star. With the power being generated at

the center and flowing out in one direction to

the end-user.

Today, power plants generate 40% of all

CO 2 emissions produced in the U.S., more than

any than any other source. The 600 coal plants

in the country create 50% of this power plant

CO 2 output. The output of CO 2 emissions in the

U.S. is dramatically disproportionate to its

population and plays an important role in

climate change. The U.S. produces 25% of

global CO 2 emissions, yet it comprises only 4%

of the global population. (General Electric,

2009) Research indicates that by adopting a

distributed energy generation model with the

inclusion of renewable energy sources in

conjunction with a smart grid, CO 2 emissions

could be cut by 25%. This would equal the

carbon reduction of planting 160,000,000 acres

of forest. (McDonald, 2008)

(Visualizing The U.S. Electric Grid, 2009)

Not Feeling So Smart About The Smart Grid 5


U.S. Solar Power Generation Capacity (Visualizing The U.S. Electric Grid, 2009)

For decades, power supply and how it

was generated was something the average

person didn’t think much about unless the lights

went out. Today with concerns over climate

change, increasing demand for power, rising

prices, and geopolitical conflicts associated with

power generation, today’s consumer is looking

for a change. They want to move beyond being

a simple ratepayer, to an informed,

environmentally conscious consumer with a

new role in the power cycle. Adopting a new

distributed power generation model provides a

way for today’s consumer to participate in the

process of generating electricity. A distributed

energy generation model adds vast numbers of

small to mid-sized renewable energy power

plants in a variety of locations throughout the

grid to supplement the existing large-scale

commercial plants.

The distributed energy generation model

of the future is beginning to take shape today.

Consumers, utilities and policy makers are all

beginning to recognize the benefits of a

distributed model. Renewable energy sources

are abundant all over the country and around the

globe. In the U.S., wind, solar and water energy

are abundant and have enough potential to

power every home and every vehicle in the

nation without any direct CO 2 emissions.

(Kennedy, R.F. 2008) Integrating distributed

renewable energy production into the system

will pave the way for the U.S. to become energy

independent.

Like solar power, wind energy is abundant,

clean, and can be found across the country. In

particular the coastal regions and the central part

Not Feeling So Smart About The Smart Grid 6


U.S. Wind Power Generation Capacity (Visualizing The U.S. Electric Grid, 2009)

of the country have great potential for capturing

wind energy. According to greenbiz.com:

The EIA pointed out that between 2000

and 2009, wind generation increased a

whopping 11-fold, making it the second

largest source of renewable energy

behind hydropower. The agency

estimates this helped the U.S. avoid

about 39 million metric tons of

emissions in 2009. (Climate Biz Satff,

2010)

One of the major obstacles to the integration of

renewable and clean energy sources is their

proximity to the areas of high demand. One

solution to this obstacle is to incorporate a vast

array of hundreds of thousands of small power

plants across the landscape. Cities, communities

and even individual homes and businesses can

supplement or meet entirely their energy needs

with the installation of solar arrays, small-scale

wind turbines, or other renewable energy

generation systems. A Smart Grid designed with

two-way flow capabilities can help to provide

surplus energy to the grid at times of low

demand, and draw upon the grid for additional

supply when needed.

In order for a Smart Grid system to be

truly effective it will need to have a wide variety

of distributed energy sources to tap into. The

technology of small-scale renewable energy

generation is rapidly developing today. An

example is a home owner in Santa Monica, CA

who purchases electricity at night from the local

utility at $.10/kW h and then sells electricity

generated by a solar array on his roof back to

the utility during the day at $.40/kW h. The 3

kW solar systems at this home provide enough

electricity to power the entire home as well as

the homeowner’s electric car. (IEEE Tech

Activities, 2009) This is a prime example of a

potential future for energy production and use in

the U.S. This type of small-scale solar power

generation is gaining in popularity.

David Kozin of Seattle, Washington-based

A&R Solar offered additional insight into the

myriad issues associated with small-scale

residential solar installations. A&R Solar

specializes in the design and installation of solar

photovoltaic and hot water systems. According

Not Feeling So Smart About The Smart Grid 7


to Mr. Kozin, a certified solar PV designer and

director at A&R Solar, the residential solar

energy industry faces opportunities and

challenges today. Some of the benefits that Mr.

Kozin identified include:

• Solar Energy is empowering: Choosing

to use solar energy contributes to a

cleaner environment, provides more

independence from the utility, and

makes a step towards becoming

sustainable.

• Solar Energy is affordable: Federal and

state governments offer tax credits to

business and residential installations that

can cover 30% of the system cost.

• Solar Energy is clean: Sunlight is the

least polluting and cheapest fuel source

available. Utilizing solar energy on

buildings reduces consumption of

conventional generation sources like

coal and natural gas.

• Solar Energy makes financial

sense: Adding value to the home,

providing an attractive long-term rate of

return, and cost-savings on energy bills.

• Solar energy is long lasting: There are

25-year warranties on solar panels, and

consumers can expect many more years

of dependable service from a quality

system.

One of the primary challenges Mr. Kozin

identifies is the length of time it takes to

generate a return on a PV (photovoltaic) system

investment. In the Pacific Northwest most

consumers purchase their electricity at some of

the lowest prices in the country, thanks to

copious hydroelectric power. As a result it takes

longer to pay off a PV system in the Pacific

Northwest compared to other regions of the

country. In addition, the heavily forested

landscape of the region and the limited number

of bright sunny days restricts some of the

potential that exists with PV systems. Despite

the limitations, demand is rapidly increasing and

prices are coming down.

Available Solar Income (Scheelhaase, 2002)

In the Pacific Northwest where A&R

solar operates one of the local utilities, Puget

Sound Energy, reported on a growing trend in

consumer energy generation. An excerpt from

their Smart Grid technology report follows:

PSE’s support of customer

generation programs began in

1999 with the net metering

program. Presently, 694

customer generation systems

contribute to the grid, with 94

percent of customers generating

energy from solar photovoltaic

(PV) systems. The program grew

slowly until July 2005. In 2005,

Washington State implemented

the Renewable Energy Cost

Recovery Program which is an

incentive-based program where

customers with eligible

technologies are paid for all kW

h produced. The purpose of the

program is to develop a market

for renewable energy systems

and to promote the manufacture

of these systems in the State of

Not Feeling So Smart About The Smart Grid 8


Washington. Incentives are

provided from July 1, 2005

through June 30, 2020. PSE

administers annual payments to

these customers and recovers

those funds from state taxes.

This program is also

known as Production Metering

and along with federal tax credits

has helped accelerate the

adoption of customer generation.

The utility bills provided to

customers are a net of energy

generation against energy

consumption of the household.

The program continues to grow,

and based on past growth

patterns, customer generation

systems are expected to reach

9,000 by the end of 2015.

(Smart Grid Technology Report

2010 p. 24)

In addition to the upfront costs of wind, solar,

and other renewable technologies, infrastructure

investments are needed to deliver the power

produced by a dispersed renewable energy

model. Perhaps the biggest obstacle faced in the

wholesale acceptance of renewables and a

dispersed generation model is the inertia of the

status quo. The big oil/coal industry has a lot at

stake and has invested heavily in today’s energy

model. Today’s fossil fuel driven energy system

is an integral part of the national economy and

political landscape. Powerful lobbies exist and

apply significant pressure on policy makers to

preserve the current system. This, however, is

starting to change. “As of 2010 30 states have

adopted renewable portfolio standards, which

require a pre-determined amount of a state’s

energy portfolio (up to 20%) to come

exclusively from renewable sources”. (The

Smart Grid: An Introduction p. 25) With time

and ongoing commitment a new distributed and

integrated energy generation structure will

become the new standard.

The Architecture of the Smart

Grid: Transmission,

Distribution, and Storage

“Thus far, transmission and smart-grid

infrastructure have not excited policymakers or

the public nearly as much as the generation of

alternative energy at one end of the energy

pipeline and consumers’ use of energy-saving

appliances and home retrofits at the other.”—

Bracken Hendricks, (Center for American

Progress, p. 17)

The electrical grid is a hundred-year old

“ecosystem” that has been defined by the

National Academy of Engineering as the “most

significant engineering achievement of the 20 th

Century” (U.S. Department of Energy [DOE],

2008, p. 9). Despite this designation, it is an

invisible entity to most Americans—until it

fails. When that happens, the costs can be

tremendous. A one-hour power outage on the

floor of the Chicago Board of Trade in 2000

delayed trades worth $20 trillion. The

Department of Energy has estimated the cost of

power outages and interruptions at $150 billion

annually (DOE, 2008). These costs are

internalized by utilities and passed on to

consumers, both of whom view them as the

necessary price of powering society—but why

aren’t those dollars being invested in improving

grid infrastructure

The origins of the modern electrical grid

can be traced back to the development of

alternating current technology in the 1880s by

Nikola Tesla, William Stanley Jr., and George

Westinghouse. AC power, which can be

transmitted via high-voltage power lines and

then converted into low-voltage electricity for

home and industrial use, eventually replaced the

original DC infrastructure that was modeled

upon the inventions of Thomas Edison. The

electric utility industry took off in the early

1900s after the invention of the steam turbine

dramatically reduced the cost of electricity

Not Feeling So Smart About The Smart Grid 9


generation. The grid evolved organically as

private holding companies consolidated control

of local utilities across state boundaries. These

holding companies operated absent federal or

state regulations until the 1930s, when Franklin

Delano Roosevelt granted the Federal Power

Commission authority to oversee electric power

projects. In this new regulatory environment,

electricity prices dropped as transmission

efficiency and grid connectivity increased

(Hein, n.d.).

Grid infrastructure as we know it today

research and development…is among the lowest

of all industries” (DOE, 2008, pg. 10).

Advocates of modernizing the electric

grid would like to change that. Reliance on

current infrastructure to provide stability into

the future is as unsustainable as dependence on

foreign fossil fuel reserves to electrify the grid.

Enter the Smart Grid, where the Internet meets

the interstate highway system to form an

intelligent, interactive, “clean energy pipeline”.

Despite the important role that the grid

itself plays in ensuring the development of a

Transmission and Distribution Environment (McKinsey & Company, 2009, pg. 46)

took shape during this time period. A century

after Edison invented the incandescent light

bulb, 300,000 miles of transmission lines

connect to a vast array of power plants,

producing over 1,000,000 megawatts of power

daily. The architecture of the grid has remained

relatively unaltered since then, with only 668

miles of new transmission lines built during the

past ten years. According to the DOE: “Since

1982, growth in peak demand for

electricity…has exceeded transmission growth

by almost 25% every year. Yet spending on

smarter electrical distribution system, issues

surrounding transmission and distribution

infrastructure receive less attention than the

sexier topics of renewable energy generation

and end-use monitoring technologies like smart

meters. Yet a more resilient grid is the key to

enabling both. A smart electrical grid increases

energy efficiency and enhances reliability by

integrating the entire cycle of electricity

generation, transmission, distribution, storage,

and consumption.

Not Feeling So Smart About The Smart Grid 10


Transmission technology, despite being

underfunded and underdeveloped, has advanced

rapidly in recent years. At 99.97% efficiency,

the transmission side of the grid “is already

pretty smart” (NETL, 2009). Integrating smart

technology into the grid is more a political

challenge than a technological one. The

Department of Energy has identified five key

technology areas, of which many components

are already deployable: Integrated

Communication, Sensing and Measurement,

Improved Interfaces and Decision Support,

Advanced Control Methods, and Advanced

Components (NETL, 2009). Of these categories,

the first four largely revolve around

implementation of existing technology to

monitor and convey real-time information about

the numerous factors affecting power quality to

autonomous grid control systems and decision

makers alike. Two-way communication

protocols enable DSM (demand side

management) or DR (demand-response)

strategies in which consumers interact with the

“intelligent grid” to determine how best to

manage their electricity usage, especially peak

demand. Advanced Components [most notably

FACTS (Flexible AC Transmission Systems),

and HVDC (High Voltage Direct Current)] are

still largely in development (NETL, 2009).

Demand-side management, inclusive of

both traditional energy conservation techniques

and increasingly sophisticated demand-response

programs, has received the most attention—and

with good reason. In an interview with Robert

Siegel of NPR last summer, Dan Delurey,

President of the Demand Response Smart Grid

Coalition, mentioned that peak electricity

demand during the top 100 hours of the year

accounts for between 10 and 20 percent of

annual U.S. electricity cost (National Public

Radio [NPR], 2010). Because it cannot store

electricity, the grid must meet peak demand (the

amount of electricity needed during the time of

greatest use) even if it is only significantly

higher at one point in the system. A 2010

McKinsey report estimates that demandresponse

programs could lessen this peak load

by up to 20%, while demand-side management

in general has the potential to save consumers

$59 billion over the next nine years (McKinsey

& Company, 2010, pgs. 41, 45).

Successful demand-side management

programs necessitate a willingness to participate

on the part of the consumer. McKinsey goes on

to identify six key strategies for utilities to

leverage their DSM programs: carefully

structured rates, incentives such as rebates,

access to real-time information, education and

marketing, advanced controls allowing

automated or customer-driven load

management, and customer capability to

monitor results (McKinsey & Company, 2010).

Utility energy efficiency incentives have been

around for years, but coordinating demandresponse

programs presents many of the same

challenges. As with energy efficiency, a large

up-front investment in consumer education that

includes better access to more sophisticated

technology is necessary. This enables the utility

to reap the cost savings that come with driving

down peak demand. Incentivizing DSM,

therefore, works both ways: utilities must be

motivated to encourage energy-efficient

behavior in consumers. It is the role of the

regulatory agencies along with the utilities to

build a smarter grid infrastructure that

accomplishes this goal.

Achieving efficient energy distribution

systems that incorporate both centralized and

distributed generation is also a function of

political will. The current electrical grid is too

fragmented to allow for interconnection of

renewables; most of the nation’s renewable

electricity is located in areas where grid

connectivity is sparse. Transitioning to wider

use of distributed renewable energy systems

requires that regions of abundant renewable

energy must be connected to locations where

there is higher energy consumption. This, in

turn, necessitates greater an expansion of the

existing grid; the three separate

Not Feeling So Smart About The Smart Grid 11


“interconnections” that power the country

(located east of the Rockies, west of the

Rockies, and in Texas) must be integrated. The

Center for American Progress recommends that

comprehensive nationwide grid planning be

taken on by a “multi-state, interconnection-wide

planning authority charged with…enhancing the

efficiency of the transmission system while

better managing for system reliability”

(Hendricks, 2009). Ironically, China—with only

two T&D companies and a powerful central

government—is discovering that its political

infrastructure is better able to address this

challenge than that of the United States

(McKinsey & Company, 2010). Centralized

planning is not a popular solution in a

democracy, but it is both necessary and

expedient to insure that distribution of

electricity continues to function reliably and

efficiently into the future.

Incorporating renewables into the grid

requires the ability to store electricity, which is

not possible at this time. The litany of problems

with current batteries includes short life spans,

low efficiencies, and difficulties with disposal.

Flow batteries (which operate similar to fuel

cells by separating power from energy), in

development at the Lawrence Berkeley National

Laboratory, may provide a solution to this

challenge. However, this new battery

technology is also very expensive, and until the

costs come down it will simply not be

economically viable to put it into widespread

use (Chao, 2010).

Of course, the best kind of batteries have

a dual purpose; charging from the grid during

off-peak hours and returning energy back to the

grid in times of peak demand. Many hope that

PHEVs (Plug-in Hybrid Electric Vehicles) may

serve in this capacity, but this opportunity

presents some challenges as well. The

Department of Energy assesses that “a large

fleet of PHEVs could possibly replace a

moderate fraction (perhaps up to 25%) of

conventional low-capacity factor generation for

periods of extreme demand or system

emergencies” (NETL, 2009). However,

scheduling the charging cycle is crucial—

electric cars could prove a tremendous asset or

blow out the grid depending on the timing,

which again is largely a function of the degree

to which electric car owners are educated about

their role within the system (Joyce, 2010).

While there are certainly technological

challenges to making the grid “smarter”, the

greatest obstacles are political and behavioral.

Many view comprehensive climate change

legislation as an assist to stimulate smart grid

research, development and coordination among

the diverse groups of decision makers who

manage the electrical infrastructure (Hendricks,

2009). This is a piece that must fall into place

before we can make the transition to an

infrastructure in which consumers are educated

and enabled to do their part.

Energy Consumption: Use

Management and Smart

Buildings

The final stop for power flowing through

the smart energy grid will be at the point of

consumption. This will also be the endpoint for

the smart feedback loop as well. In order to

maximize the efficiency of the overall system of

power generation, distribution and consumption,

it is just as important to put as much

consideration into this end point of the system

as it is to consider how the energy is produced

and distributed.

Best use of energy at the point of

consumption can be looked at in three parts:

making energy consuming elements as efficient

as possible to lower consumption requirements,

effectively managing how and when these

consumers utilize energy, and finally, providing

relevant feedback to the rest of the Smart Grid

system.

Not Feeling So Smart About The Smart Grid 12


Total US Energy Consumption and commercial building use

breakdown (Enlighted, Inc).

As a whole, buildings currently account

for close to 40% of all energy consumed within

the United States. Over half of this

consumption occurs within residences, and in

2008 accounted for 1.379 trillion kWh of energy

use. Within buildings, energy is used for

heating, cooling and ventilation (HVAC),

powering appliances, running office equipment,

powering industrial machinery and energizing

entertainment and luxury items. Apart from

buildings, energy is used to power traffic control

networks and communications infrastructure,

run public transportation such as electric

railways and streetcars, and in the future, will be

needed to recharge electric vehicles as these

begin to enter the mainstream.

Before even beginning to implement

“smart” technology there are a number of ways

to increase building and energy efficiency, thus

reducing overall load on the power grid and

lessening generation needs. Using energy

efficient appliances, such as those with an

“Energy Star” designation will help (Energy

Star, n.d.), as will changing lighting to the

newest generation of CFLs (compact fluorescent

light bulbs). Typically, CFLs put out the same

amount of light as an incandescent bulb while

only using one fourth of the energy

(McClenden, 2009). Upgrading building

insulation, weatherization and windows,

installing high efficiency HVAC systems and

using common sense energy management

procedures (even just as simple as turning off

lights in unoccupied areas and shutting down

unused equipment) can help as well.

Today, there are both standards and

technology tools available to aid building

designers and facilities managers in reducing

impact, in both the design and operations stage.

The most widely recognized set of standards

for “green” building and operations are the

LEED (Leadership in Environmental and

Energy Design) guidelines. As stated by the

USGBC (United States Green Building Council)

(2010):

LEED is a third-party certification

program and the nationally accepted

benchmark for the design, construction

and operation of high-performance green

buildings. LEED gives building owners

and operators the tools they need to have

an immediate and measurable impact on

their buildings’ performance. LEED

promotes a whole-building approach to

sustainability by recognizing

performance in five key areas of human

and environmental health: sustainable

site development, water savings, energy

efficiency, materials selection and

indoor environmental quality.

The USGBS offers several levels of LEED

certifications requiring a particular building to

earn a certain number of “points” for its energy

performance initiatives, with certifications

available both for the construction of the

building and for the ongoing operations and

maintenance of existing building. Many of the

building design and management software tools

now hitting the market are incorporating

features to facilitate these standards.

For some time, CMMS (Computerized

Maintenance Management Software) has been

used to help facilities managers track and

optimize their maintenance processes and

control costs. However, as concerns for

Not Feeling So Smart About The Smart Grid 13


environmental efficiency and sustainability have

grown, and are becoming strategic initiatives,

newer software solutions are being created and

implemented. An example of an innovative new

software solution is O&M Track, developed by

Green Building Services of Portland, Oregon.

O&M Track takes facilities management

software a step further by integrating with the

online system provided by the USGBS for

submission of pertinent data to achieve and

maintain certification for building operations

and maintenance. Using this software can result

in significant savings in the time required to

process the necessary documentation. In the

future O&M Track software may not only

gather data through manual data entry through

its web browser interface, but may also include

capability of interfacing with building

monitoring and automated management systems

(J. Coalson and L. Kenyon, personal

communication, November 30, 2010).

Another type of software solution that

has emerged is known as BIMS (Building

Information Modeling System) software, which

aid building designers in predicting the energy

performance of a building and understand the

impacts of design modifications long before

construction begins. As explained by J Novitski

(2009) “BIM, in theory, creates a complete

digital representation of a building, including

physical attributes, geometric form, material

descriptions, and thermal and structural

behavior. By stressing multidisciplinary

cooperation early in design, BIM also provides a

framework for sustainable design.” Software

companies such as Autodesk, a long-leading

manufacturer of computer aided design software

for architects and builders, are now starting to

integrate BIMS into their offerings (Autodesk,

2010).

The “Smart” Building (Sinopoli, 2009).

Developments in Building

Energy Technology

Once building “envelope” optimization

and use of more efficient appliances and devices

have been addressed, the next area for potential

savings can come from utilizing smart metering

and building feedback systems. In fact, recent

studies performed by the American Council for

an Energy Efficient Economy (ACEEE) have

shown that if well-designed programs involving

smart metering and real-time info down to the

appliance level were implemented broadly

throughout the U.S., the resulting savings could

be around 100 billion kW h or 12% of the

annual residential sector energy use (Martinez,

et al., 2010). By combining these systems with

onsite power generation, energy storage and

advanced management systems, the idea of a

truly “smart building” begins to take shape.

One of the key components in adding

“smarts” to building energy usage and

management is the replacement of conventional

Not Feeling So Smart About The Smart Grid 14


Building Automation System connectivity diagram (AutomatedLogic Corporation, 2010).

electrical meters with “smart” ones. A smart

electric meter is one which not only tracks

overall electricity usage within a building or

residence, but also records detailed statistics

about when and how energy is used. Features

vary among smart meters, but generally they can

be used to provide feedback to the utility, which

allow for adjustment of power generation and

distribution practices based upon “peak” and

“low” usage periods. It also provides

information to the customer about how much

power is being used and when (“What are”,

2010). As variable rate billing systems are

incorporated, this feedback will help consumers

adjust their power usage for lowered costs and

more efficient grid capacity management. As of

March 2010, it was reported that electric utilities

had already deployed over 8 million smart

meters, and it was projected that 60 million

would be operational by the year 2020

(Associated Press, 2010).

With smart metering systems in place,

the next logical extension of the smart grid

infrastructure into the building or residence

involves the implementation of a Home Area

Network, or HAN. HAN’s allow “Smart Grid

applications to communicate intelligently with

multiple appliances in a home”, facilitating

“two-way communication between devices,

users and the utility” (Burns & McDonnell,

n.d.). With a HAN in place, smart appliances

can then be incorporated into the system,

allowing for better management of power usage

by staggering peak use of the various

components and performing energy intensive

functions (such as the auto-defrosting of

refrigerators) at night or at times of low grid

usage. Although the concept of the smart

appliance is still in its infancy, a recent Pike

Research report estimates that by 2019, the

smart appliance market will reach $26.1 billion

Not Feeling So Smart About The Smart Grid 15


with 118 million devices deployed; about 8% of

the world’s appliances (St. John, 2010).

Other potential components which may

end up in a smart building are onsite power

generation (i.e. rooftop solar panels), energy

storage systems (such as advanced battery

systems) and electric vehicle charging facilities.

As these pieces are added, they will all need to

be managed. For optimal efficiency they must

be able to exchange information with consumer

devices within the buildings network as well as

providing feedback and information exchange

with the power utility through the Smart Grid

(Nesler C. & Laughton, T., n.d.).

In the “smart building” managing and

controlling all the various components and enduser

devices may become the responsibility of

dynamic control systems or BAS (Building

Automation Software) systems. Many renditions

of this idea are currently in various stages of

development and testing, and will allow

consumers the ability to monitor and manage

their homes and facilities via computer, through

web browsers, or even using mobile devices

such as smart phones. An example of this is the

WebCTRL Web-based building Automation

system available from AutomatedLogic

Corporation.

These software systems will rely on data

gathered by connecting to the devices using one

or more of the many communication protocols

in development to facilitate this connectivity.

For example, WebCTRL is compatible with the

BACNet protocol, a popular standard for

connecting smart devices within a building

(“BACNet”, 1997).

Smart Building Challenges

Beginning with perhaps the most

rudimentary component of the smart building,

the Smart Meter, implementation challenges are

plentiful. As power companies attempt to

deploy and utilize Smart Meters, they are faced

with myriad issues, such as the deployment and

operational costs, the possible increase in

customer service and engagement required,

security issues, training and data management.

Another important challenge will be to

standardize the technologies and communication

protocols between devices and management

systems. With many different industry players

and myriad ideas this will not be easy; even the

communications platforms within buildings are

in debate. For example, many proponents say

that wireless communications are the way to go

within buildings, as this will allow for easier

retrofitting of existing structures. However,

even with wireless technologies there are many

options to choose from. Some of the current

major players include Zigbee, EnOcean, Z-

Wave, RFID, and Wi-Fi. Each has its pros and

cons but the challenge will be to decide which

ones will become the standards.

In September 2009, the NIST (National

Institute of Science and Technology) issued a

report identifying 77 standards and

specifications that could be used within the

Smart Grid. Additionally they identified gaps

where standards need to be developed.

(Sinopoli, 2009). See the table on the next page

which shows the standards and protocols

identified which may impact the Smart

Building’s interaction with the grid. Further

defining and understanding these various

standards and protocols, agreeing on

interoperability between disparate components,

and figuring out how to fill in the gaps remains

a key challenge in the implementation of the

Smart Building.

Not Feeling So Smart About The Smart Grid 16


Standards that may Impact a Building’s interaction with the Smart Grid (Sinopoli, 2009)

Not Feeling So Smart About The Smart Grid 17


U.S. Smart Grid Business

Opportunities

The deployment of the U.S. Smart Grid

is expected to create a booming market for

industry enabling technologies. The

development of the Smart Grid infrastructure

would create jobs in a variety of businesses

ranging from transmission equipment firms,

through manufacturers of communications and

metering equipment, down to companies that

make advanced supplies. (Nolan, 2010)

There is a plethora of information

available regarding the future U.S. market

forecast of how quickly the Smart Grid industry

will grow.

Leader Energy & Environmental News for Business (2009)

Advanced Metering Infrastructure

The U.S. Advanced Metering

Infrastructure market has the potential to cut

electricity use by 4% annually, saving

businesses and consumers nationwide over $20

billion each year. In the U.S. the AMR

(Automated Meter Reading) revenues are

estimated to be more than $1 billion, with

potential to double by 2016. (EBR, 2010) This

new type of technology would provide

customers with “time-of-use” and “criticalpeak”

pricing, allowing for better management

of overall utility usage. The current grid has

inefficient data collection methods that continue

to cost utility companies and consumers’

money. The new advanced meter technology

would allow utilities to collect meter

information without a visual inspection, through

wireless, power line, or radio communications.

As a result of the government’s “unprecedented

investment” from the ARRA (American

Reinvestment Recovery Act), over two million

Smart Grid meters have already been installed

across the country to help reduce energy costs.

(EBR, 2010)

Distribution Automation

According to David Leeds, a Senior

Manager of Smart Grid Research at Green Tech

Media, the U.S. Distribution Automation

technology is considered to be the fastestgrowing

Smart Grid market segment. It is

expected to grow from $2.2 billion in 2010 to a

projected $5.6 billion in 2015. This type of

technology allows for the smart grid to re-route

electricity instantaneously around power failures

in order to provide reliable power around the

clock, in any situation. As more states move

toward mandating grid efficiency, business

opportunities for the distribution automation

market will continue to expand. The current

electric grid has been under-funded for decades

and needs to be updated. With new investment

in electricity distribution and technology there

will be opportunity for substantial growth. From

a business standpoint DA technology produces

significant cost savings through measurable

improvements in operational efficiency,

reliability, service quality and conservation.

(Leeds, 2010)

Electric Vehicles

The question that many prospective

investors are asking about the Smart Grid is

“why now” To answer this question in most

basic terms one needs to look at a few

significant market trends. In the auto industry

both Plug-in Hybrids and Electric Vehicles are

being manufactured from almost all major

Not Feeling So Smart About The Smart Grid 18


automobile companies. The 2011 Nissan Leaf

lists for $32,780, but consumers will only pay

$25,280 after a federal tax rebate of $7,500.

(Kannelos, 2010) One of many future zeroemission

vehicles to come, Nissan’s all-electric

automobile will be one of the first affordable

vehicles targeted towards the mass market. The

meeting of the Smart Grid and Electric Vehicles

is predicted to make a great impact on our

current climate challenges. Clean energy

generation and the widespread use of electric

vehicles could eventually reduce U.S. CO 2

emissions by 70%. (Leeds D. , 2010) The sales

projections of the electric vehicle industry

forecast that one million zero-emission vehicles

will be sold by 2017. Previously the hybrid

market only accounted for 2.2%-2.5% of total

U.S. auto sales. However, in September 2010,

Toyota sold 12 thousand new Prius vehicles in

the U.S., equivalent to the previous six months

sales of all hybrids in the U.S. This dramatic

increase in consumer interest brings a strong

message to the auto industry that higher

efficiency cars have become an emerging trend.

If the electric vehicles and plug-in hybrids were

to follow a similar pattern, it would take 3.5

years for one million vehicles to be sold.

(Kannelos, 2010) Some key factors that would

cause zero-emission vehicle sales to

dramatically increase would be: a significant

increase in oil prices, a battery breakthrough

that would lower costs and improve

performance & consumer confidence, and

continued government policy to encourage

consumers to buy electric vehicles. (Kannelos,

2010)

Government Support

Demand for electricity is expected to

increase by 30% over the next 20 years. At the

same time the government has become

increasingly aware of the potential security

threat of our current electric grid and considers

the smart grid to be a national security priority.

In mid-April of 2009 the DOE announced plans

“to develop a smart, strong and secure electrical

grid, which will create new jobs and help

deliver reliable power more effectively with less

impact on the environment to customers across

the nation.” The ARRA signed by President

Obama outlined the U.S. government’s plans to

distribute more than $3.3 billion in smart grid

technology development grants. According to

the Darnell Group, a power electronics

advocacy firm, a new grant being offered by the

DOE is the Smart Grid Investment Grant

Program will provide funds ranging from

$500,000 to $20 million for smart grid

technology deployments. The grant will provide

further funding of $100,000 up to $5 million for

the deployment of grid monitoring devices. An

additional incentive that this plan provides is a

matching grant of up to 50% for investments

planned by electric utilities and other entities to

use Smart Grid technologies. (Group, 2009)

Utility companies all over the country are

installing smart meters, which are widely

perceived to be a critical first step for Smart

Grid deployment.

Smart Grid Policy Issues

Among the myriad challenges facing the

effective implementation of a modern Smart

Grid is the lack of centralized public policy to

govern its realization. We have established

certain challenges in generation, distribution,

consumption, and energy markets. Government

policies that provide incentives for utilities or

the telecom industry to make significant

investments in Smart Grid can expedite its

implementation. Currently, individual states

have the regulatory control over utilities that

operate within their boarders. Federal policies

that establish standards for implementation and

provide monetary incentives to those companies

that make capital investments in infrastructure

are a good first step.

Not Feeling So Smart About The Smart Grid 19


The U.S. government has already

introduced several funding opportunities for

Smart Grid projects; these programs were

limited in scope and did not provide enough

funding for a nationwide reform. However, the

programs proved the existence of overwhelming

market demand for Smart Grid technologies.

They also demonstrated the U.S. commitment to

leading the way towards this emerging segment

of the global economy. The U.S. has taken

meaningful steps towards developing a Smart

Smart Grid. This RFI followed two previous

requests in May 2010 that addressed data

privacy, access and communications

requirements. (Department of Energy) The

DOE received a massive amount of feedback

and on October 5 th , 2010 released two reports:

Communications Requirements of Smart Grid

Technologies and Data Privacy and Access

Related to Smart Grid Technologies. While

there were many innovative ideas contained

within, one issue the DOE stayed put on was the

(Ministry of Economy, Trade, and Industry)

Grid marketplace. Before any further

implementation can take place, there needs to be

consensus between the DOE and the various

industry stakeholders defining the Smart Grid

and an agreement on how to move forward with

its creation.

On September 17 th , 2010 the DOE

released several RFIs to stakeholders in the

formation of government policies concerning

procedural definition of Smart Grid.

The U.S. government continues to use a

definition ofSmart Grid” that was established

in the EISA (Energy Independence and Security

Act of 2007). This definition states that:

“It is the policy of the United States to

support the modernization of the

Nation's electricity transmission and

distribution system to maintain a reliable

Not Feeling So Smart About The Smart Grid 20


and secure electricity infrastructure that

can meet future demand growth and to

achieve each of the following, which

together characterize a Smart Grid

(Department of Energy)

Following that statement are ten conditions the

DOE deems to be the fundamentals of the Smart

Grid. Most components of the definition have to

do with increasing the way information flows

around our national energy system. Analysis of

this data shows how best to use real-time

monitoring to increase energy efficiency and

give customers of electric utilities more options

in how they use their power.

The tenth condition is, “Identification

and lowering of unreasonable or unnecessary

barriers to adoption of Smart Grid technologies,

practices, and services.” (Robinson, 2010) This

system condition is the government’s most high

leverage opportunity to encourage adoption of

the Smart Grid and fully modernize our

electrical infrastructure. All the other conditions

are potentially subject to government

regulations that should both promote rapid

investment while ensuring security. In order to

reduce the barrier to entry into the Smart Grid

market, our government has the ability to

provide federal funding or adopt funds matching

programs, like the ones outlined in EISA 2007

and funded by the American Reinvestment and

Recovery Act. (NARUC, 2009)

The DOE is not the only entity that has

issued a comprehensive definition of Smart

Grid. While the public sector works on their end

of the Smart Grid issue, private enterprises are

busy developing plans for their own massive

rollouts when the technological efficiency and

government policy evolve to a suitable level.

In response to the RFI, EEI (Edison

Electric Institute), whose member organizations

generate and distribute more than 70% of the

electricity in the U.S., was quick to supply their

own definition. They urged the government not

to misinterpret the Smart Grid as a single

structure or as independent from existing

infrastructure. Instead, EEI suggests that, “For

policy purposes, ‘Smart Grid’ should be

understood to be an ongoing approach to

achieving a ‘smarter grid’ in response to the

public interest in maintaining reliability, cyber

security, and achieving environmental goals at a

lower cost than the traditional grid.” (EEI, 2010)

It’s clear that EEI and their member

organizations, like Puget Sound Energy,

Portland General Electric, and Xcel Energy, are

poised to make massive investments in what

they see to be the future of electricity use.

(EEI.org, December) Some of these possibilities

have been examined in other sections of this

report. Many of the potential uses of the hybrid

power delivery and information technology

platform have yet to be further developed. What

is missing from the picture is national

legislation that gets the process started with the

full faith of the federal government behind it.

What we currently have in place is a system that

leaves the regulation and implementation of

electric utilities projects up to individual states.

(Robinson, 2010) There is nothing wrong with

states being allowed to regulate themselves, but

the Smart Grid will be a national infrastructure

system and will require laws and regulations

that treat it as such.

In an interview with Brandon Robinson,

these state-to-state issues were discussed in

great detail. Mr. Robinson is an attorney at

Balch & Bingham; his primary clientele is

electric utilities on the East coast of the U.S.

Admittedly, his opinions are in favor of the

utilities’ interests. Regardless of his bias, Mr.

Robinson has extensive working knowledge of

the policy issues surrounding the

implementation of the Smart Grid.

Currently, the process for a utility

recouping their capital investment is in the

hands of the individual states in which they

operate. If a utility wishes to invest in their

power generation or delivery system and

recover their costs from ratepayers, the approval

Not Feeling So Smart About The Smart Grid 21


(Green Energy Reporter, 1)

or rejection of their plan is up to state

commissions. (Robinson, 2010) The

implementation of Smart Grid technologies will

provide benefits to all users and as such, all its

beneficiaries should share the costs. Federal

standards for cost recovery will make this

process more predictable.

There are many methods that federal and

state electric commissions can deploy to make

investment in Smart Grid technologies more

attractive. If governments were willing to create

an incentive-based cost recovery policies they

have the opportunity to rebalance risks in ways

that are fairer to utilities. EEI has suggested the

implementation of up-front approval processes

that make it easier for utilities to get the goahead

to start building. These could be coupled

with a construction cost tracking system that

strongly encourages utilities to stay within their

stated budgets. (EEI, 2010) In return for more

encouraging project approval rates, any cost

overruns on new Smart Grid developments

would not be passed along to ratepayers. In a

system like this, projects are more likely to gain

approval and stay within their stated budgets.

(Robinson, 2010)

Another policy method to encourage new

investment would be the approval of different

cost accounting methods, specifically how

depreciation is measured. If companies were

allowed to depreciate new Smart Grid

equipment over a 5-7 year timeframe instead of

20 years, it would encourage constant

investment in newer technologies. This makes

sense considering that most components of the

Smart Grid are data processing and

communication equipment and will not be in

service as long as traditional utility assets.

(EEI.org, December) Policies that enable

investors to deploy newer technologies without

concerns over cost overruns will be most

conducive to successful implementation.

After a Smart Grid has been made

available to consumers, then the real challenge

begins. The question of how to encourage

consumer adoption of Smart Grid-friendly

behaviors is of primary concern for industry and

government alike. Industry proponents would

like to see as much compulsory implementation

as possible. The more fully engaged a customer

is in the Smart Grid, the quicker businesses can

expect to recoup their investment costs. The

most likely scenario is that ratepayers will not

be able to opt-out of supply-side investments by

their electrical provider. Under this model, PSE

(Puget Sound Energy) invests in large

infrastructure Smart Grid programs that will

both partially recover costs from and ultimately

benefit their ratepayers. (NARUC, 2009)

On the other hand, customers would most

likely be able to opt-out of demand-side

behavioral changes. After PSE customers have

access to the data the Smart Grid will provide,

there is no requirement for them to adjust their

behavior in order to take advantage of the new

technology. (Robinson, 2010) This is well

within the rights of the consumer, however

industry champions anticipate most customers

taking advantage of the Smart Grid to save

money. According to a recent poll, almost 85%

of respondents believe it is necessary we start

investing in the Smart Grid technology.

More accurate data provided by the Smart

Grid will allow electric companies to be more

aggressive in charging peak-hour users a

premium while rewarding customers who

consume more when demand is low. These

“time-of-use” rates are absolutely necessary for

the Smart Grid to be effective; the whole point

of having real-time consumption data is to be

able to manage consumption more efficiently.

Without providing the customer an incentive to

put less stress on the system, the Smart Grid is

useless.

There are many challenges along the road

towards drafting effective Smart Grid policies.

Clearly defining the vision and the end result of

Smart Grid projects with so many stakeholders

is possible if governments and businesses come

together as one. Drafting legislation that does

Not Feeling So Smart About The Smart Grid 22


the most to promote nationwide investment in

Smart Grid technologies is possible; indeed it is

already being accomplished at the state level.

Foreign governments have taken on the Smart

Grid challenge too and have begun investing

heavily. If the U.S. is to maintain its competitive

edge we ought

to out-invest

our

competition.

China is the

only country

that spent more

than the U.S. in

2010 on Smart

Grid projects.

(Green Energy

Reporter, 1) In

response to the

2008 recession,

Congress

passed the

ARRA

(American

Reinvestment

and Recovery Act). The ARRA appropriated

$4.5 billion for Smart Grid projects and

according to NARUC (National Association of

Regulatory Utility Commissioners), “the bulk of

the funding will go toward matching grants for

the implementation of digital upgrades to the

electric grid. Electric utilities, distributors and

marketers, distributed power generators, grid

operators, and others are eligible for smart grid

matching funds of up to 50% of qualifying

investments.” (NARUC, 2009)

The time to begin investing more seriously

in a national Smart Grid is now. Paradoxically,

the U.S. could be at a competitive disadvantage

since our electrical grid is already well

established. China is just building many of these

systems for the first time; consequently they

have the opportunity to get it right from the

beginning. If the U.S. does not rise to the

occasion and pass federal legislation that

requires an upgrade to our electrical grid, it puts

the future of the economy in grave danger. As

population continues to grow, it will put even

more stress on the antiquated grid and without

the necessary upgrades, inefficiencies in

distribution and consumption will have serious

economic consequences. The U.S. should not let

political infighting

get in the way of

passing sweeping

electrical policy

reform. The United

States must move

towards a future that

encourages

investment in

innovative

technologies like the

Smart Grid.

Conclusion

A number of

surmountable

challenges in the

areas of

equipment, policy and implementation exist.

The primary challenges are:

Federal Stimulus Investments by Country (Green Energy Reporter, 1)

• The inertia of "big oil",

• Unregulated markets,

• Lack of federal regulation or

leadership,

• Distribution,

• Lack of standards and

• Cost-effectiveness.

Without the federal government

regulating the energy industry and markets and

large corporate interests spurring innovation, the

smart grid remains gridlocked. If the U.S.

government had clear leadership across state

lines and private industries, and passed laws

regarding regulation of the developing Smart

Grid, it would be up and running today.

Unfortunately, this is not yet the case.

Not Feeling So Smart About The Smart Grid 23


Some wonder, "The smart grid is a really

expensive project; can we afford it Can we

afford not to" (Divan, 2008). Secure, reliable,

affordable, perpetual electricity generation,

distribution and consumption should make this

answer a foregone conclusion.

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About the Authors

This report was written by MBA students at

Bainbridge Graduate Institute under the

direction of Darcy Hitchcock and Marsha

Willard, faculty.

Ben Drury is a full time student in the MBA

program in sustainable business at the

Bainbridge Graduate Institute. In addition to

being a full time student he is a husband and

father of two school aged kids. Ben was a small

business owner for 16 years as part of an over

twenty year career in the outdoor industry. Ben

and his family traveled for a year in Australasia

prior to his enrollment at BGI, a year the family

calls “The Year of Homeschool in a Global

Classroom”. As a member of cohort 9 at BGI

Ben plans to build upon his work experience,

love of nature and adventure, and return to the

work force as an agent of change, bringing the

triple bottom line to life in a changing economy.

Alexander E. Horne is currently employed

with RANDSTAD Work Solutions and is an

MBA Candidate of Cohort 9 at Bainbridge

Graduate Institute, WA. He has achieved his

bachelor of science in Regional Development

and earned his California Commercial Real

Estate License. His background in regional

development and experience in commercial real

estate has provided him the necessary tools to be

proficient in regional planning analysis,

interpersonal client development, creative

marketing strategy, and a firm foundation in

commercial real estate market trends. Highly

motivated, Alex has a keen interest to give back

to the community and the environment by

providing green technologies to both the

commercial and residential sectors of the

community.

Not Feeling So Smart About The Smart Grid 27


Mark Kammerer is an MBA candidate at the

Bainbridge Graduate Institute. As a member of

Cohort 9, he expects to graduate in June 2013.

He is currently the Operations Manager for

EverGreen Escapes, a Seattle-based adventure

travel company with an emphasis on sustainable

tourism. He is a graduate of the University of

Denver’s Daniels College of Business where he

studied Business Management. He brings his

passion for sustainability and systemic problem

solving with him to BGI in order to enhance his

ability to work effectively in a rapidly changing

workplace.

as the driver for the other 3Es of economy,

environment, and equity.

Luisa Walmsley has a degree in Environmental

Studies from Prescott College and a background

in energy management and sustainability

planning. She lives in Tucson, Arizona, where

she works as an energy manager for Raytheon

Missile Systems, and is currently pursuing an

MBA in Sustainable Business from Bainbridge

Graduate Institute.

Jeff Lancaster currently works as a Senior

Software Engineer with Arris in Beaverton,

Oregon. Jeff has over 20 years experience in

software programming, data systems analysis,

systems design and integration, and business

information systems consulting. As an MBA

Candidate at Bainbridge Graduate Institute

(cohort 9), Jeff hopes to bring this technical

background into the world of sustainable

business. His aim is to introduce new

technologies, concepts and ideas that allow

things to be designed, built and operated in a

“smarter”, more efficient, and more

environmentally friendly manner.

Bainbridge Graduate Institute (BGI) offers both

an MBA in Sustainable Business and Certificate

programs. In these programs, students work

with distinguished faculty from top business

schools to master proven sustainability

practices. BGI is routinely in the top 5 ‘green’

business schools rated by NetImpact.

www.bgi.edu

Patrick T. Rost is currently a Service

Technician at Ingersoll Rand Security

Technologies and an MBA Candidate of Cohort

9 at Bainbridge Graduate Institute, WA. With

superior computer, mechanical and

technological skills, he brings over fourteen

years of expertise in analysis, creativity, design,

engineering & troubleshooting. A self-starter,

Patrick has the utmost respect for the

environment and is researching the

ramifications of our noisy world: noise

pollution, its negative effects on human health

and its abatement. Chief among his business

strategies is the notion of ‘enthusiastic purpose’

Not Feeling So Smart About The Smart Grid 28

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