Austin Smart Grid: A Smart Social Experiment

A draft bill has been proposed by Representatives Waxman and Markley in the House entitled the The American Clean Energy and Security Act of 2009 (PDF). According to a summary of the draft bill, it would require electricity suppliers to meet 25% of their load with renewable energy sources by 2025. It also would include "provisions to facilitate the deployment of a smart grid". The draft bill also includes support for energy efficiency and mandates a carbon cap-and-trade scheme.

However, as reported by The Economist, this bill could be derailed by the heavy support for Senator Thune's "amendment to the Democratic budget that would prohibit the collection of funds from any future cap and trade proposal if that proposal would increase electricity rates and gasoline prices for American households and businesses."

The 89 to 8 vote for this amendment indicates two key issues for federal plans for energy regulation. First, the rising interest in reworking our energy infrastructure is being met by ever increasing concerns about its costs. The second issue highlighted by the introduction of this amendment is related to the policy process. This proposal is a very blunt political tool. How can a federal government that is stymied by simplistic policy analysis and policy tools filtered through a low signal to noise ratio from lobbying and interest groups ever devise a system that maximizes energy, environmental, and economic performance?

It's true that this problem engulfs the very system of government that we enroll - representative democracy - but I contend that this system is still likely the best around.

However, there is an alternative. I would like to share a very enlightening quote from Carl Sagan (in chapter co-written by Ann Druyan) in his book, 'The Demon-Haunted World: Science as a Candle in the Dark'.

"We face an abundance of subtle and complex problems. We need therefore subtle and complex solutions. Since there is no deductive theory of social organization, our only recourse is scientific experiment—trying out sometimes on small scales (community, city, and state level, say) a wide range of alternatives. One of the prerequisites of power on becoming prime minister in China in the fifth century B.C. was that you got to construct a model state in your home district or province. It was Confucius' chief life failing, he lamented, that he never got to try."

I'm disheartened by the environmentalist clammoring that we need to halt production in order to prevent the destruction of the earth. I'm equally dismayed by the reactionist declaring that we will destroy the economy by addressing environmental concerns. Some of this noise succeeds in getting the public-at-large interested in important issues, but much of this is just self-justification. I think it's wise to utilize analysis of actual examples when making policy decisions.

I think Austin is a great place to implement such a sample. One reason is because electricity rate changes may only have to go up to ERCOT. Also, devising a system that maximizes enviromental performance will be easier at the local level because, as Professor Webber noted in class, water supply is currently handled at the local level. Other previously mentioned advantages for Austin apply as well.

It's true that each city and region has it's own set of issues and adaptability to plans that improve our infrastructure to meet environmental and social goals. This would not be a true control test. However, one data point is better than none.

It's also true that incorporating current market externalities in this system and it's analysis will prove difficult - such as greenhouse gases. However, given the flexibility of Austin and the abilities of Austin's highly educated populace, we fare better at conducting this analysis than most places in the country.

I believe that until test cases prove successful, the role of the federal government should be to support cleantech and environmental research and development. In 'The Servitude of Power: Energy and civilization through the ages' the authors argue that throughout history, it is technology innovation that spurs complete reversal of exisiting infrastruture. New ideas are popping up all of the time.

The rigorous scientific method that usually accompanies science and engineering research and development should be adopted by public policy as much as possible. We should take note of each and every experiment including those in other countries, such as Chris Smith's recent research on efforts in the European Union. However, a test case of energy infrastructure that includes all of the tenants of a comprehensive plan - a smart grid, increased renewable energy generation, improved energy efficiency, and expanded environmental protection - right here in Texas, a home of lovers of liberty, would be very telling.

In conclusion, I propose that adopting an energy system of the future in Austin would be a wise social experiment that would inform us significantly before we roll out a new national energy plan.

Austin in Front of Gathering Smart Grid Storm

The inclusion of $4.5 billion (and more) for “electricity delivery and energy reliability activities to modernize the electric grid” in the American Recovery and Reinvestment Act of 2009 has pulled a swarm of attention towards smart grid initiatives and entrepreneurship. Austin will likely be a major beneficiary.

Since the passage of this bill, major news distributors including CNN and The New York Times have run educational articles on the possibilities raised by the development of a smart grid.  However, the most clear explanation may be from the Electric Power Research Institute (EPRI) : 

"The smart grid overlays the electricity network with communications and computer control. When this enabling infrastructure is matched with smart grid application in transmission, distribution, or within a customer portal, then the resulting smart grid can reach significant gains in reliability, capacity, demand response, and offer value added customer services."

KEMA, in a paper prepared for the Gridwise Alliance, anticipates that a "potential" $16 billion investment in the deployment of smart grids during the next four years may directly lead to an estimated 139,700 permanent jobs and even more indirectly.   In a move that is causing someto worry about data privacy, even Google is getting in this sphere by developing an energy information platform called PowerMeter. And it's not just Google. 

Despite economic concerns, the growing consensus is that government funding and open standards oversight will unleash the vast entrepreneurial possibilities granted by information technology onto the country's energy system. Most also agree that the government's support and endorsement of smart grids will enable the technology to be competitive for dwindling venture capital.

Austin, while currently outpaced by other cities in clean energy manufacturing, is in a great position to seize this opportunity. The combination of a highly skilled workforce, a high concentration of technology companies, an innovative energy provider with a board partially comprised of city council members, and an environmentally conscience citizenry makes Austin one of a handful of cities most likely to benefit from smart grid investments and innovation.

In this maelstrom of publicity on smart grids, the Pecan Street Initiative is getting Austin attention. With an impressive combination of non-proft, governmental, and corporate partnership, the Pecan Street Initiative aims to make Austin a model of energy generation and distribution for the nation.  

One of Austin goals with this project is to provide citizens with at least 30% of their electricity from renewable sources by 2020. Due to the variability in solar and wind generation, an updated grid is a prerequisite for managing and maintaining this enormous increase in renewable energy. Supporters of smart grids also anticipate large improvements in efficiency that will enable a smaller amount of renewable energy to be a larger portion of the total energy provided.

A fully integrated smart grid of this scale has never been implemented. It will not be easy. This plan will require foresight and long term cost-benefit analysis from the political and business realms. However, due to the collaboration and congruence between Austin's public and private sectors, Austin may be better suited and equipped for the challenge of creating a smart grid and capitalizing on smart grid opportunites than anywhere else in the country.

stimulus money for austin

There have been a number of posts on the blog talking about the stimulus package that is making its way around the Capitol. Emily has a great post on the breakdown of what's in the stimulus package relating to energy. I mean, $900 B is a lot of money, it's good to know what's in it, right? I've been wondering what the stimulus package has in store for Austin though.

Almost by chance, I came across this post from a blog here in Austin, Downtown Austin. Of interest is money to expand the commuter rail line in Austin. It's good to see Austin taking steps to implement better public transportation to reduce fuel consumption, traffic delays and emissions. The neat thing is you can go on to the site and vote for different stimulus items you like. The full website lists the other stimulus items requested for Austin.

What do you think of some of these requests? Is there anything you think Austin could benefit from?

green restaurants

While reading through the NY Times last night I came across an article about the increasing number of green restaurants in New York City. See here. These restaurants practice green building techniques such as using recycled materials, green roofs (plants) and take it further by having their supplies delivered by trucks running biodiesel.

Whats inspiring is that most of these restaurants are being green for more than financial reasons. For all the talk of subsidies, tax credits and other incentives it’s refreshing to see people change their interaction with the environment for the simple fact that they believe in it. Some of these restaurants will still get financial compensation for meeting LEED certification, but the driving force is a belief in minimization their impact on the Earth.

Even better, Austin gets a mention on the second page of the article. We have always been progressive on the environment so this should not come as a surprise. The best example I can think of is Save Our Springs which deals with pollution making its way into the aquifer recharge zone. Its good to see that green building practices are becoming more commonplace.

As a personal example, the Starbucks around the corner from my apartment is an amazing green structure. The roof is covered with grass which helps moderate the temperature inside, reducing heating and cooling costs. The front awning has solar panels on top to provide electricity, and there are rainwater collection tanks to reduce the amount of water needed to keep the grass green.

The irony in this lies in that a lot of trees were cut down to make way for this shopping center, but on closer inspection care was taken to minimize the impact on the environment. The Lady Bird Johnson Wildlife Center (a few miles away) helped to design the project. It has proven to be a great test of how green building and development can work together.

Its examples like these that can make you feel a little better about how we interact with the environment. While our national policy is confusing and contradictory, its great to see action taken at a local level especially with respect to buildings. That and now I only have to drive three minutes to get an iced latte and coffee cake.