The focus of this report is to demonstrate the environmental benefits of smart-grid interoperability. Resource optimization, decreased emissions intensity, and carbon productivity are the primary conduits by which environ-mental benefits can be achieved. Resource optimization refers to the energy savings derived from smart-grid capabilities and includes enhanced efficiency, conservation, demand response, dynamic pricing, and voltage control. Smart grid allows the electricity supply chain to accommodate increasing demand while generating less electricity, resulting in greater efficiency throughout the system. Power that is produced regardless of enhanced efficiency will contribute fewer greenhouse gases (GHGs) as smart grid promotes the integration of distributed generation, renewable resources, and energy storage (or potentially all three in the form of plug-in electric hybrid vehicles [PHEVs]). Finally, carbon productivity describes the move from greater to less carbon-intensive activities and focuses, in this case, on operational and business processes facilitated by a smart grid.
Environmental Benefits of Interoperability: The Road to Maximizing Smart Grid Benefit is a work of the GridWise Architecture Council.