Potential Game-Changing Technologies

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Technology has repeatedly reshaped the electric utility industry — if anything, the pace of that change is likely to speed up.

Written by Dennis Wamsted

Emerging technologies for energy generation, storage, transmission and distribution can create tremendous pressure for change. Technology developments have repeatedly reshaped the electric utility industry since the Pearl Street station first come on line in 1882. If anything, the pace of that change is likely to speed up in the years to come, said panelists at Thursday's 10:30 am Critical Issue Forum, "Potential Game-Changing Technologies."

Some of these changes are already underway, such as the movement toward the use of light emitting diodes (LEDs) in place of conventional lighting options. Lighting consumes 17 percent of the nation's annual electric output, Mike Howard, senior vice president at the Electric Power Research Institute, told the audience. Given that, widespread use of LED technology, which is much more efficient than current lighting options, could "significantly" reduce U.S. electricity consumption.

Other technologies, not quite as close to commercialization, may provide even greater benefits, Howard said. For example, the use of nanotechnology to improve existing battery performance has enormous potential, he continued, pointing out that a lithium-ion nanowire technology now under development could boost battery performance fourfold. In other words, instead of getting just 40 miles on a charge, Chevy's new Volt might be able to travel 160 miles. That would be enormous, he concluded.

Hal La Flash, director of emerging clean technologies at Pacific Gas & Electric, added that major changes are in the offing in the renewable arena as well, even as utilities rush to install current-generation units on their systems. In particular, he noted that material advances are making a host of solar applications increasingly cost-competitive, including integrating photovoltaics into roofing material and so-called solar glazing. And while admitting that it might not happen, he said PG&E recently signed a power purchase agreement with a company looking to generate solar electricity in orbit and then deliver it via microwave.

Back on earth, Bob Powers, president of AEP Utilities, told the panel that the company has made significant progress in using battery technology to improve system reliability and a number of other applications.

Despite all this progress, Lynne Ellyn, senior vice president and chief information officer at DTE Energy, cautioned that new technologies often have unforeseen consequences. Speaking about the potential offered by the smart grid, taken in the panel's approach as a "technology," she told a cautionary tale about the internet. In 1990, when the internet was still in its infancy, the computer industry spent $200 million on security, and there were some 1,000 known viruses. In 2009, security spending will approach $15 billion, spent in part to defend against at least 2 million viruses.

The industry will undoubtedly save on meter readings through the smart grid's roll-out, she said. But how much will it end up spending on new computer techs?