Electricity has become part of our daily lives that most of us have taken it for granted, except during the occasional blackout. However, countries around the world are now paying more attention whenever we flip the switch. And now we know that even the world’s power grids could be at the heart of global climate change.

Basically, the power grid is the world's largest machine – a network of power plants, transmission towers, poles and wires. A new report, The Smart Grid: An Estimation of the Energy and CO2 Benefits, from the Pacific Northwest National Laboratory pointed out how a more efficient and smarter grid could be a powerful climate saver.

Eliminating waste is the proverbial low-hanging fruit in the energy sector. According to the United States Energy Information Administration, over half of the energy we generate is wasted in generation and transmission.

Energy is wasted from one end of the grid down to our own household sockets through unused but running lights and appliances. As a result, $4 billion is wasted in the United States annually, according to the Department of Energy.

The laboratory looked at nine ways smart grids could impact carbon emissions. These include the use of demand response systems; smart grid-enabled diagnostics in residential and commercial buildings; voltage regulation and control systems; and the resulting positive attitude from more informed consumers resulted to a 12 percent emission reduction if fully implemented by 2030.

"We wanted to show the additional benefits inherent in the smart grid's potential contribution to the nation's goal of mitigating climate change by reducing the carbon footprint of the electric power system," said Rob Pratt, a research scientist at the laboratory.

Smart grids are also driving carbon emissions down by reducing the capital or operational costs for the deployment of efficiency or renewable programs. The money saved could be reinvested to more carbon reduction projects in the future.

"This is very significant in light of future renewable portfolio goals of 20 to 30 percent set for the electricity sector in many states for the 2030 time frame, with even higher subsequent goals being contemplated as part of a national carbon policy," Mr. Pratt said.

By fully implementing smart grid technologies, the United States alone could prevent 442 million metric tons, or 66 typical coal power plants' worth, of carbon emissions from entering the atmosphere each year, according to the report.

China will overtake the United States in smart grid investment this year as it plans to roll out $7.32 billion, surpassing the latter’s $7.09 billion, according to a report by ZPryme. The heavy investment in smart grids is in preparation for a twofold increase in energy demand over the next decade in the country.

A green energy revolution is upon us, and the smart grid is at its very center.

-   Oliver M. Bayani