The Grid (2016) - Gretchen Bakke

The grid serves as the extensive infrastructure supporting the entire United States, as well as parts of Mexico and western Canada. It encompasses all the essential components such as power plants, wires, batteries, utility poles, transformers, relays, and generators, forming a vast network crucial for sustaining the country's operations. Given its magnitude, the grid demands a substantial amount of energy to operate, primarily sourced from nuclear power, natural gas, coal, and oil. Despite various efforts to incorporate more renewable and alternative energy sources into the system over the years, the transition has proven challenging due to the unpredictable nature of weather patterns. To gain a comprehensive understanding of the current grid status and how to enhance it effectively, a thorough examination of its history is essential.

The electric grid, introduced in the 1870s, caused a sensation worldwide. Among all human discoveries, electricity has undeniably had one of the most significant impacts on our way of life. By replacing candles and gas lamps with electric lighting, it effectively extended the hours of the day, allowing businesses to operate for longer periods. This transformation began when Father Joseph Neri, a professor at Saint Ignatius College in San Francisco, successfully used battery-powered electricity to illuminate a light in his window in 1871. The news of his invention quickly spread, leading to the establishment of San Francisco's first lighting grid in 1879, powered by two dynamos driven by a steam engine. Although it only lit up 20 lamps, it marked the beginning of the electric grid era. Subsequently, an electric grid powered by water-driven dynamos was set up in the Sierra Nevada gold mines of California, bringing thousands of electric lights into operation.

However, further changes were soon on the horizon. The early grids underwent a significant transformation in the early 1880s with the introduction of the parallel circuit by Thomas Edison. Prior to Edison's innovation, grids were interconnected in a series, which meant that if a single bulb failed, the entire system would shut down as electricity could not flow beyond the faulty bulb. Edison's breakthrough was realizing that electric currents could travel through all available paths, even if one path was considerably longer than the others. Consequently, individuals were able to connect bulbs in parallel, preventing a complete blackout caused by a single malfunctioning bulb. By 1892, parallel circuit streetlights started to become more common, with the New York Times adorning its offices with numerous light bulbs strung in parallel.

The introduction of the parallel circuit was a significant development, yet there was no centralized grid available for connection. Various smaller entities operated their individual power plants, leading cities to be entwined in a complex network of wires. For instance, major cities like New York City had a chaotic arrangement of wires hanging from buildings and poles. In some areas, the entanglement of wires was so dense that the sky was hardly visible.

These configurations did not form a cohesive grid, but rather a collection of separate electrical systems owned by private companies, corporations, and municipalities. Consider downtown Manhattan, for instance. In 1893, the area had a total of 20 light and telegraph companies, each with its own set of wires. A more comprehensive grid only became feasible in 1887 with the introduction of alternating current (AC). Unlike direct current, AC involves the transmission of electricity with continuous changes in direction. This was made possible by an electromagnetic generator with rotating poles, allowing energy to flow in alternating directions. A key advantage of AC was its ability to elevate low voltages to higher levels using a transformer. This was crucial because high voltages can travel over long distances with fewer losses compared to low voltages. Consequently, it became viable to establish power plants that could supply electricity to cities located miles away. An example of this is the Cataract Construction Company, which commenced the construction of a large power plant at Niagara Falls in 1891. Upon its completion in 1896, this facility provided a consistent source of electricity to the city of Buffalo, which was approximately 20 miles away.

By 1902, there were 815 municipal electricity companies in the United States, a number that grew to over 1,000 by 1907. Despite this growth, the era was characterized by monopolies, exemplified by John D. Rockefeller's Standard Oil Trust, which, established in 1882, controlled 90 percent of global oil production within 25 years. Other monopolies included US Steel, American Tobacco, and AT&T. Samuel Insull aimed to achieve a similar monopoly in the electricity industry. In 1892, he took charge of Chicago Edison, a local electricity company founded by Thomas Edison. However, Insull soon realized that his plan faced challenges due to the unique nature of electricity. Unlike oil and steel, electricity cannot be stored in large quantities. This meant that Insull's plant had to continuously produce energy to meet peak consumption levels, even if these peaks occurred only at specific times. For instance, providing electricity to homes in a city required maintaining supply for evening peak demand when residents returned home. This led to power plants being underutilized during daylight hours. Despite these obstacles, Insull persisted and devised a solution.

Insull faced a storage issue that he needed to solve. To address this, he understood the importance of establishing a customer base that used electricity continuously to ensure efficient utilization of the power generated by his plants. In order to attract a diverse range of customers, such as manufacturers, homeowners, and transportation companies, Insull reduced his prices significantly. This strategy led to a significant increase in the number of customers, with electricity being sold to hundreds of thousands of people in a short period. This marked a substantial advancement from the 5,000 customers he had in 1892, bringing him closer to his goal of monopolizing the market. Additionally, he expanded his business by offering "off-peak" electricity to industrial clients, leveraging the surplus electricity his plants produced. Despite the decrease in the average selling price per unit due to the growing customer base, Insull managed to boost his overall revenue by selling the excess electricity. This approach allowed him to transform a storage problem into an opportunity to build a broad and varied customer base. Subsequently, other companies followed suit, adopting Insull's successful strategy in their regions. Rather than competing, these companies collaborated and divided the country among themselves, establishing a network of centralized grids and forming an electricity empire. By the end of the 1920s, only ten holding companies controlled a significant 75 percent share of the American electricity industry, fulfilling Insull's vision of a monopoly. However, this dominance was not sustainable in the long run.

Can a coal-powered power plant convert all the energy from the coal it burns into electricity? Far from it. In 1892, the average power plant had an efficiency rate of just two percent. This rate increased gradually to 40 percent by 1940, with coal magnates expecting further improvements. However, by the 1960s, it became evident that technological advancements could not significantly boost the efficiency of coal-powered plants. Due to the laws of physics, the heat engines used in generating electricity from coal could not exceed 50 percent efficiency. Even achieving this theoretical efficiency would be extremely costly due to maintenance requirements. Consequently, most power plants still operate at around 30 percent efficiency due to reliability and cost concerns. Moreover, spikes in fuel prices and construction expenses led to electricity price hikes, prompting consumers to conserve energy. To address these challenges and enhance efficiency, electricity companies began transitioning from coal to oil in the 1950s and 60s. However, in 1973, during this transition, Arab oil producers ceased exporting to the US in response to its support for Israel in the Arab-Israeli conflict, triggering the oil embargo. This event caused petroleum prices to surge by approximately 70 percent, forcing electricity companies to raise prices and leaving customers dissatisfied. The road ahead was not going to be any smoother.

The oil embargo led to a rise in electricity prices, but it also significantly raised public awareness about energy conservation. This represented a significant change, as electric companies had traditionally promoted increased consumption to support greater production, lower prices, and larger facilities. Their influence extended to households, which were equipped with a variety of appliances such as refrigerators and air conditioners. However, the oil embargo prompted people to realize the energy consumption of these conveniences and quickly adopt conservation practices.

Even schoolchildren were educated on energy conservation as aftermath of the oil embargo, instructed to switch off lights when leaving rooms, use heat sparingly, and wear warmer clothing in cold weather. This growing awareness played a key role in Jimmy Carter's election as president in 1976, with energy reform as a central focus of his campaign. Subsequently, legislative measures during the Carter administration reduced the dominance of electricity monopolies. For instance, in 1977, Carter established the Department of Energy to enhance national energy oversight, and in 1978, he enacted the National Energy Act in response to the energy crisis. This legislation included initiatives promoting energy conservation and provision. A significant aspect of this law was the requirement for utility companies to encourage consumers to reduce energy usage. Additionally, the legislation promoted building insulation and the adoption of alternative energy sources like solar, wind, and hydro power.

The oil embargo may have caused a spike in electricity prices, but it also drastically increased public awareness about energy conservation. This marked a major shift since the electric companies had always promoted ever-greater consumption to allow for increased production, lower prices and bigger plants. Their influence in this respect had a major impact on households, too, which were stocked with all manner of appliances from refrigerators to air conditioners. But thanks to the oil embargo, people were becoming aware of how much energy these household conveniences used and were quickly learning how to conserve. Even schoolchildren were being trained in energy conservation; they were told to turn off lights when they left rooms, only use the heat as necessary and to wear thicker sweaters in cold weather. This awareness eventually played an important role in Jimmy Carter being elected president in 1976, with energy reform as a central plank of his election campaign. From there, legislative action during the Carter administration wrested control out of the hands of the electricity monopolies. For instance, in 1977, Carter formed the Department of Energy to develop more robust national energy oversight and, in 1978, he passed the National Energy Act in response to the energy crisis of the era. This bill included provisions for programs geared toward energy conservation and provision. One of the major implications of this legislation was that utility companies were made to encourage consumers to use less energy. Not only that, but the law pushed people to insulate buildings and choose alternative energy sources, like solar, wind and hydro.

Minor issues on the grid can lead to significant disasters, putting pressure on utility companies. The present day also brings urgent challenges as the aging infrastructure of the grid, which saw rapid growth in the twentieth century, is now becoming a concern. The outdated and cumbersome system means that even small glitches can result in immediate and extensive impacts. For instance, blackouts can have serious consequences, as exemplified by the incident at the Davis-Besse Nuclear Power Station in Ohio in 2003. This malfunction triggered a blackout affecting a large portion of the eastern United States and parts of Canada, leaving 50 million people without power. Although the outage lasted only two days, it caused a decline in GDP and resulted in $6 billion in lost business revenue. These catastrophes often stem from the challenges that electricity companies face due to the Energy Policy Act of 1992, which required the Federal Energy Regulatory Commission to separate electricity production and distribution to promote competition among sellers. This change posed difficulties for companies like FirstEnergy in Ohio, which struggled financially and organizationally. Consequently, they were unable to adequately maintain the Davis-Besse plant, leading to critical oversights such as untreated rusting sections and malfunctioning cooling equipment that could have resulted in a nuclear disaster.

New technology has the potential to enhance the grid, although consumers are apprehensive. Are you familiar with the concept of a smart grid? This modernized infrastructure performs all the functions of traditional electric grids but leverages digital technology to enhance efficiency, such as through improved consumption monitoring. While this advancement seems promising, many Americans are uneasy about it, viewing it as a form of surveillance. A 2011 German study revealed that by analyzing electricity consumption patterns, a digital meter or smart meter could indicate which appliances are currently in use. Furthermore, research from the University of Washington demonstrated that such meters could even identify the specific TV channel being watched in a household at any given time. Although these findings validate consumer concerns, for utility companies, smart meters offer a means to regain control over revenue streams. For instance, digital meters provide valuable and precise information. In the event of a blackout, they can quickly identify affected areas, enabling companies to respond promptly and efficiently, thus saving time and resources. Moreover, in many regions, digital meters assist utility companies in managing consumption during peak periods when electricity usage is high. As peak demand often exceeds the capacity of regularly operational power plants, utilities are forced to activate older, inefficient plants, which are costly to run and maintain and pose public health risks. Therefore, utilities prefer to encourage reduced energy consumption during peak times, potentially through price adjustments, with smart grids aiding in pinpointing the optimal timing for such measures.

Inclement weather conditions have led to a growing interest in more robust grids, and downsizing could offer a solution. Recall the impact of Hurricane Sandy on the East Coast of the United States in 2012. This massive storm disrupted the lives of nearly 50 million individuals, depriving them of access to essential resources like clean water, public transportation, and electricity. For many, this event served as a wake-up call, highlighting the need to reevaluate the current methods of energy production. Consequently, there is a rising number of individuals, including politicians, advocating for resilience. These advocates are not only seeking to endure occasional disasters but also aiming to strengthen the grid itself. A recent report from the White House, titled "Economic Benefits of Increasing Electric Grid Resilience to Weather Outages," describes a resilient grid as one that minimizes the number of people affected by outages and shortens the duration of such disruptions. A promising approach to this issue is the establishment of microgrids, or "islands," which are smaller grids capable of operating independently from the main grid, providing power autonomously. However, for these microgrids to be effective, they must be adaptable and able to utilize various energy sources. Therefore, it is advisable not to rely solely on diesel fuel and solar power but to design grids that can also harness wind and natural gas. By diversifying energy sources, similar to managing an investment portfolio, microgrids can enhance their resilience. The United States already boasts numerous examples of these smaller grids, particularly in regions prone to severe weather conditions. In 2015, there were already 300 microgrids in operation across the country, with many more currently in development.