Smart Grid

The current electricity infrastructure in the Unites States consists of one way “communication” between the electric company and the homes receiving the electricity with the communication coming from the electric company to the homes. The current electricity infrastructure in the United States is more than 100 years old and because of this fact, it is outdated resulting in a great lack of efficiency. There is no way for the electricity company to obtain information from the individual homes pertaining to actual usage. Smart grids allows for two way communications between the electricity company and the homes allowing both electric companies and homes to operate more efficiently. This two way communication will allow home users to cut costs by efficiently utilizing energy. Smart grids will also allow the electricity companies to raise prices when the demand is high and lower prices when the demand is low. Mirroring the price advantage, smart grids will allow the user to dictate the usage of appliances that may have a significant impact on their utility bills. Knowledge of the user’s consumption will also help in making decisions that the electricity company can use to be more efficient. Smart grid technology is the evolution of the current electricity infrastructure that will continue to evolve if accepted. Development of smart grids will need management inputs especially when deciding the benefits, or lack thereof. The financial issues that are already on the table and future issues will determine whether or not smart grids will ultimately become a detriment or a true asset. Management will also have to make decisions in the design or redesign process so that the final product is as efficient as possible. Organizations could be affected depending on the opinion of the end user. If the end user, for whatever reason, decides that smart grids are not beneficial enough and refuse to buy into the system, the organizations will feel the negative impact throughout due