Cisco, the networking and communications giant, has announced that it plans to spearhead the creation and adoption of a Smart Grid, a digital power grid with the “smarts” to monitor power usage on a moment-by-moment basis. In plain English, that means that the network can detect when lots of people are using electricity at the same time. Peak usage hours would become more expensive, whereas off-peak hours would become significantly cheaper. The hope is that the free market will jump to the rescue. Consumers will limit their energy usage at certain times of the day, proponents argue, if it's in their financial interest to do so.
Right now, the peak hours phenomenon puts serious strain on our current electricity distribution system. If demand were spread more evenly throughout the day, then utility companies might be able to have smaller reserves, which they normally maintain in case there's a spike in usage or a disruption in supply.
The other big advantage of a Smart Grid system is its ability to repair itself. Instead of our current patched-together network, a Smart Grid would link all of these systems in one cohesive unit. Sensors and auto controls would be embedded in the network, enabling automatic detection of disruptions to the power flow. The issues might even be able to be repaired by the computer, without the delays and errors inevitable with our current system. The Smart Grid would distribute energy more efficiently—saving money and power—and it would reduce the number of outages.
Theoretically.
For one thing, this plan assumes that the average consumer will win the fight against entropy and actually change his energy habits. For another, it requires a great deal of infrastructure. The Obama administration appears to be well on board—and Cisco seems to have called dibs on providing the routers and metering technology. According to SmartGridNews.com, “Cisco’s strategy is to ensure that there is one, consistent, IP-based infrastructure for the electric power industry – a standards-based foundation that will ultimately be able to connect any device to any other anywhere at anytime. In other words, an Internet for electricity.”
So, I ask the pundits of capitalism: This is a good thing, right?
On one hand, Cisco’s actions might end up squeezing out competitors and claiming an early monopoly on the market. On the other, Smart Grid technology has the potential to truly revolutionize the distribution of electricity throughout the country and even the world. By putting its weight behind the new technology, Cisco will provide both the sponsorship and the clout to get the program off the ground.
Think about it this way: mom and pop’s business is 100% green. Wal-Mart is not. Compare ma and pa to the multinational conglomerate. Wal-Mart—a far, far, far from perfect company—also has a far, far, far greater effect on the world environment with every eco-program it implements. It’s a matter of scale. Will Cisco edge its more altruistic competitors out of the market? Probably. Is it motivated by economic goals rather than environmental ones? Assuredly. But if this tremendous corporation jumps on the bandwagon, the rest of the industry will have no choice but to follow.
That’s capitalism, baby.
