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GreggBadichekFirstEssay 6 - 13 Feb 2016 - Main.EbenMoglen
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| | Economics of the Smart Grid
The dumb grid technology requires bulk capacity sales at the wholesale level from generator to distributer, but the retail level from distributer to consumer requires sales of energy at hourly rates. Smart grids will shift power economics by severely reducing demand at the retail level. As a result, utilities selling energy on a smart grid will need to recoup significant capital expenditure while suffering a loss of hourly power sales in the long term. For this reason it will no longer make sense for utilities to operate on volumetric sales with guaranteed recovery of capital expenditure; they will need to shift their business model to one based on providing reliable service for a guaranteed flat rate. | |
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We are to believe that utilities will be providing
electricity at flat rates? Whose global warming policy is
that? Why would a smart grid that can dynamically price
according to demand and perform other adaptive functions
result in the dumbest, least flexible possible pricing
structure? It may be that there are simple answers, but
they aren't obvious and it would have been helpful to back
up the observation somehow. Undefended, I think it
decreases the credibility of the argument.
| | A service industry focusing on reliability will analyze smart grid data to discover gaps in service and areas needing improvement. Thus, using the new software and sensor tech, utilities will collect and scrutinize consumer data with far more precision than ever before.
The security issues herein are similar to those associated with social media platforms: a tremendous amount of user data is willingly given to private entities, which analyze the data to “improve service.” The patron is generally unaware that their information reveals far more about their behavior than merely what they “post.” The developing smart grid would likely feature advancements in connectivity technologies made popular by smart phones. The result of this is the so-called “internet of things,” which relies on data transmission between mundane machines to presumably enhance a user’s interaction with those machines. Each device so connected would transmit user data possibly designating its purpose, location, make, model; connectivity to the smart grid would further pinpoint time and extent of device usage. The aggregation of data from several devices, combined with real time electricity usage data, creates an observable, real-time collage of all activities in a household. | | | |
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