Smart Meters Have a Vital Role in Smart Power Grids

Gas and electricity providers are gradually replacing the standard energy meters with smart meters, which are more accurately able to a customer's energy usage. They feature a wireless electronic display which gives full details of all energy consumption, along with the associated cost - both in financial and carbon terms - and makes this available to consumer and provider alike.

Smart meters have the potential to transform the way in which UK households and businesses administer their energy needs. They have received a recent boost from the announcement by energy regulator Ofgem that it plans to invest £500 million in creating up to four 'smart grid cities' across Britain.

Ofgem has asked energy providers to come up with possible locations for new municipal smart grids and the regulator will then pay for smart meters to be installed in all the households in that area. The pilot scheme will see these locations being used as a proving ground for the smart technology ahead of a national roll-out.

The regulator is convinced that Britain's ageing power grid is in need of an overhaul and wishes the smart grid cities to signal the start of this process. It has said that alongside the increasing use of digital technology to revolutionise how energy is distributed and consumed, an ever-increasing share of the UK's power requirements must be met through renewable energy sources.

However, if renewable power sources are to achieve their full potential, Ofgem argues that the UK energy network needs to transform itself from a centralised grid to one with a widely distributed range of sources. The current national grid is configured for large power stations burning fossil fuels, rather than the more intermittent supply generated from renewable sources.

With the new smart grid cities, power for these areas will be produced locally and the smart grid technology will assess and distribute the irregular levels of power generated by renewable sources, such as wind farms. At the points of use - in homes and businesses - smart meters will monitor power usage and calculate the cost for consumers.

There is even an opportunity for environmentally-minded householders to take a more active role in their electricity generation and consumption. By installing solar panels or wind turbines on their properties, these home or business owners can contribute to their own energy needs and even supply excess energy back to the local grid to make a saving on their bills. Again, smart meters have an important role to play in this, by monitoring the levels of home-produced energy and keeping the electricity provider informed.

Kim has done alot of research into price comparisons for customers and how to get the best deal on many household products including Gas and Electricity. She enjoys writing articles to share this knowledge.