The smart grid in part is not a new concept. Decades ago there were ideas of how to actively and remotely monitor and control the electrical grid. There was also thoughts to price power more actively to motivate consumers to use more power off peak. The main issue was most likely the lack of technology capabilities. Due to the advancement of technologies, wireless protocols, and network infrastructures the concept of the smart grid today is very achievable. Recent actions by the department of energy, including government funding, has kick started the research, development, and incorporation of the smart grid. Utilities are always facing the increasing demand for energy and are faced with the realization that someday they may not be able to support the demand without significant changes to the way we distribute and use electricity.

Smart grid compatible appliances will most likely be air conditioners, dish washers, dryers, some lighting fixtures, and basically any other electrical device not required to constantly run. All the future plug in hybrid electric vehicles (PHEV’s) and electric vehicles (EV’s) will also be grid friendly.

Smart grid compatible or smart grid enabled appliances will be able to turn off and on automatically based on the cost of electricity at any given moment in time. They will work with your homes smart meter. These appliances are some times referred to as grid friendly appliances. These appliances will be able to communicate via home area network (HAN) with your electrical smart meter or internet websites to get real time power information, smart grid rates, pricing and other data. So basically if the electricity rates are less at night and your clothese dryer were smart compatible than it would be set to wait until a specific time or for the price of electricity to drop below a specific cost before turning on.

“From 2011 to 2015, the global household smart appliance market is projected grow from $3.06 billion to $15.12 billion. The United States will initially dominate the smart appliance market but by 2015 its share will decrease to 36 percent, representing approximately $5.46 billion. China will account for an estimated 18.2 percent, valued at $2.76 billion.” http://www.metering.com

Smart compatible appliances will become available in many areas of the US in late 2010/early 2011. Many appliance manufactures are involved with designing these appliances.

The idea of the smart grid and the ability to communicate real time electrical market data to consumers will allow people to choose when to use electricity based on the smart grid rates. There is a lot involved in the electrical market and power pricing. Basically electricity is more expensive during higher demand times, usually mid week, mid day to evening. During the times if high demand electricity rates go up exponentially. This is due in part to the lack of generation capability and availability. With the smart grid the communication of real time electricity rates to the consumer will be possible. This will allow people to choose not to use as much power during peak times to avoid high cost, this will overall reduce the demand. Smart grid compatible appliances or grid friendly appliances will be able to turn off and on automatically based on the cost of electricity at any given moment in time.