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Who will pay for the Enernet?

By | June 17, 2009, 8:20 AM PDT

The key to getting mass participation in our energy future is what Ethernet inventor Bob Metcalfe (right) now calls the “Enernet,” a smart grid that, like the Internet, supports uploading, downloading and storage of energy rather than bits.

Metcalfe wants to take the lessons of the Internet – a layered architecture, global standards, mass storage — and apply them to the energy market.

Getting from here to there is a huge undertaking. When utilities talk of a “smart grid,” they are mainly thinking of reading meters remotely and monitoring energy flows.

An Enernet is something different. It would provide a means to buy energy from anyone, even consumers. It would have a way to store that energy for later use. It would be as robust and flexible as the data Internet.

Today’s grid is a simple set of cables designed to do simple things. Power plants produce the energy, power lines sell it, and utility companies “manage the load.” This means they make certain supply is meeting demand.

When there is too much supply plants are taken offline, starting with those whose energy costs the most. So many wind farms can’t even sell the energy they are making now. It costs more per kilowatt than coal, so utilities disconnect it when demand is low.

Any new transmission line, like the one proposed recently by Senate Majority Leader Harry Reid, would face the same problem. Plus the facrt that, given the limited conductivity of steel, you lose half the power in such a transmission line on the way to market.

So the biggest engineering problem for the Enernet involves storing excess energy and delivering it for later use. The simplest way to do this is with hydrogen.

Anyone who has taken high school chemistry knows you produce hydrogen using hydrolysis. Electricity splits water into its constituent gases, hydrogen and oxygen. Save the hydrogen and vent the oxygen. An Enernet would take excess power from its grid to produce hydrogen.

You reverse the process in a fuel cell. Hydrogen goes in, combines with oxygen, creating electricity and water. It’s already clean and quiet enough to go into residential areas as a form of back-up power. Switching the power supply from natural gas to hydrogen is easy enough.

Getting from theory to practice is another thing. There is energy lost in the hydrogen cycle. There are the problems of storing and moving the hydrogen to where it is needed.

An Enernet must be able to offload excess power into this or some other storage system, and buy power from any source, even your home windmill or solar panel set-up.

These are all questions the Enernet can solve, if it can get past the one I started with, who will pay for it.

Utilities are unaccustomed to real risk. They want guarantees of a market, and guarantees they can get their money out, before they consider listening to someone like Metcalfe talk about standards and protocols.

That’s where the President’s energy plans come in. Rather than just delivering more energy to the same wasteful grid, in many of the same old ways, someone needs to create the market incentives entrepreneurs like Metcalfe need to turn their dreams into reality.

Someone needs to fund the Enernet.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Technology

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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+1 Vote
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RE: Who will pay for the Enernet?
Wow, this seems like a great idea. Your right, there is a major start up funding issue. But I wonder if utilities should ever have really be structured on a profit model. Perhaps things like energy should rather be seen as basic social necessities to be regulated and provided through public funding. This plan, although perhaps expensive at the start, seems to offer a way to shift continually in the direction of smart green energies and should end up being extremely cost efficient once it is running. Government funding definitely seems the way to go. It is interesting how interconnected various fields and the challenges they are facing can be. I am particularly interested in journalism and there is a similar need and attempt to fundamentally restructure journalism on the model, and through the medium, of the internet going on as well. There, as here, the problem is how to make a profit from citizen and internet journalism and the like. As here, I suspect that there we are working with a business model that is basically mistaken. There are some great interviews with journalists and intellectuals about these types of challenges for future development at http://www.ourblook.com/component/option,com_sectionex/Itemid,200076/id,8/view,category/#catid69
Posted by Bill723
17th Jun 2009
0 Votes
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RE: Who will pay for the Enernet?
If only the conversion of energy to/from hydrogen was free. Sounds good on paper but also sounds infinately wasteful.
Posted by dave_helmut
22nd Jun 2009
+1 Vote
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How much loss do you want?
If the conversion costs you half the energy you produced for hydrogen, you're already equaling what we have now.

When utilities draw power from distance, over "high power" lines, they typically lose half of it on its way to market. It's like energy is water and you're moving it with spoons as in the kids' game.
Posted by DanaBlankenhorn
6th Jul 2009
+1 Vote
+ -
Hydrogen buckets, power lines
I didn't know the introduction of Hydrogen storage eliminates the need for long-distance power transmission... aka power lines...

It still seems net more lossy to introduce Hydrogen conversion apparatus.
Posted by dave_helmut
13th Jul 2009
+1 Vote
+ -
ss
We have been living in Montana for the past 5 years and I am not supri sexy shop to find it #3 on the "worst" list. Considering a sexshop move to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!

Where does Idaho rank? We have been living in Montana for the past 5 years and I am not supri sexy shop to find it #3 on the "worst" list. Considering a sexshopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by filhomarques
21st Jul
+1 Vote
+ -
Transmission losse = small
BTW: I checked your 50% transmission loss "claim"

See wiki: "Transmission and distribution losses in the USA were estimated at 7.2% in 1995 [2], and in the UK at 7.4% in 1998. [3]"

http://en.wikipedia.org/wiki/Electric_power_transmission#Losses
Posted by dave_helmut
14th Jul 2009
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