Who will pay for the Enernet?

By Dana Blankenhorn | Jun 17, 2009 |

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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  •  
    1

    Bill723

    06/17/09 | Report as spam

    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

  •  
    2

    dave_helmut

    06/22/09 | Report as spam

    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.

  •  
    3

    DanaBlankenhorn

    07/06/09 | Report as spam

    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.

  •  
    4

    dave_helmut

    07/13/09 | Report as spam

    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.

  •  
    5

    dave_helmut

    07/14/09 | Report as spam

    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

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    MuratCan

    02/07/10 | Report as spam

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John Dodge

John Dodge has answered the call of journalism for 33 years, most of the time covering technology, engineering and business. While he's run magazines, newsweeklies and web sites, reporting and writing always took up half his time. He has have plied his craft at the WSJ, Boston Globe, PC Week (now eWeek), EDN, Design News, Electronic Business, Bio-IT World, Health-IT World, the Lowell Sun, Haverhill Gazette and Newburyport Daily News. He would have like to have been around when Boston supported seven or more newspapers (1940s) and while steam locomotives still pulled trains, but that era was nearly over by the time he raced into the world. That said, he has been blogging and shooting and editing video, writing for web and other online contents tasks for years now.

He has won numerous journalism awards in the past two years, including two Eddie Golds, one Neal finalist and the IEEE Award for Distinguished Journalism all for his reporting and coverage of the Boeing 787 Dreamliner.

Besides his family and myriad hobbies, reporting and writing is why he gets up in the morning. His personal blog focuses on netbooks and is called The Dodge Retort.

John Dodge

John Dodge prides himself on completely independent journalism. His opinions, observations and reporting are not influenced by any financial holdings. He holds no shares in computer, electronics, software or Internet companies. He also has no business affiliations with organizations except with those for which he creates content as a freelancer.

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

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.
The Thinking Tech blog focuses on technologies such as virtualization, smart electric grids, enterprise 2.0, open source, data center management, green technology and the intersection between the innovation and application of these advancements.