Electric power generation is biggest source of lost energy in absolute terms. Only 31% of the energy used to generate electricity ends up as distributed energy. When line losses, transfer stations, and the inefficiencies of the appliances and factories that use electricity are added, useable energy can drop as low as 2 percent.
Electricity represents a growing portion of total energy use. It is expected that electricity will constitute 16 percent of the total energy consumption in 2009 as compared to 9 percent about 20 years ago. While transportation accounts for 20% of our total greenhouse gas emissions, the electrical system accounts for 40%. But our transmission system is badly out of date; its infrastructure will need a huge investment to meet the expected future demand. According to The Brattle Group, a $1.5 trillion investment will be required between 2010 and 2030 to pay for new infrastructure.
The Department of Energy estimates that demand for electricity has increased by around 25 percent since 1990 while construction of transmission facilities dropped 30 percent. The resulting congestion has raised line losses, which have increased from a low as 5 percent of electricity transmitted in 1970 to 9.5 percent by 2001. This represents roughly and additional 3 quadrillion Btus lost to inefficiency.
Our aging electric infrastructure is one major reason why plans for a smart grid have been getting a lot of attention as the most efficient alternative to this problem. A smart grid would require less new capacity by saving more energy.
via The future is Green: Our aging electric grid.
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- Consumers Energy Teams up with Ford Motor Co., Other Utilities on a Proposal to Promote the Use of Electric Vehicles
- Smart Grid to Grow 21 Percent a Year to $17B in 5 Years
- Smart grid not clever enough to avoid recession – MarketWatch
- Smart Grid – Baltimore Gas and Electric expending energy in quest for $200M



