Several countries are now working on the development of an ultra efficient electricity delivery network, which allows electricity to be delivered between supplier and consumer through the use of smart grid architecture. Such a network will help to promote energy independence and will go a long way in the battle against global warming.

The use of smart grid architecture has been especially beneficial to a number of facilities, including universities, retail stores, hospitals, warehouses, production facilities, and other enterprises that feature multiple locations. Automation and metering ensures that the use of electricity is constantly monitored.

Energy management software has been particularly beneficial when combined with smart grid architecture. Energy use can be tracked in real time, businesses can better manage their consumption and their costs. Enterprises that use energy management services have found that they can reduce their demand during high peak and high demand periods.

A smart grid architecture helps to efficiently manage energy and track its usage through the integration of design and procurement technologies. As there is particular emphasis on the development of capabilities which make the use of electricity more efficient, two Acts of Congress have been established to provide incentives. The American Recovery and Investment Act of 2009 and the US Energy Independence and Security Act 2007 provide such incentives to businesses.

The electrical grid, which includes electric generation, transmission, distribution and electricity use, is the major contributor of pollution in North America. Production of electricity emits greenhouse gases into the environment, thus contributing heavily to global warming. Many countries, including the United States, are in the process of developing standards to produce clean energy.

The use of a digital grid can lead to a significant reduction in pollution, in addition to cost-reduction, enhanced reliability, potential for renewable energy, and efficiencies in demand response. Through the use of smart technology within the country’s electrical grid, the United States Department of Energy has estimated a saving of between $46 billion and $117 billion over the next 20 years.

As education about smart grid architecture expands, more enterprises are expected to be part of the smart grid. Areas of opportunity include industrial enterprises, large complexes like hospitals and universities, small businesses, transmission and distribution systems, and residential customers.

Businesses may become much more energy efficient through the use of smart grid architecture, by spreading the technology through their entire operation — including generation, delivery and consumption. Energy management software is the key to savings and cost reduction, as it will automatically monitor usage, weather data and all other critical systems. Thus, the best energy rates available may be procured.