This year's hurricane and tornado seasons threaten to bring power outages and remind us once again of the challenges facing our current electric grid system. Thousands of people could be without power and will look for solutions to prevent similar disruptions in the future. While the short-term remedy may require firing up a home generator, the long-term solution is a smart grid.
At Motorola, we are currently partnering with U.S. electric utilities to provide the wireless communications infrastructure to create a smarter grid. Smart grid communication infrastructure is basically the Internet for electricity transmission and distribution systems, with information technologies embedded throughout the system such as digital meters, remote sensors and data communications devices. Smart grid technologies provide energy producers and consumers with real-time information and better control of the electric grid, improving energy reliability, reducing energy costs and minimizing greenhouse gas emissions responsible for climate change.
We can improve energy delivery and reliability. Power outages cost Americans more than $150 billion a year. That's about $500 per person. Currently, most power companies do not have communications systems that reach their entire grid infrastructure and often don't know there has been a power outage until a customer calls to report it. Advanced smart grid communication technologies will give power companies greatly enhanced capabilities to remotely monitor and control energy distribution systems to determine where the outage has occurred, which customers have been affected and how to re-route energy around problems. More importantly, with more frequent monitoring and diagnostics to enable effective preventative maintenance, the utility will be able to prevent an outage from occurring in the first place.
We can reduce consumer energy costs. In-home smart metering devices - a component of a smarter grid - can help consumers save energy and money. Smart meters and in-home displays provide energy data to consumers, allowing them to monitor their consumption patterns and better manage their electricity use. Studies show that simply giving people access to and control of this information can result in energy savings of 5-15 percent. With better information, consumers can visibly see the economic benefit of turning down their air conditioning on hot summer days or switching off the lights when they leave a room.
We can help fight climate change. It's clear that human activity is warming our planet, and we must act to reduce our contribution to the problem. A smart grid will not only save energy costs and reduce our carbon footprints by reducing energy consumption but also it will make it easier to integrate energy from renewable sources onto the grid, two critical elements to reducing climate change-causing emissions. According to a report released by the Boston Consulting Group and GeSi, a smart grid in the U.S. could reduce emissions by as much as 7.5 percent by 2020 - nearly half of the reductions proposed by the U.S. Congress.
To achieve these benefits, we need the right policies to incent the transition to a smarter grid. In February 2009, the U.S. Congress earmarked $4.5 billion for smart grid development in the stimulus bill and more incentives are included in the comprehensive energy and climate bill introduced last month in the Senate. In the meantime, the Federal Energy Regulatory Commission can begin revising regulations created for a century old electric system to make way for a 21st century smart grid.
In addition to the right policies, a secure wireless data system to transmit energy information will be essential to protect the electrical grid. At Motorola, we have a proven history of providing secure and dependable voice radio systems for the military, police and fire departments and utilities. We will continue to partner with utility companies to bring the same level of quality and reliability they've experienced with our voice radio systems to their wireless data systems for a smarter grid.
We can create a more reliable, less costly and environmentally responsible electricity system. The technology is available, the benefits are clear, and it's time to take action.