Much of the population use the terms of power and energy int

Much of the population use the terms of power and energy interchangeably when in fact they consist of different units. For the purposes of this course, we shall define power with the unit of watts (W) or kilowatts (kW, which is 1000 W). Electrical energy is the measure of power over time and has a unit of watt hours (Wh) or kilowatt hours (kWh).

Here is an example: A standard 60 W incandescent bulb burns for 10 continuous hours which consumes 600 Wh or 0.6 kWh. A 300 W halogen bulb burns for only 2 continuous hours and similarly consumes 600 Wh or 0.6 kWh. In both instances, the same amount of energy was consumed while the instantaneous power consumption of each bulb is very different. Using the average New York State electrical energy cost of $0.20/kWh, the cost to run each bulb is $0.12, with the first bulb operating for 10 hours while the second bulb only operates for 2 hours.

While the above example is true for most residential applications,

how do demand charges affect commercial and industrial energy bills?

How do you see the SmartGrid with demand charges, pros/cons?

Will the use of V2G hinder the SmartGrid or prove to be useful?

Solution

1.Demand charges play an important role in billing of electricty for customers.Demand charges usually are applicable to commercial and industrial customers as they pay according to the rate at which they use for certain times and for certain bill sizes.commercial and industrial customers are asked to install a demand meter.Demand charges make up a important prtion of commercial and industrial customers total electricity billills increase with increase in demand charges energy prices decrease.

2.Smart Grid with demand charges

pros:a) smart grid is a very good concept as it can reduce the cost of manufacturing of grids all over the country.

b) smart grid is helpful to reduce complications of overall grids and hence demand charges could be maintained at a proper level.

cons: a) By constructing smart grid all the existing grids are to removed so this a hectic issue.

b) the construction cost and maintanence cost could add to Demand charges

3.A battery-powered or plug-in hybrid vehicle which uses its excess rechargeable battery capacity to provide power to the electric grid in response to peak load demands. These vehicles can then be recharged during off-peak hours at cheaper rates while helping to absorb excess night time generation. Here the vehicles serve as a distributed battery storage system to buffer power.Hence it is a added advntage to smart grids.