When Xcel Energy announced a few days ago that it had selected Boulder, Colo. as "the nation's first fully integrated Smart Grid City," it represented a vitally important step toward creating a low-carbon energy network.
Xcel previously announced its intention to stage the largest and most comprehensive deployment of smart grid technologies in the U.S. ever, and now it says it has targeted Boulder for a several-year effort that will cost up to $100 million. The aim at a comprehensive system is precisely what makes this a breakthrough.
Smart grid technologies exhibit the classic network effect. Deployed individually, some can still have valuable benefits, as the personal computer did before the internet. To maximize benefits, however, they must be put together. Because this requires an overall systems transformation, and because such changes generally pose all sorts of chicken-and-egg challenges, the smart grid has been slow to catch on in the U.S. (France and Italy, who have more centrally managed electrical systems, have managed to advance farther.)