IT

Much is riding on successful smart-grid deployments. Experiences at several utilities demonstrate the costs and benefits of today’s automation technologies.

Making the business case for the smart grid is an important utility goal. It provides the justification for making or deferring required investments. Utilities might find it necessary to engage in a cycle of continuous strategic planning.

As electric vehicles become commonplace, will the grid be able to handle the extra load? Too many cars plugging in at once might cause disruptions and necessitate costly infrastructure upgrades. Handling the vehicle load in a smart way, however, will ensure a smooth transition to the plug-in future.

Despite state efforts to follow the European model of state-mandated feed-in tariffs to promote renewable power, these actions won’t pass Constitutional muster. The Supremacy Clause makes a formidable legal barrier to states’ FIT policies.

The one-day-in-10-years criterion might have lost its usefulness in today’s energy markets. The criterion is highly conservative when used in calculating reserve margins for reliability. Can the industry continue justifying the high cost of overbuilding?

The smart grid is opening the floodgates on customer data, just as consumers are getting comfortable with retail self-service and mobile apps. With dynamic rates, distributed generation and electric vehicles just around the corner, big changes are coming in the utility-customer relationship. Will IOUs let upstarts control the new energy market?

The IEEE P2030 Work Group is developing standards to encourage seamless deployment, integration and operation of energy, information and communication technologies across the smart grid. Utility input and engagement is needed to produce workable standards.

Ask Ed Bell about energy trading and risk management (ETRM) technology and he’ll likely bring up his days with Enron back in the early 1990s. Bell—now a principal at Houston-based technology consulting firm International Commerce—says there are distinct similarities between the functional trading and risk assessment requirements his team had to plan for back then and the system requirements ETRM platform vendors and their clients have to prepare for today.

Regulatory policies are evolving to make demand response and smart-grid planning a reality across the country. Cooperation between federal and state lawmakers will allow local flexibility within a uniform national framework.