[BETA] Fortnightly

Smart grid technologies bring a host of cyber security considerations that need to be addressed throughout the transmission and distribution domain—and even into the customer’s home. In the second of two exclusive articles, Department of Energy authors team up with industry experts to provide a path forward for securing the smart grid.

New technologies—and new expectations—require taking a fresh look at the institutions and practices that have provided reliable electricity for the past century. Collective action is needed to define the key attributes of a future grid and then to take the more difficult next step—adapting our processes and institutions to align with that future vision. A thoughtful approach will allow America to capture the potential value that’s offered by sweeping changes in technologies and policies.

Smart grid technologies bring a host of cyber security considerations that need to be addressed throughout the T&D domain—and even into the customer’s home. In this exclusive report, Department of Energy authors team up with industry experts to examine how to deal with the changes and challenges of securing the smart grid.

Four years ago, Congress made its wishes known: it tabbed the National Institute of Standards and Technology to develop a set of standards for the smart grid, and then instructed FERC, the Federal Energy Regulatory Commission “adopt” those standards, but only after finding a ”sufficient consensus,” and only “as may be necessary” to assure “functionality and interoperability.” Yet what is known is not necessarily clear. Who decides if consensus prevails? What does “interoperability” mean? Should FERC’s “necessary” finding extend to retail smart grid applications, arguably outside its purview? And the biggest dispute — must standards be mandatory? — finds PJM at odds with much of the utility industry.

Customer value is a key factor in any smart grid business case. But not all customers are created equal. In particular, commercial and industrial (C&I) customers have greatly different needs, considerations and sensitivities, compared to residential customers. As a result, demand response and efficiency programs won’t produce the same results across customer classes. Getting the most from the C&I market will depend on integrating smart grid with smart building technologies.