Smart Grid

Today’s utility business model depends chiefly on big power plants and long transmission lines—and federal and state policies reinforce that model. But as photovoltaics technology advances and systems get ever cheaper, distributed generation eventually might become the more competitive option. At that point, upstart companies might be better positioned than utilities to capture a share of this growing market, because they won’t be constrained by Edison-era economics.

Achieving aggressive renewable energy goals will require building thousands of miles of new transmission lines, and these so-called “green-power superhighways” could bring major new sources of low-cost electricity into the market. But will those sources be renewables? Analysts Roger Bezdek and Robert Wendling argue that with new access to distant wholesale markets, coal-fired generation would become more competitive than ever.

Where wind integration has been most successful, state authorities developed and adopted basic transmission planning and cost allocation principles before FERC issued Order 1000. Experiences in Texas, California, and Hawaii demonstrate what it takes to overcome permitting and cost allocation barriers—namely, a coherent policy framework and close coordination among stakeholders.

A pair of myths is driving many investments today—i.e., America’s T&D system is falling apart, but the smart grid will save the day. A new MIT study reveals a more nuanced truth about reliability, efficiency, and plans for new technologies. The most effective policies and investments will focus on solving real problems and delivering tangible benefits.

The electric power system has been getting smarter for decades, as new technologies allow better analysis and greater control. But most utilities have implemented these technologies in a piecemeal way, rather than as part of a long-term, enterprise-scale strategy. What are the consequences of this fragmented and incidental approach, and what would happen if we developed the smart grid in a deliberate way instead?

The hype over smart grid has become focused on the idea of “advanced distribution management systems” (ADMS). But so far, few utilities have implemented ADMS beyond pilots and incremental tests. Fortnightly analyzes the technology trends and profiles examples of true ADMS in action.

Adopting an interoperable framework for the smart grid isn’t just a question of technology standardization. It’s also about navigating the legal, regulatory, and business factors that affect technology implementation. Making the smart grid work will require utilities and regulators to assert leadership.

Federal and state regulators play a critical role in the evolution of the smart grid. Lawmakers face a host of questions, from deciding who owns consumer data and how it can be used, to defining a new range of regulated and unregulated utility services and applications. How much regulation will be needed to manage the transformation to a smart grid? And how much regulation will be too much?

Electric vehicles (EV) are just getting started, with rapid growth ahead. Plug-in hybrids and other EVs could capture 20 percent of the U.S. auto market by 2030. When planning for future infrastructure and technology needs, utilities face difficult questions about how EVs will interact with the utility grid. A comprehensive approach to communicating and integrating vehicle information will allow utilities and drivers to make the most of smart electric transportation.

NERC’s critical infrastructure protection (CIP) standards set a minimum level of security performance—and only for high-voltage transmission systems, not the distribution grid. A compliance-checklist approach to security might lack the adaptability needed to combat evolving threats like the Stuxnet worm. A multi-layered, risk-based approach will provide better protection for the emerging smart grid.