Smart Grid

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.

In the wake of recent global-scale cyber intrusions, security concerns have expanded from being compliance and operational issues to fundamental risk management considerations. An integrated, enterprise-wide approach holds the greatest promise for securing critical utility infrastructure against increasing dangers in cyberspace.

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.

With large solar arrays and wind farms being proposed to connect to transmission and sub-transmission systems, are utility companies sufficiently prepared to handle the challenge of integrating these large intermittent resources? The industry now must decide whether transmission reliability factors — most notably dynamic voltage support and system frequency management — need to be resolved by renewable generators, or whether they should become a cost of doing business for transmission providers and reliability coordinators.

Electric vehicles promise major benefits for utilities, including increased electricity sales and accelerated transformation of passive energy consumers into collaborative stakeholders. But EV integration faces major challenges, from transformer overloading to the complexity of managing mobile transactions. Addressing these challenges in a collaborative way will allow the industry—and the country—to realize the benefits of a healthy market for electric transportation services.

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.

The remedy for America’s gravest economic woes may lie in a smart grid that can deliver vast amounts of clean, renewable energy while enhancing our energy security and democratizing our energy system. Although regulatory questions and technical challenges might dominate the industry’s short-term focus, the smart grid’s driving forces parallel America’s long-term national interests — a fact that should guide ongoing technology strategies and investment decisions.

How will the technology and policy changes now sweeping through the industry affect the architecture of the utility grid? Will America build an increasingly robust transmission infrastructure, or will we rely more on distribution intelligence and microgrids? Scholars at California’s Institute for Energy and Environment analyze various scenarios to predict the possible futures.

Policy makers in the E.U. and the United States are taking different approaches to facilitating smart grid development. While both regions are setting standards that the rest of the world likely will follow, they also face difficult challenges in resolving issues around cost recovery, customer engagement and workforce preparedness.