DR

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.

FERC’s new rule on compensation for demand resources tips the market balance toward negawatts. Arguably the commission’s economic analysis is flawed, and the rule represents a covert policy decision that stretches federal authority. Nevertheless, economic benefits will result if DR programs are well implemented to avoid gaming the system and distorting the market.

(April 2011) GE Hitachi and Lockheed Martin team up on nuclear reactor controls; Elster wins metering contract in New Hampshire; Xcel hires Bechtel for nuclear services in Minnesota; Mitsubishi builds transformer HQ in Memphis; Northeast Utilities taps Siemens for transmission projects; Iberdrola sells wind output to FirstEnergy; Consumers and DTE invest $400 million to upgrade pumped storage facility; plus contracts and announcements from Alstom, URS, Areva, groSolar, Pattern Energy, S&C Electric and others.

The goal of implementing a distribution management system (DMS) is to upgrade isolated, hands-on grid management processes into an interconnected and automated platform. This technology is transforming the way utilities operate distribution networks, and setting the industry on a path toward seamless integration of distributed resources—both supply and demand.

Generators and demand-response providers are reaping rewards in forward capacity auctions, causing suppliers to go shopping for the most lucrative markets. Now the Midwest ISO is trying to catch up, by proposing its own auction for years-ahead resource bids. But does RTO shopping serve the interests of customers, who are legally entitled to rates that are just and reasonable? Why are some state policy makers advocating a return to old-school RFPs for long-term contracts?

(February 2011) Silver Spring integrates Itron meters; PECO picks Sensus; AT&T and Elster sign agreement; PSEG Fossil selects ABB for a multi-phase controls project; Trilliant secures equity financing and wins Burbank ARRA contract; Navigant buys BTM Consult; GE acquires SmartSignal; plus contracts and announcements from Survalent, Mitsubishi Motors, AES Energy Storage and others.

New Jersey Gov. Chris Christie in February signed into law a bill that will have the state commissioning construction of 2,000 MW of new gas-fired power capacity and dumping it into the PJM capacity market at a $0 price. Maryland is considering a similar capacity-dumping scheme. What’s behind these efforts to manipulate capacity auctions — regional constraints or local politics?

Burbank Water and Power selects Tropos Networks for smart grid project, Survalent Technology installs SCADA system for Pearl River Valley Electric Power Association, Gemma Power Systems signs contract with Bishop Hill Energy, American Superconductor selects subcontractors for the Tres Amigas SuperStation transmission hub in Clovis, N.M., and more ...

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.

Market rules could evolve to compensate gas suppliers for pressurizing pipelines when needed on short notice. Enhanced ancillary services will require innovative strategies using line pack in interstate pipelines and stepped up communication among gas and electric market participants to preserve reliability objectives in gas and electric markets.