Smart Grid

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.

The one-day-in-10-years criterion for capacity planning is coming under scrutiny. Making the most of the smart grid and demand management requires a less conservative approach. Markets and prices rather than administrative rules will ensure resource adequacy in a more efficient way.

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?

During interviews for this month’s cover story, “Customer Service: 2020,” leaders in the world of back-office information technology (IT) spoke with Fortnightly about customer service and the smart grid. They came from companies as diverse as Oracle and Telus, HP and Convergys, Vertex and SAP. But whatever the company, whatever the discussion, almost every leader came around eventually to focus on a single agent of change—the rise of electric vehicles.

Utilities are using automation and back-office systems to improve their performance on outage management and service restoration. The next generation of smart-grid technologies promises a revolution in self-healing systems. But first the industry must gain confidence in the technology—and the business case for investment.

To realize the full potential of smart-grid benefits, utilities must undergo significant changes. They must learn to integrate information and operations differently, demonstrate adaptability and modify cultural tendencies.

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.

In light of all the excitement created by smart-grid regulatory initiatives and stimulus funding, three clever tech startups have come forward with proposals for novel grid projects. In California, Western Grid Development proposes to install energy storage devices ranging in size from 10 to 50 MW at various discrete and strategic locations in PG&E’s service territory where the California ISO has identified reliability problems. Second, a company called Primary Power proposes to deploy a total of four advanced, 500-MVAR static VAR compensators (SVC) at three separate locations within the PJM footprint. Third, in Clovis, N.M., Tres Amigas plans to allow power producers to move market-relevant quantities of electric power and energy between and among the nation’s three asynchronous transmission grids: ERCOT and the Eastern and Western Interconnections.

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.