Demand response—temporary changes to electric loads in reaction to conditions in the grid—has grown to become an important part of today’s power systems and a central component of the smart grid of the future.

(January 2012) Hawaiian Electric selects Renewable Energy Group to supply biodiesel for combustion turbine; GE signs long-term services agreement with Comision Federal de la Electricidad; Nissan North America selects Coulomb Technologies to provide EV charging infrastructure locations; Siemens agrees to acquire eMeter; plus announcements and contracts involving AES Corp., Maui Electric, KCP&L, and others.

Amid focused attention on cybersecurity for T&D networks and power plants, one critical system is often overlooked: land-based radios. During an emergency, field crews rely on their ability to communicate with radios, making these systems highly vulnerable targets for malicious attackers. Securing them requires robust technologies and tools, as well as training and practices to ensure their availability when the grid goes down.

Despite high unemployment rates in many industries, utilities are finding T&D technicians and engineers are in short supply. This situation is likely to deteriorate as Baby Boom-era workers continue retiring. Attracting and retaining qualified professionals depends on understanding what motivates—and de-motivates—employees on the front lines of the smart grid revolution.

Regulators and customers are holding utilities’ feet to the fire, when it comes to investing in advanced metering and smart grid systems—and rightly so. Making the most of investments requires a systematic approach to establishing standards and monitoring performance. But it also requires policy frameworks and cost recovery regimes that provide the right incentives.

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.

Price-Responsive demand, EPA regulations, and merger policy will be on the agenda for the coming year as the Federal Energy Regulatory Commission works its way through the list of key cases that were pending at FERC as of January 2011.

Customers in some markets are demanding the right to opt out of smart meter deployments. Their concerns involve radio frequency (RF) emissions and potential privacy breaches. Whether these concerns are valid or not, some regulators are requiring options for customers who don’t want smart meters. The right approach can satisfy concerns without undue costs and complexities.

NRG Energy agrees to acquire Solar Power Partners; SolarCity agrees to financing terms for SolarStrong; plus asset sales by Home Warranty of America and ESA Renewables, and debt issues by Peabody Energy, Duke Energy, Baltimore Gas & Electric and others.