Strategy

New channels for communicating with customers not only allow utilities to provide better service; they also create opportunities for utilities to reduce expenses and generate revenue. An integrated strategy that focuses on customers can lead to new value for utilities.

With budget battles heating up in Washington, Congress and the Obama administration are squaring off to debate energy policy legislation. While Democratic leadership favors a clean energy standard, Republican lawmakers are focused on blocking administration initiatives to regulate greenhouse gas emissions. A compromise approach might bring substantial changes to America’s national energy strategy.

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.

Smart grid is a global phenomenon, but different countries are taking different approaches—for different reasons. For instance, utilities in Europe are more focused on laying the foundation for distributed generation and microgrids, while the United States is more concerned about creating standards for interoperability and security. Understanding the differences can help decision makers deploy smart grid technology effectively and economically.

Utilities are just beginning to learn how to engage customers. Across business models and regulatory frameworks, realizing the full potential of smart metering requires a new core competence in consumer support.