Smart Grid

Confronting a Slow-changing Industry

Even though the US has the most reliable electric system in the world, most electric utilities lack the  infrastructure, systems and expertise to collect energy consumption data and communicate on a real-time basis to the meter data managment and billing firms or their customers.  All of that changes with a “smart-grid” and may be the best explanation why so many smart-grid solutions stop at the meter and do not extend fully into the customer premise.  

Over 20 million smart meters, representing 15% penetration in residential markets, have been deployed as of June, 2011 according to IEE.  They forecast 65 million (50%) by 2015, at an average cost of $150-$250 per household.  While these numbers are significant, it will have  taken 10+ years to get there and less than 5% of these smart meter deployments are expected to enable the customer to monitor and control in-premise devices on a real-time basis.   So while the utilities will have a slightly better view of things and  greater controls  and operating efficiencies, the consumer will not realiize many benefits.  This is the challenge of the smart grid today.

Part of the issue is related to incumbent utility organizations, regulatory bodies, large utility rate plan incentiveratand vendors--and their desire to stick to proven approaches.   According to NIST, there are no fewer than 75 key standards and 11 different standards bodies and associations involved in smart-grid research and trials, which leads to proprietary and expensive products and servcies.  Furthermore, the smart-grid industry is segmented by smart meters, distributed automation, meter data management,  demand response  (utility controls) and demand side management (customer arguably controls) and others.   For the most part, smart grid stops at the meter on the side of the house.  

Today, nearly 70% of meters in the U.S. are PLC meters, which provide limited demand response capaibilities for the utility and do not offer any real-time monitoring and control   functionality to the consumer.  Ultimately the smart grid will need low-cost solutions to go beyond the meter and into homes and businesses  to empower consumers to control energy consumption and generate the expected ROI for utility and customer alike.