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We’ve come a long way, Smart Grid
SEP 29 '09 | John McDonald

In the past several months, smart grid has undoubtedly captured the imaginations of policymakers, businesses, and power companies alike. And there's been a lot of movement. Since this time last year, the industry's top smart grid thought leaders have switched gears from "concepting" the grid, to setting the steps in motion to make smart grid a reality.

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GridWeek, the industry's premier smart grid conference, took place in Washington, DC, last week, with nearly 1400 leaders from across the globe gathering to discuss concrete plans for making smart grid a reality. Doubling last year's attendee number, delegates had discussions ranging from smart deployments to smart policy … and even venturing as far as the "smart consumer."

With billions of smart grid stimulus dollars available for smart grid projects, utilities have stepped up to the plate with plans for holistic demonstrations that will prove out key smart grid benefits going forward. More than 550 applications poured in.

We saw even more commitment from the government, with Energy Secretary Steven Chu opening GridWeek with an announcement of $144 million in funding to help transition to a smarter grid, and with Commerce Secretary Gary Locke closing the week by announcing the completion of the first phase of the smart grid standards roadmap, which will help guide smart grid innovation.

The commitment from business is clear, with new collaborations being announced throughout the week– like the GE and NURI Telecom, Ltd. collaboration to help bring smart grid progress to Korea. We're also seeing new entrants in the energy sector, like AT&T, which is also considering smart grid services.

Other themes – or "gaps" even – also surfaced. At the very heart of smart grid success is real-time information and knowledge, all the way up and down the power lines. But one of the biggest gaps identified at the conference was education.

Whether it's to utilities, policymakers or consumers, education is required as smart grid moves from concept to reality. Education is needed to underscore the benefits smart grid will deliver – from clean energy integration, to efficiency, to consumer empowerment –and address the concerns.

In the regulated utility model, most power companies can only go so far without the support of their Public Utility Commission (PUC). Regulators will only support smart grid investments if they have apparent value to consumers and local business. And because none of this is "intuitive", education is required.

Some utilities, like Oncor Energy out of Texas, are doing a great job at educating their customers. Oncor presented at GridWeek during the "Marketing the Smart Grid" panel and highlighted some of its key education tactics, which ranged from events, to the web, to fliers and bill inserts. As a result, the utility has garnered tremendous support from its customer base on smart grid deployments.

The rest of the industry will also need to follow suit, particularly as the media continues to call into question privacy and security – other themes emerging at the conference.

Fortunately, the industry has historically been very good at protecting the grid from attack – whether cyber or physical – and has done so for more than 100 years. These principles will be applied as intelligence makes its way down into the customer's home.

When it comes to privacy, consumers should also be comforted by how seriously the industry is approaching this sensitive topic, with near unanimous agreement that all electricity data belongs to the consumer. And any deviation from the status quo would most likely require customer consent.

Education will help alleviate these fears.

Most importantly, society needs to understand that our economic competitiveness and energy security depend on having a smarter electrical infrastructure, which will deliver greater efficiency and productivity and help reduce our dependence on foreign oil. Only with a smarter grid will consumers be empowered to manage their energy usage and costs. Only with a smarter grid will we be able to realize the benefits of high percentages of cleaner energy and plug-in vehicles. Only with a smarter grid can we guarantee high levels of power reliability. And only with a smarter grid will we be able to realize the environmental targets our nation is setting forth.

I can only imagine where we'll be next year at this time.

John D. McDonald is the General Manager, Marketing for GE Energy T&D. John is a well-known and respected expert with 35 years of experience in Transmission & Distribution, having been awarded the IEEE Millennium Medal in 2000, the IEEE Power & Energy Society (PES) Excellence in Power Distribution Engineering Award in 2002, and the IEEE PES Substations Committee Distinguished Service Award in 2003. He is a sought-after industry leader, technical expert, educator, and speaker within the industry and on Smart Grid in particular.

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