Courtesy of Greenbiz.com, an interesting article on utilities’ need – in order to assert the full potential of the smart grid and prevent this transformation from becoming a utility “bridge to nowhere” – to lay hold of the inherent “gap bridging” power of the smart grid itself. As the report notes:
“…We need a smart grid to complement traditional investments in generation while addressing supply, demand, efficiency, and environmental impact as mutually critical components of utility industry and national energy strategy…
1. Smart Grid Bridges Utilities to the Environmental Community
It seems surprising to think that traditionalists in the generally conservative supply-side oriented utility industry and the liberal environmental community could agree on much of anything. But on nuclear power and the issue of smart grid and the modernization of our utility industry infrastructure, utilities see strong long-term benefits to their core mission of ensuring reliable, cost-effective electric service and environmental and consumer advocates are slowly awakening to the fact that new base load nuclear combined with a smart grid approach will unleash significant reductions in CO2 and system wide efficiency that will help mitigate the effect of electric power on our environment while also helping integrate distributed renewable energy resources.
2. Smart Grid Bridges Utilities to Their Consumers
Utilities of all types are considering additional ways to engage consumers based on their individual needs and preferences. From smart thermostats to home energy efficiency programs, to solar power integration and even tests of home energy storage systems, utilities are engaging with consumers in ways never seen before. In IOUs the notion of “ratepayer” is giving way to true consumer-driven electric power service. Yes there are bumps as you would expect, but these developments overall are very positive.
3. Smart Grid Bridges Departments within Utilities to Each Other
Our research indicates that utility companies recognize that their perspectives on utility assets is too siloed by departments that include among others generation, transmission, distribution operations, engineering planning, and customer service. But a funny thing happened on the way to the smart grid committee meeting. Utility department leaders have started collaborating and working together in ways unheard of a few years back and they have recognized the need to build bridges between individual departments. In fact, in a proprietary benchmarking research study we just completed, over 70 percent of the members of our utility research sample agreed or strongly agreed that departmental views on utility assets were siloed. An even greater number (85 percent) agreed or strongly agreed that a more holistic view of assets was needed between departments in the next two to three years.
Smart grid programs, carefully tailored to reflect the needs and individual circumstances of each utility and its customers, help bridge these silos between utility departments and connect utilities to their consumers for a smarter energy future.
4. Smart Grid Bridges Democrats and Republicans
The other day I attended an address by our local congressman, Tom Price (R-GA). I asked him how members of Congress balance the need to advance capitalist, free-market growth oriented energy policies with the need to be good stewards of our environment. Price cited Teddy Roosevelt and the historical conservative commitment to the environment and he indicated that balancing the two was in fact possible.
Bringing intelligence to the nation’s electric grid may provide a bridge over which politicians can move beyond rancor and find common ground in a cogent/streamlined national energy policy built around a national smart grid approach. As a practical program that supports U.S. energy needs while reducing dependence on foreign oil, ensures reliable, efficient and affordable electric service, and ensures that we move to provide global leadership on environmental stewardship, smart grid is a bridge we can all stand on.
Energy drives every facet of our economy, but it also comes at a tremendous environmental cost. These externalized costs must be reckoned with and internalized sooner rather than later. Wall Street traders should not be the beneficiaries of this. As the environmental cost of carbon-based energy supply is internalized into the market, the proceeds must be spent on utility industry transformation and infrastructure renewal. It affects every single American who needs power to run their business and wants to enjoy clean air and a swim in our ponds and rivers.”
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