In 2009, the Smart Grid industry was filled with hope for what the $4.5 billion in U.S. government stimulus dollars could mean for the acceleration of Smart Grid deployments.

Hundreds of utilities applied for American Recovery and Reinvestment Act (ARRA) funding, $4.5 billion in awards were announced, and scarecrows danced on power lines as the industry anticipated what it could mean if the electric grid "only had a brain." ARRA funding in the U.S. and billions of stimulus dollars worldwide helped catalyze a Smart Grid revolution.

In 2010, reality set in. Regulatory concerns delayed some Smart Grid projects, consumers sparked a firestorm of media attention around the accuracy of smart meters, and model deployments incurred costs in orders of magnitude greater than what was estimated.

While these challenges are likely part of the natural evolution of revolutionizing our dated electrical infrastructure, having a magnifying glass on the industry's successes and failures certainly puts the pressure on all Smart Grid stakeholders.  Sure, there have been roadblocks, but entirely new "routes" have also been forged -- particularly when it comes to standards and the creation of the Smart Grid Interoperability Panel, which is an icon of industry collaboration at its best.

When it comes to successes, we have had many small victories. We're seeing utilities recover from "pilotitus" and, rather than testing every piece of equipment on their own soil, they're learning from other utility projects.

Almost a year since the Smart Grid stimulus awards were first announced, it makes sense for stakeholders to unite and evaluate the progress of our Smart Grid deployments – both stimulus-funded and non-stimulus-funded. Because of the critical role that Smart Grid plays in our environmental sustainability, energy security and economic vitality, the industry has no choice but to get Smart Grid right the first time. Dollars and human capital are too limited for second chances.

Learning from both our successes and our failures is the only way to proceed. Given recent Smart Grid events, there are some critical areas where collaboration is in order: 

  • Utility best-practice sharing:  The stimulus is a wasted opportunity unless utilities come together in an open forum to discuss lessons learned along the way. The $4.5 billion puts a small dent in the $165 billion it might cost to upgrade America's electrical infrastructure; however, the impact of the investment grows in proportion to the amount of dialogue that's fostered among utilities – large and small. Whether it's understanding another utility's business case, learning how to accurately budget large-scale deployments, or leveraging components of another power company's successful consumer outreach campaign, the entire industry will be better off because of these conversations. We owe it to taxpayers and future generations to maximize the value of this $4.5 billion opportunity.
  • Standards and their impact on utility operations and infrastructure: The creation of the Smart Grid Interoperability Panel in 2009 is a prime example of industry collaboration.  NISTS's Priority Action Plans focus on standards for everything from substation automation and the exchange of management information between diverse systems, to evolving data models for pricing and demand response (DR).  As these standards are developed, it will be critical for utilities to understand their impact on legacy systems in utility operations and how standards might even be included in regulatory decisions.
  • The regulatory equation:  For many utilities, the regulatory process can delay years of Smart Grid planning. Bringing regulators and utilities together in an open forum for dialogue will be critical for Smart Grid success, but the learning curve can be steep. Many public utility commissioners across the country are responsible for not only electricity, but also water and gas, and many regulators come from non-technical, legal backgrounds. Education – outside the context of a rate case and in a non-contentious environment – will be imperative to provide context around the holistic value of Smart Grid.
  • The consumer: Surveys show that today, about two-thirds to three-quarters of consumers are not familiar with the term "Smart Grid." For such a pivotal group, this is not good news.  To that end, many have dubbed 2010 "the year of the consumer."  With consumer buy-in, other pieces of the Smart Grid puzzle will more easily fall into place. Regulators will be more at ease when approving Smart Grid projects, and entrepreneurs will feel free to innovate. But, we need dialogue to get there. We need utilities, regulators, consumer advocates, energy end users and technology companies in one room to understand the best approach for consumer understanding, dialogue, education and engagement. 

With GridWeek right around the corner – nearly one year to the date of the DOE's Smart Grid investment grant announcements – we are taking the opportunity to leverage the collective minds participating in GridWeek to discuss the multitude of topics that are imperative to realizing effective Smart Grid deployments.  Now in its fourth year, GridWeek has become the annual gathering place where the direction and key issues of Smart Grid are discussed and advanced.

Collaborative sessions will touch on critical issues, ranging from the utility's operating infrastructure, to standards, to consumer outreach and education – ensuring that we continue to propel the industry forward in the most effective and efficient manner.

Smart Grid stakeholder groups are diverse, and the constantly changing requirements needed to complete the Smart Grid puzzle are daunting. By getting the right stakeholders together in one place – one that fosters dialogue and understanding – we can more easily find agreement, settle on the puzzle pieces and begin to compose the full Smart Grid picture. While some components might be trickier to nail down than others, we'll also find that entire portions of the puzzle have already been completed by other stakeholder groups.

It's only through this collective effort can we ever hope to find Smart Grid success.

See you in October.