Behind the buzz [In My View]

The smart grid is a hot topic at utility executive meetings and broader transmission and distribution (T&D) utility forums across the country. The concept still elicits mixed reaction, but there is increasing agreement on a common definition of "smart grid," as well as an emerging confidence that the smart grid embodies a set of technology investments that can transform the way service is delivered to customers. In addition to cost and service quality improvements, the smart grid is increasingly being linked to environmental goals, including attaining renewable-energy targets and reducing carbon emissions. A wide variety of players--venture capital companies, software and application providers, niche engineering firms--have entered the smart-grid value chain with material investments. Utilities are getting bolder in their program designs and in integrating smart-grid investments with their aspirations for energy efficiency and renewables. State regulators have been approving pilot programs and building precedents with favorable investment decisions. With the development taking real shape, there are still areas to be cautious about, however. Systematic, wide-scale deployment of demand response has yet to be demonstrated. Systems integration is a considerable challenge. Worries regarding technology obsolescence continue, with new twists as new communications capabilities emerge.