Smart Grid will be mired for some time as the cost/benefit model has yet to materialize. Those areas where smart meters (not to be confused with a true ?Smart Grid? but so far the only aspect of a smart grid to be deployed) have been installed in any numbers have yet to benefit from cost reductions. In fact, most areas are seeing an increase in total costs between the CAPEX for the meters, OPEX to fund the meters, on-going practice of keeping supposedly redundant meter readers on the payroll, additional head count to manage the new meters and their reporting interface, network admins, wireless interface technicians, etc. So much so that utilities are screaming to their local oversight agencies for relief in the way of further price increases ? NOT the reductions that were promised at the outset of what should have been a mere experiment.
As noted ? privacy is a huge looming issue. Want to know within a very tight window exactly what is going on inside a home or business? Install a smart meter with a wireless interface. Walla ? instant notice of all appliances, workloads, consumer electronics, even the difference between mere internet browsing and actual ?work? (word processor, formulas, graphics, etc, can all be identified by electronic load signature). With a little detective work and some very nice high-speed data recorders one can tell what games someone is playing across the network.
Smart grid may very well usher the return of TEMPEST! http://www.eskimo.com/~joelm/tempestsource.html
Regulators need to create more incentives to boost smart grid investments since utilities are struggling with return on investment, according to a report from Accenture and the World Economic Forum. It also wouldn’t hurt if consumers knew the perks of smart grids.
Bottom line: The potential of smart grids won’t be realized unless they somehow boost customer interaction with their utilities. The World Economic Forum and Accenture assessed 90 pilots and found that utilities are struggling to create business cases for smart grids. The biggest issue is that regulator incentives don’t reflect “a low carbon agenda.” The report was unveiled at the “summer Davos” forum being held this week in Tianjin, China.
Without the government sticks and carrots utilities are unsure about the risk and reward for smart grids. Meanwhile, consumers aren’t so hot on smart grid. Privacy and security are big worries and the benefits are unclear.
There are other issues. Among them:
- Multiple smart grid pricing structures;
- Uncertain future legislation direction;
- Uncertain standards;
- Smart metering projects don’t highlight clear benefits.
In some respects, the smart grid conundrum isn’t all that surprising. Check out this smart grid definition map from the World Economic Forum and Accenture report:
Good luck explaining that in an elevator pitch to consumers.
But there are benefits:
What needs to happen is that companies and regulators need to create a feedback loop with smart grid pilots for course corrections, learnings and ultimately a framework where all the players are headed in one direction.
Add it up and there’s a perception issue with the way smart grids are pitched. Simply put, there are too many grid focused pilots and consumers are left wondering what’s in it for them. The report is definitely worth a read.
Related:
- Echelon unveils open platform for smart grid, brings Duke Energy on board
- Cisco to acquire Arch Rock; IP wireless network tech for smart grid
- Cisco, Itron team on smart grid networks and metering
- eMeter CEO Gary Bloom: Why we should all want smart meters
- Top 10 states leading U.S. smart grid deployment
- GE CEO announces new smart-grid initiatives
- More…