Lack of Clear Policies Remains Biggest Hurdle to Smart Grid Success

Published November 22, 2011

Collaboration among utilities, industry, government and academia is the key to spur smart grid growth, says a preliminary report on U.S. smart grid initiatives.

Researchers at Vermont Law School Institute for Energy and the Environment are studying the legal, policy and regulatory hurdles to upgrading the U.S. electric system with smart grid technology.

VLS is conducting case studies of seven utilities across the country in order to recommend best practices that can be replicated nationwide: Commonwealth Edison,Central Vermont Public Service Company, Long Island Power Authority, Pecan Street Project, Sacramento Municipal Utility District, Salt River Project and San Diego Gas and Electric.

The utility case studies determine that widespread smart grid growth requires empowering customers with clear policies in order to demonstrate cost savings and a greener environment.

One industry stakeholder, Cameron Brooks, VP of Policy with Tendril, agrees: "The biggest challenge is not a technical challenge, but a policy one. In order to unleash the innovations that will make consumers realize the benefits of the smart grid, the right kinds of policies have to be put in place so that consumers can access their own information and take advantage of applications being developed."

While the VLS final report is not due till the end of the 2012 academic year, the preliminary findings point to some noteworthy best practices:

Clear state policies will speed smart grid results: California and other states that have set clear policies are moving steadily toward their goals rather than getting bogged down in debate over what the goals should be.
Statewide collaboration can spur progress and innovation: Unprecedented collaboration among Vermont's utilities, government, industry and academia has secured federal stimulus money for the rollout out of a statewide smart grid and broadband system.
Delivering smarter rates: The Salt River Project's success with time-of-use rates and customer pre-pay service offers clear promise for voluntary dynamic pricing. The project's pre-pay program experience-giving customers timely information about their electric usage and letting them control their consumption-has resulted in satisfied customers and a 12 percent drop in power use.

VLS's final report will address legal, regulatory, structural and other barriers, including privacy concerns; policy requirements; energy efficiency and demand response; distributed generation and storage; electric vehicle integration; and distribution automation.

Power cord photo by Shutterstock

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Lack of Clear Policies Remains Biggest Hurdle to Smart Grid Success

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