TechPulse 360

One man’s smart grid isn’t necessarily another’s. That explains the uncertainty surrounding this key investment focus for modern utilities – and the hesitancy with which they predict consumer adoption.

It is no surprise then that utilities have sharply different projections for investment payback, both from consumers and the changing utility infrastructure. This divergence of opinion was evident in a survey of executives attending the DistribuTech smart grid trade show in Florida.

Smart grid budgets are on the rise, even if expectations aren't. Seventy-seven percent of utilities are spending more money.

Twenty-nine percent of the 100 utility representatives surveyed said the smart grid will take a decade to justify itself. Another 27 percent said the benefits will begin to show up in three years. In either event case, three-quarters reported their developmental budgets are on the rise.

Smart grids can be seen from many angles with differing expectations, which helps explain the lack of consensus. Perhaps with the most promising efforts are those to improve the electricity distribution infrastructure. When power can be wheeled more efficiently, effectively and incorporate intermittent renewables, utilities will reap enormous benefits. This has nothing to do with consumers, but a great deal to do with emerging gateway technologies, smart sensors and massive computer systems giving near instantaneous control to giant power grids.

On the other hand, a great deal of industry focus is presently turned toward the consumer, where it is hoped near real-time readouts of home power use and new energy management devices will give homeowners the financial incentives to adjust power use. To make this expectation work, utilities need creative, innovative thinking, the kind that has driven the consumer electronics industry through the decade-and-a-half Internet era. But the gap between knowing and doing is great. Utilities, unlike consumer electronics firms, haven’t had to reinvent themselves every three to four years and don’t know the rules.

All this creates great uncertainly about how and how much people will benefit. Consumers may suddenly have access to minute-by-minute data on home energy use, but it is unclear how they – or utilities – will put that data to use, or even the scale of the computer systems necessary to make on-the-fly, instant power system adjustments.

With the lack of clear knowledge, group thinking is taking over. According to the survey, sponsored by Comverge, investment efforts for the next year are relatively uniform. Eighty-nine percent of utilities will deploy smart meters. Another 48 will install smart home thermostats. In-home displays and smart outlets? Not yet viewed as critical infrastructure.