Greenhouse gas regulation will expedite SmartGrid deployment

The recent debate on greenhouse gas regulations in the Senate ended quickly, but was viewed as the opening round of legislative maneuvering that will continue for the next several years before a bill is inevitably approved and signed into law. Much of the focus of the debate is centered around how much carbon will be reduced, how fast, and who will have to do it. While the carbon limits and trading schemes for transferring credits are critical issues, a secondary debate is beginning to develop as to how to pay for and incentivize new technology that is essential to either achieving carbon reductions or smoothing the transition to a low carbon economy.

One of the technologies viewed as being critical to carbon reduction is implementation of a smart grid by utilities that include the distribution level, and ultimately a smart meter and Home Area Network (HAN) deployment. With the long lead time required for hardware changes to fossil generators and the extended deployment period for meters, achieving maximum efficiencies from existing utility footprints will depend on real time information that will allow utilities to optimize their load mix and balance it with demand. Excessive levels of undelivered power will not only have the traditional fuel penalty, but will also require utilities to obtain potentially expensive carbon offsets. By extension, the underestimating of wind generation’s contribution to the grid will result in similar outcomes.

Because of the speed and value a smart grid can offer, it is expected to be an early response strategy for many utilities. The GridWise Alliance and other industry thought leaders are currently developing incentive proposals in the hopes of laying the groundwork for technology incentives to speed the rate of carbon reduction.

Mark Maddox; Senior VP of Government Affairs, Arcadian Networks mark.maddox@arcadiannetworks.com