Policy Opportunities
Smarter electric grids are vital for maintaining a reliable and secure electricity infrastructure that can meet future demand growth, respond to a growing range of customer power needs, and integrate increasingly diverse energy sources. The smart grid is a key enabler for applying most low-carbon energy technologies, including renewables and energy efficiency measures, and can contribute to gigatonne-scale reductions in carbon dioxide emissions from electricity generation and use.
The International Energy Agency estimated in Energy Technology Perspectives 2010 that the global deployment of smart grids can help reduce carbon dioxide emissions by 0.9–2.2 gigatonnes annually by 2050, equivalent to the annual emissions of 300–730 mid-sized power plants.
Through its activities and cooperative ties with other smart-grid-related efforts, the International Smart Grid Action Network (ISGAN) is engaging governments and key stakeholders to achieve that potential. By working together, governments can identify common interests and drivers despite the diversity of power sector policy and technology ecosystems globally and persistent differences in smart grid definitions and approaches. ISGAN’s efforts will provide stakeholders access to valuable lessons learned and best practices from around the world. Governments can enable the widespread deployment and acceptance of the smart grid by pursuing a variety of smart and complementary activities within ISGAN’s five identified areas of principal focus:
- Policy, Standards, and Regulation: Effective policies and efficient regulation are critical to developing and deploying smart grid technologies, practices, and systems. To accelerate progress on smart grids, governments might share information on policies and regulations and associated lessons learned; harmonize specific policies for developing and implementing smart grid interoperability standards; and develop tool kits for policy makers to implement policies at the national, subnational, and local levels.
- Finance and Business Models: Implementing smart grid technologies will likely require new business models and financing mechanisms beyond simple rate recovery. Governments can share information and experiences on novel public- and private-sector models to support deployment of smart grid systems, as well as identify or develop benefit-cost toolkits that can be adapted for use in multiple geographies.
- Technology and Systems Development: Cooperative research, development, and demonstration of precompetitive smart grid technologies using consistent methodologies and testing protocols will advance the state-of-the-art of the industry and allow for more rapid deployment of smart grids. Initial opportunities include cataloging existing research, participating in development and demonstration efforts, and coordinating laboratory or test bed networks.
- User and Consumer Engagement: The full benefits offered by smart grids will be achievable only with the involvement of stakeholders along the full spectrum of the electricity system, from power generation through power transmission and distribution, and ultimately to end-use consumers. Governments can engage with each other to identify the key gaps and opportunities in this area and, from their own experiences, draw out best practices for educating the many power sector stakeholders on the purpose, benefits, and use of smart grids.
- Workforce Skills and Knowledge: Implementing new smart grid technologies and approaches to energy and information will require training not only of utility and power industry personnel directly involved with electricity production, transmission, and distribution, but also regulatory staff, information technology and cyber security specialists, and others who will need to deeply understand this complex and potentially transformational suite of technologies, practices, and systems. Governments can work with each other to develop a common vocabulary for discussing smart grid topics, as well as toolkits for educating and empowering the smart grid workforce.