Welcome to a very special edition of Platts Insight magazine (click here for the June issue) focusing on one of today's hottest topics in electric power—smart grid and its technologies. Based on the 2008-2009 Platts/Capgemini Utilities Executive Study, North American utility executives believe the level of government funding will be extensive for renewable energy use and smart grid technologies. However, executives are split on the short-term impact of government initiatives such as smart grid on the profitability and structure of the electric power industry. You can read the full Executive Summary for this study on page 13.
The key question now: Will President Barack Obama's request "to act without delay" to pass legislation that provides for the building of a new electricity smart grid actually occur and spur enough near-term development for the timely and effective impact he and the industry seeks?
Early signs of progress include the Department of Energy's (DOE) offer of up to $200 million for projects aimed at building a national smart grid, which is well above the $20-million cap proposed previously by DOE, as well as the naming of George W. Arnold as the first National Coordinator for Smart Grid Interoperability. While these initial steps are encouraging, there are many hurdles to navigate before notching any major successes to the smart grid scorecard.
"The competition for Energy Department funding under the smart grid program is shaping up to be one of the most intense DOE contests for the $39 billion in funds it received under the economic-stimulus bill. Electric utilities, in particular, appear enthusiastic over the program now that DOE has raised the cap for individual awards to $200 million," said Bill Loveless, Editorial Director of US Energy Policy for Platts. "At the same time, those involved in exploring new options for transforming the US grid understand well the importance of developing standards for smart grid devices and procedures, a process that's still evolving in the government and one that will determine how quickly the smart grid will become prevalent across the US."
We are pleased to bring you in this special edition of Insight a variety of perspectives from numerous experts regarding the challenges to developing a newer, smarter electric power grid nationwide.
I hope you enjoy this issue.
Patsy Wurster
Publisher, Platts Insight