The Smart Grid Last Mile(s) – Part 1

Abstract: This is a multi part blog about Smart Grid standardization. It outlines the complexities and the standards at the ‘last mile’ of the Smart Grid i.e. between the Smart meter and the home area network. This is the key interface from the customer standpoint. It is critical to partner with the customer and gain their trust if the Smart Grid vision is to succeed as envisaged. Thus, the customer may be the key driver and the trigger for innovation in the Smart Grid scenario. Furthermore, at the customer/home network layer, the rate of innovation is faster (than at the electricity grid layer). There are also many relatively new companies/startups like TED and Alertme who operate in this space and lead the standardization process. All this will make a significant contribution to innovation and add complexity to the standardization process.

I have long believed that Smart Grid standardization is one of the most complex domains of standardization since it brings three industries together (IT, Energy and Telecoms), all of which had separate standardization bodies before. In an era of increasing convergence, the issues we see in Smart Grid standardization may well be seen in other domains. Also, it is an area where governments are increasingly involved. Many governments see themselves as the ‘customers’ i.e. the driver of the Smart Grid value chain especially in a recession. However, as we see below, the customers may be the ultimate drivers of change.

The title of this blog is not a typo i.e. the blog is intentionally called ‘The Smart Grid last mile(s)’ – to indicate that there may be more than one way for the ‘last mile’ i.e. the path to the customer’s home.

A smart grid is a modernised electricity network that delivers electricity from suppliers to consumers using two-way digital technology to control appliances at consumers’ homes. The overall goal of Smart grids is to save energy, reduce cost and increase reliability and transparency. Smart grids are being promoted by many governments as a way of addressing energy independence, global warming and emergency resilience issues. Smart Grids make the traditional Electricity grid ‘intelligent’ by deploying sensors at various points in the electric supply chain. The sensors provide a feedback mechanism to both customers and providers of energy.

For customers, the Smart Grid supplies granular information about Electricity consumption and helps them make cost effective choices about their energy consumption. Providers can also leverage this information to create and distribute energy in a more efficient manner. In the traditional Smart Grid scenario, the customer interfaces to the Smart Grid through Smart meters which could monitor information in fifteen minute intervals. In addition, many more non traditional entities could now be connected to the Smart grid including weather forecasters, PHEVs and also customers including Residential and Commercial who will be both creators and consumers of Electricity.

The US Federal initiatives aim to use stimulus money to help install 40 million smart meters nationwide to help Americans save electricity and money. Although the USA is taking a lead in this space through Federal funding, globally, we have various Smart Grid initiatives from other countries for example: The European Technology Platforms (ETPs) and the UK Government in Dec 2009.

NIST (National Institute of Standards and Technology) in the USA is involved in the work of Smart Grid Standardization.

The Smart meter is often seen as the starting point for the Smart Grid. However, the Smart Grid vision extends well beyond the Smart meter itself. The deeper, disruptive impact of the Smart Grid is due to the extension of the Smart Grid to the home network. We shall discuss this in the next part of this blog.