Smart grid policy in the United States

The term smart grid "has come to describe a next-generation electrical power system that is typified by the increased use of communications and information technology in the generation, delivery and consumption of electrical energy."

Some of the main benefits to smart grid technology are that individual consumers have more control over their electricity consumption, which can lead to greater overall energy efficiency. Home appliances can be programmed to run at specific times when electrical demand is lowest. This has a two-pronged benefit of reducing the occurrence of brownouts and blackouts that frequent the current U.S. electrical grid, as well as reducing the need for peak power plants, which are typically more expensive to run.

The reliability and efficiency of the electrical grid can be enhanced by implementing smart grid technologies, however this would require modifications to the current electrical system, and advances towards its adoption in the United States have been slow. The history of smart grid related policies and their implications on the American electrical system, as well as Title XIII of the Energy Independence and Security Act of 2007 and potential future regulations and policy pertaining to smart grid will be discussed to give some indication as to the status of Smart Grid policy and potential adoption in the United States.

Some U.S. Smart Grid Milestones

Title XIII of the Energy Independence and Security Act of 2007 (EISA)(Pub.L. 110-140) is the only major piece of federal legislation that addresses the modernization of the United States’ electric utility transmission and distribution system by upgrading to the Smart Grid. The shift to Smart Grid technology would maintain the reliability and infrastructure protection that we are accustomed to with our current grid system while providing many benefits that our current system is incapable of meeting. Smart Grid, on a broad scale, refers to an advanced distribution system which accommodates for the “flow of information from a customer’s meter in two directions: both inside the house to thermostats, appliances, and other devices, and from the house back to the utility”. Smart Grid is designed to support operational and energy measures such as smart meters and appliances, renewable energy resources, as well as energy efficiency resources. This piece of legislation sets up a variety of measures that must be developed to facilitate the eventual deployment of Smart Grid in the United States. Various research-related committees and councils are created and called upon for information pertaining to Smart Grid. The Department of Energy (DOE) is required by Section 1304 to conduct Smart Grid research, development and demonstration, and the National Institute of Standards and Technology is to establish protocols and standards for Smart Grid equipment and systems. Smart Grid technology is even subsidized by the creation of a program within the DOE that “reimburses 20% of qualifying Smart Grid investments”. On a state level, utilities are encouraged to employ Smart Grid technology and to recover Smart Grid investments through rates.

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