Smart Grids – The Governmental Approach

Scott Blake Harris is the General Council for the US Department of Energy, and has recently spoken out at the NGU US summit (hosted by GDS International). He was nominated in the position by President Barack Obama in March 2009, and was confirmed by the United States Senate in May 2009. He focused his address on the $4 billion investment into smart grids and renewables across the US.

Scott spoke at the most recent NGU US summit, a closed event which brings together more than 50 leading executives and whose sole purpose is to discuss the future of the industry in the US, with the worlds glare firmly on America’s energy futures and increased pressure for green solutions he did not disappoint.

From an operational perspective, many utilities are making their "smart grid" investments in the distribution network. To fully take advantage of the potential still to be unlocked from investments into smart grids it is imperative to improve reliability and stability while accommodating new revenue models for utilities.

“This is an unrivaled opportunity to develop a greater network of peers - the creation of a dynamic, collaborative community of thought leaders focused on consumer participation in the Smart Grid and the role each of us will play is key.”
The big challenge is how to engage the community and utilities together into a full-throttled drive to create the optimal Smart Grid solutions that will reduce energy costs for consumers and utilities, reduce greenhouse gas emissions, and build national energy security. The stakes are high, and it’s not a given that the Smart Grid will be built in the most intelligent and cost-effective ways. Those Utilities which are to receive Smart Grid funding are concerned on the ability to deliver especially when looking at the bandwidth capabilities needed to tackle the smart grid initiatives, and when faced with a short time frame of three years. Working together will be key, agreed the NGU Committee, we are capable of achieving the goals it is now time to prove it.
But the advantages to smart grid implementation for the consumer are easy to measure; Jeff Johnson of Constellation Energy stated that by informing customers of peaking prices during the day, they are able to reduce electricity consumption by as much as 20%. As technology around the household increases the need for an effective way to measure output is becoming more important, with multiple TV’s and computers now the norm in the average household monitoring output will be essential.
Also taking a stand was Cyrus Wadia who focused on the technical implementations of smart grid technology including T&D to an audience including invited representatives from Alcatel lucent, Itron, Hp, PV Powered and Smart Synch who came to share their thought leadership with the senior executive community.

“Smart meters with two-way fixed communications (AMI) enable utilities to capture information/metrics rapidly and make business decisions faster than ever before. They also facilitate the integration of functional units within utilities and open the door for greater customer engagement and communications.”

If government investment into smart grids has made it the technology of the future meetings such as the NGU US are necessary to ensure a collaborative driving force in implementing the right strategies.

Solar: From small-scale experiment to utility-scale solution

The US has set itself some tough targets to combat climate change, but which is the right solution? Officials have been experimenting with solar solutions, smart grids, tidal and wind power, but the latest polls – and market developments – have shown solar is the choice for the wise.

Solar power has been backed by leading executives at the Next Generation Utility North America (NGU NA) committee (hosted by GDS International), who will be meeting to hear from Julia Hamm, Executive Director of the Solar Electric Power Association (SEPA) on the future of solar in the US and the ways which electric utilities must prepare. As the level of distributed solar increases there will be a need for photovoltaic (PV) systems to provide their host utility with much greater awareness, control and grid support functions than what is being implemented today. Utilities also need to explore business models that incorporate solar in a way that adds value for shareholders, stakeholders, and society at large.

In 2009, for instance, the solar industry continued to grow significantly, despite the economic downturn, which is an indication of the technology's staying power. From single-panel micro-systems and residential and commercial rooftops, to the opening of the country's largest photovoltaic power plant, the solar industry continued to expand to over 2 gigawatts of generating capacity in the US.

“We expect 2010 to be a breakout year for the US solar industry,” says the NGU NA committee, “The right policies and industry innovation continues to drive solar growth across America. Now we’re talking gigawatts of solar, not megawatts.”
The best strategies and how to implement them are sure to create much debate, and with energy giants clashing at the latest NGT NA summit, we wait expectedly for the results.

Great ideas have come and gone, and with environmental impacts top of the list for governments across the globe, the implementation of these ‘ideas’ need to be discussed amongst industry professionals.

SEPA is dedicated to helping utilities make smart solar decisions, which will decrease environmental impact as well as reduce energy costs in the long-term. With energy conservation and other green practices emerging as a critical part of day-to-day utility operations, SEPA hopes to lead the NGU Committee towards a more sustainable tomorrow.

The Grass is Greener over in MENA

The Middle East and North African Utilities Industry is in a state of growth, global investment has meant that the Middle East is officially out of the recession. Investment banks are increasing their spending within the utilities sector. Maintaining the correct balance between supply and demand has meant large scale investment such as the recent $1.8bn going to the SEC (Saudi Electric Company) and more than $5.4bn is being spent in Dubai to increase their power capacity from 6000MW to 9800MW by the end of 2011.

But how do they plan to spend new investments and meet demand? This is the question on every ones lips at the NGU MENA Summit hosted by GDS international in Abu Dhabi.

“One key factor facing the utilities industry is emphasis on using environmentally sustainable resources and smart technology to reduce the environmental impact.” Said a spokesperson for the illustrious NGU 20 consortium chaired by Mr Fareed Al Yogout, President National Power Company Saudi Arabia and Mr Khalil Issa, CEO Energy Central Company.

The MENA region is already one step ahead in harnessing the power of its abundant sun. Global investment is coming in thick and fast entering the multibillion dollar solar market and the returns so far have been incomparable.

The World Bank plans to invest more than $5.5bn in solar energy projects around the MENA region through there Clean Energy Fund (CTF) in a hope to accelerate the global deployment of PV (Photovoltaic’s) and concentrated solar power generation facilities. With huge production the potential for export revenue is an exciting prospect for investors and one that hasn’t gone unmissed by attendees at the NGU MENA summit.

New technology is also key in the growth of the MENA energy markets. The UAE, Oman, Saudi Arabia, Kuwait, Qatar and Bahrain are close to achieving their collective goal of a joint power grid for all six member states. The grids aim is to supply adequate power even in an emergency situation and to reduce the cost of power generation to all six states.

“Investment into new technology and green energy solutions offer growth potential and a bright future for the MENA region. This is being capitalized on by industry leaders, but a platform to discuss collaborations, concerns and investments is key to move forward” Kieran Crawford - Summit Director

The Middle East region is firmly back on track to become one of the largest and most lucrative energy markets globally and the meeting of some of the leading names in the utilities at the NGU MENA demonstrates this has not gone unnoticed by the industry .