Coalition's smart grid report card flawed, but mildly useful

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By Jesse Berst

In my view, the GridWise Alliance is one of our industry's most effective coalitions. It was instrumental to the federal smart grid legislation that appeared as part of the energy bills of 2005 and 2007 and as part of the stimulus bill of 2009. Now GWA has released a white paper called "Realizing the Value of an Optimized Electric Grid" that provides some useful metrics.

In its press release (see Page 2), the organization claims the report "details the current state of the nation's power grid." Hardly. Instead, it gives a cursory, generic overview just like all the others we've seen over the last decade.

But GWA also claims that it "quantifies the benefits of a modernized electric system" and here they keep their promise. The report lists typical benefits, lays out frameworks for assessing them, and suggests typical values discovered by those who have gone before. Nothing new, but it's helpful to have it summarized in one place.

How nice to see GWA working to tie the smart grid to things Americans really want, including jobs and grid reliability. And to helping utilities quantify those benefits so they can make the business case.

Even so, the report is a disappointment when it comes to the section on smart grid obstacles. First, it contents itself with merely listing obstacles. It offers no meaningful solutions other than platitudes, counseling us to "build consensus and develop mechanisms." Okay, but what's the consensus that will be best for the nation? And what are the mechanisms that will get us there?

Second, the report glosses over the biggest obstacle of all, the country's patchwork of antiquated and inappropriate regulations. It does not even list the regulatory morass as an obstacle. (Though it does sneak in a few mentions when discussing other obstacles. Like hinting at the elephant in the room by talking about tigers and giraffes.)

Our industry badly needs leaders who will stand up and tell the truth about the obstacles to a fully modern grid. And, even more importantly, who will suggest ways to overcome them. We didn't get that leadership from GWA, but we did get a modestly useful recitation of smart grid benefits.

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Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

Page 2: Read the press release >>