Should we stop the smart grid to wait for standards?

By Jesse Berst

It’s fashionable to criticize utilities for moving too slow. Is it possible they are actually moving too fast instead? Key smart grid standards are only now starting to take shape. Yet many projects -- especially in the U.S. -- are well underway using immature standards or none at all.

You may be familiar with the term “stranded assets” to refer to legacy equipment that is rendered obsolete or uneconomical to operate. But it’s possible that we are in the process of stranding many new assets by installing them now, before standards are in place.

Make no mistake -- we’re still years away from comprehensive standards. It was only on March 1 that the European Commission finally mandated the creation of region-wide smart grid standards. That means the EU must still come up with a collaboration process, a  reference architecture and a set of 100+ standards -- years of work. In theory, the U.S. is ahead, but in reality the Government Accountability Office claims there are major shortcomings in U.S. standards.

Just consider the meters that have been installed using Smart Energy Profile version 1.0, an early and inadequate standard. My friends who are expert in smart meters tell me that the upgrade to SEP 2.0 will be painful at best and impossible at worst. In fact, one standards body just fast-tracked a priority action plan to develop a Smart Energy Profile migration strategy.

Should utilities stop their smart grid work and wait for full-fledged standards to appear? Or do the benefits outweigh the risks? Join the discussion >>