Smart Grids Roadmap - Smart Grid Sherpa

Conclusion: near-term roadmapactions for stakeholdersSmart grids are a foundational investment thatoffer the potential to substitute efficient use ofinformation for more conventional "steel-in-theground"investments in the electricity system,at considerable cost savings to consumers, asdemonstrated by early results of pilot projects.Smart grids will also change how power systemplanning is done, and how wholesale andretail electricity markets are co-ordinated. Theinformation collected through smart grids willnot only empower customers to manage theirelectricity consumption but will enable electricitysystem operators to better understand and meetusers’ needs.complexity of the electricity system (technologicallyand from a regulatory and market perspective),and its importance to society in general, increasethe necessity to understand who should performthe actions outlined in this roadmap. Neither thegovernment alone, nor the private sector alone, canaccomplish the goal of modernising the electricitysystem. Collaboration is vital.Below is a summary of the actions by key electricitysystem stakeholders, presented to indicate whoshould take the lead in such efforts. In most cases,a broad range of actors will need to participate ineach action.The roles of the government and the private sectorare often misunderstood, at times by themselvesand often by each other. The broadness andSummary of actions led by stakeholdersLead stakeholderElectricitygeneratorsActionUtilise flexibility and enhancements delivered by smart grids to increase use of variablegeneration to meet demand growth and decrease emissions.Transmissionand distributionsystem operatorsGovernment andregulatorsTechnologyand solutionprovidersDevelop business models along with government and regulators that ensure allstakeholders share risks, costs and benefits.Lead education in collaboration with other stakeholders on the value of smart grids,especially with respect to system reliability and security benefits.Promote adoption of real-time energy usage information and pricing to allow foroptimum planning, design and operation of distribution and transmission systems in aco-ordinated fashion.Demonstrate smart grids technology with business models that share risks, benefits andcosts with customers in order to gain regulatory approval and customer support.Collaborate with public and private sector stakeholders to determine regulatory andmarket solutions that can mobilise private sector investment in all electricity system sectors.Recognise that smart grid deployments should reflect regional needs and conditions– a “one-size-fits-all” does not apply to the deployment of smart grids.Plan for evolution in regulation along with technology development – new technologieswill both offer and need new regulatory options.Invest in research, development and demonstration (RD&D) that address system-wideand broad-range sectoral issues, and that provide insights into behavioural aspects ofelectricity use.Deliver full technology solutions to system operators through partnership with others inthe value chain to address concerns with technology system integration, long-term postinstallationsupport, and security and reliability.Create a strategy and develop standards in participation with industry and governmentstakeholders on an international level to ensure interoperability of system componentsand reduce risk of technology obsolescence.Conclusion: near-term roadmap actions for stakeholders43© OECD/IEA, 2010