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Smart Grid Opportunity Header

Your Quick Start Guide to Smart Grid Success ...

What exactly is a smart grid? Why do we need one? Who's going to build it? And what does it mean for the electrical distribution industry? After all, as one NAED member put it: “Trends this size only come by every 10 or 20 years.” 

And it looks like this trend will be here for the foreseeable future. The smart grid concept continues to gain momentum because of calls to more effectively deliver electricity and long-term increases of energy consumption.  To facilitate a more intelligent grid, devices and technologies designed to upgrade and enhance the current grid are key.  These “smart” devices and systems which can be integrated into the existing system at all levels—power stations, transmission grids, distribution grids, information systems, and consumers—have already generated a sizable market.  This market poses an enormous opportunity for the electrical distribution industry to position themselves as leaders in this area.

This website, sponsored by the Channel Advantage Partnership, features a number of resources to help you not only better understand the smart grid space, but also sales prospects for smart grid projects. For example, check out the state toolkits which feature information on local utilities, incentives, and smart grid projects tailored for each state.  Or review the focus pieces which delve deeper into areas that will impact the smart grid market such as renewable energy, building energy management solutions, or electrical vehicles.

To effectively get in on the smart grid action, you'll want a basic understanding of this "system of systems" that will ultimately transform today's aging electric infrastructure into a modern, intelligent grid. Check out the Quick Start Guide  for:

 Smart Grid Opportunity Cover 
  • A brief overview of our electric power system
  • An understanding of why the smart grid has become a national priority
  • A snapshot of the various electrical components and concepts that are part of the smart grid
  • Advice on how your business can get involved
  • A look at some key players who should be on your radar if they aren't already

Research conducted by Smart Grid News  founding editor, Jesse Berst.

Questions? Contact NAED Member Services by email at memberservices@naed.org or by phone at 888-791-2512.
Research projects are generously funded by the NAED Education and Research Foundation's Channel Advantage Partnership.

Published in 2011.

Where are the smart grid opportunities in your region?

To help you gain insight on smart grid projects and players in your own backyard, we’ve created 50 state "toolkits" loaded with basic resources. These toolkits include:

  • Web resources including state incentive programs, clean energy associations, relevant state websites
  • Contacts for state-run energy programs
  • Smart grid project summaries
  • Media coverage of smart grid and related developments
  • Utilities operating in the state
  • Registered energy companies doing business in the state

Click the state in the map below to access its toolkit or jump to full list of state toolkits

DelawareDelawareDelawareDelawareDelawareDelaware

Setting up your smart grid portfolio:

The FOCUS pieces delve deeper into markets that significantly impact the smart grid. They also offer additional selling opportunities for you and your company. These short reports provide a quick synopsis of the market as well as recommendations, strategies, and products that can help you cash in on the smart grid space.

Focus on the electrical vehicle market:

Smart Grid Focus on Cruising the Electrical Vehicle Fast Lane
The electric vehicle (EV) market, including the charging infrastructure market, is still in its infancy – and there are no guarantees which way the supply chain will swing. Particularly, when the path looks to have competition from the retail, distribution, and direct sales sectors. For the electrical distribution industry, now is the time when deals are being made and alliances are being formed. If you want in, you need to make some noise so you can establish your business as a major player. This report discusses the EV market and the ways you can drive sales as part of your smart grid strategy. Focus: Cruising the Electrical Vehicle Fast Lane.

Focus on renewable energy:

Smart Grid Focus on Renewables
For distributors who want to position themselves in the renewables market, tracking updates and changes is part of the game. But with the tremendous growth potential, the consensus is it will be worth the effort. This report examines the renewables market and provides recommendations and strategies for adding this sector to your sales strategies. Focus: Renewable Energy.

Focus on building energy management market:

SmartGrid Focus Building Energy Management Market
Energy management systems, particularly for buildings, provide another opportunity for distributors to gain ground in the smart grid market. What started with automatic thermostat controls and light switch timers decades ago has evolved into highly integrated systems that will ultimately transform the way buildings interact with the electric grid. Ultimately, there are many building and business owners who could utilize these advances in energy efficiency technologies to reduce energy consumption and energy costs. This report delves deeper into the red-hot energy management market, including sections on automated energy response systems and demand response programs, to help you determine if this area is right for your company’s smart grid sales strategy. Focus: Building Energy Management Market .

Focus on the great grid makeover:

Smart Grid Focus The Great Grid Makeover
Today's electric transmission & distribution (T&D) grid has been hailed as one of the finest achievements of the 20th century. But it has not been significantly updated since it was designed in the middle of the last century. That is certainly changing now—new thinking about our energy future and advanced technologies have come together to create a vision known as the smart grid, a two-way, interconnected, self-healing network that will replace the one-way electricity highway. The smart grid is in varying stages of development around the country and will be for some time to come. As innovative technologies and products drive new industries that rely on an efficient and dependable means to transmit electricity, a smarter grid is essential. For electrical distributors, this massive makeover of our electric infrastructure represents opportunity. Even if you currently do not have involvement with the utility sector, there are ways to capitalize on this growing area. This report looks into the T & D smart grid scene and offers strategies for your company to be part of this market. Focus: The Great Grid Makeover.

Archived Webinars

SmartGrid Beyond the BuzzBeyond the Buzz: Smart Grid and the Electrical Distribution Industry 

The smart grid has generated a significant amount of buzz as demands for energy meets the desire to most efficiently deliver it. What does this mean for the electrical distribution industry? Find out in this informative webinar Jesse Berst, Smart Grid New founding editor and analyst is joined by: Bob Gohn, lead smart grid analyst at Pike Research; Paul Molitor, senior industry director, Smart Grid and Strategic Initiatives at NEMA; and Bill Attardi, principal at Attardi Marketing. Watch a sneak peek right now  or sign into the NAED Learning Center for the full webinar.

Smart Grid Strategies: The Product Portfolio That Best Fits Your Company 
All signs point to the smart grid market as a tremendous selling opportunity for distributors. Given the multitude of products and technologies needed to develop and maintain the smart grid, companies can go in several directions in pursuit of business—what is best for your company? Sponsored by the Channel Advantage Partnership, this webinar will discuss the main types of technologies and products associated with building out the smart grid to help you determine a path.  Smart Grid News founding editor and analyst, Jesse Berst, discusses the topic  with industry experts: Heather Cummins, director, Asset Management and Process Improvement, Avista Group; Mike Calise, chief executive officer, EV Advise; and Tony Papavero, sales executive and designer, iPower. Sign into the NAED Learning Center for the Smart Grid Strategies webinar. 

Smart Grid Strategies II: Connecting to the Building Energy Management Market 
With today's high energy prices, owners and managers of commercial and industrial buildings -- as well as homeowners -- are more receptive than ever to cost-reduction strategies that will lower their electric bills. This presents a compelling opportunity for electrical distributors who are looking for ways to benefit from the fast-growing building automation, energy efficiency and demand response spaces. Sponsored by the Channel Advantage Partnership, this webinar will provide a comprehensive look at these areas and how they can be a part of your overall smart grid sales strategy. To learn more, join Jesse Berst, Smart Grid News founding editor and analyst as he talks with Mary Medeiros McEnroe, Public Benefit Program Manager, Silicon Valley Power; Robert Pratt, Pacific Northwest National Laboratory; and Liz Enbysk, Project Manager, Global Smart Energy. Sign into the NAED Learning Center for the full webinar.

Unfolding the Smart Grid Roadmap
This free 75-minute webinar presented on Dec. 16, 2010 tackled misinformation and misperception, showing how utilities, manufacturers and other stakeholders can gain a clear advantage through smart grid. Sponsored by Supply & Demand Chain Executive, IHS, CERA, and NEMA, speakers included: Lawrence J. Makovich, vice president and senior advisor for Global Power, IHS CERA; Paul Molitor, senior industry director, Smart Grid and Strategic Initiatives, NEMA; and Andrew Reese served as moderator. Register and watch >>

Can you talk the smart grid talk? Use this guide to common smart grid terms and acronyms to make sure you're speaking the lingo of the smart grid when meeting with prospective partners and customers.

This is a glossary of terms commonly used in the smart grid environment. Alternative definitions and synonyms are included where appropriate – as are commonly used acronyms. 

A

Advanced battery systems - New generations of batteries that feature improved efficiency and power, and fast charging.

Advanced metering infrastructure (AMI) - All components of the infrastructure relating to electric metering and communications. Includes meters capable of two-way communication.

Appliances - In the smart grid context, appliances go well beyond the kitchen and laundry room and generally refer to residential items, tools, and systems powered by electricity, including heating and cooling, lighting, refrigerators, washers/dryers, computer systems and electronics.

Asset management - Procedures and policies intended to control costs, reduce risk, enhance performance, improve investment and project scheduling decisions, and deal with older equipment.

Automated meter reading (AMR) - Sensor-equipped meters capable of retrieving and transmitting power consumption and other information.

B

Battery electric vehicle (BEV) - A vehicle that runs exclusively on power stored in on-board batteries.

Biomass - A renewable fuel source for power generation. Includes wood and wood waste, municipal solid waste, crops and biogas.

Broadband over power line (BPL) - Broadband Internet access available over standard power lines.

Building automation system (BAS) - A system capable of computerized monitoring and control of a building’s lighting and mechanical systems, and monitoring for performance and potential failure. Installations typically focus on improved energy efficiency, reliability and reduced costs.

Business case - A decision-making process to determine how a specific decision will affect profitability, and how cash flow, costs and revenue will change.

C

 Capacity - The measurement of a quantity of energy a battery provides in one discharge.

Charge coupler - The connector and vehicle receptacle for hybrid and all-electric vehicle charging.

Cogeneration - The reuse of thermal energy by connecting thermal electric generation with a thermal process, such as an industrial application.

Command and control - Control centers able to monitor and manage the smart grid, providing remote diagnosis, and remote repair in some instances.

Communications - Generally refers to an integrated, two-way communications and networking platform essential to the operation of a smart grid. Also, communications is an intensely competitive market among wireless, cellular and networking vendors.

Compressed air energy storage - Air that has been compressed, frequently stored in mines or salt caverns, for use on demand.

Congestion - A condition in which there is not enough transmission capacity to handle all of the simultaneous demands on a system satisfactorily.

Critical infrastructure protection (CIP) - Administered by the North American Electric, CIP standards are used to safeguard the North American bulk power system from attack and ensure utility compliance.

Customer information system (CIS) - A software application for handling customer calls, billing and other related functions.

Cycle life - The lifespan of a rechargeable battery used in an EV before it starts to lose its ability to hold a charge. Batteries that are no longer useful in EVs still have capacity, and an after market is being developed to use them in other applications such as energy storage. (See secondary use.)

D

Demand response - A smart grid practice that allows consumers to reduce or change their electrical use patterns during peak demand, usually in exchange for a financial incentive. The concept of reducing demand rather than increasing supply.

Demand side management (DSM) - Programs used to encourage customers to change the levels and patterns of their electricity consumption.

Department of Energy (DOE) - The federal agency charged with ensuring the continuation of national, economic and energy security of the United States. Smart grid stimulus and demonstration project grants are administered by DOEl

Distributed generation - Relatively small sources of power generation located throughout the system and closer to the end user (as opposed to generation from a large centralized source). For example, rooftop solar panels or small-scale wind systems installed at homes and businesses. Microgrids also could be considered distributed generation.

Distribution - Power delivery from the substation to the end user (residential, commercial, industrial).

Distribution automation - Programs and technologies designed for an intelligent grid and used to ensure consistent power quality and reliability and accommodate two-way power flows.

Distributed generation - Small-scale power generation facilities, particularly renewables, close to consumers to boost efficiency while lowering costs and reducing environmental risks. Also refers to residential and commercial renewable energy sources, such as wind turbines and solar panels.

E

Electric Power Research Institute (EPRI) - An independent public interest energy and environmental research organization that focuses on issues and challenges related to electric power.

Electric vehicle (EV) - Originally, the term referred to vehicles that operate exclusively on electric power. More recently, the term describes the entire family of vehicles that use electricity as a power source including plug-in hybrid electric vehicles and battery electric vehicles.

Energy Independence and Security Act - Enacted by Congress in 2007 to direct national energy policy.

EV charging infrastructure - Integrated residential, public and commercial equipment, software, systems and management tools required to provide charging facilities for electric vehicles.

EV charging station - The location where EV battery charging is provided, including residential, public and other facilities.

Energy density - The amount of energy in a source of fuel, such as lithium-ion, nickel metal hydride or lead acid batteries.

Efficiency - The term refers to the practice of using less power without affecting the services provided (heating, cooling, lighting, etc.). It is included here as efficiency is considered a form of conservation, the ultimate sustainable resource.

F

Federal Energy Regulatory Commission  (FERC) - An independent agency responsible for regulating interstate transmission of electricity, high-voltage transmission systems, wholesale electricity sales, and aspects of oil, gas, and hydroelectric operations.

Flow battery - Rechargeable high power and very high storage capacity battery, and used to level loads on the electrical grid.

G

Geographic information system (GIS) - Digitally stores, analyzes, manages, and relays location-oriented data. Numerous GIS software applications are available.

Geothermal energy - Taps the heat energy from fluids deep within the earth, and used directly for heating or for electricity production.

H

Home area network (HAN) - Includes computer networking within the home and bundled data, voice, and video services provided by telephone companies. Usually refers to a short distance, low power approach such as Zigbee and WiFi.

Home automation network - Monitoring and control systems for residential use such as heating and lighting controls, security, and appliance and electronics power consumption.

HomePlug – Developed by the HomePlug Powerline Alliance, the term refers to a variety of power line communications standards that support networking over a home’s existing electrical wiring.

I

Independent system operator (ISO) - An organization established by the Federal Energy Regulatory Commission to control and monitor electric power system operations, typically within one state.

In-home display – Tools designed to provide energy consumers with real-time information on household consumption. There are a variety of them on the market with varying levels of complexity and smart device integration.

Integration and management - The process of bringing power from renewable sources into the electric grid. The integration and management of renewable energy sources is critical because of the intermittent nature of sources like wind and solar which do not provide power at a constant level.

Interoperability - The concept that devices, software and programs from different sources can function together seamlessly.

Interruptible load - Electricity providers can, with prior agreement with the customer, interrupt power delivery to accommodate the occasions when the highest demand for power (peak load) occurs. This practice usually involves large-scale industrial and commercial customers.

Investor-owned utility (IOU) - A privately held utility (not operated by a government entity or a consumer cooperative).

Islanding - The ability to use distributed generation to provide power when storms or other events have knocked out the utility’s ability to provide power.

L

Line loss - Electric power lost during the process of transmission, typically in the form of heat.

Lithium-ion battery - An increasingly popular and relatively lightweight and high-capacity battery. Also referred to as Li-ion. Used in EVs and many electronics.

Load management - A collection of strategies intended to reduce or move demand from peak to off-peak periods. Another term is load shifting.

M

Machine-to-machine (M2M) – This refers to various wired and wireless technologies that allow communication between devices on a network.

Metering - Generally refers to any type of metering system, such as old electromechanical meters, and the advanced smart meters that are replacing them.

Meter data management (MDM) - As smart meter rollouts continue, utilities are swamped with unprecedented amounts of data that can be used to improve customer relationships, utility operations and business intelligence.

Microgrid - Community-scale system built to automatically separate itself from the primary electric grid during outages or completely independent of the primary grid. The U.S. military is strongly interested in microgrids as a way to improve reliability on its bases and increase security.

N

National Institute of Standards and Technology (NIST) - A U.S. Department of Commerce agency charged with identifying and evaluating standards and technologies relevant to smart grid adoption. NIST has other responsibilities, as well.

Net metering - Net metering allows consumers who contribute power to the grid to receive credit for at least a portion of that electricity.

nEV - A “neighborhood” EV, intended for short trips.

O

Off peak - A period of reduced electrical demand.

Outage management - Incorporates technologies such as GIS and smart meters to quickly locate and manage power outages.

P

Peak demand - Periods when the demand for power is at its highest, such as early morning and early evening or during extremely hot or cold weather.

Peaker plant - Generally, these are older, low-efficiency power plants brought online only during periods of peak demand. Because of their age, inefficiency and intermittent use, peaker plants are extremely expensive to operate.

Phantom load - Refers to power use in appliances after they are turned off. Most electronics and related devices continue to consume power, even when turned “off.”

Phasor measurement unit (PMU) - Phasor measurement units help detect and mitigate congestion at various points on the grid by sampling voltage and current several times a second. Also referred to as synchrophasor.

Photovoltaic system (PV) - Solar cells grouped in panels, then linked together in arrays to transform sunlight into electricity.

PEV – Plug-in electric vehicle

PHEV – Plug-in hybrid electric vehicle

Public utility commission (PUC) - A state agency responsible for setting rates and regulating services and other activities of electric, gas and telecommunications utilities operating within its state boundaries.

Public utility district (PUD) - A single-purpose district established for the generation, transmission and distribution of electricity or other services. Boundaries frequently extend beyond local jurisdictions.

R

Rate base - A utility’s property value that determines the utility’s permitted rate of return. That rate is set by a regulatory agency.

Rate case - A request filed by an electric utility for a consumer price increase with the appropriate state public utility commissions.

Real-time pricing - Charging consumers varying rates for a service to reflect frequent cost fluctuations occurring over time, as opposed to fixed pricing.

Regional transmission operator (RTO) - An organization established at the direction of the Federal Energy Regulatory Commission to control the electrical power transmission system in a service area that extends beyond state borders.

Reliability - The term refers to how well a device, technology, application or software functions within accepted standards. Typically, reliability addresses adequate power generation and transmission resources to ensure that enough power can be delivered to meet demand with enough in reserve to handle unforeseen circumstances. Another key reliability issue is security, that there will be enough power available even if outages or equipment failures occur.

Renewable energy (also renewables) - A variety of energy sources considered to be sustainable alternatives to oil, coal and natural gas. These sources include solar and wind, geothermal, marine and hydro and hybrid systems such as those incorporating geothermal and solar.

Rooftop PV (photovoltaic) - Solar arrays mounted on rooftops. Increasingly common in residential, commercial and industrial applications.

S

Secondary use - Using batteries previously used in electric vehicles and plug-in for stationary electric grid storage after they no longer have the capacity to meet the demands of use in a vehicle.

Security - With the smart grid’s more open forms of communications (such as the Internet), those communications are more vulnerable to outside attack and other disruptions. Because utilities are increasingly relying on those open networks for grid monitoring and control, reliable security is essential to reliable and safe smart grid operations.

Sensors - This term includes a variety of devices and/or software designed to monitor and report on conditions that could lead to power outages and damage to the electric grid. Sensors typically monitor temperature, line sag, the condition of transformers, physical security and equipment conditions.

Smart charging - A group of technologies and equipment  incorporated into EV charging infrastructure to ensure integration with the electric grid without causing unmanageable spikes in electricity demand.

Smart grid - While most industries in the energy sector may define it a bit differently, it is basically using  smart devices together with  smart communications and smart software to modernize the electric grid to conserve energy, reduce costs and increase reliability, security and energy independence.

Smart meter - Gathers and transmits detailed consumption data back to the local utility for monitoring and billing. Also monitors for power quality and outages and facilitates communications between utilities and customers.

Solar energy - Energy from the sun converted to electricity by a photovoltaic system incorporating sunlight gathering solar cells into panels.

Standards - Standards are critical to the smart grid initiative because they are the instruments used to ensure reliability, efficiency and interoperability throughout the electric grid. Standards are used to enforce those concepts to help guarantee that devices, applications and systems can efficiently work together.

Storage - Grid-scale energy storage is a booming smart grid market and includes a variety of storage technologies, such as compressed air, stationary batteries, ice, flywheels and molten salt to name a few. The ability to store energy is particularly critical with the growing popularity of wind and solar energy sources because they are intermittent power sources, and storage is necessary to avoid wide fluctuations of power brought into the electric grid.

Substation - The site where equipment for switching or regulating electrical voltage is located.

Supervisory control and data acquisition (SCADA) - A computer system that monitors an industrial, infrastructure or facility-based control process.

T

Transmission - The delivery of bulk high-voltage electricity from the generating plant to substations and the distribution system.

Time of day rate (TOD) - The rate charged to electric utility customers based on the varying costs of delivering service at different times throughout the day.

Time of use (TOU) - An energy cost reduction measure that permits consumers to shift power consumption to off-peak hours.

U

Ultracapacitor - A capacitor used in large-scale applications, such as powering a bus.

V

Volt/VAR optimization - Transmitting the correct voltage to each customer rather than sending higher voltages to all users as a “just in case” measure. Also referred to simply as Volt/VAR. There also are other variations in terminology.

V2G - The integration of EVs into the smart grid. In other words, the use of EVs as a backup source of power for the electric grid during periods of high demand.

W

WiFi - One of the wireless communications technologies favored in home area network device communications and other applications.

WiMax - Another wireless communications technology used to transmit data using a variety of transmission methods. Typically covers wider areas than WiFi.

Wind turbines - A modern day windmill, wind turbines harness energy from the wind to generate electric power. Wind farms They are often part of large land-based wind farms but wind turbines are also becoming more popular as devices to rein in offshore wind.

Z

ZEV - A zero emissions vehicle.

Zigbee – A wireless technology designed as an open standard to promote interoperability in a wide variety of smart energy products.

Upgrades to expand and enhance the current electrical grid with “smart” products and technologies also relate to the larger “going green” conversation taking place across the country. A more intelligent grid offers another way to improve energy management, minimize waste, and reduce carbon footprints. To learn more about the smart grid and additional green topics that can impact your business outlook and bottom line, see the information below from tED Green Room, Global Smart Energy (who conducted NAED’s smart grid study), and NEMA.

Smart Grid TedGreenRoomtED GreenRoom  
Going Green Inside & Out tools

tED GreenRoom Industry Links 
Web resources for energy efficiency, government programs, sustainability, eco-power, and financial incentives

Smart Grid News  and the Smart Grid Consumer Collaborative (SGCC) 


NEMA  Resources

  • Energy Efficiency & Economic Growth 
    It's a fact that the U.S. wastes more energy that it consumers. This downloadable brochure lays out how greater energy efficiency will boost economic productivity and competitive that ultimately enhances U.S. energy security.
  • Siting Transmission Corridors
    To help paint a picture of how complex getting such legislation through the regulatory process can be, NEMA came up with a game called “Siting Transmission Corridors ” (loosely based on Hasbro’s popular “Chutes and Ladders” board game). With all of the hurdles that are out there, it will take years to get everything in place. Smart grid depends upon the process being conducted properly and cooperation on the federal level. Ask yourself how increased energy needs and an improved electricity supply chain might impact your business. As an industry, this is something electrical distributors need to support. We know the benefits of energy efficiency and have a wide variety of products that actually decrease energy usage while responsibly conserving resources. The time to plan for new transmission corridors is now. You can view NEMA’s Siting Transmission Corridors game here .
  • Webinar: Unfolding the Smart Grid Roadmap
    Free 75-minute webinar presented on Dec. 16, 2010 tackled misinformation and misperception, showing how utilities, manufacturers and other stakeholders can gain a clear advantage through smart grid. Sponsored by Supply & Demand Chain Executive, IHS, CERA, and NEMA, speakers included: Lawrence J. Makovich, vice president and senior advisor for Global Power, IHS CERA; Paul Molitor, senior industry director, Smart Grid and Strategic Initiatives, NEMA; and Andrew Reese served as moderator. Register and watch >> 
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