Customer Acceptance of the Smart Grid

Significant investments have already been made in designing and constructing an electric grid that is automated, managed, and controlled by information and communications technologies. Thus far, the approach has been to place these enabling capabilities on top of a relatively aged and obsolete infrastructure, somewhat offsetting the potential advantages to be realized by the electric utilities and their customers. This sub-optimal implementation is driven somewhat by current funding realities because there appears to be more interest in these newer technologies than the seemingly basic infrastructure required to transmit and distribute electricity. This situation will likely resolve itself as electric utilities engage the regulators and legislators in discussion and negotiation around the topics of reliability, safety, security, and environmental stewardship.

 

Smart Grid  Affected by  Social and Cultural Aspects

With that as a backdrop, the long-term success in the electricity industry’s evolution to a 21^st century electric grid – though dependent on these technical and operational factors –  must also take into account the social and cultural aspects implied by smart grid and customer premises automation. These social and cultural factors include:

• Personal data regarding electrical usage will be available to individuals outside the normal customer and electric utility relationship.
• The customer will have the opportunity to be a producer of electricity with little, if any, understanding of the energy market.
• The pricing structure will inevitably change as electric utilities recoup their investments, yet create incentives to shape customer behavior.
• Issues around social equity will come into play as those with less money and education will need to participate.

In short, the topics of privacy and equity will need to be viewed on an equal footing with the decisions around system design and revitalization, to ensure the investment in this worthwhile endeavor produces the desired impact.