Energy Transmission and Distribution Infrastructure-Cornerstone to an effective Smart Grid Network

Executive and legislative policy makers at national, state, and local levels of government are highly focused on critical infrastructure issues of all types. Their focus encompasses both infrastructure security (which has vastly increased since September 2001 and further since the Minneapolis bridge collapse in 2007) and the role that energy (specifically electricity) plays in the economic competitiveness of any particular region and the nation overall.

Energy Transmission and Distribution: Part of the Critical Infrastructure Protection Program

The U.S. has had a wide-reaching Critical Infrastructure Protection Program in place since 1996. Electricity generation, electric energy transmission, and electric energy distribution are part of this program. More recently, in 2003 and 2004 the U.S. Department of Energy (DOE) led a series of stakeholder meetings focused on the modernization of the U.S. electric grid. This has led to industry planning agendas known as Grid 2030 and the National Electric Delivery Technologies Road map. These efforts are now consolidated in DOE Modern Grid Initiative and designed to encourage and support electric system modernization.

Legislation is Part of the Solution

More locally, there has been rising awareness of infrastructure-related issues and many of the states have adopted a leadership role in this area. For example, Pennsylvania is in the forefront of water system modernization with its Distribution System Improvement Charge (DSIC), which addresses the repair of critical water infrastructure. The DSIC allows water companies to use a surcharge on customers’ bills to fund upgrades to aging infrastructure. It is a regulatory tool that was passed by the General Assembly a decade ago and is often cited as model legislation for other states and other utility infrastructures. The House Consumer Affairs Committee has held public input hearings on expanding this useful tool to address other infrastructure needs.

The Formation of Summits and Coalitions

Awareness of electric system modernization topics (particularly in the area of energy transmission and distribution) is in its infancy (but growing rapidly) nationwide. States have conducted Infrastructure Summits to address concerns over the state of the electric T&D infrastructure. Coalitions have formed to educate the community on the future of energy reliability in the state). One such coalition has noted:

“Electric infrastructure is crucial to the economic viability of our state. From energy independence and national security to local economic development and the retention of our existing businesses, a reliable electric delivery system is fundamental.”

Security and Performance are primary drivers for Grid Modernization-the building block for an effective Smart Grid network

It is vitally important to note that this rising attention on infrastructure generally is not technically-driven (i.e. focused on new technologies and what is possible); rather, it is security- and performance-driven (i.e. it is focused on what is technically and economically needed and why). It is in this context that stakeholders can and should examine the major internal and external forces that are driving the need for grid modernization, the necessary precursor for an effective smart grid network.