Smart Policies for a 21st Century Grid

The electricity industry has thrived under regulation, having been successful in bringing reliable, low-cost energy to the most remote corners of our country. But regulators are facing new challenges today, including climate change concerns and the incorporation of new technologies into the grid. 

According to an article on Connected Planet online, federal policies that encourage a transition to the smart grid are missing. GE Energy T&D's John MacDonald, along with David Malkin and Elizabeth McCoy, contend that policymakers need to step up to enact the necessary legislation, however insufficient it is now, to lead the nation to a interoperable smart grid.

MacDonald calls for performance targets, such as a federal energy efficiency resource standard and a peak demand reduction target. He also recommends a federal clean energy standard that he says will encourage utilities to invest in smart grid technologies.

Policies should also address cost recovery, rate designs, wholesale market operations and investment planning processes, giving incentives to utilities to go to smart grid.