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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

IT and consumers play a big part in the new US power plan

By | June 13, 2011, 1:23pm PDT

Summary: The White House is renewing its attack on the issue of the outdated US power grid. Here is Jason Hiner’s summary of the Obama administration’s plans, and the two biggest obstacles.

If Thomas Edison could drop into 2011 and take a look at our progress, he would likely be dazzled by the smartphone, high definition video, and digital storage for music and movies — all decedents of technologies that he pioneered and championed. However, something Edison would recognize all-too-well and would likely be puzzled at how little his creation had changed would be our electrical grid.

That’s the narrative that White House officials used to help sell the idea of revolutionizing the U.S. electrical grid at an event for the press, energy industry leaders, and technology industry executives on Monday in Washington. Led by the Secretary of Energy Steven Chu and Federal CTO Aneesh Chopra, the White House unveiled its strategy for building a 21st century ’smart grid’ as a catalyst to make power less expensive, minimize outages, unlock next generation power sources, and empower citizens to monitor and manage their own usage.

For technology professionals and the technology industry, if these plans become a reality then it will mean IT will play a vital role in conquering one of the most pressing challenges of the new century and it will open up new jobs and business opportunities for a wave of technologists and engineers.

As part of the event, the National Science and Technology Council released a new report called “A Policy Framework for the 21st Century Grid: Enabling Our Secure Energy Future.” This report along with the rest of the White House’s smart grid materials and its presentation on Monday are packed with details on the current challenges and obstacles and the ways the U.S. can overcome them. But, a lot of the information is locked away in bureaucratic and legal language, so here is my list of bullet points on what the Obama administration is trying to accomplish:

  1. A better grid - Upgrade the U.S. electrical infrastructure to drastically improve storage and transmission. Creating standards will be a critical part of the plan.
  2. Tap tech - Use IT to infuse a lot more intelligence and visibility into the power grid. This will enable utilities to better monitor and predict outages and recover more quickly. It will also drive better efficiency and planning overall.
  3. Citizen power - Enable consumers to have easy access to their own energy usage and better ways to control and self-regulate it in order to save money and energy. Smart meters are key.
  4. New energy - Prepare the ’smart grid’ to better handle new forms of power — wind, solar, geothermal, etc. — that are going to be an increasingly larger proportion of the pie.

Likewise, here’s my summary of the two big obstacles that the U.S. has to overcome:

  1. Innovator’s dilemma -  Since the U.S. is where the modern electrical grid was born, this country has an old, well-established infrastructure with a large installed base. Changing the stuff that is already in use and is critical to daily life is painful and expensive. It’s like trying to repair an airplane while it’s in the middle of a cross continental flight.
  2. Too many cooks in the kitchen - Lots of different states, municipalities, and companies have control and regulation over the way the electrical grid works across the U.S., and so there are a lot of different stakeholders who have a say in how things are done. As a result, any sweeping national changes are almost impossible to push. It takes a lot of buy-in and consensus-building.

The second issue deserves a little extra attention. Later in the day on Monday, President Obama, speaking at the President’s Council on Jobs and Competitiveness in Durham, North Carolina, said that when he first came into office the smart grid issue was something he wanted to move quickly on. But, “I was rapidly informed that the problem wasn’t capital… The problem was the patchwork of local jurisdictions,” he said. He added that what’s needed is to create a local, state, and federal agreement on energy and grid standards so that utilities “don’t have to guess” when they are dealing with different jurisdictions to upgrade the grid.

This was confirmed by Bob Shapard, CEO of the Texas utility Oncor, who said that energy companies were ready to invest in upgrading the infrastructure. “This doesn’t take government money,” he said. “If we have the clarity, the utilities can raise all the capital.”

So, that leaves the Obama administration to herd the cats. It has to get government agencies on the same page, convince private and public entities to agree on technological standards, get local and state governments to cede some of their jurisdiction to help create a national network, and convince citizens of the benefits of self-managing their own energy use.

It’s no wonder that small countries like Ireland and totalitarian governments like China are moving a lot faster that the U.S. in modernizing their energy infrastructure.

Still, energy Secretary Steven Chu succinctly summed what’s at stake. He said, ”America cannot build a 21st century economy with a 20th century electricity system. By working with states, industry leaders, and the private sector, we can build a clean, smart, national electricity system that will create jobs, reduce energy use, and expand renewable energy production.”

Also read

For more details on the U.S. smart grid plans, read:

Footnote: No enthusiasm gap

Enthusiasm may be the best thing the U.S. has going for it in facing the two major obstacles to the smart grid. The participants in the event — from officials in various agencies to business leaders in energy and technology to a couple high school students who’ve pioneered smart meters in their school — all spoke with the enthusiasm you don’t typically see at government events. They all seemed to have a sense that a big opportunity is standing right in front of us.

And, a lot of people want to get in on this opportunity. One indicator of that was the huge line to get into the event itself (see photo below). Keep in mind that this wasn’t a public event. Twenty minutes before the event was supposed to start, there was a line of over 100 people waiting to get through security at the White House’s Eisenhower Building. Based on line chatter, these were mostly government officials and leaders from the energy industry.

Once I got in, the White House official who escorted me to the conference room asked, “Was there a line out there?” I explained that there were still about 100 people waiting to get in. He was shocked. “Whoa, really?” he asked. Once I made it into the South Court Auditorium — which seats about 150 — it was already over half full. The event was standing room only and I’m sure there were a lot of people who never made it in.

    This was originally published on TechRepublic.

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    Topics

    Jason Hiner is the Editor in Chief of TechRepublic. He writes about the products, people, and ideas that are revolutionizing business with technology.

    Disclosure

    Jason Hiner

    Jason Hiner has nothing to disclose. He doesn't hold investments in the technology companies he covers.

    Biography

    Jason Hiner

    Jason Hiner is the Editor in Chief of TechRepublic, an online trade publication and peer-to-peer community for IT leaders. He is an award-winning journalist who examines the latest trends and asks the big questions about the technology industry. He previously worked as an IT manager in the health care industry.

    You can also find him on Twitter, , Facebook, and at JasonHiner.com.

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    RE: IT and consumers play a big part in the new US power plan
    HypnoToad72 27th Jan
    @BlueCollarCritic -

    Assuming "peak oil" and other issues are genuine, and perhaps they might be... but given how many politicians and private sector bigwigs prefer to play games, it's no small wonder the majority of the population doesn't begin to believe or have faith in anyone anymore. sad
    As is well known, all it takes is an EMP or a solar flare to destroy decades-old transformers and switches that would take YEARS to replace. How about hardening this infrastructure as we rebuild it? We cache military material in advance of a conflict. How about a series of standardized parts so that spares can be created and stockpiled? It's the Strategic Petroleum Reserve concept applied to the country's critical energy resources. Anybody? Hello? Hello? Bueller? Bueller...
    @spevae -

    It should be well-known.

    To many, they have no clue.

    The trouble is, at some point one runs out of stockpiled parts and, more to the point, the current build quality of off-the-shelf stuff is FAR lower than standards of 20~30 years ago.

    Plus,

    http://www.c-span.org/Events/Senate-Investigates-Counterfeit-Parts-in-Military-Equipment/10737425339/

    If security really is a legitimate issue, of course...
    because, it's not efficient, it's not self-sustaining, and it's heavily subsidized, and nature doesn't always cooperate with wind and sun.

    All in all, the program will just be another big government effort, with a lot of waste of money and time and effort.

    We might need the electric grid to be more efficient and updated, but government involvement should be kept to a minimum.
    @adornoe@... and with "free market", we'll be kept in the dark ages by Big Oil and other behemoths that will put their profit above anyone's security (unless it's their own).

    It's not all about "big government" or "big business", but how efficient it is.

    And don't try saying how businesses can do things more effectively... as a customer, I too have had to go through numerous hoops and litigation. Most of us do in one form or another. Bureaucracy doesn't magically disappear just because it goes from "public sector" to "private sector".
    If part of this "smart grid" involves the company that supplies the electricity to our homes being able to remotely control the thermostat settings, NO THANKS!
    Their "comfort level" is not my comfort level.
    0 Votes
    + -
    Your electric company already has a
    adornoe@... Updated - 14th Jun
    that reports back to the company about your usage, and they could turn it into a smarter device which tells them about each and every TV, appliances, computers, and all other electricity consuming device in your home. However, that would necessitate that anything that reports back to the electric company, have some gadget or circuitry that does the reporting.

    However, the worst part of that reporting is not that your electric company will know how and when and where you use electricity. The worst part is that, that same technology could also be used to report back to government about your energy use, and you could be penalized for using too much energy by that government.
    @adornoe@...

    Agreed.

    Still, who says government is the only one that would punish ____ for ____?

    You make good points, but there are some "plot holes" in your comment...
    This will get interesting, for sure.
    @peteself -

    Or at least the *perception* of involvement...
    I believe that we should be looking at households generating all of their own energy through innovative technology like Bloom boxes, etc... Why continue to have a centralize system when each household or neighborhood could provide for their own local needs. We need to stop looking to centralizing everything (which forces a loss of control) and start to look to people producing their own efficient power in a variety of ways.
    @mrissman1@... We are building a house in which I hope to apply multiple self-contained, sustainable energy-generators and -avoiders to reduce dependence on business-generated energy, which intends, primarily, to generate cash for its owners and executives. Besides emphasizing conservation, we installed geothermal HVAC, which also preheats hot water, and would like to incorporate solar- and wind-generation for other electricity uses. What we need is development of residential scale storage technologies. I'm a Democrat who wants a decentralized grid, and didn't read that in the proposal.
    @mrissman1@...

    Not just a loss of control, but a myopic "eggs in one basket" mindset.

    I agree with you as well.
    0 Votes
    + -
    Decentralization is the KEY!
    BlueCollarCritic 15th Jun
    1) DECENTRALIZE not Centralize - The process MUST involve a decentralizing of the grid so that its not an all or nothing thing. At a minimum each state should be independent so that if one stats section fails it doesn't take the others with it.

    2) PRIVATE UTILS MUST NOT GET A FREEE RIDE - If the government pays for this which means us the tax payers then the power companies must either re-pay the tax payer thru lowered costs or direct re-payment to the government. As good an idea and as much as we need to update the grid we should not get stuck with the bill and let the utilities that benefit continue to make profit from running it. That?s not to say we nationalize the utilities just that if we pay then we better get something in return other then continued power service.

    3) SMART GRID Must Be OPTIONAL ? This proposed Smart Grid MUST be an option backed up by State level laws so that under NO circumstance can any provider or agency force a consumer to embrace the chains and shackles that come with the current proposed Smart Grid platform. This is America, not CHINA. I don?t want some unelected bureaucrat (who?s been paid off) to decide when it?s time to cut my power and or lower it.

    Above All else we can NOT let the government or the utilities scare us into agreeing to something that is clearly a violation of long standing and established rights & liberties no matter what the reason.
    @BlueCollarCritic
    You will adjust to the consequences of inexorable economic forces. You have your instructions; that is all.
    @schmandel@...

    "market forces" = "manipulation" = "antithesis of freedom"
    @BlueCollarCritic -

    Assuming "peak oil" and other issues are genuine, and perhaps they might be... but given how many politicians and private sector bigwigs prefer to play games, it's no small wonder the majority of the population doesn't begin to believe or have faith in anyone anymore. sad
    Well done! Thank you very much for professional templates and community edition
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