by Ann Withanee — September 15, 2010—Accelerating Successful Smart Grid Pilots, a new World Economic Forum report presented at the “Summer Davos” and developed with Accenture and industry experts, highlights the centrality of smart grids as a key enabler for a low-carbon economy. The report was presented in Tainjim (Beijing), China, September 13.
Today, 40 percent of energy is consumed in creating electricity, yet, electricity systems are based on technologies that are more than 50 years old. The outdated electricity grids of today require smart grids as a dramatic upgrade to be able to support modern energy requirements, the report argues.
More than 60 industry, policy and regulatory stakeholders were engaged in the Accelerating Successful Smart Grid Pilots report to identify the factors that determine the success, or otherwise, of smart grid pilots. The research unearthed a number of “lessons learned” from existing pilots, and the report puts forward pragmatic recommendations to accelerate the success of smart grid pilots.
The report identifies that, through information and communication technologies, the electricity grid would become “smarter.” The efficiency and carbon reduction gains would be substantial. Moreover, consumers would obtain access to new solutions to optimize their electricity consumption.
Governments have begun to recognize the significance of smart grids as an enabler for a set of low-carbon technologies and are increasingly viewing smart grids as a strategic infrastructure investment. Over the past year, China alone has spent $ 7.3 billion on smart grid developments, while the U.S. has directed $ 4.5 billion of its fiscal stimulus package to smart grid activities. As a result, there has been a substantial increase in the number of smart grid pilots being implemented, with industry estimates at around 90 pilots globally, according to the report.
The report also highlights the crucial role pilot projects should play in shaping a regulatory framework that rewards investors for the risks they are facing and incentivizes the benefits smart grids can deliver. Utilities and their partners will also need to rethink the way they engage and deliver value to the consumer. Carefully crafted pilots can significantly accelerate the adoption of smart grids. However, the contrary also holds true. A poorly planned and executed pilot can set back the adoption of smart grids and negatively impact public perception. There is an opportunity to launch the next wave of development towards a lower carbon energy system, and successful smart grid pilots will be a key step in this process.
For more information visit the World Economic Forum Web site.
