WORLD-GENERATION NOV/DEC 2015
15
PERSPECTIVE
We all know that technology develops
rapidly. In the last decade alone, we’ve
seen huge advances in mobile and smart
technologies. In fact, according to the
Consumer Electronics Association, this
year Americans will buy 81 million tablet
computers (a product introduced just
about six years ago), as well as 4 million
ultra-high-definition televisions, 11 million
smart watches, and 92,000 desktop 3D
printers (products introduced just three
years ago). It’s also projected that
Americans will buy 169 million new smart
phones just this year—for a total of 481
million over the last three years.
What do all of these things have in
common? They are all powered by electric-
ity, and the electric power industry has
played a huge role in the evolution of tech-
nology. Today, the amount of energy con-
sumed by electronic devices in the average
U.S. household has more than doubled
since 1980 simply because we all rely on
so many more devices for communication,
connection, convenience, and comfort.
The electric power industry is working
to seamlessly integrate all of these new
technologies and devices into the electric
grid, constantly upgrading the grid and
making it a platform for innovation while
also offering consumers more control over
their energy use than ever before.
The Institute for Electric Innovation’s
(IEI’s) recently released book, “
Thought
Leaders Speak Out: The Evolving Electric
Power Industry
,” addresses the theme of
evolution and innovation with essays from
energy industry thought leaders who dis-
cuss their perspectives on cutting-edge
topics such as the evolving grid, changing
customer needs, and the latest regulations
in the energy sector.
Bob Rowe, president and CEO of
NorthWestern Energy and co-chair of IEI,
notes that the electric grid is the essential
infrastructure that enables all of our other
infrastructures to function. The grid pow-
ers our economy and our lives.
DIGITIZE THE GRID
Investments in technology to digitize
the grid network have resulted in volumes
of data being generated. Increasingly, utili-
ties are partnering with technology compa-
nies to unlock value from these data: to
operate the grid more efficiently; to connect
more distributed energy resources; and to
provide more services to customers.
Technology, policies, and customers’
increasing expectations have largely driv-
en the changes in the power sector. Just as
apps are created and updated daily, cus-
tomers want the grid to keep pace. Utility
companies and the energy sector more
broadly are inviting customers to be more
vocal about their needs and expectations.
Multiple stakeholders have a say in the
future of the grid – utilities, regulators,
policymakers, customers, and other stake-
holders.
Beyond the daily interactions with
smart phones and household electronics,
the grid enables options and choices in how
and where power is generated and used. In
one essay in the book, Dennis McGinn, the
Assistant Secretary of the Navy in charge
of Energy, Installations & Environment,
details a first-of-its-kind, hybrid distribution
project currently underway to support mul-
tiple types of generation, including renew-
able energy, natural gas, and backup gener-
ation to power a number of buildings and
piers at a Naval submarine base – as well as
in the neighboring community of Groton,
Connecticut. This is a great example of a
proactive effort to both maintain and
improve grid resiliency.
REGULATION PLAYS A CENTRAL ROLE
In the midst of innovation in the power
sector, regulation cannot be ignored. In
fact, regulation plays a central role. The
regulatory model for electric utilities has
remained essentially unchanged for
decades. Energy thought leaders, lawmak-
ers, business leaders, regulators, and
other stakeholders recognize the need for
change and that, ultimately, the role of
regulation is to “balance” affordability, reli-
ability, sustainability, and individualized
customer services.
Every day, we’re seeing more and
more examples of collaborations among
utilities, technology companies, policy-
makers, customers and other stakeholders
to facilitate an enhanced and modernized
grid. The essays in the book provide
examples of some of the efforts underway.
One thing is certain – evolving the 21
st
century power grid as we continue to pro-
vide safe, reliable, affordable, and increas-
ingly clean electricity is a top priority for
the electric utility industry.
I believe that our biggest challenge
today is how to “evolve” regulation to align
with the changing roles of utilities, the
accelerating pace of technology, the
increasing numbers of providers, and ever-
increasing customer expectations.
For more information and thoughts on
the evolution of the electric power indus-
try, the IEI book is available at
-
sonfoundation.net.
ABOUT LISA WOOD
Lisa Wood is Executive Director.
Institute for Electric Innovation and holds
a Ph.D from the Wharton School.
THE EVOLVING ELECTRIC POWER INDUSTRY
BY LISA WOOD,VICE PRESIDENT
THE EDISON FOUNDATION
