CHAPTER 1 INTRODUCTION 2
STUDY BACKGROUND 2
GOALS AND OBJECTIVES 3
INTENDED AUDIENCE 4
SCOPE AND FORMAT 4
METHODOLOGY 5
AUTHOR'S CREDENTIALS 5
RELATED BCC RESEARCH 5
BCC ON-LINE SERVICES 6
DISCLAIMER 7
CHAPTER 2 EXECUTIVE SUMMARY 9
SUMMARY TABLE U.S. MARKET FOR SMART GRID TECHNOLOGIES, THROUGH 2018
($ MILLIONS) 9
SUMMARY FIGURE U.S. MARKET FOR SMART GRID TECHNOLOGIES, 2012–2018 ($
MILLIONS) 10
CHAPTER 3 "SMART GRIDS": AN OVERVIEW 12
DEFINITIONS 12
BENEFITS OF SMART GRIDS 12
DIRECT BENEFITS 12
Benefits to Utilities 12
Lower Capital Costs 12
Reduced Operating Costs 13
Benefits to Users 13
Improved Quality and Reliability 13
Lower Costs 14
FIGURE 1 AVERAGE RETAIL PRICE OF ELECTRICITY, 2001–2011 (CENTS/KWH) 14
Greater Consumer Choice 15
INDIRECT BENEFITS 15
Reduced Consumption of Fossil Fuels 15
FIGURE 2 U.S. ELECTRICITY GENERATION BY FUEL TYPE, 2012 (%) 15
TABLE 1 U.S. CONSUMPTION OF FOSSIL FUELS FOR ELECTRICITY GENERATION,
THROUGH 2012 17
Improved Balance of Payments Position 17
FIGURE 3 U.S. FOSSIL FUEL IMPORTS, 2011 (PERCENT OF TOTAL FOSSIL FUEL
IMPORTS) 18
Enhanced National Security 19
Job Creation 19
Economic Development 19
Environmental Benefits 20
THE PATH TO A SMART GRID 21
GRID 2030 21
National Electricity "Backbone" 21
Regional Interconnections 22
Local Distribution, Mini- and Micro-Grids 22
NATIONAL ELECTRIC DELIVERY TECHNOLOGIES ROADMAP 22
FIGURE 4 NATIONAL ELECTRICITY DELIVERY TECHNOLOGIES OVERALL ROADMAP 22
FIGURE 5 NATIONAL ELECTRICITY DELIVERY ROADMAP FOR DEVELOPING CRITICAL
TECHNOLOGIES 24
EARLY ADOPTERS 25
Southern California Edison Company 25
Pacific Northwest Smart Grid Demonstration Project 26
TXU Energy Broadband over Power Line Smart Grid 27
Xcel Energy Smart Grid City 28
Austin Energy Smart Grid Program 29
Other Projects 29
ENABLING TECHNOLOGIES FOR THE SMART GRID 29
TABLE 2 MAJOR CLASSES OF SMART GRID–ENABLING TECHNOLOGIES 29
COMMUNICATIONS TECHNOLOGIES 30
SENSING AND MEASUREMENT TECHNOLOGIES 30
ADVANCED COMPONENTS 30
CONTROL TECHNOLOGIES 31
INTERFACE AND DECISION-SUPPORT TECHNOLOGIES 31
MARKET SUMMARY 31
TABLE 3 U.S. MARKET FOR SMART GRID TECHNOLOGIES BY TYPE OF TECHNOLOGY,
THROUGH 2018 ($ MILLIONS) 31
FIGURE 6 U.S. MARKET FOR SMART GRID TECHNOLOGIES, 2012–2018 ($ MILLIONS) 32
FIGURE 7 U.S. SMART GRID TECHNOLOGIES MARKET SHARES, 2012–2018 (%) 32
CHAPTER 4 MARKET ENVIRONMENT FOR SMART GRID-ENABLING TECHNOLOGIES 35
LEGAL AND REGULATORY ENVIRONMENT 35
BARRIERS TO SMART GRID DEPLOYMENT 35
Federal-State Coordination 35
Cost Recovery 35
Other Incentives to Increase Grid Efficiency 36
Least Cost Planning 37
Environmental, Public Health and Safety Impacts 37
Lack of Standards 38
LEGISLATION AND REGULATION 38
Federal Initiatives 38
Energy Policy Act of 2005 38
Energy Independence and Security Act of 2007 39
Section 1301. Statement of Policy on Modernization of
Electricity Grid 39
Section 1302. Smart Grid System Report 39
Section 1303. Smart Grid Advisory Committee and Smart
Grid Task Force 40
Section 1304. Smart Grid Technology Research,
Development, and Demonstration 40
Section 1305. Smart Grid Interoperability Framework 41
Section 1306. Federal Matching Funds for Smart Grid
Investment Costs 41
Section 1307. State Consideration of Smart Grid 41
Section 1308. Study of the Effect of Private Wire Laws on
the Development of Combined Heat and Power Facilities 41
Section 1309. DOE Study of Security Attributes of Smart
Grid Systems 41
Emergency Economic Stabilization Act of 2008 41
American Recovery and Reinvestment Act of 2009 42
Smart Grid Advancement Act of 2013 42
Federal Regulation 43
Rulings Expanding Use of Demand Response 44
Assessment of Demand Response and Advanced Metering 44
Interim Rate Policy 44
Smart Grid Standards 45
State Legislation and Regulation 45
Arizona 45
Regulatory Activities 45
California 46
Legislation 46
California Senate Bill 17 46
California Senate Bill 1491 47
Regulatory Activities 47
Colorado 48
Legislation 48
House Bill 07-1037 48
Regulatory Activities 48
Illinois 48
Legislation 48
Senate Bill 1592 48
Regulatory Activities 49
Maryland 49
Legislation 49
EmPower Maryland Energy Efficiency Act 49
Regulatory Activities 49
Massachusetts 50
Legislation 50
Green Communities Act 50
Regulatory Activities 51
Michigan 51
Legislation 51
Regulatory Activities 51
New Jersey 52
Regulatory Activities 52
Oregon 52
Regulatory Activities 52
Pennsylvania 52
Legislation 52
Act 129 53
Regulatory Activities 53
Texas 53
Legislation 53
SB 3693 53
Regulatory Activities 53
Vermont 54
Legislation 54
Energy Efficiency and Affordability Act of 2008 54
Regulatory Activities 54
FINANCIAL AND ECONOMIC ENVIRONMENT 55
FINANCING THE SMART GRID 55
Government-Funded Programs 55
Government-Funded R&D 55
Federal R&D 55
State-Financed R&D 55
Smart Grid Pilot and Demonstration Projects 56
Matching Grants for Smart Grid Investments 56
Capital Investments 56
American Reinvestment and Recovery Plan of 2009 56
UTILITIES 56
R&D 57
CHAPTER 5 INTEGRATED COMMUNICATIONS FOR SMART GRIDS: TECHNOLOGIES
AND MARKETS 60
SUMMARY 60
TABLE 4 U.S. MARKET FOR INTEGRATED SMART GRID COMMUNICATIONS
TECHNOLOGIES, THROUGH 2018 ($ MILLIONS) 60
FIGURE 8 TRENDS IN U.S. MARKET FOR INTEGRATED SMART GRID
COMMUNICATIONS, 2012–2018 ($ MILLIONS) 60
HOME AREA NETWORKS 61
TECHNOLOGIES 61
TABLE 5 ENABLING TECHNOLOGIES FOR SMART GRID HOME AREA NETWORKS 62
ZigBee 62
Wi-Fi 63
Z-Wave 63
In-Home Power Line Communications 63
USNAP 64
COMMERCIAL STATUS AND OBSTACLES TO DEPLOYMENT 64
PRODUCERS AND DEVELOPERS 64
TABLE 6 COMPANIES THAT MARKET OR ARE DEVELOPING COMMUNICATIONS
TECHNOLOGIES FOR SMART GRID HANS 65
MARKETS 65
TABLE 7 MARKET FOR SMART GRID HAN COMMUNICATION TECHNOLOGIES,
THROUGH 2018 ($ MILLIONS) 66
NEIGHBORHOOD AREA NETWORKS 66
TECHNOLOGIES 66
TABLE 8 ENABLING TECHNOLOGIES FOR SMART GRID NEIGHBORHOOD AREA
NETWORKS 67
Broadband over Power Line 67
