4 Reasons Why The Smart Grid Has Failed To Take Off
Why hasn't the U.S. made more progress towards smart grid connectivity?
- Industry's lack of stakeholder engagement from consumers (corporate and residential) and politicians. When utilities have in the past held referendums regarding the investment in smart grid technologies, the vote does not always go in their favor. This is often because consumers believe that the costs outweigh the benefits. More needs to be done to clearly establish the business case for smart grid adoption.
- Security Concerns. In today's world of heightened concerns over terrorism and increasingly sophisticated hackers, there is no wonder many worry about the vulnerability that our energy system could be exposed to if it truly were as IT-focused (and dependent) as we envision.
- Standards. Numerous technology providers are providing a range of technology solutions from smart meters to grid automation software -- and many of them have a vested interest or a desire to use proprietary, closed standards. The smart grid will only succeed on a large scale if technology suppliers agree to work on an open standard.
- Regulatory and Policy Support. The U.S. has a difficult landscape for bringing the energy industry into the 21st century. We have a mix of federal regulation and state legislation, as well as some level of autonomy at the municipal level.