Sioshansi F.P. Smart Grid: Integrating Renewable, Distributed & Efficient Energy
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Chapter 14. Succeeding in the Smart Grid
Space by Listening to Customers and
Stakeholders
William Prindle and Michael Koszalka
Chapter Outline
Introduction 343
What's the Difference Between DR and EE with
Respect to Smart Grid Technology? 346
How are Customer Benefits Typically Identified and
Valued from Smart Grid, DR, and EE? 347
Regulatory Review Experience with Smart Grid
Deployment Proposals 350
Utility and Customer Implementation Experience with
Smart Grid and Related Deployment Programs 356
Filling the Gaps: What Smart Grid Designers Should
Focus on to Better Document Customer Benefits 366
Conclusions 367
References 368
This chapter focuses on the field experience with smart grid programs, examines the potential for smart
grid technologies and related services to provide energy efficiency as well as demand reduction
benefits, and provides recommendations on program design and regulatory strategies to maximize the
chances for successful deployment It reviews macro assessments of the estimated customer benefits
from smart grid technologies, and points out the practical difficulties of quantifying those benefits in
real-world contexts It also reviews the pace of smart grid technology deployment nationally,
disaggregating national results to point out where deployment is lagging It looks at the regulatory
experience of smart grid deployments in three states to better understand the challenges they face in the
regulatory arena It then examines field experience of customer offerings, both meta-reviews and three
specific program examples in Massachusetts, Washington, DC, and California Drawing on the lessons
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learned from these deployment experiences, it concludes with a set of principles to guide smart grid
deployment strategies
Smart grid, customer response, customer behavior
Introduction
This chapter reviews the field deployment experience of
programs that seek to deploy smart grid (SG) technologies to
support the peak reduction goals of demand response (DR)
and the energy savings goals of energy efficiency (EE). It
seeks to distill lessons learned, both in program design/
implementation and in the process of gaining regulatory
approval, and in so doing to provide smart grid stakeholders
the benefit of this experience. The chapter's objective is to
help make smart grid deployments in the future more
successful, in terms of both customer acceptance and
regulatory approval.
Smart grid is defined by the Electric Power Research Institute
as follows
1
:
1
Hauser & Crandall offer a more extensive discussion of smart grid
definitions, goals, and desirable attributes.
The term “Smart Grid” refers to a
modernization of the electricity delivery
system so that it monitors, protects, and
automatically optimizes the operation of
its interconnected elements—from the
central and distributed generator through
the high-voltage transmission network
and the distribution system, to industrial
users and building automation systems, to
energy storage installations, and to
end-use consumers and their thermostats,
680