The United States is well underway with the modernization of its energy grid, driven by $4.5 billion in American Recovery and Reinvestment Act grants and other Congressional legislation. Smart Grid needs to be implemented quickly enough to provide optimal value improving delivery and reliability, and also contribute to the nation’s energy security by tapping more domestic and renewable providers. But its success realizing the full benefits of a Smart Grid will rely on numerous implementation factors, including the ability of utilities and consumers to utilize information technology advances, adopt interoperability standards and increase transmission efficiency.
This report identifies and analyzes four immediate challenges for Smart Grid implementation: smart consumers, Smart Grid cyber security, Smart Grid interoperability, and smart transmission. Incorporating a wide range of observations by leading industry and government decision makers and academic experts, it highlights numerous technological and policy solutions that can play significant roles addressing these challenges. Specific policy recommendations for federal action to advance Smart Grid are proposed.