The Smart Grid is a far-reaching initiative to upgrade the U.S. electric grid, evolving it from a patchwork quilt into an electrical super highway, to meet the energy needs of the 21st century. The Smart Grid encompasses energy generation, distribution and consumption; the goals are to make electrical service more reliable, flexible, manageable, secure, cleaner, consistent, and cost effective. The modernization includes infrastructure hardware, software, renewable generation sources, smart meters, and even extends into the smart home.
The benefits associated with the Smart Grid include:
- Reduced operations and management costs for utilities, and ultimately lower power costs for customers
- Advanced consumer manageability
- More efficient electricity transmission
- Reduced peak demand: Faster restoration of electricity after power disturbances
- Improved integration of large-scale renewable energy systems
A smarter grid will empower customers providing unprecedented manageability over their consumption. Utilities will be able to charge on volume and time-of-use basis. To support the evolution, utilities will need to know more about their customers (consumer profiles and preferences) and engage in frequent, informational communications. The challenges will be in managing massive amounts of real-time usage data, more complex billing models and multi-channel customer communications.
To support the Smart Grid evolution, see the complete suite of consumer engagement, multi-channel communication, billing, rating and mediation solutions for Utilities.