Obama Administration Releases Policy Framework for Grid Modernization

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The Obama administration’s Office of Science and Technology Policy on June 13 released the framework of its plan to modernize the U.S. electric grid. The report, “A Policy Framework for the 21st Century Grid,” [pdf] lays out much of the administration’s approach to grid modernization.

 

Report Springs from Consultations Among Government, Nonprofit, Business Stakeholders

The report is the culmination of months of engagement with stakeholders on the prospects for modernizing the U.S. electrical grid – particularly for smart grid technologies.

A fall 2010 request for information, to which the Alliance submitted a response, influenced early debate and indirectly led to an April 13 meeting with a small group of key players. Discussions among these stakeholders – including Google, which spearheaded the meeting; the Alliance; and major figures in the Office of Science and Technology Policy (OSTP), the Department of Energy (DOE), and other government entities – informed the final report.

 

White House Grid Modernization Event: Report Launch and Conference

A June 13 invite-only event in the Eisenhower Executive Office Building, which is adjacent to the West Wing, served as both a launch of the policy framework document and a half-day conference on grid modernization. The event included remarks by:

  • Secretaries Steven Chu (DOE) and Tom Vilsack (Department of Agriculture)
  • John Holdren, the assistant to the president for science and technology
  • Two San Jose high school students whose school’s efficiency drive used energy data display systems to encourage reduced electricity use
  • Other notable government and business figures

In addition to launching the policy framework document, attendees participated in breakout sessions designed to garner further input into grid modernization issues such as regulatory reform, energy data issues and long-term planning. Other initiatives and programs also were announced:

  • Loans for rural smart grid programs
  • A commitment by DOE to pursue data access and privacy issues
  • An energy use competition for students
  • A sort of information clearing house for lessons learned from Recovery Act smart grid investments

Policy Framework Sets Path Forward for Grid Modernization

In addition to laying out an in-depth discussion of barriers to a smart grid and the possible benefits that it could generate, the framework document sets out a four “pillar” program for grid modernization focused on the integration and build-out of smart grid technologies.

  • Enable cost-effective smart grid investments: The Federal Government would assist “utilities, consumers, and regulators” with “lessons learned” from Recovery Act smart grid investments and consumer studies.
  • Unlock the potential of innovation in the electricity sector: Efforts to develop open interoperability standards will continue to be encouraged, peak demand management programs will be supported and anticompetitive actions will be opposed.
  • Empower consumers and to make informed decisions: Programs to encourage consumer engagement with smart meter data are to be furthered, along with regulations to ensure that consumers have meaningful access to their energy use data while not compromising privacy or security.
  • Secure the grid: Security standards and a “rigorous… cybersecurity culture” will ensure the safety and reliability of interconnected grid systems.

In its discussion of the third pillar, the framework document cited comments that the Alliance submitted to last fall’s RFI. The Alliance highlighted the need for consumer-end smart grid devices to be easily installable by the general public and noted that data management devices could offer consumers personalized information on ways they could save energy.