mThink

Persistent climate change concerns, volatile energy prices and a growing awareness of technological advancement in energy are leading consumers across the globe to reconsider their role in the electric power value chain. Likewise, substantial increases in utility infrastructure investment are likely due to global demands for climate change mitigation; the need to support aging networks and generation plants; and proliferation of government stimulus plans for weakened economies.

Every year, utilities are faced with
the critical decision of where to
invest capital. These decisions are
guided by several factors, such as regulatory
requirements, market conditions and
business strategies. Given their magnitude,
decisions are not made hastily. Careful
consideration is given to the financial
and operational prudence of large capital
projects, such as power plants and new
infrastructure.

The software industry has been using maturity models to define and measure software development capabilities for decades. These models have helped the industry create a shared vision for these capabilities. They also have driven individual software development organizations to set and pursue aggressive capabilities goals while allowing these groups to measure progress in reaching those objectives along the way.

On the Mediterranean island of Malta, with a population of about 400,000 people on a land mass of just over 300 square kilometers, power, water and the economy are intricately linked. The country depends on electrically powered desalination plants for over half of its water supply. In fact, about 75 percent of the cost of water from these plants on Malta is directly related to energy production. Meanwhile, rising sea levels threaten Malta’s underground freshwater source.

Just as global demand for energy is
steadily increasing, so too, are the
recognized costs of power generation.
A recent report about the possibility
of creating a low-emissions future by Australia’s
Treasury noted that electricity production
currently accounts for 34 percent
of the nation’s net greenhouse gas emissions,
and that it was the fastest-growing
contributor to greenhouse gas emissions
over the period from 1990 to 2006 [1].

With the new administration talking about a trillion dollars of infrastructure investment, the time for the intelligent utility of the future is now. Political pressure and climate change are going to drive massive investments in renewable and clean energy and smart grid technology. These investments will empower customers through the launch and adoption of demand response and energy efficiency programs.

In the past, distribution demand reduction was a technique used only in emergency situations a few times a year – if that. It was an all-or-nothing capability that you turned on, and hoped for the best until the emergency was over. Few utilities could measure the effectiveness, let alone the potential of any solutions that were devised.

Smart or advanced electricity metering, using a fixed network communications path, has been with us since pioneering installations in the US Midwest in the mid-1980s. That’s 25 years ago, during which time we have seen incredible advancements in information and communication technologies.

Change is being forced upon the utilities industry. Business drivers range from stakeholder pressure for greater efficiency to the changing technologies involved in operational energy networks. New technologies such as intelligent networks or smart grids, distribution automation or smart metering are being considered.

The communications network is becoming the key enabler for the evolution of reliable energy supply. However, few utilities today have a communications network that is robust enough to handle and support the exacting demands that energy delivery is now making.