Report predicts slower adoption of smart grid tech

Glen Allen, Va., January 27, 2010 — Smart Grid Analysis issued a new report analyzing the impact that government policies and regulations are likely to have on smart grids in the coming years.

The report notes that while government agencies are providing the funding for smart grids, it is also government agency involvement in standards setting and interoperability is likely to slow the markets’ development leading to calls for deregulation and open competition within the next few years.

Smart Grid Analysis is NanoMarkets’ group dedicated to analyzing emerging market and technology opportunities within smart grids.

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SGA has issued reports on energy storage, cables and insulators and sensors and will soon have additional reports that will analyze the market for transmission and distribution equipment, microgrids, smart metering and renewable energy integration.

Key findings include:

The National Institute of Standards and Technology has been tasked with driving the technical standards and interoperability process. SGA notes that this is a vastly different to the normal practice within the U.S. of private industry trade or standard bodies taking that responsibility.

Smart grid business opportunities involving new technologies are most likely to emerge in areas that have been favored by regulators and legislators. These include energy storage, load control, distributed generation, enhanced power monitoring, and direct system state sensors.

There are also immediate opportunities for firms active in areas — such as substation automation — where standards are mature and unlikely to change.

Regulators have yet to make time-varying rates available to smaller users in the U.S. or in Europe. Until this situation changes, customer-side business opportunities in the smart grid will lie primarily with fairly rudimentary customer metering systems, such as those capable of remote reading.

Meanwhile, many utilities are expected to choose “Smart Grid Lite,” waiting to see how the politics and economics unfold before actively promoting user-side activities.

The mission of Smart Grid Analysis is to provide comprehensive and actionable industry analysis of the emerging smart grid market that clients can leverage to meet their business and technology objectives.


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