The Smart Grid is the foundation for Smart Energy. While new Smart Grid opportunities abound for market players with vision and innovation, implementing the technology, systems and supporting processes involves significant challenges.

Adapting to rapid technology development is particularly challenging for traditional utilities, as these technologies impact policy, funding and business models. Core areas to focus on in implementing smart grid technology include:

Future-proofing technology – Early adopters of smart grid technologies need to future-proof them so they do not end up with stranded costs. Designing for interoperability helps mitigate the risk of technology change. Pilot and field testing of initial deployments is also important. Creating a development function that bridges the R&D function—working with partners in beta stage and development specialists in all stages—can help mitigate technology’s commercial risk.

Smart workforce – Human capital development will be needed to make smart grid technology work. Impacts will be significant in terms of how to use and manage data on a real time basis. The smart grid will vastly change the functional, process and job skills aspects of a utility. Thoughtful change management will help utilities move their people and processes forward along with the smart grid.

Information and the customer – In a smart grid, information must flow as fluidly as electricity. Who owns and who accesses the data must be carefully considered. Attention must be given to how to structure a transparent smart grid—from customer “ownership” and privacy rights to provider access to system-wide data.

A more detailed summary of the executive-level energy and utility industry dialog held at KEMA’s 2^nd annual Utility of the Future conference – including the Operating a Smart Grid panel – is available on-line and as a download at www.kema.com/utilityfuture2009.