The "Smart Grid" Hype

The level of hype surrounding “smart grid,” which is the next-generation of the electrical grid that’s more aware of usage by end users and can proactively take measures to ensure that customers get the power they need when they need it, is set to rival the 'cloud' hype of 2009.  In fairness, the telco world is just beginning to wake up to an opportunity that has been a hot topic for several years in the wider utilities world.  I have come across articles from as far back as 2004 that refer to smart grids - and for all I know the term was coined in the 80’s or 90's.

A definition of a smart grid is one that delivers electricity from suppliers to consumers using two-way digital technology to control appliances at consumers' homes to save energy, reduce cost and increase reliability. It overlays an efficient electricity distribution grid with an information and net metering system.  And it is this information and net metering system that has caught the attention of the telco suppliers. Think about it: a lot of telco and cable vendor member companies have been working for the last decade developing solutions embracing network, performance and service management, fulfilment, billing, charging and rating, etc...  Each of these competencies becomes critically important in a smart grid world that is orders of magnitude more complex than the utility world of the last century.  Dynamic rating and fulfillment across a nationwide network will become a mission critical capability – as will sophisticated service and network management and revenue assurance once the new smart grid related consumer offerings are rolled out. 

The TM Forum islooking at how our core frameworks can best be applied to this new but closely related challenge.  At first blush it appears that our much of our business process and information expertise is immediately applicable – albeit there will undoubtedly need to be some extensions of the base frameworks to embrace different terminology and customer paradigms.  I also fully expect our SLA management and revenue assurance work to become valuable resources to help address the smart grid challenge.  We are also talking to a number of utility companies who wish to become members of the Forum to better understand both the challenges and the opportunity.

I’d be interested in hearing other peoples experiences and views in this emerging area.