Environmental Engineering Reference
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electricity systems. Other firms, such as O-Power, are working with utilities to develop
consumer behavior programs and manage the consumer energy use benefits of smart grid.
Additionally, many not-for-profit industry groups like the Institute for Electrical and
Electronics Engineers (IEEE) are actively involved in supporting research for smart grid
development. IEEE is a professional group with 382,000 members and the organization
also develops and maintains standards for electric system function, like IEEE standard
1547, which governs interconnections of distributed resources.
Different coalitions of electricity equipment suppliers are focused on different aspects
of smart grid development and construction. Those involved with high-voltage
transmission-line monitoring are likely involved with utilities, Federal Energy Regulatory
Commission (FERC), and Regional Transmission Organizations (actors mentioned in the
next section), but the lines of engagement and linkages between companies are blurry and
often shifting.
Interactions between these new energy companies and incumbents have not always been
smooth, highlighting tensions among smart grid actors. For example, in regions promoting
rooftop solar, companies such as SolarCity are interacting with large customers such as
Walmart to plan, lease, develop, and operate rooftop solar PV systems. SolarCity works
with local utilities to connect their projects to the distribution network. Some utilities argue
that installing solar PV generates system costs for other customers, so customers with
PV systems should be subject to standby charges. Many utilities have been fighting for
standby charges in PUCs and state legislatures, arguing that all customers benefit from the
grid system so all should contribute to its maintenance - even if they are not purchasing
electricity from the grid. SolarCity and other solar companies recently created a lobbying
group, the “Alliance for Solar Choice,” to fight utilities who are trying to add standby
charges and change state net-metering laws which support solar installations by allowing
customers to sell their excess solar power back to the grid (Herndon
2013
). Solar lobbyists
argue that net metering provides economic as well as public and environmental health
benefits.
4.3 Government Actors
The public sector has been at the forefront of incentivizing smart grid development around
the world. As seen in the earlier section on utilities, almost all electricity systems involve
some level of government involvement, although the degree to which public sector actors
influence, operate, and regulate electricity systems varies considerably. The following
sections describe national, state, and local actors involved in smart grid development.
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