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the basic function of a smart meter, many smart meters now include the capacity to
automatically reduce load during peak times and to disconnect and reconnect to the grid
remotely, and some now interface with gas and water meters. Most of these devices can
connect to mobile applications so that users can monitor and manage their household
electricity use on their mobile devices.
As we next consider the history, status, and trends of smart meter deployment, it is
also important to consider that smart meter deployment is not necessarily a straightforward
process. Complicated regulatory structures that dictate how electric utilities can recover
costs from investments in new technologies result in a complex web of incentives.
Historically utilities have invested in technologies that they amortize over decades. Many
software-based smart meter technologies have much shorter lifetimes, so utilities are
struggling with the question of how to adjust their expectations for timeframes of
investment in new technologies.
5.3 History, Status, and Trends of Smart Meter Deployment
Over the past fifteen years, smart meters have been deployed throughout the world. Among
the earliest leaders in smart meter installations were Enel in Italy and Ontario Hydro
in Canada; these utilities achieved widespread deployment in their jurisdictions by 2005
and 2010, respectively. Many early deployments were supported by government funds.
In the United States, for example, the 2009 American Recovery and Reinvestment Act
(ARRA) invested government funds for energy innovation, including $4.5 billion to invest
ARRA funds were required to be spent quickly to encourage near-term economic recovery
and jobs, so among the many different technologies associated with smart grid, smart
meters were appealing ready-to-go, off-the-shelf, immediately available technology. Some
projects were criticized as being hastily rolled out. In hindsight some speculate that this
time-crunched deployment may have unintentionally led to negative responses from some
communities, where utilities gave insufficient time or attention to engaging residents and
addressing their concerns.
In response to the controversy and public opposition that emerged from the attempts
to rapidly deploy smart meters in 2009 and 2010, many recent smart meter initiatives
have been deliberately proactive in community education and engagement. Sophisticated
multiphase pilot projects have been developed to facilitate a process of learning-by-doing
and preparing households for installation and engagement with new smart meter
technology. The details of one pilot project, National Grid's Smart Energy Solution
Program in Worcester, Massachusetts, will be discussed in more depth later in this chapter.
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