Report on the APEC Workshop on Regulatory Approaches to Smart Grid Investment and Deployment
Summary of Conference Outcomes
Dr. George Arnold summarized the deliberations, reviewed key themes from the Panel sessions and
presentations, and summarized the Workshop themes and conclusions:
Interoperability Standards and the Role of Energy Regulators
- It is important for regulators to educate themselves about the interoperability standards and best practices for Smart Grid implementation
- Communication among regulators, industry and other stakeholders is key to the successful implementations of Smart Grid technology based on international interoperability standards
- Regulators should consider consumer rate impact, education, and engagement, privacy and security, among other factors, when considering applications for Smart Grid deployments
International Standards Development
- International standards offer key benefits to smart grid development – reducing trade barriers, increasing economies of scale, reducing costs, and reducing risk in deploying new technologies
- Regulators should be aware of available international standards and their benefits to smart grid deployments
- National processes involving stakeholders (including regulators) in developing roadmaps, priorities and requirements for smart grid standards should provide input to international standards development.
Lessons Learned from Smart Grid Projects
- Set policy objectives at a national level (congress/administration) in concert with state and local governments that help drive grid modernization
- Develop a structured approach to share benefits and lessons-learned realized through early deployments with decision-makers in the utility industry
- Develop an international standard (like ISO 14000) that credits companies for implementing common or standardized interoperability/cyber practices and procedures (eventually to drive requirements for technology development)
Cybersecurity
- Regulators can look at using U.S. Department of Energy Risk Assessment Model and NIST IR 7628 to inform their assessment of utilities cybersecurity capabilities
- There should be more collaboration on research from all APEC economies on cybersecurity standards, risk assessment and implementation and evaluation
Consumer Data Access and Privacy
- Privacy issues should be addressed prior to and through-out the roll-out and implementation of smart grid
- Individual customer data should not be disclosed to a third party prior to obtaining appropriate customer consent
- There is value in consumers having access to their own data and having clear information about the data practices of companies/utilities with whom the consumer may interact
Economies’ Vision for the 21st Century Grid
- Smart grid deployments may be tailored to the needs of different economies and considered to address a range of regulatory, policy, and economic objectives including:
- Developing efficient power markets;
- Addressing load growth and resource scarcity;
- Integrating electric vehicles, renewable and distributed generation; and
- Electrification of economies, providing a reliable supply of electricity, and maintaining grid stability in remote areas.
- Develop a policy framework, roadmap, and rollout plan for smart grid implementation, including capacity building; international cooperation and building on best practices; and experiments for better understanding consumer interactions and new energy / social systems.
- Consider smart approaches to demand and supply management when implementing more competitive and open power markets.
- It is essential for developing economies to have a reliable supply of electricity to foster growth and development.
Other Key Themes and Conclusions
- The Standards community should consider developing education programs and training for the regulatory community and be aware of the needs of the regulatory community
- Pacific Area Standards Congress (PASC) might consider develop training materials or guidelines for the standards community to better understand the needs of the regulatory community, how to better engage regulators in the standards development process, and the implications of regulation for the modernization of electric grids and the trade in smart grid technologies
- The International Confederation of Energy Regulators (ICER) has multiple working groups – for example, on education and training for regulators – that, consistent with the ICER’s 2012 to 2015 work plan to address technological changes in how electricity networks are developed and operated, could provide an ongoing mechanism to inform regulatory staff on standards and the standards development process
- Standards can play an important role in reducing costs and enabling innovation
- Regulatory needs can drive standard development; for example, the OpenADR standard was a response to the California energy crisis of 2001
- Communication between the regulatory and standards communities must be established and strengthened especially in areas in which standards have policy implications such as customer data access, privacy, and cyber security
- Use the opportunity to upgrade the infrastructure to modernize by using new technologies