As smart grid investments are expected to top $20 billion in the United States, the energy and utility industry is on the verge of a massive overhaul of the nation's electric generation, transmission and distribution system and of the means by which consumers make energy use decisions, according to KEMA.

 

KEMA is offering insight on and solutions for keeping smart projects on track in the post-stimulus award era. The company has been working with the nation's leaders in grid modernization for over three decades, company officials said.

 

According to KEMA, implementing the smart grid on a national scale poses significant challenges and opportunities both for projects selected for a U.S. Department of Energy  smart grid investment grant, and for those moving ahead with projects without grant funding.

 

Some smart grid projects will be accelerating under the DOE grant over the next 18 to 24 months, meaning SGIG recipients will face spending billions of dollars in a short-order -- essentially overnight by utility industry standards -- while navigating new government contract negotiations and reporting requirements.

 

Kevin Sullivan, senior vice president, KEMA, said that all smart grid projects, whether DOE funded or not, need to manage multiple implementation risks in the immediate future.

 

KEMA has developed a methodology for smart grid implementation based on proven tools and techniques to ensure that the design and deployment are impervious to changes in technologies and can accommodate new standards as they develop.

 

“All projects need to measure and capture the benefits expected by stakeholders,” Sullivan said.

 

According to KEMA, there are a number of key success factors for utilities to focus on to move the nation's smart grid build out forward effectively, efficiently and with the desired outcomes.

 

Some include managing the SGIG process, managing the regulatory process, setting up a project management office, specifying the smart grid architecture, systems planning and integration, implementation and harvesting benefits, vendor management, and consumer to grid connection.

 

Sullivan said that negotiating the right terms and conditions of the grant and getting the right project management operations in place are key to successful implementation.

Smart grid projects not in line for a grant will need to focus on identifying what can be afforded, making the business case and going back to the regulator with a compelling argument to regulators to stay in the smart grid game, Sullivan said.

 

KEMA recently announced that it has been commissioned by the Dutch Agency for International Business and Co-operation to assist the Turkish Distribution company (TA 1/4rkiye Elektrik Dagitim Anonim Sirketi - TEDAS) in enhancing its network planning methodologies.

 

The project, which is part of the accession process for Turkey to the European Union, is due to complete in December 2010, KEMA officials said.