Smart Grid Architecture and Standards: Assessing Coordination and Progress

Opening Statement By Chairman David Wu

Good morning, and thanks to all of you for attending today’s hearing on smart grid standards.   

The modernization of our 100-year-old electric power system is an integral step in moving toward a clean, independent energy future, and it is critical to developing a more reliable and more secure electrical grid.  Building out a smart grid will enable the addition of more renewable sources and allow for better management of the electricity transmission and distribution network.  In addition, it will help support the increasing demand for electricity and growing reliance on technology. 

The smart grid will incorporate two-way communication for a constant flow of information throughout the vast interconnected power transmission system.  In the smart grid future, customers will have access to real-time data on their energy usage and the market price of electricity.  As the demand for electricity increases, driving the price up, consumers will be able to make more informed choices on how high to set the thermostat and when to run the dishwasher.  Consumers will also benefit when grid operators have more detailed information on the status of the grid and can respond to disruptions more quickly to keep the lights on. 

The nation’s electrical grid has often been called the biggest machine on earth.  With the addition of smart appliances, solar roofing shingles, and networks of communication systems, the grid will become bigger and more complex.  The scale and complexity makes it imperative that all of those involved in developing and using the smart grid share a common technical view—or framework—of the system.  It is also crucial that the technologies be based on open standards that facilitate interoperability, security, and competition in the marketplace.  The benefits of a smart grid will come from massive participation and widespread adoption of smart appliances, solar panels, and electric vehicles, among other technologies, and for that, we need it to be “plug-and-play.”  No consumer wants to find out that the smart dishwasher they bought a year ago will not work with the home network they just purchased.  And few consumers will install solar panels, wind turbines, or fuel cells for their homes if it’s not easy to see how much power they’re creating and track the value of their investment.     

The Energy Act of 2007 tasked the National Institute of Standards and Technology with coordinating the standards process.  The 1,500 stakeholders NIST sought input from to identify an initial set of 75 standards, and the 580 organizations that are represented on the Smart Grid 

Interoperability Panel—ranging from regional utilities to large tech companies—illustrate the size and scope of this process.  And, from reports on the process, the National Smart Grid Coordinator, George Arnold, has done an impressive job marshalling the private- and public-sector expertise and input needed to perform this task, and to do so on an expedited timeline.

Today we will delve into the standards process in a little more detail, discuss the work that has been done, and see where things are headed.  I am particularly interested in the witnesses’ views on the strength of this process thus far and when the witnesses think certification systems will be in place to bring more assurances that the technologies will work together as intended.  I will also be interested in the progress of addressing privacy and security challenges posed by the smart grid and the level of international engagement that is necessary for the U.S. to continue its leadership in smart grid technologies.

As we are dealing with the horrible aftermath of the BP spill in the Gulf, moving quickly with technology that will break our dependence on oil is imperative.  The work that NIST is facilitating right now is an important component of achieving that goal, and I hope we will learn today how we can continue to address this challenge moving forward.  

Witnesses

Panel

1 - Dr. George Arnold
National Coordinator for Smart Grid National Institute of Standards and Technology National Institute of Standards and Technology
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2 - Mr. Mason Emnett
Associate Director of the Office of Energy Policy and Innovation Federal Energy Regulatory Commission Federal Energy Regulatory Commission
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3 - Mr. John McDonald
Director of Technical Strategy and Policy Development GE Energy GE Energy
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4 - Mr. Conrad Eustis
Director of Retail Technology Development Portland General Electric Portland General Electric
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5 - Mrs. Lillie Coney
Associate Director Electronic Privacy Information Center Electronic Privacy Information Center
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