Smart grids and metering

Smart grid business models will increasingly focus on providing an integrated solution, from generation and distribution through to the consumer interface.
Sophisticated software applications will address bottlenecks in the distribution system.
Interoperability standards for smart grid applications will be an enabler of strategic partnerships between start-ups, established technology companies and utilities.
Providing customers with a price signal that allows them to see the financial benefit of smart grid technology is critical for widespread adoption.
Smart grid companies will invest more in educating consumers and businesses on the benefits of demand response so they will adjust their energy consumption when the technology is commercially available.
More states will adopt “decoupling” pricing schemes for utilities to reward them for lowering energy consumption

Utilities are not incentivized to take risks on installing new grid/meter technology.
In Europe, they are paid to produce more power, so the incentive to install power-reducing technologies is simply missing.
Smart grids don’t exist in Europe, but smart meters have started to emerge as a real option. Problem is, nobody has defined how “smart” a smart meter needs to be.
Customer privacy/data security issues have to be resolved. Most experiments with smart grid/smart meter technology have tripped up on customer privacy issues.
The greatest opportunities in smart grid are in immature markets, where grids are not fully built out or coordinated.
The customer has to see the value in pricing. Smart metering only works if the customer can control the technology, and benefit from reducing demand during peak periods.
Utilities have long operated as a highly regulated industry incentivized to build a margin of safety to maintain high reliability. Someone will have to help utilities make the adjustment to a new model of creating