The Smart Grid: What Comes Next?
Source: Seeking Alpha, David Leeds (6/14/10)
"Utilities' two directions: upstream and downstream from smart meters."
A recent GTM Research report asked more than 50 leading utilities what the primary purpose of their end-to-end communications network is. Though 77% answered "advanced metering," the real promise of AMI is enabling new applications, which was reflected in 63% answering "demand response/HAN enablement." The third-ranked answer, at 60%, was DA and grid optimization. These results suggest that both demand response/HAN enablement (i.e., making consumers smarter) and DA/grid optimization (making the actual grid smarter) can be considered the second wave of the smart grid.
Though DA and HANs are in no way mutually exclusive, I would argue that HANs (which could include the integration of electric vehicles) are going to generate the bulk of the smart grid's long-term value, whereas DA represents a rather large basket of low-hanging fruit for virtually all distribution companies.