A lack of standards has slowed, but not stopped, development of new technologies that would be essential for building the Smart Grid. Regulatory considerations, electric rate increases, government activities, and consumer acceptance are also significant factors in developing the Smart Grid and are addressed in the report. The manner in which these and other factors inhibit or advance deployment of the Smart Grid are described in detail.

Scope and Methodology

This report includes both primary and secondary research. Secondary research data have been obtained from government sources, trade association publications, business journals, and company literature. Statistical data are included for industry revenue, both globally and for the United States. The market size for Smart Grid technologies is projected from 2009 to 2014. Demand in each of the following technology applications is analyzed in terms of overall revenue for deploying the Smart Grid:

• Two-Way Communications
• Smart Meters
• Smart Sensors
• Information Technology
• Renewable Energy and Storage Systems

Potential Smart Grid applications, buying trends, environmental issues, and energy considerations are also reviewed and analyzed. Market size estimates and forecasts are based on government and secondary sources, and the impact of factors such as government grants and incentive, environmental concerns, fuel and energy prices, economic considerations, and housing and building trends.

How You Will Benefit From This Report

If your company is involved with electric service, energy efficiency, two-way communications, information technology, home automation, or smart appliances - or if you are starting “green” energy initiatives, constructing “green” buildings, or simply want to determine the myriad opportunities that exist with deployment of the Smart Grid - you will find this report invaluable, as it provides a comprehensive package of information and insight about smart grid enabling technologies that are not offered in any other single source. You will gain a thorough understanding of the current Smart Grid applications and markets, as well as projected market sizes and trends through 2014.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for smart grid products and services.

• Research and Development Professionals stay on top of competitor initiatives, product applications, and demand for smart grid enabling technologies.

• Advertising Agencies working with clients in the energy efficiency, energy service, information technology, communications, and consumer appliance and electronics markets develop compelling messages and images to promote sales of smart grid products and services.

• Business Development Executives understand the dynamics of deployment of the Smart Grid, identify potential partnerships, and detect new product applications.

• Information and Research Center Librarians provide market researchers, brand and product managers, and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary

Scope

The Need for a Smart Grid

Figure 1-1: Electricity Production Estimates, 2005-2030 (trillion Kilowatt hours)

Distributed Power Sources

Aging Infrastructure

Electric Rate Containment

Figure 1-2: U.S. Residential Electric Rates, 2008 (cents per KwH)

Energy Abatement

The Smart Grid Defined

Smart Grid Technologies

Smart Grid Costs

Figure 1-3: Global and U.S. Market Size for Smart Grid Enabling Technologies, 2008-2014 ($ Billions)

Smart Grid Drivers

Figure 1-4: Sources of U.S. and World Electric Production, 2006 (percent)

Smart Grid Inhibitors

Electric Utilities

Figure 1-5: Types of Electric Utilities, United States Percent by Number, Capacity, and Customers Served

Summary

Chapter 2: Energy Demand and the Electric Grid

Scope

The Smart Grid - An Introduction

Smart Grid Definition

Grid Visualization and Control

Distributed Electric Generation

Smart Grid Savings and Costs

Electricity Demand

Table 2-1: Organization for Economic Co-operation and Development (OECD) Countries

Figure 2-1: Electricity Production Estimates, 2005-2030 (trillion Kilowatt hours)

Figure 2-2: U. S. Electricity Growth Rates, 1950-2030 (percent)

The Electric System

Figure 2-3: The Electric Grid

Power Generation

Table 2-2: Electric Fuel Sources for Steam Turbines and Efficiency (percent)

Table 2-3: Electric Fuel Sources for Non-Steam Electric Generation (percent)

Figure 2-4: Sources of U.S. and World Electric Production, 2006 (percent)

Power Transmission

Power Distribution

High Voltage DC (HVDC) Transmission

Peaking Power Plants

Interconnected Power Grids

North America Interconnected Power Systems

Figure 2-5: North American Interconnected Systems

Other Global Interconnected Power Systems

Electric Utilities

Figure 2-6: Types of Electric Utilities, United States Number, Capacity, and Customers Served (percent)

Electric Deregulation

Retail Electricity Competition

Table 2-4: Status of Energy Deregulation Efforts, July 2006

Federal Energy Regulatory Commission (FERC)

Electric Transmission Infrastructure

Table 2-5: North America ISOs and RTOs

Summary

Chapter 3: The Smart Grid and Market Growth

Scope

The Need for a Smart Grid

Table 3-1: Standby Power Draw of Electronic Products (Watts)

Table 3-2: Power Plant Costs (estimated), 2008 (in million $)

Table 3-3: Residential Electric Lighting Power Usage, in the United States, Lighting Equivalents

Table 3-4: Electric Lighting Power Requirements, All Sources, United States

The Smart Grid

Smart Grid Market Size

Figure 3-1: Smart Grid Market Size, 2009-2014 (in billion $)

Smart Grid Technologies Market Size

Integrated Communications

Figure 3-2: Smart Grid Integrated Communications Market Size, 2009-2014 (in billion $)

Figure 3-3: Broadband Over Powerline Market Size, 2009-2014 (in billion $)

Figure 3-4: Zigbee Market Size, 2009-2014 (in billion $)

Figure 3-5: WiMax Market Size for the Smart Grid, 2009-2014 (in billion $)

Sensing and Measuring - Smart Meters

Figure 3-6: Smart Metering Hardware and Software Market Size, 2009-2014 (in billion $)

Sensing and Measuring - Smart Sensors

Figure 3-7: Smart Sensors and Devices Market Size, 2009-2014 (in billion $)

Information Technology Hardware and Software

Figure 3-8: IT Hardware and Software Market Size, 2009-2014 (in billion $)

Grid Visualization - Command and Control of the Smart Grid

Demand Response

Benefits of the Smart Grid

Societal Benefits

Operational Efficiencies

Job Creation

Smart Grid Killer Apps

Transitioning to the Smart Grid

Regulatory Considerations

Utility Disincentives

Network Security Threats

Energy Security

Summary

Chapter 4: Smart Grid Technologies & Operations

Scope

Smart Grid Demonstration Projects

GridWise™ Demonstration Project

Boulder, Colorado Smart Grid

Austin, Texas Smart Grid

Republic of Ghana Smart Grid

Stuttgart, Germany Smart Grid

Home Area Networks

Smart Grid Technologies

Communications Technologies

Table 4-1: Selected Smart Grid Communication Technologies

Information Technology

Smart Appliances

Smart Appliance Tests

Summary

Chapter 5: Smart Grid Facilitators and Inhibitors

Scope

Government Activities

Stimulus Funding

Standards Development

Environmental Concerns

Renewable Energy Mandates

Taxes and Incentives

Table 5-1: Energy Efficient Tax Credits for Homeowners, 2009

Utility Type

Investor Owned Utilities (IOUs)

Public Power Utilities

Electric Cooperatives (Co-ops)

Electric Rates

Table 5-2: Top Ten “Smartest” States and Associated Electric Rates, 2008

Venture Capitalists

Cyber Security

Consumer Acceptance

Privacy Issues

Ease of Use Concerns

Equipment Costs

Electric Rates

Home Electric Power Generation

Summary

Appendix: Selected Corporate Addresses