Reflections - on Smart Grids for the Future - 26 Jul 2010
This Reflections paper has been commissioned by the Ministry of Economic Affairs and prepared by KEMA Consulting. While it has drawn on expertise within The Netherlands and offers thoughts for policy consideration by the Ministry, it is set in the context of global developments and offers an international perspective.
The key messages are as follows:
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Large scale renewable energy and significant quantities of distributed generation call for a new electricity grid design.
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A transition to Smart Grids is a fundamental move away from classical grids to embrace a broad span of new concepts that embraces technology, business and customers. Some observers describe this as being part of a third industrial revolution.
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Smart Grids combine the familiar and the innovative, integrating centralized generation with new distributed and renewable resources. Customers will have greater choice and be participators in energy, rather than passive users.
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Smart Grids are a key enabler for the implementation of government energy and environmental policies.
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The successful transition to Smart Grids requires attention to a range of issues that go beyond technology and include commercial and regulatory dimensions.
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There are identifiable barriers to a smooth transition, but with a strategic approach these can be addressed.
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An important responsibility rests with government, regulators, network companies and other stakeholders to dismantle barriers and, where appropriate, introduce incentives for engagement with due reward for managing risks successfully.