Smart Grid Technology Thriving in Competitive Markets

Competitive electricity markets are helping lead the nation toward a smart grid future. So says a new report from GTM Research, which ranks the top 10 states leading smart grid implementation. Seven of the 10 states participate in competitive electricity markets. California ranks first, followed in the rankings by Massachusetts, New Jersey, New York, Ohio, Pennsylvania and Texas.
 
These state rankings result from a mix of effective regulatory oversight and private investment, but all deliver economic and environmental benefits to consumers. “These 10 states are the laboratories for U.S. smart grid policy, and their influence on the pace and scope of deployment is durable and growing,” said Stephen Munro, energy policy analyst for GTM Research.
 
While the contributing factors in each state vary, the ability of organized competitive electricity markets to drive innovation and smart grid implementation over multiple states cannot be ignored. Power suppliers compete against each other in these markets to provide innovative energy solutions in order to attract and retain consumers. In addition, unique market characteristics like real-time pricing offer advantages to smart grid technology and attract investment, while protecting consumers from the financial risk of poor or failed investment decisions.
 
Many noteworthy smart grid investments have come from the grid operators who independently operate regional organized markets. The New York Independent System Operator (NYISO) and PJM Interconnection have implemented advanced synchrophasor technology, while the California Independent System Operator (CalISO) has integrated electric vehicle infrastructure and home metering, and Oncor recently installed its 1 millionth smart meter in the Electric Reliability Council of Texas (ERCOT) area.
 
In addition, several RTO/ISO markets credited demand response technologies with the ability to mitigate summer peak electricity demand on the grid. “Because we have organized markets, we are ahead in our ability to bring technology and demand response to consumers,” recently said Jon Wellinghoff, Chairman of the Federal Energy Regulatory Commission. 
 
GTM’s report is testament to competitive markets encourage the innovative solutions required to meet America’s electricity needs and environmental objectives.