The McDonnell Group

ATLANTA - December 30, 2009 - They called it the “year of the Smart Grid.”  Throughout 2009, the pundits, prognosticators, and media fueled anticipation that this was the year that Smart Grid would truly arrive.  So, did it? Was it a year of hope, hype, or realization?

Turns out it depends how you define it.  If Smart Grid reflected a single system, I think we would be approaching what IT research firm Gartner calls the “peak of inflated expectations.”  But Smart Grid does not mean merely a single system or solution set.  It’s not even just about technology. Smart Grid is about utility industry transformation –- a process that will ultimately encompass both generation and consumer and everything "source to socket" in between.

In fact, it is the very number of technologies and applications incorporated within the broad definition that has caused the term to enter the popular lexicon so dramatically, particularly in this past year.

Smart Grid has become more than a U.S. phenomena; it’s global. Smart Grid is neither Democratic nor Republican.  Smart Grid isn’t just an environmental issue.  It’s about making energy work harder and smarter for all. Smart Grid isn’t just about smart meters.  It goes beyond even the grid itself. The term, the catch phrase as it has come to be understood (and still in many ways misunderstood), stands for a global industry movement.

Given the breadth of the definition and the scope of all that Smart Grid encompasses, it is unrealistic to think a single year could complete the entire transformation.  In time, we may come to see 2009 as the year that the global electric power industry took significant steps in what will ultimately be a multi-decade journey towards an investment in modernization and transformation.  It’s the year the scarecrow danced of Smart Grid dreams in Super Bowl ads, the year the federal government allocated billions in funding to Smart Grid projects representing only a fraction of all current and coming investment.

The key watchword here for everyone to reflect upon is investment.  2009 was more than the year of Smart Grid buzz. The buzz reflects a reality, an increasing awareness, perhaps even a tipping point among consumers, regulators, and the industry of the need to modernize.  Smart Grid is not just a 2009 fad; it’s an awakening.  It will ripple through the technology, business processes, and systems used to produce and deliver reliable, efficient, cost-effective, and environmentally sensitive electric energy services throughout the 21st century. 
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Note: 
For 2010, The Smart Grid Executive Forum is launching five new subgroups for more focused discussion on the following topics.  Please consider joining and participating in thoughtful discussion with your peers in Smart Grid Consumer Experience, Smart Grid Distribution Automation, Smart Grid Regulatory Policy, Smart Grid Market Integration, and/or the Smart Grid Water Forum.