10 things Itron knows to be true about the smart grid

1. The smart grid requires a different way of doing business.

The smart grid is about more than just communications, technology and energy systems allowing us to secure our future. It's about a cultural transformation for the utility industry and all consumers of energy.

The "how" of this transformation is overwhelming. Gathering and integrating real-time information about renewables, generation, transmission, consumer use and more goes beyond any challenge the industry has ever had to face.

Applying what Itron has learned from working on the leading edge of utility innovation for the past 30 years has never been more important. We're using our knowledge and perspective to help make utilities successful in a smart grid world.

2. We're only at the beginning. The smart grid will evolve.

Building the smart grid may take a lifetime. But aspects of it are here today and it is developing rapidly. To be successful, we need a smart grid infrastructure that is designed to evolve and interoperate.

The reality is that many of the technologies that will run on the smart grid haven't been invented.

We need a system-a central nervous system of the smart grid-that provides the foundation for innovation, interoperability and flexibility.

3. Smart grid security is being underestimated.

We've all seen what happens when a person's identity is stolen. We can't take a similar risk with our energy supply.

Over the past three years, Itron and its utility partners have tested necessary security measures, learned from those tests, and tested again. This knowledge has led us to striking insights and innovations around security. It's time for real dialogue about how to secure our energy future.

4. The smart grid must be relevant to utilities of all sizes.

Too many discussions about the smart grid are being framed with only the world's largest utilities in mind. The key players of course have a big stake in the grid's future, but all utilities need to be able to access the grid and use it in ways that meet their unique objectives.

We understand that there are common challenges all utilities face. We also understand that smaller utilities-like those owned by municipalities or co-ops-need smart grid benefits for themselves and their customers.

5. Advanced metering is the cornerstone technology of the smart grid.

Smart metering acts as the smart grid's nervous system, flowing with information and commands. Because it provides the necessary ongoing measurement for the grid's networks, technologies and other applications. The technology is available and proven, and can be put in place now to create the base for the evolving grid.

Over the past few years, our focus has been expanding advanced metering to the smart grid. The security, interoperability, standards, and range of networks we've refined have been proven with the world's most rigorous smart grid implementations.

6. There needs to be a vision of the smart grid. There also needs to be reality about how we'll get there.

Utilities, regulators, consumers and others are tired of excessive hype around the smart grid. We are too.

That's why Itron is committed to talking about our plans for the smart grid and how we fit in. Our plans are informed by decades of the most innovative work in the industry. And it's why we're committed to showing you what we're doing, sharing our lessons learned and who we're partnering with to make the smart grid a successful reality.

It's time to step up and demand that everyone talk about the smart grid with a healthy dose of reality.

7. Open standards must allow for interoperability and innovation.

For some time, the definitions of "open" and "standards" has been debated, misunderstood and often misrepresented.

Think about your smart phone. The phone itself is proprietary. But its operating system is open so that creative outside developers can build "an app for that." This is the type of openness that really matters.

While the level of complexity may vary, the smart grid needs standards allowing for innovation and interoperability, standards that allow the development of networks, technologies and applications that haven't been invented yet.  

8. The smart grid delivers data and information that will be used in surprising ways.

The smart grid is creating new ways to understand energy use and behaviors. With this comes the development of new roles - from the utility executive to the end use customer.

The smart grid allows us to deliver not just energy, but also pricing information, load data, and knowledge to help consumers make smart, informed decisions. The information and data being delivered today is moving the needle towards changing behavior and ultimately shifting the way we think about and use energy.

9. Hardware, software and standards must work together. Clunky, "patchwork quilt" solutions will fail.

Sometimes patches can be a good thing: A mended hole in a garment. A band-aid that helps a wound heal. By definition, a patch is a temporary fix, a short-term solution. But imagine an energy grid where functions along the network were patched together and incompatible. That won't work.

The stakes for the smart grid are too high. We need solutions-hardware, software and communications- that work in concert to deliver reliable energy at the lowest possible cost.

10. Developing the smart grid will require unprecedented collaboration.

If there's one thing that 30 years of experience driving innovation for utilities has taught us, it's that our complex industry is bigger than any one company. We have to work together.

The smart grid is one of the world's biggest priorities. It will secure our energy future, ensure reliable energy delivery at the lowest possible cost, and lead to an entirely new economy. But it also represents an enormous challenge.

Realizing the promise of the smart grid will require the best thinkers with the most direct experience working together. The importance of collaboration to develop the smart grid can't be overstated. The stakes are too high.