Creating a Smarter U.S. Electricity Grid

Paul Joskow

Journal of Economic Perspectives, 2012, vol. 26, issue 1, 29-48

Abstract: This paper focuses on efforts to build what policymakers call the "smart grid," involving 1) improved remote monitoring and automatic and remote control of facilities in high-voltage electricity transmission networks; 2) improved remote monitoring, two-way communications, and automatic and remote control of local distribution networks; and 3) installation of "smart" metering and associated communications capabilities on customer premises so that customers can receive real-time price information and/or take advantage of opportunities to contract with their retail supplier to manage the consumer's electricity demands remotely in response to wholesale prices and network congestion. I examine the opportunities, challenges, and uncertainties associated with investments in "smart grid" technologies. I discuss some basic electricity supply and demand, pricing, and physical network attributes that are critical for understanding the opportunities and challenges associated with expanding deployment of smart grid technologies. Then I cover issues associated with the deployment of these technologies at the high voltage transmission, local distribution, and end-use metering levels.

JEL-codes: L94 L98 Q41 Q48 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/jep.26.1.29
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Citations: View citations in EconPapers (32)

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