New Forum Report identifies strategies to accelerate Smart Grids as key to low-carbon economy
 
Samantha Tonkin, Communications Department,
Tel.: +41 (0)22 869 1238, E-mail: samantha.tonkin@weforum.org

• Accelerating Smart Grid Investments, released today, was developed with Accenture and industry experts
• It sets out how smart grids can be the backbone for tomorrow’s energy solutions and low-carbon economy
• Smart grids integrate telecommunication, sensing and information technologies to modernize current electricity systems, making them more efficient, more resilient and smarter
• For more information including the full report and video interview with the author, visit http://www.weforum.org/en/initiatives/SlimCity/index.htm
• Watch the interview with report author Espen Mehlum, Head of Electricity Industry at the World Economic Forum

Geneva, Switzerland, 15 July 2009 – Accelerating Smart Grid Investments, a new World Economic Forum report developed with Accenture and industry experts, sets out how smart grids can be the backbone infrastructure for tomorrow’s energy solutions and green economy. The world’s electricity systems are increasingly outdated and coming under pressure in the face of rising demand, climate change and the advent of transformative technologies. Smart grids have been hailed as a key to sustainably meeting emerging energy needs in a new age where clean energy is at a premium, networks require flexibility to incorporate renewable energy and customers’ demands for greater transparency and control over their consumption are growing.

The report explains how smart grid technology brings together the advancements in the information technology and telecommunications sectors – sensing, computing and communications – to deliver a more resilient, more efficient and lower-carbon electricity system. Smart grids can enable:
- New energy management services and tariff structures, enhancing the way utility companies manage their assets and offer consumer-relevant products and services
- Empowerment of consumers to take greater control of their energy consumption
- Integration of more renewable energy into the electricity system
- Electric vehicle infrastructure on a large scale
- Building energy efficiency into the system, from generation to end use

“Smart technologies are a necessary element of the transition to a fully fledged low-carbon economy, and this requires changes to the core infrastructure for the transmission and distribution of electricity,” said Espen Mehlum, Head of Electricity Industry at the World Economic Forum. “As we see the results of pilot projects and significant amounts of money allocated to smart grids in the United States’ economic stimulus package, it is important to recognize that we are still in the early stages of smart grids development, and a range of barriers must be tackled before substantial investments start flowing into them.”

None of the barriers is insurmountable and the report recommends ways to overcome them. Public and industry awareness of smart grids must increase, and there is an urgent need to refresh the regulatory regimes that govern the power industry. No longer is it the industry’s sole purpose to provide secure energy supply to the masses at cost-competitive prices. Regulatory regimes worldwide need to be restructured to reflect new imperatives which centre on the provision of infrastructure to support a low-carbon economy while improving quality of service to the end consumer. Governments and regulators should provide utilities with clear profit motives to place value on energy efficiency while encouraging production and delivery of electricity to be as clean as possible, without compromising security of supply.

Implementation of smart grids must also be tailored rather than one-size-fits-all. Over time, needs may change and therefore the design philosophy must embrace the concepts of flexibility, scalability and forward compatibility.

Cities will play a pivotal role as catalysts for smart grid implementation by demonstrating the art of the possible and consequently reducing the delivery risk for regional or national roll-outs. As Mike Donohue who leads Accenture's work in the US's most extensive smart grid implementation, SmartGridCityTM, Boulder, Colorado, explains: “Because cities are the world’s major source of carbon emissions, they must play a leadership role in energy management and consumption. By using their unique position to unite private and public partnerships, cities can create a more attractive living and working environment for their citizens.”

Notes to Editors:
• For more information including the full report and video interview with the author, visit http://www.weforum.org/en/initiatives/SlimCity/index.htm 
• Accenture contact: Matthew McGuinness, Corporate Communications, matthew.mcguinness@accenture.com, + 44 (0)7740 038 921
• SmartGridCity™ is a trademark of Xcel Energy.
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