PowerViews
Distributed Generation Drives Industry Transformation
Rick Geiger, Executive Director for Utilities and Smart Gr, Cisco
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New Use Cases for the Industry
The industry is just at the beginning of a transformation that will take decades, but extrapolating current trends and mandates, until economical, safe, and practical grid-scale storage becomes available the prospect is that sales of electric power may no longer supply revenues necessary to sustain the industry. As the industry transforms, what may be the evolving role of an electric utility?
- Continuing role as primary supplier of electric power during the decades required for distributed energy resources to become "generation everywhere."
- Supplier of last resort with the ability to source power for peak usage, during extended severe weather, and during other times when local generation is not sufficient.
- Real-time matching of supply and demand, integrating many sources of distributed generation over a wide area, smoothing local variations, and moving excess power to areas of need, along with the market systems to manage the economics as well as the power flows.
- Integrated management and control of distributed energy resources inclusive not only of generation, but also of storage and demand, especially as the usage of electric vehicles increases.
- Replacing the forecasting, dispatch and balancing model of today’s grid operation with a new model that implements a modern distributed architecture and control model.
- Services to install, secure, maintain and upgrade a communications infrastructure for telemetry and control -- to link distributed energy resources into a network of energy generation, storage and consumption.
The industry’s primary mission of safe and reliable power still remains, but utility companies will need to evolve their business models to adapt to the shift in revenues as the growth of distributed energy resources and consumer-generated power increases. The roles above highlight opportunities to provide new and additional value that can form the basis for evolving business models. These are opportunities for utilities, industry vendors and the new class of power generating consumers to partner as they address the challenges arising from "generation everywhere."
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About the Author
Rick Geiger has been with Cisco for 5 years, formerly as Director of Engineering in Cisco’s Physical Security Business Unit. Prior to joining Cisco, Mr. Geiger was VP Engineering for GE Security in Physical Security, video surveillance and access control. Rick has in depth experience in the global utility market with more than 10 years as VP Engineering and Chief Technical Officer for Itron. Presently Executive Director for Utilities and Smart Grid, on Cisco’s Business Transformation Team, Rick and the Smart Grid Vertical Team serve the Americas Utility markets with Secure, Resilient and Scalable network solutions for smart grid, advanced metering, distribution automation, utility telemetry and energy management. Rick is an IEEE Senior Member and Member of the Power and Energy Society.
We welcome the opportunity to publish your opinions. Please email us at editorial@darnell.com.
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