The smart grid is a smart opportunity

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What's the economic potential of "smart grid" services and technologies that can efficiently (and often instantaneously) adjust the generation and distribution of electricity and other forms of energy for maximum impact and minimal cost? It's huge. This September, GTM research forecast that the U.S. Smart Grid Market would grow more than 70 percent between now and 2015, from $5.6 billion in 2010 to $9.6 billion.

And how well positioned is the Oregon and Southwest Washington region to take advantage of this potential? Better than most states, as reflected in a recent U.S. Department of Energy announcement that $89 million in stimulus funds promised for the Pacific Northwest Smart Grid Demonstration Project have been approved for release.

It's this kind of opportunity that earlier this year led a group of energy developers, entrepreneurs, technologists and clean energy advocates to launch Smart Grid Oregon, a new trade association. Given Oregon's strength in both energy and technology, our state is well positioned to capture the economic development opportunities presented by the growing smart grid industry. We united as Smart Grid Oregon out of a dedication to make our state a leader in the implementation of smart grid technologies and in supporting companies that build and market smart grid products and services.

The smart grid is the application and networking of technologies and strategies to make our electricity and energy distribution systems more reliable, more efficient, and less costly. The smart grid empowers consumers to actively manage their energy use, and allows the optimal integration and use of conservation and renewable energy resources to reduce fossil fuel reliance and greenhouse gas emissions. In short, the smart grid is the "brain" at the center of Oregon's energy future.

Why should Oregon businesses care about the smart grid? First, it is one of the key growth opportunities in technology and plays very well to Oregon's technology strengths. Second, the smart grid should be seen as the enabling infrastructure that makes alternative energy and electric vehicles work optimally for all of us. And lastly, the smart grid, by aiding us in more efficient management of electricity, will help reduce CO2 emissions from the electrical system.

Smart Grid Oregon is active on two fronts: policy advocacy and innovative educational programs. A visionary public policy is a critical factor in achieving our goals and supporting and building the Oregon smart grid industry. Simple policy changes can make or break Oregon's smart grid business community. The right changes can unlock Oregon investments in advanced technologies for everything from connecting electric vehicles to the electrical grid in an intelligent way to creating an active market for additional kinds of services to the electrical grid — for example, using slight changes in electric water heating in homes to make up for minor anomalies in the balancing of electrical supply and demand.

We're bringing the policy discussion to the public on Nov. 9 at our Smarter Policy for a Smarter Grid conference. Key speakers will help the community understand the value and expectations of the massive investments in smart grid that are underway, funded by the DOE, state governments and utilities.

Phil Keisling is the former Secretary of State and Chair of the Board of Directors for Smart Grid Oregon. He is also the director of Center for Public Service of the Hatfield School of Government at Portland State University.