ABSTRACT
This chapter outlines how the Smart Grid can help facilitate a market for generation of kilowatts and negawatts at the retail or distribution grid level. Historically, electric utilities typically have had a monopoly status at the distribution grid level—there’s only one wire that connects to a meter attached to a building or other end point, not multiple lines from competing suppliers. At a federal level, there is oversight of the bulk or wholesale power market to ensure grid reliability. The North American Electric Reliability Corporation is “an independent, self-regulatory, not-for-profit organization whose mission is to ensure the reliability of the bulk power system in North America. There have been updates and upgrades, but many utilities have been encouraged to operate in a “run to failure” mindset and only replace equipment once it is past repair. There have not been any significant, industry-wide technology migration initiatives until the Smart Grid.
