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Article Excerpt
The energy crisis in the US is driving a major transformation in the business model of how the utility industry operates, requiring rapid and pervasive deployment of reliable, secure, and two-way broadband communications throughout its infrastructure. Utilities and regulators are putting significant amounts of time and energy into the selection of new physical equipment (smart meters and other devices), but are not putting the same emphasis into choosing the right communication architecture that will support the Smart Grid of the future. While there is not a single communications technology that will be appropriate everywhere and for every application, a strong case can be made for a private and secure network that makes efficient use of public carriers' cellular footprint and bandwidth.
The utility industry has changed slowly over the past century. The biggest concern was managing changes as directed by the market in a timely and orderly manner for increased power generation or new distribution methods. Times have changed. In the upcoming decade, there are many compelling reasons driving the utility industry that simply were not factors in the past.
Major challenges faced by the utility industry in the next ten years include:
* Energy demand is projected to increase over 60%.
* Over 50% of the utility industry's skilled workforce will retire with job experience and knowledge that cannot be replaced one-for-one.
* Global demand and resource scarcities will drive energy costs to unprecedented heights.
* Government mandates, carbon caps, and regulations will limit new generation sources to "renewable" and "green" only.
* Increases in new government mandates around the reliability of the "grid" itself.
The industry must change to meet these challenges. The key to success will involve three key capabilities:
* Real-time data collection from all end points through a myriad of "smart devices."
* Reliable, secure, real-time, high bandwidth communications...
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