Smart money is on smart grids for local utilities

Private Public Partnerships are beginning to play an integral role in the development of energy programmes. (GETTY IMAGES)

The importance of shared knowledge, whereby developing markets across the Middle East can learn from the experiences of more developed nations in creating their own ‘smart grids’ was under discussion at the Middle East Electricity 2011 Leaders’ Forum, at the Dubai International Exhibition Centre yesterday.

Specifically, adapting conventional power grids to integrate with alternative, renewable energy sources was one of the key issues, as surging power demand places the emphasis on sustainable energy in supplementing power supplied by conventional hydrocarbon-based sources.

Scott Minos, Senior Policy and Communications Specialist, US Department of Energy, was one of the keynote speakers at the forum. He gave an overview of the US experience in modernising and transforming its grid for renewable sources of energy including solar, wind and hydro-electric power.

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“As a nation, we started out with lots of very small urban pockets, so unfortunately our electricity grid was created in a very patchwork manner. This has meant we now have to go back and modernise this in making it compatible with new energy technologies,” Minos said.

An additional challenge faced in the US related to the lack of a federalised energy regulatory framework, which means each state has created its own strategy, with little standardisation across the nation.

“The National United States grid developed incrementally, in response to local load growth, meaning that today there are 180,000 miles of transmission line and 14,000 transmission substations, with a distribution grid of over 100 million loads connecting these, comprising residential, industrial and commercial customers,” added Minos.

Applying his comments to the Gulf region highlights the importance of a new strategic approach, which places sustainability, efficiency and diversity at the centre of GCC energy policy.

In the UAE and other parts of the Gulf, structures such as Private Public Partnerships (PPP) are beginning to play an integral support role in the development of energy programmes.