CHICAGO -- The organization working on smart grid standards in the United States has a sourcing problem and has invited the attendees of the NEDA Executive Conference, here in Chicago, to help solve it.
“We are going to need to supply 15 million smart meters and monitors [as the implementation moves forward] and one of our questions is: How do we manage that from the supply chain perspective?” asked John McDonald, GE’s director for technical strategy and policy development and chair of the National Institute of Standards and Technology (NIST) ’s Smart Grid standards development governing board. “Supplying the electronics for these is going to be a sourcing challenge.”
It’s a welcome challenge for the electronics supply chain that has been eyeing smart grid opportunities for a number of years. But before any hardware ships, both standards and infrastructure issues need to be addressed.
In 2007, NIST was charged with "coordinating the development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems." NIST put together a standards development governing board of 27 members. That board has since determined its smart grid standards roadmap will address capabilities, priorities, architecture, release plans, responsibilities, governance, and conformity.
NIST’s work could have a huge impact beyond US shores. The US is the only country currently developing smart grid standards, and other countries are looking to emulate the process.
The second phase -- establishing a standards panel to make recommendations -- has also been completed. Phase 3 -- which will look at product conformity, the smart grid framework, and establish testing and certification -- is now underway.
McDonald notes that a lot of progress has already been made in smart metering and that a nationwide smart grid will evolve over many years. “I prefer to use the term ‘smarter grid,’ ” he says.
Sourcing is not the major problems in the Smart Meter implementation. The major smart meter companies used by Utilities today include Itron, GE, Landis and Gyr, Sensus. However, the reality is that all of these companies are still rather new with its technology and therefore the quality is not meeting up expectations of the Utilities. For example, there are major scalability and performance issues to handle millions of meters. I suggest that these companies improve the engineering product quality as the first priority
Hi, I’ve been wondering when the electronics supply chain would start waking up to the smart grid’s global potential. Besides considering the possible U.S. market growth for smart meters and related products, electronics suppliers and distributors would be wise to read up on what’s happening on the other side of the Atlantic. Smart grid and renewable energy have been making news in several European countries, namely Germany, France, Spain, Italy, and Poland. And, if recent reports (links below) are correct, there could be 133 million to 145 million new smart meters installed in Europe by 2020. This represents a £25 billion ($39 billion) market, according to Greenbang, a U.K. sustainability research house. An uncertain market? Yes. Worth exploring and investing in? I’d say so.
Hi Bolaji--my impression is these partnerships aren't really forged at all. There is still a lot of uncertainty in this market, and it could be for lack of standards. Are chipmakers going to devote a whole lot of R&D to a market they can't be certain of? Especially since iSuppli noted how expensive it is to develop new chips. Definitely good questions for future blogs...
Barbara, This is one area where early OEM-supplier-distribution cooperation can help all of the players in the market. Based on what I heard at the NEDA conference it appears millions of components would be needed by OEMs manufacturing the smart meters and other equipment for the smart grid. Many semiconductor companies are exploring opportunities in this sector but it's such a relatively new area that it would take a tighter partnership for everyone to understand several issues, including the regulatory requirements, the potential size of the market and design opportunities. How well developed is this relationship?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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