Proving the Business Case for the Internet of Things

Nema report offers grid modernisation advice

Steve Rogerson
March 19, 2019
 
A report from the US National Electrical Manufacturers Association (Nema) discusses the value of grid modernisation for users and utilities.
 
The Nema Grid Mod R1-2018 reviews the business case and cost recovery for grid modernisation investments. It reviews the experience with grid modernisation investments to date and summarises how grid modernisation has benefitted customers and utilities. And it documents cost recovery mechanisms and business cases related to these investments.
 
“Grid modernisation efforts are taking place in many states across the country, each with its own priorities, such as improved resilience,” said Brian Marchionini, Nema staff lead for the grid modernisation strategic initiative. “Most utilities are willing to undertake grid modernisation projects provided they achieve timely cost recovery. An increasing number of regulators are willing to consider alternative regulatory models to enable these projects and broader utility innovation.”
 
During the past decade, several utilities and commissions across the USA have made investments in grid technologies, tools and techniques to modernise the electric grid. This document provides opportunities for utilities and their regulators who are contemplating similar investments to learn from the experience of early adopters.
 
Nema represents nearly 325 electrical equipment and medical imaging manufacturers that make safe, reliable and efficient products and systems. Its combined industries account for 360,000 American jobs in more than 7000 facilities covering every state. Its industry produces $106bn shipments of electrical equipment and medical imaging technologies per year with $36bn exports.