2012 stip internship report shan z

2012 STIP Internship Report Shan Zhou

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Smart Grid Deployment and its Economic Impacts on Georgia

Shan Zhou1

Georgia Institute of Technology

Acknowledgments

The author would like to thank the management team of the Enterprise Innovation Institute at Georgia

Institute of Technology for their support, especially Jan Youtie, for her valuable feedback and suggestions;

Alfie Meek, Robert Lann and Candice McKie for their generous help on IMPLAN modeling and advices

on the project; Ben Hill for his time, comments and up-to-date information he provided to me; Ann

O’Neill for her help and guidance on data collection; Lynn Willingham for support; Alison Pienta, Dan

Cotter, Lyndsey Nott for both friendship and help; Steven Pigford at Georgia Power for sharing his time

and experiences with me; and Xin Xi and Ethan Xi for their unconditional love. This Project is funded as

part of a summer 2012 STIP internship. All views expressed in this report are solely the author’s and do

not necessarily represent the views of the Enterprise Innovation Institute.

Executive Summary

Smart grid acts on timely information of both the electricity demand and supply sides to improve the

reliability and efficiency of electricity generation, transmission and distribution. It is enabled by applying

two-way communication, computer and information technologies in the electricity networks. As the

traditional electric power infrastructure becomes increasingly vulnerable to power outages and

interruptions, and fails to meet the low-carbon challenge, deployment of smart grid has gained momentum

in the worldwide. On the other hand, roll-out of smart grid technologies is often seen as a growth engine

for local and national economy, which not only drives the development of various industrial sectors, but

also creates employment opportunities in the program implementation, operation and maintenance

processes.

Federal legislation has been enacted to promote smart grid deployment in the U.S., examples of which

include the Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment

Act of 2009. The latter appropriates $3.4 billion for the smart grid investment grant, one of the largest

government investments for smart grid in the world. Meanwhile, state governments are racing against

each other in grid modernization efforts, with the aim to take the lead in smart grid technological and

market innovation. Under this context, this study investigates the status of smart grid industry and

infrastructure development in Georgia, and applies input and output (I/O) analysis to estimate the major

impacts of smart grid activities on the state’s economy. The goal of this study is to understand the

1 Corresponding author: Shan Zhou, PhD student at School of Public Policy, Georgia Institute of Technology. Email:

[email protected]

mailto:[email protected]


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socioeconomic benefits of smart grid deployment, gain insights on Georgia’s competitiveness in

cleantech sectors and hence help Georgia better position itself in the coming era of green economy.

Economic impacts of smart grid deployment mainly derive from two aspects. First of all, it drives the

demand for smart grid products and services. Vendors of the smart grid supply chain, including both start-

ups and traditional firms in information technology, telecommunication, and power sectors, influence

economic development through their manufacturing and service delivery processes. In order to estimate

this impact, this study carries out a basic analysis of the smart grid industry in Georgia. Key vendors in

the U.S. smart grid ecosystem are first identified through reviews of market research reports, and their

local presence in Georgia is determined using multiple business profile databases, including D&B million

dollar database, Reference USA and Hoover Company’s Profile. Business statistics such as employee size,

market segment, lines of businesses, and location are compiled and analyzed. Results show that 128 smart

grid establishments are currently operating in Georgia, with 5,024 people working in smart grid-related

areas. Applying the I/O model and 2010 IMPLAN data for Georgia, this study calculates the indirect and

induced job creation (together referred to “multiplier employment effect”). It concludes that the growth of

smart grid industry in Georgia has generated 14, 461 jobs in total, which has an economic output of $3.4

billion. The employment multiplier is 2.9, meaning that for a job created in the smart grid sector, a total of

2.9 jobs will be created through over the whole economy. A geographical analysis of smart grid jobs in

Georgia indicates that 80% of these jobs are located in the metro Atlanta area. Some of the smart grid

clusters outside the metro Atlanta area include Columbus, Eastanolle, Waynesboro, Rincon, and Athens,

accounting for over 90% of the rest of smart grid jobs. It is also noteworthy that 79 out of the 128 smart

grid establishments in Georgia have fewer than 10 employees, and only 21 firms employ over 50 people.

Smart grid firms in Georgia are classified into four categories based on market segments: the advanced

metering infrastructure, demand/energy management, grid interconnection, and transmission &

distribution management. 2,259 people are working in 54 grid interconnection firms, and 2,316 people

working in 34 transmission & distribution management firms. Demand/energy management and advanced

metering infrastructure have 1,249 and 1,312 employees working in 39 and 18 establishments

respectively.

By organization types, smart grid establishments in Georgia are categorized into four groups:

contract/construction, wholesale, business service and device manufacturing. Over 80% of smart grid jobs

are generated by 45 smart grid device manufacturers. The business service firms which produce high-

value smart grid products and services such as data analysis software and business strategy development

employ around 200 people in Georgia, with 339 and 256 people working in the contracting/construction

and wholesale sectors respectively.

The second part of economic influence of smart grid comes from the construction, operation and

maintenance of smart grid infrastructure. Six smart grid roll-out projects in Georgia are identified, which

are funded by the Recovery Act and the USDA’s rural electric grid modernization initiative. A total of

$98.2 million federal investments are devoted to implementing smart grid technologies. The southern

company is taking the lead in smart grid deployment in Georgia. With matching fund from the Recovery

Act, its investments in smart grid projects exceed $100 million between the year 2009 and 2012. Input

and output analysis concludes 842 jobs are created and $166.8 million economic output is generated as a

result of smart grid investments in Georgia.


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An evaluation of smart grid policies in Georgia highlights potential improvements may be needed in the

policy framework. Georgia has been a pioneer state in the U.S. in terms of dynamic pricing programs.

Leading by Georgia power, the state also has made great efforts in smart meter deployment: 6 million

smart meters for gas, water and electricity have been installed (Georgia Power, 2012). However, Georgia

is obviously lagging behind other states in several smart grid policies, such as the net metering policy,

interconnection standards and rules, and renewable portfolio standards. In order to create the climate for

smart grid and increase the demand for smart grid-related products and services, Georgia should

implement policies that support a low-carbon and modernized electric grid. For instance, Georgia could

increase the distributed generation capacity limit imposed by its net metering policy for both residential

and non-residential sectors to encourage deployment of distributed renewables. Adopting an

interconnection standard that provide official standards and rules to guide the integration of distributed

generation, as well as a renewable portfolio standard that requires a certain percentage of utility’s

electricity produced from renewables would both facilitate the penetration of renewable technologies and

hence increase the diversity of generation technologies in the grid.

The results of this study also indicate that Georgia is now lagging behind in providing smart grid-related

business services. As the development of smart grid infrastructure goes on, a great proportion of the

future smart grid market potential would be in the service sector (Neichin & Cheng, 2010). Government

support and emphasis could be placed on fostering the research and development of high-value added

smart grid services and products. Public and private partnership could also provide a platform to facilitate

the penetration and acceptance of various business innovations. A great example of this is the

collaboration between GE energy and the City of Norcross which provides a smart grid service for

Norcross residents.


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1. Introduction

Designed and built with technologies in the 20th century, traditional power grid often transfers electricity

from large power plants to end users via transmission and distribution lines, where electricity and

information both flow in one direction. It is increasingly difficult for the aging grid to meet challenges

we face today, such as increasing peak demand, climate change and energy security concerns. Vulnerable

and unreliable power supply has also become a constraint for economic development. There is an

increasing awareness of grid modernization, which calls for the integration of telecommunication and

information technologies with the electricity infrastructure, and this creates the idea of smart grid.

A smart grid integrates a diverse set of technologies, ranging from conventional power plants and

distributed renewable resources, to smart meters, smart appliances, energy storage systems, and energy

management systems for homes and businesses (See Figure 1). Controllers at the central and regional

levels receive and deal with information sent out by smart meters and other intelligent devices installed at

transmission and distribution substations. Different end users are connected to the grid with demand

response programs, which reduce information asymmetry, enable informed energy consumption decisions,

help shave peak demand and save money for both utilities and consumers. With a two-way flow of

electricity and information, smart grid can operate at high levels of power quality and system security.

Figure 1 Smart Grid: A Vision for the Future (M. Brown & Zhou, Forthcoming)


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U.S. is one of the leading countries in smart grid deployment. The American Recovery and Reinvestment

Act of 2009 alone allocates $3.4 billion for the smart grid investment grant ("American Recovery and

Reinvestment Act of 2009," 2009). Many other countries are also racing to make the transition to a

digitalized electric grid. For instance, the British utility regulator, Office of the Gas and Electricity

Markets (Ofgem), establishes a £ 500 million Low Carbon Networks (LCN) Fund to improve the

country’s distribution networks to enhance energy security and combat climate change (Office of the Gas

and Electricity Markets, 2012). The Chinese government is planning to invest $45 billion in smart grid

infrastructure between 2011 and 2015(Smart Grid China Summit, 2011). Countries such as Japan and

South Korea have implemented smart grid demonstration projects at different levels to facilitate

penetration of smart grid technologies, and strengthen the competitiveness of domestic industries (M.

Brown & Zhou, 2012).

On the one hand, the enormous government investments in smart grid infrastructure have significantly

driven the development of the smart grid industry. It is estimated that global market value of smart grid

products increased from $26 billion in 2005 to $69 billion in 2009, and will reach $186 billion in 2015

(SBI Energy, 2010).The smart grid industry is also one of the busiest sector for cleantech venture capital,

attracting $1.3 billion investment between 2005 and 2009 (Leeds, 2009). On the other hand, smart grid

serves as a growth engine for green jobs and green economy. As a result of smart grid projects, around

278,600 smart grid jobs will be created between 2009 and 2012 in the U.S.(KEMA, 2008). The

development of smart grid supply chain has particularly attracted investments and expertise from

traditional information technology, telecommunication and energy industries, allowing more

technological innovation and market exploration that enable business growth and economic development.

Smart grid infrastructure and industry has just emerged in Georgia. As this process continues, it is critical

for Georgia policy makers to understand the economic opportunity that smart grid presents. The goal of

this study is to evaluate the economic impacts of smart grid deployment in Georgia through investigating

the regulatory, infrastructural, and industrial developments related to smart grid. Policy recommendations

are also provided to help Georgia capture the economic and employment benefits associated with smart

grid deployment.

2. Literature Review

Smart grid can influence the economic development through the growth of the supply chain system.

Henton et al. (2011) estimated the impact of smart-grid on Silicon Valley by disaggregating the industry

into four product sectors and assess the employee size in those sectors, including power management &

energy efficiency products, energy storage, distributed energy generation, and electricity transmission &

distribution (Henton, Grose, Kishimura, & Harutyunyan, 2011). In total, the smart grid industry

accounted for 12,560 jobs in the Bay Area in 2009, with distributed generation representing 59% of the

total employment. Along the smart grid value chain, manufacturing represents the largest percentage of

employment, followed by smart-grid services, installation, supplier, research & development and other.

The report concluded that the Silicon Valley will benefit from the deployment of smart-grid in terms of

not only its improved energy system, but also the innovation processes of the high-tech companies that

provide smart-grid related devices and services.

A large number of jobs are also created in the implementation process of smart grid projects. KEMA

(2008) forecasted that 280,000 new jobs would be created directly as a result of smart grid projects in the


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U.S. between 2009 and 2012, and 140,000 permanent, on-going high value jobs would persist after the

completion of these projects (KEMA, 2008) . These jobs are generated in various sectors, including

utilities, contractors, smart grid product suppliers, and energy service companies.

Input and output (I/O) analysis and its job multipliers are one of the most widely applied tools to examine

the economic impacts of green investments. O’Sullivan et al. (2009) used input and output analysis to

calculate the employment effect of renewable energy in Germany (O'Sullivan, Edler, Ottmuller, & Lehr,

2009). Their results showed that a total of 273,700 green jobs were created in the renewable energy sector

in 2008, an 11.7% increase compared to 2007. Wind and photovoltaics were the two largest sources for

job creation, adding 85,100 and 57,000 jobs respectively to the German labor market in 2008.

Lehr et al. (2012) used an economy-energy-environment model and input-output tables to estimate the

implications of large investment in renewable energy sector in Germany (Lehr & Lutz, 2011). Almost all

scenarios exhibit positive net employment effects, except the one that assume German renewable exports

below today’s level. They argued that the employment effects of renewable energy development have

three components: positive gross employment from the production, installation, operation and

maintenance of renewable devices, negative substitution effect due to crowd-out investment in

conventional energy sectors and negative budget effect due to additional costs of electricity generation

from renewable.

Torgerson et al. (2006) evaluated the economic impacts of wind energy projects in Umatilla County,

Oregon, using the Jobs and Economic Development Impact (JEDI) model and two IMPLAN models

edited by the authors (Torgerson, Sorte, & Nam, 2006). Their analysis included direct, indirect and induce

impacts of wind projects. The JEDI model using statewide multipliers and a 100% default local

purchasing value produced the largest job impact from the construction and operation phases of a 50MW

wind project: a total of 120 and 21 jobs were created respectively, compared with 77 and 17 when using

the JEDI model with Umatilla County Multipliers. The discrepancy among results from the three models

is mainly due to the different assumptions of the earnings-to-output ratio and the percentage for local

purchasing.

However, smart grid is not a traditionally defined industry, which does not have a NAICS code or an

IMPLAN sector assigned. Using I/O analysis to evaluate the economic impacts of smart grid investment

hence requires special treatment of the spending sectors. Pollin and Garrett-Peltier (2009) constructed a

synthetic sector for smart grid by identifying major activities for smart grid deployment, including

construction, machinery manufacturing, electronics manufacturing, electrical equipment and component

production; and each accounts for 25% of the total smart grid activity. Inputs for the four activities were

put in the I/O model and they found that an annual investment of 500 million in smart grid would

generate 3490 direct jobs and 3560 indirect jobs in Ontario (Pollin & Garrett-Peltier, 2009). For each

million investment in smart grid, 14 direct and indirect jobs will be created (Pollin & Garrett-Peltier,

2009).

The study done by Atkinson et al. (2009) considers four types of employment effects by smart grid

investments. They first estimated the expected increase in spending in four general industries due to

government investments in smart grid projects, including construction, hardware, software and services

(Atkinson, Castro, & Ezell, 2009). They then calculated the increases in producer values in the four

sectors, which were used to estimate the total increase in employment by applying a final-demand


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employment multiplier for each industry. Their results indicated that a $50 billion investment over 5 years

in smart grid in the U.S. would generate 239,745 new jobs, 140,475 of which are small business jobs;

while a double in the investment would create 477,490 jobs. A federal mandate on smart-grid which

requires smart meter deployment and smart-grid construction, and also allows cost recovery for utilities’

smart-grid investment would create 91,140 jobs.

Investment in smart-grid will not only generate jobs through the direct, indirect and induced employment

effects, but also will stimulate employment in other closely-related sectors which benefit from high-

quality and low-cost power provided by smart-grid (Atkinson et al., 2009; KEMA, 2008; Mazza, 2007).

Hybrid electric vehicles and distributed renewable generation are two examples of technologies that are

depend on smart-grid. This phenomenon is also called the “network effect” or “network externality”.

Currently, there is no well-established approach to estimate the network effect.

3. Methodology and Data Collection

Literature indicates that smart grid can influence the economy through the development of new markets

and the process of infrastructure construction. To understand the current status of the smart grid industry

in Georgia, this study first identifies major smart grid vendors in the U.S. by reviewing market research

reports. It then breaks down the smart grid industry into four market segments and identifies

corresponding smart grid products for each segment. A portfolio of smart grid vendors with their focused

market segments is developed. Based on this national-level portfolio, Dun & Bradstreet Million Dollar

Database, Hoover’s Company Profiles, and Reference USA are used to look up the presence of smart grid

companies in Georgia. A range of business statistics for each establishment are compiled, including size

of employee, location, NAICS code, lines of business, and product and service description. The market

segment of each smart grid establishment in Georgia is determined based on their products and services,

as well as the profile of its parent company. The number of employees of each establishment is used as

input parameter for the I/O model to estimate the economic impact of the smart grid industry.

This study also consists of an analysis of the ongoing smart grid rollout efforts in Georgia. Major publicly

funded smart grid projects are identified and project information such as budget and smart grid equipment

purchased is collected. NAICS industrial classes that are affected by each project’s spending are

identified and weights are assigned to each class representing the percentage of total project budget spent

in that class. Increased spending in NAICS classes is used as an input parameter for the I/O model to

calculate the economic impacts of smart grid deployment projects.

This study also conducts a state-level analysis of smart grid related policies to illustrate the political

climate for smart grid in Georgia. It weighs the strengths and weaknesses of Georgia’s smart grid policy

framework, and recommendations are provided based on the policy analysis.

4. Economic Impacts of Smart Grid Companies

4.1 Smart Grid Market Segments and Major Vendors in the U.S.

This study breaks down the smart grid industry into the following four market segments. Table 1 presents

a list of smart grid products and services, and key industry players for each market segment.


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Advanced metering infrastructure (AMI) refers to digital hardware and software that enables interval

data measurement and continuously available remote communication and transmission of such

information to various parties (Electric Power Research Institute, 2007). It is often seen as the foundation

of the smart grid (Leeds, 2009). A large percentage of the current utility smart grid deployment efforts is

focusing on the roll out of smart meters. In the U.S., 23.9% ($818 million) of the $3.4 billion Smart Grid

Investment Grant is allocated for AMI projects (Zpryme, 2010). The market value for AMI in the U.S. is

expected to grow from $2.54 billion in 2010 to $5.82 billion in 2015(Zpryme, 2010). Major products in

this market segment are: smart meter hardware, communication and network infrastructure, and smart

metering data capture and management (Neichin & Cheng, 2010). Key AMI manufacturers in the U.S.

include General Electric, Itron, Landis+Gyr, Elster, Sensus, and Echelon (Leeds, 2009; Neichin & Cheng,

2010).

The demand/energy management market includes demand response and building energy management

system (BEMS) in homes and businesses. Demand response refers to program or service that motivates

“changes in electric usage by end-use customers in response to changes in price of electricity over time,

or to give incentive payments designed to induce lower electricity use at times of high market prices or

when system reliability is jeopardized” (DOE, 2006). The borderline between demand response and

BEMS is often vague, as demand response is considered as a key component for BEMS and most demand

response enabling devices such as smart thermostats and load control products are also widely used in

BEMS (Pike Research, 2012). The BEMS market is often built based on the traditional building

management system market, where dominant market players are Johnson Controls and Honeywell, and

new entrants such as BuildingIQ.

Transmission & distribution management, sometimes called grid optimization, entails intelligent

products that allow utilities and electric network operators to control the grid remotely and digitally.

Many utilities have started large –scale upgrades of the power delivery system by installing sensors,

monitors, and communication infrastructures. Key industry players include ABB, Schneider Electric and

Thomas & Betts.

Grid interconnection consists of a wide variety of technologies that are enabled by smart grid, such as

renewables, energy storage and electrical vehicles. This market segment is growing very quickly and

represents enormous market opportunities in the future; however, its development requires the upgrade of

other parts of the electric system to ensure power stability (Neichin & Cheng, 2010).

Table 1 Smart Grid Market Segments and Key Vendors

Market

Segment

Smart Grid Product and Service Categories Key Vendors

Advanced

Metering

Infrastructure

Smart meters Itron, Landis+Gyr, Sensus, Elster, GE

Communication systems Texas Instruments, Sierra Wireless,

Qualcomm, Motorola, Cisco, Alcatel,

Nokia Siemens, Silver Spring,

Trilliant, Itron, Landis+Gyr, Sensus,

Elster, GE, Aclara, AT&T, Verizon, T-

Mobile, Sprint

Meter data capture & management Oracle, Microsoft, IBM, Itron, Elster,

eMeter, Ecologic Analytics, Aclara,


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Tibco, Accenture, Cap Gemini

Demand/

Energy

Management

Demand

Response

Curtailment service for

commercial and industrial

customers, Curtailment service

for residential customers,

Automated demand response

(ADR), Demand response

management system (DRMS),

Home area network (HAN),

Curtailment enabling devices

Comverge, Honeywell, Johnson

Controls, EnerNOC, Carrier,

EnergyHub, CPower, Cooper Power

Systems, Tendril, Energy Curtailment

Specialists, Siemens, OpenPeak,

Schneider Electric, OPower,

EnergyConnect, General Electric,

eMeter

Home Energy

Management

Physical/web-based customer

engagement platforms, In home

display (IHD), Smart

thermostats, Smart plugs,

Smart appliances

Tendril, Control4, OpenPeak,

Gridpoint, 4Home, Cisco,

EnergyHub, AlertMe, Google,

OPower, EcoFactor, Microsoft,

iControl, Intamac, PeoplePower,

Sequentric

Building

Energy

Management

Building systems, sensors, and

monitoring hardware, Software

for data aggregation and analysis,

System optimization products

Johnson Controls, Hara Software,

Adura Technologies, Honeywell,

ENXSuite, PowerIT Solutions, GE,

SAP, Verdiem, Schneider Electric,

Oracle, Redwood Systems, Siemens,

EnOcean, Agilewaves, IBM,

SynapseSense, BuildingIQ

Transmission

& Distribution

Management

Distribution

Automation

Distribution management system

(DMS), Supervisory control and

data acquisition (SCADA),

Distribution automation

networking equipment, Digital

controllers, Pole top/pad mount

remote terminal unit (RTU),

Reclosers, Sectionalizers,

Capacitor bank, Fault indicators,

Voltage regulators, Line sensors,

Overhead switches

Telvent, Siemens, ABB, Survalent,

OSI, ACS, GE, Trilliant, Landis+Gyr,

Itron, Silver Spring, Sensus, Arcadian

Networks, SEL, Cooper, Schneider

Electric, S&C, Telemetric, NovaTech,

Thomas & Betts, Howard, Vishay,

Beckwith, Qualitrol

Substation

Automation

Routers, RTUs, Gateways,

Hardened computers,

Programmable logic controllers

(PLCs), Multi-function

meters/recorders, Digital fault

recorders,

Sequence of event recorders,

Power quality recorders,

Transformers, Circuit breakers,

Switchgear

RuggedCom, GarrettCom, GE, Cisco,

Telvent, EFACEC/ACS, Siemens,

DAQ, Cooper, Novatech, Subnet

Solutions, SEL, Rockwell, Eaton,

Schneider Electric, ABB, Qualitrol,

Ametek, SATEC, Utility Systems

Inc., Mehta Tech, Survalent,

Garrettcom

Grid

Interconnectio

n

Renewable

Integration

Renewable devices, Inverters,

Transformers, Other power

conditioning equipment,

Installation services

Sun Run, SolarCity, Sungevity,

DirectGrid Technologies, Enphase

Energy, Enecsys, Petra Solar, Solar

Bridge, GE, Mitsubishi, ABB,

xantrex,

Electric

Vehicles

Micro-inverters, Electric vehicle

supply equipment

GridPoint, Coulomb Technologies,

Better place

Energy

Storage

Storage devices, Converters Siemens, ABB, GE, Areva, Panasonic


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Source: (Leeds, 2009; Lowe, Fan, & Gereffi, 2011; Neichin & Cheng, 2010)

4.2 Smart Grid Companies and Establishments in Georgia

In order to estimate the size of the smart grid industry in Georgia, this study looks up local establishments

of these smart grid companies in Georgia using Reference USA, D&B database, and Hoover’s company

profile, based on the list of key smart grid vendors in Table 1.

Appendix A presents the whole list of company profile data, including their NAICS codes, market

segment, total employment, smart grid employment, and location. Market segment of each establishment

is determined based on their parent company characteristics, lines of businesses, and information from

their website. Although many companies are considered as smart grid vendors in the U.S. market, their

local establishments in Georgia may not necessarily operate in the smart grid industry. This also poses

question in estimating smart grid employment information for each firm. For establishments that have

little information concerning their products and services, the percentage of smart grid activities of the

parent company is estimated, which is used to apportion out the smart grid part (see Table 2). Smart grid

employment of a local establishment is calculated by multiplying the total employment of that

establishment and the percentage of company sales, revenue or employment that is attributed to smart grid

activities.

Table 2 Smart Grid Portion of Company Activities

Company % Business

Devoted to

Smart Grid

Activities

Note Data Sources

Accenture 3.94% 9,300 employees are working in the

smart grid field, and the total number of

employees of Accenture is 236,000. The

percentage of smart grid employees is

9,300 divided by 236,000, which is

around 4%.

http://www.smartgridnews.com/

artman/publish/news/Accenture-

smart-grid-Making-the-shift-

from-smart-grid-pilots-to-smart-

grid-operations-3573.html

Hoover’s Company Profile

GE Energy

50% Energy management, oil & gas, and

power & water are the three major areas

in which GE Energy operates.

Smart grid businesses are key

components for the energy management

and power & water department, which

account for about 50% of the company’s

business areas.

http://www.ge-

energy.com/about/about_ge_ene

rgy_management.jsp

http://www.ge-

energy.com/about/power_water.j

sp

Honeywell

50% 50% of Honeywell’s products are linked

to energy efficiency, demand/energy

management, and low-carbon generation

technologies.

http://honeywell.com/Solutions-

Technologies/Pages/energy.aspx

Oracle 5%

Oracle provides hardware and software

support for over 20 industries, one of

which is electric utilities. Energy

efficient platforms and smart grid

gateway are the major smart grid

http://www.oracle.com/us/indust

ries/utilities/utilities-smart-grid-

ds-323531.pdf

http://www.smartgridnews.com/artman/publish/news/Accenture-smart-grid-Making-the-shift-from-smart-grid-pilots-to-smart-grid-operations-3573.html





http://www.ge-energy.com/about/about_ge_energy_management.jsp



http://www.ge-energy.com/about/power_water.jsp



http://honeywell.com/Solutions-Technologies/Pages/energy.aspx

http://honeywell.com/Solutions-Technologies/Pages/energy.aspx


11

products.

OSI Soft 10% Power & utilities is one of the seven

business areas of OSI Soft, and major

smart grid products include AMI and

renewable technologies. I assume that

around 10% of the total business

activities of OSI Soft are related to smart

grid.

http://www.osisoft.com/value/in

dustry/PowerUtilities/

Rockwell

Automation

50% Rockwell Automation is an official

ENERGY STAR® Industrial Service

and Product Provider. Its smart grid

products and services include power &

energy management solutions,

intelligent motor control, energy

management software, and energy

efficiency variable frequency drives,

which account for about 50% of its

services.

http://www.rockwellautomation.

com/solutions/pems/

http://www.rockwellautomation.

com/solutions/sustainability/ene

rgy.html

Johnson

controls

100% Johnson Controls is a pioneer producer

of building energy management system.

Other service areas such as hybrid

batteries and renewable energy also

provide important smart grid products.

Therefore, I assume all its services are

related to smart grid.

http://www.johnsoncontrols.com

/content/us/en/products/building

_efficiency/building_manageme

nt.html

Schneider

Electric

50% Schneider Electric provides products

that support flexible distribution, smart

generation, demand-side management,

efficient homes, and efficient enterprise.

Around half of the sales relates to safe

and reliable access to energy.

http://www2.schneider-

electric.com/documents/interacti

ve-publications/energy-

brochure/files/docs/energy-

made-smarter.pdf

Siemens 50% Two out of the four service areas of

Siemens provide smart grid solutions:

building technologies services and

energy services.

http://www.siemens.com/entry/c

c/en/#2209170-2209890

Thomas &

Betts

10% Power quality, efficiency & reliability is

the major smart grid service area in

which Thomas & Betts operates. It has

11 service areas in total.

http://www.tnb.com/pub/node/1

10

Ventyx 10% Ventyx provides six industry solutions,

one of which is energy & utilities. This

solution entails smart grid –related

services such as clean energy generation

and demand response management.

http://www.ventyx.com/en/indus

try/energy

http://ventyx.com/en/industry/en

ergy/energy-mktg-service

In total, there are 128 smart grid establishments in Georgia, together employing 5,024 people. Six

companies are headquartered in Georgia, including EFACEC ACS, Exide Technologies, Landis+Gyr,

Comverge, GE Energy and Suniva.78.8% of smart grid jobs in Georgia are located in the metro Atlanta

area, over one fourth of which are in the city of Atlanta (see Figure 3). Other studies have also confirmed

that the metro Atlanta area is one of the nation’s largest cleantech clusters. For instance, Muro et al. (2011)

rank the Atlanta-Sandy Springs-Marietta region the country’s seventh largest metro clean economy in

http://www.osisoft.com/value/industry/PowerUtilities/

http://www.osisoft.com/value/industry/PowerUtilities/

http://www.rockwellautomation.com/solutions/pems/

http://www.rockwellautomation.com/solutions/pems/

http://www.rockwellautomation.com/solutions/sustainability/energy.html



http://www.johnsoncontrols.com/content/us/en/products/building_efficiency/building_management.html




http://www2.schneider-electric.com/documents/interactive-publications/energy-brochure/files/docs/energy-made-smarter.pdf





http://www.siemens.com/entry/cc/en/#2209170-2209890

http://www.siemens.com/entry/cc/en/#2209170-2209890



http://www.ventyx.com/en/industry/energy

http://www.ventyx.com/en/industry/energy

http://ventyx.com/en/industry/energy/energy-mktg-service

http://ventyx.com/en/industry/energy/energy-mktg-service


12

2010, with clean economy jobs accounting for 1.9% of total jobs in the region (Muro, Rothwell, & Saha,

2011). Some other smart grid industry clusters are formed in cities such as Columbus, Eastanolle,

Waynesboro, Rincon, and Athens, accounting for over 90% of smart grid jobs that are outside the metro

Atlanta area (See Table 3).

Figure 2 Smart Grid Employment in Georgia Cities

Table 3 Top Ten Cities/Regions by Smart Grid Jobs

Region/City Number of SG Employees

1 Metro Atlanta 3957

2 Columbus 358

3 Eastanollee 211

4 Waynesboro 196

5 Rincon 105

6 Athens 94

7 Savannah 18

8 Colbert 18


13

9 Watkinsville 10

10 Ellabell 10

The employee size of smart grid establishments in Georgia ranges from 1 to 1,000. A majority of firms

are small-size business. 79 out of the 128 smart grid establishments in Georgia have fewer than 10

employees, accounting for 62% of the total firms (see Figure 4). 28 establishments have an employee size

between 11 and 50, and 21 firms employ over 50 people.

Figure 3 Number of Establishments by Employment Base

Smart grid establishments in Georgia are classified by four organization types: contracting & construction,

wholesale, business service and device manufacturing. Figure 5 provides an overview of the

establishment counts and number of jobs for each organization type. Devise manufacturing is dominant in

Georgia’s smart grid industry – 45 smart grid manufacturing facilities providing 4,228 jobs, which

account for over 80% of the total smart grid jobs. Actually Georgia is one of the top states in the U.S. in

terms of smart grid manufacturing (Lowe et al., 2011). The other three organization types hire 797 people,

accounting for 15.8% of total smart grid employment. However, high-value smart grid products/services

such as data analysis software and business strategy development are lagging behind, which have the

smallest number of people employed. The employee size of smart grid device manufacturing facilities is

the largest compared to the other three organization types, with an average employee size of 94 people.

The average employee sizes for contracting & construction, wholesale and business service are 11, 10,

and 7 respectively.

79

28

5 13

2 1 0

10

20

30

40

50

60

70

80

90

1-10 11-50 51-100 101-200 201-1,000 1,000+

Nu

mb

er

of

Esta

blis

hm

en

ts

Employee Size Range


14

Figure 4 Smart Grid Establishments & Employment by Organization Types

When categorized by four market segments - the advanced metering infrastructure, demand/energy

management, grid interconnection, and transmission & distribution management, 54 and 34 smart grid

establishments in Georgia are grid interconnection and transmission & distribution management firms,

generating 2,259 and 2,316 jobs respectively (See Figure 6). Demand/energy management and advanced

metering infrastructure have 1,249 and 1,312 employees working in 39 and 18 establishments

respectively. The average employee size of transmission & distribution management is the largest due to a

high number of device manufacturers.

30

26 27

45

339 256 202

4,228

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

5

10

15

20

25

30

35

40

45

50

Emp

loym

en

t

Esta

blis

hm

en

ts

Number of Establishments

Number of Employees


15

Figure 5 Smart Grid Establishments & Employment by Market Segments

Employment data of the smart grid establishments in Georgia are used as input parameter in the I/O

model, loaded with 2010 IMPLAN data for Georgia. As each establishment has its own NAICS code, the

employment data are aggregated by NAICS classes and then transformed into employment for

corresponding IMPLAN sectors. I/O analysis results show that total economic output of smart grid firms

is around 3.4 billion, with a total employment effect of 14 thousand people. Table 4 also shows

employment, labor income and output for direct, multiplier and total effects. The employment multiplier

is 2.9, which means for one job created in the smart grid industry, 2.9 jobs will be created throughout the

whole economy.

Table 4 Economic Impacts of Smart Grid Firms in Georgia

Impact Type Employment Labor Income ($M) Output ($M)

Direct Effect 5,030 492 2,056

Multiplier Effect 9,431 465 1,308

Total Effect 14,461 957 3,364

Multiplier 2.9 1.9 1.6

39

18

54

34

1,249 1,312

2,259 2,316

0

500

1,000

1,500

2,000

2,500

0

10

20

30

40

50

60

Demand/EnergyManagement

AMI GridInterconnection

Transmission &Distribution

Management

Emp

loym

en

t

Esta

blis

hm

en

ts

Number ofEstablishments

Number ofEmployees


16

5. Economic Impacts of Smart Grid Projects

Deployment of smart grid technologies not only lays the foundation for grid modernization, but also

creates jobs and drives local economic growth. Hence the second part of this study addresses the

economic impacts of smart grid investments from the federal government. Smart grid investments from

the state government that could have been spent somewhere else in the state and also create jobs are not

included in the analysis because this study only estimates the net employment effect of smart grid

investment. Information about project budgets and equipment is compiled, and sectors that are affected by

project spending are identified. This study also makes assumptions about percentage of project

expenditures that are spent in these sectors, which are then used as input parameters for the I/O model.

Details of analysis for each program are provided below.

Cobb Electric Membership Corp (EMC) Smart Grid Program2

Funding Source: American Recovery and Reinvestment Act of 2009

Recipient: Cobb Electric Membership Corporation

Federal Share: $16,893,836

Equipment:

195,000 Smart Meters

AMI Communication Systems

o Meter Communications Network

o Backhaul Communications

Meter Data Management System

Home Area Networks

Customer Web Portal

3,800 In-Home Displays

40,000 Direct Load Control Devices

Table 5 Assumed Spending Sectors of the Cobb Electric Membership Corp (EMC) Smart Grid Program

IMPLAN

Sector

Description % of

Total

Activities

Investment($)/year

253 Electricity and signal testing instruments manufacturing 20% $1,126,255.7

238 Broadcast and wireless communications equipment 20% $1,126,255.7

244

Electronic capacitor, resistor, coil, transformer, and other

inductor manufacturing

15% $844,691.8

350 Internet publishing and broadcasting 10% $563,127.9

193 Hardware manufacturing 10% $563,127.9

238 Broadcast and wireless communications equipment 10% $563,127.9

374 Management, scientific, and technical consulting services 10% $563,127.9

2 Project information see (DOE, 2012a)


17

372 Computer systems design services 5% $281,563.9

Table 6 Economic Impacts of the Cobb Electric Membership Corp (EMC) Smart Grid Program

Impact Type Employment Labor Income ($) Total Value Added ($) Output ($)

Direct Effect 72.0 7,064,833.1 7,682,212.9 16,813,557.6

Indirect Effect 36.5 2,184,444.5 3,623,546.5 5,691,965.4

Induced Effect 77.4 3,210,026.4 5,898,491.1 9,324,232.1

Total Effect 185.9 12,459,304.0 17,204,250.5 31,829,755.0

Georgia System Operations Corporation Energy Management Infrastructure Project3


Recipient: Georgia System Operations Corporation, Inc.

Federal share: $6,456,501

Equipment:

Transmission Systems Communication Equipment

o Software and hardware platform

o Advanced analysis software

o Thermal overload monitoring

Table 7 Assumed Spending Sectors of the Georgia System Operations Corporation Energy Management Infrastructure Project

IMPLAN

Sector

Description % of Total Activities Investment

($)/year

193 Hardware manufacturing 20% 430433.4

236 Computer terminals and other computer peripheral

equipment manufacturing

20% 430433.4

238 Broadcast and wireless communications equipment 20% 430433.4

244 Electronic capacitor, resistor, coil, transformer, and

other inductor manufacturing

20% 430433.4

345 Software publishers 20% 430433.4

Table 8 Economic Impacts of the Georgia System Operations Corporation Energy Management Infrastructure Project


Direct Effect 22.0 1,932,376.9 2,876,057.9 6,073,164.7

Indirect Effect 17.9 1,022,337.7 1,680,151.9 2,644,117.8

Induced Effect 24.7 1,024,102.4 1,881,352.4 2,974,712.2

Total Effect 64.5 3,978,817.0 6,437,562.1 11,691,994.6

3 Project information see (DOE, 2012b)


18

Municipal Electric Authority of Georgia Smart Grid Distribution Automation Project4


Recipient: Municipal Electric Authority of Georgia


Equipment:

Substation Automation Equipment for 128 out of 171 Distribution Substations

o Supervisory Control and Data Acquisition (SCADA) Communications Network

o Automated Voltage Regulators

o Smart Meters

o Smart Relays

Transmission Line Monitoring System

Table 9 Assumed Spending Sectors of the Municipal Electric Authority of Georgia Smart Grid Distribution Automation Project

IMPLAN

Sector

Description % of Total

Activities

Investment($)

/year

36 Construction of other new nonresidential structures 20% 817,823

266 Power, distribution, and specialty transformer manufacturing 20% 817,823

244 Electronic capacitor, resistor, coil, transformer, and other


10% 408,912

245 Electronic connector manufacturing 10% 408,912

247 Other electronic component manufacturing 10% 408,912

268 Switchgear and switchboard apparatus manufacturing 10% 408,912

269 Relay and industrial control manufacturing 10% 408,912

273 Wiring device manufacturing 10% 408,912

Table 10 Economic Impacts of the Municipal Electric Authority of Georgia Smart Grid Distribution Automation Project


Direct Effect 57.8 3,605,967.7 5,390,818.7 12,049,220.5

Indirect Effect 25.7 1,586,223.3 2,549,816.2 4,201,916.9

Induced Effect 43.4 1,800,492.4 3,307,844.4 5,229,902.7

Total Effect 126.9 6,992,683.4 11,248,479.4 21,481,040.1

Tri-State Electric Membership Corporation Smart Grid Project5

4 Project information see (DOE, 2012c)

5 Project information see (DOE, 2012e)

http://www.smartgrid.gov/recovery_act/project_information?keys=&tech%5b%5d=140


19


Recipient: Tri-State Electric Membership Corporation


Equipment:

Smart Meters

Communication Systems

Portal Access for 18,000 Customers

Table 11 Assumed Spending Sectors of the Tri-State Electric Membership Corporation Smart Grid Project

IMPLAN

Sector


Activities

Investment ($) /

year

253 Electricity and signal testing instruments manufacturing 50% 189676.7

238 Broadcast and wireless communications equipment 30% 113806

350 Internet publishing and broadcasting 20% 75870.7

Table 12 Economic Impacts of the Tri-State Electric Membership Corporation Smart Grid Project


Direct Effect 3.2 431,735.7 484,124.1 1,160,127.5

Indirect Effect 2.2 139,461.6 236,964.0 366,673.8

Induced Effect 4.8 198,286.9 364,375.0 575,969.0

Total Effect 10.1 769,484.2 1,085,463.1 2,102,770.4

Southern Company Services, Inc. Smart Grid Project6


Recipient: Southern Company Services


Equipment:

Distributed Energy Efficiency Program

IDMS and SCADA Fault Locating

Distribution Automation

6 Project information see (DOE, 2012d; Pigford, 2011)

7 Total budget of this project is $330,130,482, in which Georgia Power receives $105.2 million,

accounting for 31.87%. Hence this study assumes that Georgia’s share of the federal investment for this

project is also 31.87%.


20

Transmission Line Automation

Smart Substations

Table 13 Assumed Spending Sectors of the Southern Company Services, Inc. Smart Grid Project (Georgia)

IMPLAN

Sector


Activities

Investment ($)

/year

269 Relay and industrial control manufacturing 50% 8,738,895.9

266 Power, distribution, and specialty transformer

manufacturing

20% 3,495,558.4

268 Switchgear and switchboard apparatus manufacturing 20% 3,495,558.4



10% 1,747,779.2

Table 14 Economic Impacts of the Southern Company Services, Inc. Smart Grid Project (Georgia)


Direct Effect 150.9 15,937,998.6 27,138,291.1 52,101,345.1

Indirect Effect 69.9 4,644,655.9 7,639,735.8 12,249,540.1

Induced Effect 171.6 7,132,841.8 13,102,918.6 20,718,751.1

Total Effect 392.4 27,715,496.3 47,880,945.4 85,069,636.2

Ocmulgee Electric Membership Corporation Smart Grid Project

Funding Source: United States Department of Agriculture

Recipient: Ocmulgee Electric Membership Corporation


Equipment: Distribution line

Table 15 Assumed Spending Sectors of the Ocmulgee Electric Membership Corporation Transmission System Improvement Project

IMPLAN

Sector


Activities

Investment ($)

/year

272 Communication and energy wire and cable manufacturing 0.5 1494666. 7

266 Power, distribution, and specialty transformer

manufacturing

0.2 597866.7



0.1 298933.3

268 Switchgear and switchboard apparatus manufacturing 0.1 298933.3

269 Relay and industrial control manufacturing 0.1 298933.3


21

Table 16 Economic Impacts of the Ocmulgee Electric Membership Corporation Transmission System Improvement Project


Direct Effect 24.5 2,022,531.9 3,490,075.7 8,968,000.0

Indirect Effect 13.7 874,164.5 1,456,502.3 2,672,121.3

Induced Effect 24.2 1,004,642.8 1,845,548.5 2,918,184.9

Total Effect 62.4 3,901,339.2 6,792,126.5 14,558,306.2

In sum, there are 5 smart grid projects funded by the recovery act, and 1 project funded by the USDA.

Federal investments range from 1 million to 52 million, with economic multipliers between 2.2 and 3.2

(See Table 17). More than 800 jobs are created. Although it can be argued that these are temporary jobs,

it definitely provides the foundation for future deployment of other clean technologies.

Table 17 Economic Impacts of Smart Grid Investments in Georgia

Project Funding

Source

Federal

Investment

($M)

Total

Employment

(Job-Year)

Labor

Income

($M)

Output

($M) Employment

Multiplier

Cobb Electric Membership

Corp (EMC) Smart Grid

Program

Recovery

Act 16.9 186 12.5 31.8 2.6

Georgia System Operations

Corporation Energy

Management Infrastructure

Project

Recovery

Act 6.5 65 4.0 11.7 2.9

Municipal Electric Authority

of Georgia Smart Grid

Distribution Automation

Project

Recovery

Act 12.3 127 7.0 21.5 2.2

Tri State EMC Smart Grid

Project

Recovery

Act 1.1 10 0.8 2.1 3.2

Southern Company Smart

Grid Project

Recovery

Act 52.4 392 27.7 85.1 2.6

Ocmulgee Electric

Membership Corporation

Transmission System

Improvement Project

USDA

Rural

Utilities

Services

9.0 62 3.9 14.6 2.5

Total - 98.2 842 55.9 166.8 -

6. Smart Grid Policies in Georgia


22

This section provides an overview of policies in Georgia that promote the modernization of electric grid

systems. The types of smart grid policies examined here are drawn from the study by Brown and Zhou

(2012), including net metering policy, interconnection standards and rules, demand response and dynamic

pricing programs, smart meter target, and renewable portfolio standard (M. Brown & Zhou, 2012).

Georgia has a broad array of dynamic pricing programs and has replaced most of its old meters with AMI,

but relative to pioneer states in the country, its net metering and interconnection standards are restrictive

and may pose constraint to the deployment of smart grid technologies (Wiedman et al., 2011). The State

also has one of the lowest rates of renewable electricity generation in the country, with no political

commitment to a renewable electricity generation target (M. A. Brown et al., 2011).

6.1 Net Metering

Georgia General Assembly passed the Georgia Cogeneration and Distributed Generation Act of 2001 to

encourage private investment in renewable energy(Georgia General Assembly, 2001). This act requires

utilities to provide net-metering for all eligible customers. Eligible distributed generation technologies are

customer-owned facilities that use photovoltaic systems, wind turbines and/or fuel cells. The peak

generating capacity of eligible systems must be smaller than 10kW for residential customers and 100 kW

for commercial customers. The cumulative generating capacity of net-metered systems is limited to 0.2%

of a utility’s annual peak demand in the previous year. Any net excess generation will be credited to the

customer's next bill at tariffs filed with the Georgia Public Service Commission.

Solar photovoltaic generation receives special attention under Georgia’s net metering policy scheme.

Georgia Power, the dominant utility in the state, operates the Solar Buyback Program, which allows

customers to sell electricity produced by solar panels (Georgia Power, 2011b). The solar purchase tariffs

are subject to change according to state policies. Through 2010, the Solar Purchase Price was 17 cents per

kWh, and the aggregate energy purchases were limited to 2.9MW. Starting in 2011, solar-photovoltaic

electricity is purchased at avoided solar cost.

6.2 Interconnection Standards

The Cogeneration and Distributed Generation Act of 2001 allows certain residential (smaller than 10kW)

and commercial (smaller than 100 kW) facilities that use photovoltaic system, wind turbines and fuel cells

to interconnect and receive net metering tariffs from utilities (Georgia General Assembly, 2001). This act

requires customers to meet applicable interconnection requirements, such as the National Electrical Code,

National Electrical Safety Code, and the IEEE standards. However, Georgia does not establish its own

interconnection standards.


23

6.3 Smart Meter Deployment

Georgia Power has installed about 2.1 million smart meters since 2007, and it plans to provide every

customer with a smart meter by the end of 2012 (Georgia Power, 2011c). All together 2.4 million meters

will be installed. No additional service charge will be added to customers’ energy bill. Few of these smart

meters provide real-time information to consumers; most of them automate the collection of consumption

data by the utility.

6.4 Demand Response Programs

Georgia Power has been very successful in implementing dynamic pricing programs. An array of

dynamic pricing programs is offered to various types of customers, with electricity rates ranging from

1.25 cents per kWh during super off-peak times to 19.29 cents during on-peak hours (See Table 8). For

instance, Time-of-use rates are available to residential customers and electric vehicle owners, as well as

small, medium, and large businesses. Real time pricing for some customers are based on day-ahead or

hour-ahead power supply prices. In 2005, Georgia Power’s commercial and industrial real-time pricing

programs alone had 1,600 participants, which represented over 5,000 MW of qualifying load (Charles J.

Black Energy Economics, 2011).

Table 18 Dynamic Pricing Programs Offered by Georgia Power8

Type of Rates Applicable Customers Electricity Rate (cents per kWh)

On-peak Off-peak Super

Off-peak

Shoulder

Time-of-use Residential 19.29 4.36 -

Plug-in Electric Vehicle 19.29 5.83 1.25 -

Small Business 16.17 2.79~7.30 - -

Medium Business 11.69 2.11 - 5.61

Large Business 9.56 4.32 - 1.51

Real time pricing Customers with a peak

30-minute

demand >250

kW/month

Hourly prices are determined each day

Customers with a peak

30-minute demand >

5000 kW/month

Prices are updated each hour, sixty minutes before

becoming effective

6.5 Renewable Portfolio Standards

8 See (Georgia Power, 2011a)


24

Renewable portfolio standard (RPS) is a regulatory goal imposed on utilities which requires a certain

proportion of their electricity generated from renewable energy sources. As of June, 2012, 29 states have

implemented the RPS policy, while Georgia does not have one (DSIRE, 2012). Many southern states

oppose RPS due to small renewable share in their energy mix. For instance, 4.7% of Georgia’s total

electricity generation was from renewable energy in 2010, and conventional hydro and biomass are the

two dominant sources(EIA, 2012). Research shows that a much larger proportion of electricity from

renewable sources is economically feasible if solar becomes more cost-competitive, intermittent

transmission barriers are overcome, and emerging technologies become mature (M. A. Brown et al.,

2011). A state RPS would provide incentives for grid infrastructure upgrades and increase demand for

grid interconnection technologies that are essential for renewable energy deployment. The development

of smart grid technologies in Georgia could especially accelerate the penetration of demand-side

renewables, which are proved to be significant low-cost contributors to the state’s clean energy portfolio

(M. A. Brown et al., 2011).

7. Conclusions and Recommendations

There are 128 smart grid establishments in Georgia. The numbers of establishments in the four smart grid

market segments - advanced metering infrastructure, demand/energy management, grid interconnection,

and transmission & distribution management are 18, 39, 54 and 34 respectively. The smart grid industry

in Georgia employs roughly 5,000 people and generates over 9,400 indirect and induced jobs. The total

economic output generated in Georgia by this sector is $3.4 billion. On the other hand, Georgia is

advancing in smart grid technologies deployment. Smart grid projects receive $98.2 million from out-of-

state funding sources, including the Recovery Act and the US Department of Agriculture, which create

842 job-years and $166.8 million in total economic output.

This study shows that smart grid can be a vital source of green jobs and a driver for business growth.

Establishing Georgia as an early adopter of smart grid will not only provide a reliable and efficient

electric grid, but also help retain and attract smart grid companies, and strengthen the region’s

competitive advantage. However, this analysis shows most jobs in the smart grid sector in Georgia are

low-value manufacturing jobs. Financial benefits at the high-end smart grid products and services have

not been fully explored by Georgia.

Georgia is still lagging behind many other states in several smart grid policies, especially in net metering

policy and interconnection standards. There is also an absence of government obligation for renewable

energy in Georgia. Policies drive the market and the market in turn drives the technology development.

To truly become a leader in SG industry, GA has to establish supportive policy framework to first build


25

the market climate for smart grid. Increasing Georgia’s net metering program capacity from 0.2% to 5%

of utilities’ peak demand and considering adoption of interconnection standards and a renewable portfolio

standard would greatly facilitate the penetration of smart grid technologies. More efforts should also be

put to encourage research and development in high-value smart grid products. Public and private

partnership, such as the collaboration between the city of Norcross and GE would also be helpful for

smart grid technology penetration.

References:

American Recovery and Reinvestment Act of 2009, H.R.1 (2009). Atkinson, R., Castro, D., & Ezell, S. (2009). The Digital road to recovery: A stimulus plan to create jobs,

boost productivity and revitalize America: The Information Technology & Innovation Foundation. Brown, M., & Zhou, S. (2012). The Emergence of Smart-Grid Policies. In R. A. Meyers (Ed.), Encyclopedia

of Sustainability Science and Technology: Springer Science+Business Media, LLC. Brown, M., & Zhou, S. (Forthcoming). Smart-Grid Policies: An International Review. Wiley

Interdisciplinary Reviews: Energy and Environment. Brown, M. A., Gumerman, E., Baek, Y., Wang, J., Morris, C., & Wang, Y. (2011). Renewable Energy in the

South. Atlanta, GA: Southeast Energy Efficiency Alliance. Charles J. Black Energy Economics. (2011). Dynamic Pricing Evaluation for Washington: National

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Them - A Report to the United States Congress Pursuant to Section 1252 of the Energy Policy Act of 2005.

DOE. (2012a). Cobb Electric Membership Corporation - Cobb EMC Smart Grid Program Retrieved August 5, 2012, from http://www.smartgrid.gov/sites/default/files/09-0096-cobb-emc-project-description-06-08-2012.pdf

DOE. (2012b). Georgia System Operations Corporation, Inc. Energy Management Infrastructure Project Retrieved August 5, 2012, from http://www.smartgrid.gov/sites/default/files/09-0435-gsco-project-description-06-15-12.pdf

DOE. (2012c). Municipal Electric Authority of Georgia Smart Grid Distribution Automation Project Retrieved August 5, 2012, from http://www.smartgrid.gov/sites/default/files/09-0103-meag-project-description-05-10-12.pdf

DOE. (2012d). Southern Company Services, Inc. Smart Grid Project Retrieved August 5, 2012, from http://www.smartgrid.gov/sites/default/files/09-0493-southern-company-project-description-06-15-12.pdf

DOE. (2012e). Tri-State Electric Membership Corporation Smart Grid Project Retrieved August 5, 2012, from http://www.smartgrid.gov/sites/default/files/09-0356-tri-state-electric-project-description-05-08-12.pdf

DSIRE. (2012). Renewable Portfolio Standard Policies. Retrieved Sep 3, 2012, from Database of State Incentives for Renewables & Efficiency http://www.dsireusa.org/documents/summarymaps/RPS_map.pdf

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Electric Power Research Institute. (2007). Advanced Metering Infrastructure (AMI). Palo Alto, CA. The Georgia Cogeneration and Distributed Generation Act of 2001 (2001).

http://www.smartgrid.gov/sites/default/files/09-0096-cobb-emc-project-description-06-08-2012.pdf

http://www.smartgrid.gov/sites/default/files/09-0096-cobb-emc-project-description-06-08-2012.pdf

http://www.smartgrid.gov/sites/default/files/09-0435-gsco-project-description-06-15-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0435-gsco-project-description-06-15-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0103-meag-project-description-05-10-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0103-meag-project-description-05-10-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0493-southern-company-project-description-06-15-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0493-southern-company-project-description-06-15-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0356-tri-state-electric-project-description-05-08-12.pdf

http://www.smartgrid.gov/sites/default/files/09-0356-tri-state-electric-project-description-05-08-12.pdf

http://www.dsireusa.org/documents/summarymaps/RPS_map.pdf

http://www.eia.gov/renewable/state/georgia/


26

Georgia Power. (2011a). Business Pricing - Georgia Power Retrieved June 29, 2011, from http://georgiapower.com/pricing/gpc_rates.asp

Georgia Power. (2011b). Electric Service Tariff: Renewable and Nonrenewable Resources Schedule: "RNR-7" Retrieved June 29, 2011, from http://www.georgiapower.com/pricing/pdf/11.10_RNR-7.pdf

Georgia Power. (2011c). Your Meter is About to Get Smarter Retrieved June 29, 2011, from http://www.georgiapower.com/residential/smartmeter.asp

Georgia Power. (2012). Georgia Power Installs Final Digital Meter Retrieved August 30, 2012, 2012, from http://www.georgiapower.com/news/meters.asp

Henton, D., Grose, T., Kishimura, A., & Harutyunyan, A. (2011). Smart Grid Deployment and the Impact on Silicon Valley: Collaborative Economics.

KEMA. (2008). The U.S. Smart Grid Revolution - KEMA's Perspectives for Job Creation: GridWise Alliance. Leeds, D. J. (2009). The Smart Grid in 2010: Market Segments, Applications and Industry Players: GTM

Research. Lehr, U., & Lutz, C. (2011). Green Jobs? Economic impacts of renewable energy in Germany. Paper

presented at the World Renewable Energy Congress 2011 Sweden. Lowe, M., Fan, H., & Gereffi, G. (2011). U.S. Smart Grid - Finding new ways to cut carbon and create jobs:

Center on Globalization, Governance & Competitiveness, Duke University. Mazza, P. (2007). Powering up the Smart Grid: A Northwest Initiative for Job Creation, Energy Security,

and Clean, Affordable Electricity: Climate Solutions. Muro, M., Rothwell, J., & Saha, D. (2011). Sizing the Clean Economy: A National and Regional Green Jobs

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http://georgiapower.com/pricing/gpc_rates.asp

http://www.georgiapower.com/pricing/pdf/11.10_RNR-7.pdf

http://www.georgiapower.com/pricing/pdf/11.10_RNR-7.pdf

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http://www.georgiapower.com/news/meters.asp

http://www.smartgridchinasummit.com/smartgrid/


27

Appendix A. Smart Grid Establishments in Georgia

Organization

Name

NAICS

Code

Organization Type Location Smart Grid

Employment

Total

Employment9

Market Segments

ABB INC. 335311 Device manufacturing Athens 76 76 Transmission & Distribution

Management

Accenture LLP

541611 Business services Alpharetta 0.04 1 AMI

Accenture

LLP

541611 Business services Alpharetta 0.32 8 AMI

Accenture LLP

541611 Business services Atlanta 0.08 2 AMI

Accenture

LLP


Accenture LLP

541611 Business services Peachtree city 0.99 25 AMI

Advanced

Control Systems INC

334111 Device manufacturing Norcross 110 110 Demand/Energy

Management

Alstom Grid

T&D INC.

335999 Device manufacturing Waynesboro 21 21 Transmission & Distribution

Management

Altenergy INC

238220 Contracting/Construction Atlanta 4 4 Grid Interconnection

American

Solar

&Alternative Energies

423720 Wholesale Roswell 2 2 Grid Interconnection

Aqua & Solar

Innovative Systems

561499 Wholesale Woodstock 3 3 Grid Interconnection

Areva T&D

INC.

335311 Device manufacturing Waynesboro 175 175 Transmission & Distribution

Management

Atlanta

Renewable

Energy INC

238220 Contracting/Construction Clarkston 4 4 Grid Interconnection

Automated Logic Corp

334512 Device manufacturing Kennesaw 200 200 Demand/Energy Management

Carrier

Corporation

333415 Device manufacturing Athens 17.5 350 Demand/Energy

Management

Cisco Systems, INC.

334118 Device manufacturing Atlanta 16.5 330 AMI/Transmission &Distribution Management

Comverge

INC


Management

Creative Solar USA

423720 Wholesale Woodstock 2 2 Grid Interconnection

Directsun

Solar

Energy&Tech


Eaton

Corporation

332510 Device manufacturing Eastanollee 211 211 Transmission & Distribution

Management

Eaton Energy

Solutions, INC

541330 Business services Alpharetta 18 18 Demand/Energy

Management

Eaton Energy

Solutions, INC

541330 Business services Alpharetta 18 18 Demand/Energy

Management

EFACEC

ACS, INC

334111 Device manufacturing Norcross 96 96 Transmission & Distribution

Management

EFACEC ACS, INC.

334111 Device manufacturing Rincon 105 105 Transmission & Distribution Management

Elster

American Meter

Company,

LLC

811219 Business services Cartersvlle 18 18 AMI

9 Total employment includes the number of employees working in all business areas.


28

Empower

Energy Technology

238220 Contracting/Construction Atlanta 4 4 Demand/ Energy

Management/Grid Interconnection

Exide

Technologies

335912 Device manufacturing Alpharetta 5 5 Grid Interconnection

Exide Technologies

335912 Device manufacturing Columbus 133 133 Grid Interconnection

Exide

Technologies

335912 Device manufacturing Decatur 15 15 Grid Interconnection

Exide Technologies

335912 Device manufacturing Milton 320 320 Grid Interconnection

Feid Repeve

Renewable

LLC

541612 Business services Soperton 6 6 Grid Interconnection

First Century

Energy

Holdings


Fischer Contractors

LLC

236115 Contracting/Construction Alpharetta 4 4 Grid Interconnection

General Electric

Company

423610 Wholesale Norcross 75 150 Grid Interconnection

General

Electric Company

221122 Business services Norcross 12.5 25 Transmission & Distribution

Management

General

Electric Company

541330 Business services Duluth 19.5 39 Transmission & Distribution

Management

General

Electric Energy

335311 Device manufacturing Atlanta 1,000 2,000 AMI/ Transmission &

Distribution Management/Grid

Interconnection

General

Electric Interantional,

INC

423610 Wholesale Atlanta 25 50 AMI/ Transmission &

Distribution Management

Georgia Solar INC

423720 Wholesale Ellijay 2 2 Grid Interconnection

Georgia Solar

Solutions Inc

238220 Contracting/Construction Roswell 4 4 Demand/ Energy

Management/Grid

Interconnection

Greenspeed

Energy

Solutions

238220 Contracting/Construction Atlanta 6 6 Demand/ Energy

Management/Grid

Interconnection

GS Battery (USA) INC

423610 Wholesale Roswell 15 15 Grid Interconnection

H I Solutions

INC

339999 Device manufacturing Kennesaw 28 28 Demand/Energy

Management

Hannah Solar 423720 Wholesale Atlanta 2 2 Grid Interconnection

Hannah Solar 423720 Wholesale Atlanta 6 6 Grid Interconnection

HB Solar

Atlanta

423720 Wholesale Smyrna 2 2 Grid Interconnection

Honeywell

Building

Solutions SES Corporation

238220 Contracting/Construction Peachtree city 3 3 Demand/Energy

Management

Honeywell

INC.

334513 Device manufacturing Duluth 75 150 Demand/Energy

Management

Honeywell International

INC

221122 Business services Atlanta 3.5 7 Demand/Energy Management

Honeywell International

INC

511210 Business services Brunswick 1 2 Demand/Energy Management

Honeywell

International

561110 Business services Duluth 0.5 1 Demand/Energy

Management


29

INC

I V Solar INC 423720 Wholesale Canton 2 2 Grid Interconnection

Icontrol LLC 541611 Business services Alpharetta 5 5 AMI/Demand / Energy Management

Inman Solar 423720 Wholesale Atlanta 2 2 Grid Interconnection

Johnson

Controls Battery Group

INC.

238220 Contracting/Construction Roswell 200 200 Demand/Energy

Management

Johnson

Controls INC

541512 Business services Norcross 42 42 Demand/Energy

Management

Johnson

Controls INC

238220 Contracting/Construction Columbus 25 25 Demand/Energy

Management

Johnson

Controls INC

334512 Device manufacturing Alpharetta 9 9 Demand/Energy

Management

Johnson

Controls INC

334512 Device manufacturing Alpharetta 25 25 Demand/Energy

Management

Johnson

Controls INC

334512 Device manufacturing Atlanta 2 2 Demand/Energy

Management

Johnson

Controls

Interiors LLC

423730 Wholesale Tucker 25 25 Demand/Energy

Management

Johnson Controls

Interiors LLC

335314 Device manufacturing Kennesaw 28 28 Transmission & Distribution Management

JouleX 444190 Business services Atlanta 4 4 Demand/Energy Management

Landis+Gyr 334515 Device manufacturing Alpharetta 200 200 AMI

Mage Solar

Projects, INC

334416 Device manufacturing Dublin 9 9 Grid Interconnection

Maximus

Solar LLC

423720 Wholesale Stone

Mountain

2 2 Grid Interconnection

Metro Solar

INC

423720 Wholesale Atlanta 6 6 Grid Interconnection

Modicum Solar

423720 Wholesale Sharpsburg 2 2 Grid Interconnection

One World

Sustainable

423720 Wholesale Savannah 2 2 Grid Interconnection

One World Sustainable

Energy

238220 Contracting/Construction Lexington 4 4 Demand/ Energy Management/Grid

Interconnection

One World

Sustainable Energy

423720 Wholesale Colbert 18 18 Demand/ Energy


Oracle

America, INC.


Oracle

Corporation

511210 Business services Ellabell 9.55 191 AMI

Oracle

Systems Corporation

511210 Business services Atlanta 10 200 AMI

OSI Soft 443142 Business services Savannah 0.6 6 AMI

Panasonic

Corporation of

North America

335911 Device manufacturing Columbus 200 200 Grid interconnection

Peek Solar

LLC

423720 Wholesale Mableton 5 5 Grid Interconnection

Radiance Solar


Rockwell

Automation, INC

541690 Business services Atlanta 1.5 3 Transmission & Distribution

Management

Rockwell

Automation,

541690 Business services Savannah 2.5 5 Transmission & Distribution

Management


30

INC

Rockwell

Automation,

INC

541690 Business services Tucker 1.5 3 Transmission & Distribution

Management

Rockwell

Automation,

INC

335312 Device manufacturing Flowery

Branch

12.5 25 Transmission & Distribution

Management

Rockwell Automation,

INC

335313 Device manufacturing Lawrenceville 0.5 1 Transmission & Distribution Management

Rockwell Automation,

INC

335314 Device manufacturing Norcross 25 50 Transmission & Distribution Management

Rockwell

Automation, INC

423610 Wholesale Alpharetta 27.5 55 Transmission & Distribution

Management

Schneider

Electric Square D

811310 Business services Norcross 7.5 15 Transmission & Distribution

Management

Schneider

Electric

Square D

238210 Contracting/Construction Kennesaw 1.5 3 Transmission & Distribution

Management

Schneider

Electric USA,

INC

334513 Device manufacturing Kennesaw 26.5 53 Demand/Energy

Management

Schneider Electric USA,

INC

238210 Contracting/Construction Norcross 2 4 Transmission & Distribution Management

Schneider Electric USA,

INC

335313 Device manufacturing Conley 4 8 Transmission & Distribution Management

Sensus 334519 Device manufacturing Alpharetta 7 7 AMI

Siemens

Energy & Automation

238220 Contracting/Construction Albany 4 4 Demand/Energy

Management

Siemens

Energy & Automation

238220 Contracting/Construction Dahlonega 4 4 Demand/Energy

Management

Siemens

Energy &

Automation

238220 Contracting/Construction Norcross 4 4 Demand/Energy

Management

Siemens

Energy &

Automation

238220 Contracting/Construction Stone

mountain

4 4 Demand/Energy

Management

Siemens Energy, INC.

333611 Device manufacturing Alpharetta 150 300 Grid Interconnection

Siemens

Industry INC

423610 Wholesale Norcross 10 20 Transmission & Distribution

Management

Siemens

Industry INC.

334512 Device manufacturing Alpharetta 43.5 87 Demand/Energy

Management

Siemens

Industry INC.


Management

Siemens Industry INC.

334512 Device manufacturing Savannah 10 20 Demand/Energy Management

Siemens

Industry INC.


Management

Siemens

Industry INC.

334519 Device manufacturing Waycross 0.5 1 Demand/Energy

Management

Siemens

Industry INC.

335313 Device manufacturing Alpharetta 46 92 Transmission & Distribution

Management

Siemens

Industry INC.


Management

Siemens

Industry INC.


Management

Siemens

Industry INC.

335313 Device manufacturing Tucker 175 350 Transmission & Distribution

Management


31

Simmons

Solar Systems

238220 Wholesale Thomasville 4 4 Demand/ Energy


Soenso

Energy

238220 Contracting/Construction Marietta 4 4 Demand/ Energy

Management/Grid

Interconnection

Solar Energy

USA


Solar Power

Solutions LLC

423720 Wholesale Augusta 4 4 Grid Interconnection

Solar Sun

World LLC

423720 Wholesale Gainesville 2 2 Grid Interconnection

Solarflex

Technologies LLC

238210 Contracting/Construction Watkinsville 4 4 Grid Interconnection

Solarsmith 236220 Contracting/Construction Savannah 1 1 Grid Interconnection

South Georgia

Solar Power

LLC

423720 Wholesale Valdosta 5 5 Grid Interconnection

Southern

Solar

Solutions LLC

423720 Wholesale Stockbridge 5 5 Grid Interconnection

Southern Sunpower

238220 Contracting/Construction Ellijay 2 2 Grid Interconnection

Square D

Company

335999 Device manufacturing Savannah 2 2 Grid

Interconnection/Transmission & Distribution

Management

Suncatcher of Atlanta

236220 Contracting/Construction Marietta 5 5 Grid Interconnection

Suniva 334416 Device manufacturing Norcross 150 150 Grid Interconnection

Tegsolar

Renewable

Energies

238220 Contracting/Construction Douglasville 4 4 Grid Interconnection

The McDonnell

Group

511210 Business services Marietta 7 7 AMI/ Transmission & Distribution

Management/Grid

Interconnection

The

McDonnell

Group

511210 Business services Roswell 3 3 AMI/ Transmission &

Distribution


Thomas

&Betts Corp

238210 Contracting/Construction Alpharetta 0.2 2 Transmission & Distribution

Management

Thomas &Betts Corp

238210 Contracting/Construction Atlanta 0.2 2 Transmission & Distribution Management

Turnsol

Energy

236220 Contracting/Construction Watkinsville 6 6 Grid Interconnection

United

Renewable

Energy LLC


Ventyx 511210 Device manufacturing Atlanta 12 120 Demand/Energy

Management

Vishay

Americas,

INC

334416 Device manufacturing Acworth 1 1 Transmission & Distribution

Management

Source: D&B Database, Reference USA, Hoover’s Company Profiles, and Company websites

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