New technologies like wind mills and e-vehicles require turning our electricity networks into ‘smart grids’.  Examples of values relevant for a successful and responsible transition to smart grids are privacy and reliability.

A key finding was that in determining the values that matter most, depends on the distinction between the sub-system under development and the smart grid as a whole. The researchers identified five dimensions with twenty-nine factors influencing which one becomes dominant. This includes market characteristics and characteristics of the platform/standard supporter.

An analysis of two smart grid cases, the Dutch ‘smart meter’ and an in-house energy management system, gave insight in relevant system components, values, standards and stakeholders. 

Smart meter

A smart meter that is acceptable to consumers and society, is one that integrates socio-ethical values in its design. The researchers established the five most important values:

1. Privacy: The system allows users to determine which personal information is used and communicated.
2. Correctness: The system provides correct data or performs the correct function.
3. Reliability: The system works without monitoring or controlling activities.
4. Informed consent: The system allows its users to voluntarily agree to its activation, based on comprehensible information.
5. Economic advantage: The system is beneficial to its users’ economic or financial status.

Privacy was virtually ignored at the start of the implementation process of the smart meter in the Netherlands, which partly explains its failure.

In-house energy management system

Smart meters are not stand-alone products, but part of a larger socio-technical network. An interesting and unexpected finding of the project was that it depends on the delineation of the border between the product and the rest of the system which values turn out to be relevant. Experts indicated that the important values actually shift when the smart meter is not only seen as a connected measuring device, but also more as an energy management nexus for households:

1. Economic advantage: The system is beneficial to its users’ economic or financial status.
2. Universal usability: The system can easily be operated by all users.
3. Privacy: The system allows users to determine which personal information is used and communicated.
4. Autonomy: The system allows its users to make choices and pursue goals.
5. Reliability: The system fulfils its function without monitoring or controlling activities.

This means that greater complexity implies a shift towards the values of the users and slightly from the functional values of the technology.

Prevailing standard

The project furthermore led to a general framework of twenty-nine factors that can help determine which platform or standard will eventually prevail. It can be applied to any technical case where generally accepted standards have not been established yet. This framework makes it possible to influence and predict the outcome of the process of standardisation. The factors are clustered in five dimensions:

• Characteristics of the platform/standard supporter:

1. Financial strength
2. Brand reputation and credibility
3. Operational supremacy
4. Learning orientation

• Characteristics of the platform/standard itself:

1. Technological superiority
2. Compatibility
3. Complementary goods
4. Flexibility

• Platform/standard support strategy:

1. Pricing strategy
2. Appropriability strategy
3. Timing of entry
4. Marketing communications
5. Pre-emption of scarce assets
6. Distribution strategy
7. Commitment

• Other stakeholders:

1. Current installed base
2. Previous installed base
3. Big fish
4. Regulator
5. Judiciary
6. Suppliers
7. Effectiveness of the standard development process
8. Diversity of the network

• Market characteristics:

1. Bandwagon effect
2. Network externalities
3. Number of options available
4. Uncertainty in the market
5. Rate of change
6. Switching costs

smart grid, smart meter, platforms, standards, standards, privacy, reliability, usability, energy management software, informed consent, technology acceptance