It includes within its scope, the energy related technicalities at the household and industrial level. It is a pity that in the last few years, much stress has been laid on developing efficient household and industrial complex distribution and transmission models; a commensurate enthusiasm was not shown in developing smart distribution networks. In this context, the concept of Smart Grid is path breaking and ingenious. There is no denying the fact that the US Energy Policy and Security Act of 2007 is a trail blazing strategy that has laid down the framework for standardizing policies pertaining to new technologies in the distribution power networks (Saint 2009). The strategy enshrined in this document not only aspires to achieve maximum reliability and obliterating any barriers to the development and deployment of Smart Grid, but also intends to gain in terms of energy savings and making cost effective investments in the realm of Smart Grid (Saint 2009).
The standard policy towards energy distribution in the developed countries around the world tends to encourage the modernization of transmission and distribution systems, while making way for dependable, fool proof and reliable power infrastructure that can adjust to and accommodate any future alterations in demand and technology. The crux of the Smart Grid is to facilitate a demand response that is in consonance with the ethos of free markets and economies, and also enables the consumers to have a proactive role in adjusting their energy needs to the changing prices (Saint 2009). At the same time it intends to exploit all the possible power generation and storage options, by it the wind, solar or bio energy (Saint 2009). The eventual idea is to forge such an approach towards energy generation and transmission, which would lead to the enabling of novel products and services in the energy industry. The Smart Grid strategy do takes into consideration the facts as to the digitization of economies and financial systems, and aspires to focus on the delivery of quality power for the digital economies of the future (Saint 2009). The quintessential target of the Smart Grid is to reduce the price of power, while shrinking the carbon footprint accompanying the generation, distribution, transmission and consumption of power (Bowman 2008). The coveted distribution systems should be such as to react promptly to the anticipated system disturbances. In the 21st century scenario, any energy policy will be utterly deficient if it fails to accommodate the possibility of manmade and natural disasters (Saint 2009). These standards intend to incorporate features like automated outage cause tracking and efficient and effective location of substations (Saint 2009).
Financial Considerations Associated with New Energy Distribution Policies
The new standards in the energy distribution policies are an effective mix of both the old and the new. On the one side they seek to develop and encourage affordable distribution technologies and do focus on attaining a