Member newsletter for Southern Maryland Electric Cooperative

The changing shape of the electric grid

In your February newsletter, we talked about decarbonization, one of three key trends impacting the electric utility industry. This month, we will focus on decentralization and what that means for cooperative members. 

Most people in the United States receive their electric supply through a centralized electric model that has served as the standard for many decades—power is generated at a large-scale facility and then transported over transmission and distribution lines through substations and switching stations until it eventually reaches the end user. 

As costs continue to decline, more and more people are choosing sustainable energy resources, such as rooftop solar, electric vehicles, and battery storage systems. As this trend accelerates, electric grids will become less dependent on centralized power plants, paving the way for decentralized electrification. 

Decentralized electrification features smaller-scale grids where the generation of electricity happens closer to the end user. These smaller grids could stand alone or be integrated into the centralized grid, increasing the resiliency of the overall system, improving security against attacks on the centralized power grid, and supporting sustainability measures. 

SMECO is already working with members interested in implementing their own generation and storage through the net metering program, which seamlessly integrates distributed energy resources and technologies onto the cooperative’s system. Regulated by the Maryland Public Service Commission (PSC), net metering programs encourage investment in renewable distribution generation and provide a uniform interconnection application process for all electric utilities in Maryland. 

With an eye on the future, SMECO is consistently transforming grid assets, technology, and processes to become a smarter, more resilient, and secure energy system. Digital technologies enable the possibility of decentralization and much more. Next month, we will talk about the third key trend impacting electric utilities—digitization.

Learn more about SMECO’s net metering program at smeco.coop/solar.