Stephen Gilbert, parliamentary private secretary to Ed Davey, sang the praises of smart grids at a fringe event run by the Energy Networks Association.
They have the potential to create 9,000 jobs and a £5 billion export industry as well as cutting carbon and deferring network reinforcement, he said.
Responding to concerns raised about the cost, he added: “Cost is precisely the reason we need smart grids. Why would you take the dumb investment choice when you can take the smart option that provides long term benefits?”
Hongjian Sun, a lecturer in Smart Grids at Durham University, backed him up. He said: “The motivation for a smart grid is clear – if you just build generation to meet the peaks of demand you spend a lot more than if you invest in a smart grid that builds an active link between consumption and generation.”
“A smart grid can help maximise renewables by deploying storage and will make effective use of the data from smart meters, but it will need consumer engagement to succeed.”
Scottish Power Energy Networks is already improving grid performance by installing automation technology, according to engineering director Jim Sutherland. “Our plans for the next price control period will continue this trend as well as facilitating the connection of low carbon technology.”
He noted the need to for data security “to ensure only legitimate parties have access to consumption data”.