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Utilities need to offer innovative energy services or risk being sidelined

Elderly man

The EU has mandated a rollout of smart meters to at least 80% of households by 2020. What are some of the transformative ways we will we use the extra energy consumption information these meters will bring?

Last November I wrote a blog post about new energy services and business models for utilities which the granular energy consumption smart meters measure will enable. In the post I noted that

according to the US Census Bureau:

The world’s 65-and-older population is projected to triple by midcentury, from 516 million in 2009 to 1.53 billion in 2050.

Further, there are currently 30 million solo-single households in the United States (more than the number of households containing married couples with children) and about one-third of these solo singles are men and women 65 years of age and older. The percentage is even higher in Europe.

Now, if I have an elderly relative living alone, wouldn’t it be a very useful service if I could receive a timely message from their utility company if there are deviations from the normal patterns of energy usage (if the lights aren’t turned off at 11pm or the coffee machine/kettle isn’t powered up at 8am)?

I have been positing this idea of using exceptions to normal energy use as triggers for alerts, especially for family members interested in the care of an elderly relative for quite some time. Every time I mentioned it though, I always received technical reasons why it wasn’t feasible. Until very recently that is.

A few weeks back I attended the SAP for Utilities event in Madrid. There I had a meeting with Axel Memminger where we were talking about SAP’s in-memory database HANA. Because HANA runs in-memory, it allows for very fast querying of massive datasets. This is fantastic for seeing trends in historic data but not for examining realtime info.

During our talk, Axel happened to mention that as part of the Sybase acquisition SAP now had picked up a realtime event processing engine called Event Insight. Event Insight was built to parse massive amounts of data looking for exceptions and triggering alerts in realtime.

It immediately occurred to me that this was the missing piece needed to allow utilities rollout enhanced energy services like the monitoring of elderly relatives I outlined above. When I explained this idea to Axel his eyes lit up and he started architecting the solution in his head as we discussed it.

“Would you be willing to pay for something like this?” he asked me at one point. “If this were offered for something like €5 a month, I’d pay it in a heartbeat” I replied. And I strongly suspect I’m far from unique in this.

With utility companies facing reduced incomes from energy sales, it is only by providing imaginative energy services like this that utilities will secure their long-term viability.

Nor will they be alone in plying for this business. I can see services like this being offered by telcos as well and even more likely, it is a natural extension of services from care companies who typically already offer remote monitoring.

Unless utilities are innovative in the energy services they develop and offer, they may find themselves sidelined in their core-market. Who’d have predicted 10 years ago that Apple Computers would be the dominant player in music sales?

Photo Credit Tom Raftery

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GreenMonk Sustainability Customer Reference series – Kimberly-Clark

This is the second video in my Sustainability Customer Reference series project – it involves my going to SAP customers and interviewing them about the sustainability solutions they have implemented. The first SAP customer I visited was AkzoNobel in Sweden. In this second video, I talk to Kimberly-Clark’s Barry Podd.

Here’s a transcription of our conversation:

Tom Raftery: Hi everyone, welcome to the GreenMonk Sustainability Customer Reference Series, sponsored by SAP. With me I have Barry Podd from Kimberly-Clark. Barry can you tell me a little bit about your role in Kimberly-Clark and also a little bit about Kimberly-Clark itself?

Barry Podd: My role within Kimberly-Clark includes looking after chemicals legislation globally for the company. And this has become more important for Kimberly-Clark over the last few years by the way the chemical legislation has been written, including companies who use chemicals, rather than manufacture them.

To talk about Kimberly-Clark, it’s a very large company, of course. We have a professional business, and we also have a consumer business. And it is probably the consumer business that is best known.

Products that we make are facial tissues. Kleenex is the big brand name in that area. Also our diapers, Huggies is the big brand name in that area. And we also make things like toilet tissue and Andrex and Scottex are probably the names that people know best in that area.

Tom Raftery: What impact has the changing legislation had on Kimberly-Clark?

Barry Podd: We have to do things like tracking the amount of chemicals we import as a global manufacturer from outside the European Union. Also, as far as our articles go, we’re very fortunate, we don’t tend to use hazardous chemicals in our products because of the nature of them, but that doesn’t help us under the legislation. We still have to track and know that we do not have those hazardous chemicals in our products.

Tom Raftery: And you’ve recently rolled out the SAP Product Safety Solution, what benefits do you see that having Kimberly-Clark?

Barry Podd: It will bring benefits in three areas. It will be fully integrated with the SAP software we already have, so a lot of the information we need is already in there and we’ll be able to bring it in and use it to the benefit of ensuring compliance with the legislation.

We still have a lot of data to collect from our raw materials suppliers, and also curiously from our customers on how they use the products we supply them with and SAP will help us in a big way to do that.

And then the third area that it will help us, it will help us store the information that we need to demonstrate that we fully comply with the legislation available to us in Europe. And there, that is one of the really big pluses of the SAP software solution.

Tom Raftery: And finally, what are your plans for the solution, now that you have it installed?

Barry Podd: Well, we’ve got big plans. Not only are we going to use it to ensure compliance with chemicals legislation, and it will be chemicals legislation around the world, but we’re also going to use it to produce our safety data sheets. One thing that we haven’t discussed at the moment is the legislation behind safety data sheets is changing, and they will have to include a great deal more information than hitherto has been the case. And we have decided to bring that now in-house, because that’s the best way for Kimberly-Clark to ensure that we comply with that legislation as well.

Tom Raftery: Barry that’s been great, thanks a million for talking to us today.

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Use open source platforms to find cloud computing’s energy and emissions footprint

Dials

Regular GreenMonk readers will be very aware that I am deeply skeptical about claims that Cloud Computing is Green (or even energy efficient). And that I talk about the significant carbon, water and biodiversity effects cloud computing can have.

One of the biggest issues with any claims of Cloud Computing being energy efficient, or Green, is the lack of transparency from the Cloud Computing providers. None Almost none of them are publishing any data around the energy consumption, or emissions of their Cloud infrastructure (article updated from “None of them” to “Almost none of them…” after comments from Memset and Greenqloud in the comments section below). Without data to back them up, any claims of Cloud computing being efficient are worthless.

Last week, while at the RackSpace EMEA Analyst day, we were given a potted history of OpenStack, RackSpace’s Cloud Computing platform. OpenStack was jointly developed by NASA and RackSpace and they open-sourced it with an Apache License in July 2010.

Anyone can download OpenStack and use it to create and host Cloud Computing solutions. Prominent OpenStack users include NASA, RackSpace (not surprisingly), AT&T, Deutsche Telecom, HP and IBM.

What has this got to do with Cloud Computing and energy efficiency I hear you ask?

Well, it occurred to me, during the analyst day, that because OpenStack is open source, anyone can fork it and write a version with built-in energy and emissions reporting. What would be really cool is, if this functionality, having been written, became a part of the core distribution – then anyone deploying OpenStack, would have this functionality by default.

And, OpenStack isn’t the only open source Cloud platform – there are two others that I’m aware of – Citrix’s CloudStack and Eucalyptus. Having the software written for one open-source platform, should allow reasonably easy porting to the other two.

Of course, with the software written as open-source, there could be constant improvement of it. And as part of one of the cloud platforms, it should achieve widespread distribution quickly.

Having energy and emissions information available, will also allow inefficiencies in Cloud infrastructure to be quickly identified and fixed.

So, the next step is to get someone to write the software – anyone up for it?

Or, what are the chances of getting someone like HP, IBM, RackSpace, or even NASA to sponsor a hackathon whose aim is to develop such software?

Photo Credit Jeremy Burgin

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A six year old on trees: stories for Jubilee Woods

Eastern Lesser Bamboo Lemur, Marojejy National Park, Madagascar

 

My son this morning told me about a book he was reading at school about the environment. He said he was worried about pollution from factories and carbon dioxide. He wanted to go to the shops and buy some explorer’s clothes and fly to Madagascar to replant trees that had been cut down there. I said that flying might not be the best way to help the planet, but that we could invest in forestry online. I got some excellent responses on twitter when I asked for ideas there, such as looking at the Woodland Trust, by @martinhowitt. I also spent some time at Treebanker’s site - you should too. Rainforest reforestation using pilot canopy trees is a very interesiing idea. I had no idea teak grew so fast.

Malee Dharmasena also pointed me at Woodland Trust’s Jubilee Woods effort- to plant six million new trees. One of its activities is a story competition for kids to make up 60 word stories about trees, with the prize a trip to see the movie The Lorax, which is based on the Dr Seuss story – a warning about deforestation from 1961.  As an avid twitter user, with its 140 character limit, of course I like the idea of a short story, constrained to 60 words. Also makes it easier for kids too. Anyway-= my boy has been working on ideas all afternoon, and here are two of them. Hopefully they will inspire someone to plant a tree. Haven’t decided what to do about that yet, but I am making a contribution to the Woodland Trust; I like its local focus.

Ha! My son just said: “that’s a lot of writing…” Well over to you then, boy:

“It would take one hundred years to replant forests all over Earth and so if any more cutting down happens, then in fifty years all the rain forests will have gone. we need to stop the carbon dioxide so that the air is healthier and the seas, so lets do it for it the environment. my favourite is an apple tree.”

I looked at the website to find trees to buy so that we could try and help the environment. there might not be enough trees in Madagascar. all the other rain forests have been cut down. rainforests are green green green green all over, green green green all over, it is very very wet, the trees help make the rain.”

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Efficiency and Ecological Responsibility of Cloud Computing (including water footprint)

A BrightTALK Channel

Unfortunately the provider for this webinar requires a login to listen to this discussion. If you don’t wish to register, my username is tom@redmonk.com and my password is 000000

Mark Thiele from Switch recently invited me to participate in a webinar he was moderating on the Efficiency and Ecological Responsibility of Cloud Computing which took place yesterday evening.

Also participating in the discussion were Harkeeret Singh (aka Harqs) Global Head of Energy & Sustainable IT at Thomson Reuters and Jason Hoffman CTO and Founder of Joyent.

The discussion started off asking whether or not cloud computing is efficient and the panel was fairly unanimous in deciding that cloud computing is not efficient. The main point I made here is that because cloud providers are not publishing energy information, it is not possible to say whether or not cloud computing is energy efficient.

At around 15 minutes into the conversation, we shifted on to asking whether or not cloud computing is green. There was a good discussion on this with the fact that efficiency not necessarily being green being one of the main points raised. Also brought up was how plummeting costs of cloud computing are leading to an explosion in consumption – in itself not very green. And as a counterpoint Harqs raised the fact that lower costs are beneficial to start-ups in developing countries.

Then 33 minutes into the conversation, we started discussing the impacts on water of cloud computing. One point I raised is that if you run a 25kW rack for one hour the water footprint from electricity productions is:

  • 0.1 litres if the electricity comes from wind
  • 2.5 litres if the electricity comes from solar
  • 45 litres if the electricity comes from coal and
  • 55 litres if the electricity comes from nuclear (and this doesn’t include the considerable water footprint of uranium mining).

Nuclear power plants use phenomenal amounts of water. From the Union of Concerned Scientists report [PDF] on this

the typical 1,000 Mwe nuclear power reactor with a 30oF ?T needs approximately 476,500 gallons per minute. If the temperature rise is limited to 20oF, the cooling water need rises to 714,750 gallons per minute. Some of the new nuclear reactors being considered are rated at 1,600 Mwe. Such a reactor, if built and operated, would need nearly 1,144,000 gallons per minute of once-through cooling for a 20 degree temperature rise.

Actual circulating water system flow rates in once-through cooling systems are 504,000 gpm at Millstone Unit 2 (CT); 918,000 gpm at Millstone Unit 3 (CT); 460,000 gpm at Oyster Creek (NJ); 311,000 at Pilgrim (MA); and 1,100,000 gpm at each of the twp Salem reactors (NJ).

And that level of water consumption has big biodiversity effects – imagine the large water intakes required for a nuclear plant taking in one million gallons of water per minute. These water intakes don’t just take in water, they also take in any life forms in that water. None of these life forms survive going through a nuclear power plant obviously. And then there’s the heat pollution effects from the warmer water coming from the power plant outlets.

Towards the end of the discussion Jason asked if making this data available to end users would be a clear differentiator for Joyent. I responded that it would be because a) there is a demand for this information and b) because having seen how Greenpeace successfully went after Facebook, (and in their latest report are now targeting Apple, Amazon and Microsoft) for their dis-regard for the footprint of their cloud computing infrastructure, nobody wants to be the next company in Greenpeace’s sights.

Harqs added that any company pursuing such a policy should open-source it so everyone could contribute to the development of constantly improving reporting standards.

The highlight of the webinar for me was at 47:30 when Jason committed to doing just that.

All in all a superb discussion with a fantastic outcome. I hope you enjoyed it as much as I did.

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Do you want to influence EU policy on green cloud computing?

Cloud

European policymakers are reaching out to ask European citizens for their help in crafting legislation for the better of all its citizens. This is a nice departure from the lobbytocracy which exists in some countries.

Currently, as part of the Digital Agenda for Europe, there is a process in place called the Digital Agenda Assembly which has a call for discussion and feedback on a number of hot IT issues such as Cloud, Data, Security, and Social Media.

Anyone can sign up at the site and contribute.

Via Paul Miller I came across a discussion on Green Cloud, which regular readers here will recognise as an issue I have an interest in.

The Cloud group moderator posted the following question:

The recent report by Greanpeace [sic] (http://www.greenpeace.org/international/Global/international/publications/climate/2012/iCoal/HowCleanisYourCloud.pdf) cast a light on importance of energy efficiency and use of renewable energy sources for cloud environments and data centers.

Should policy address such issues in future EU cloud strategy and how ensure a green and sustainable cloud development?

Your ideas on this subject are more than welcome.

Wow – an opportunity to influence EU policy and possibly make cloud computing more Green – I couldn’t resist. I posted the following response:

Greenpeace are correct – data centers are using dirty power to run their clouds.

Unfortunately this is often outside their control – especially in the US where the utility companies are regional monopolies and there is no choice in energy provider.

In the EU, there is more competition, and data centers should be encouraged to use energy from renewable sources and to site new builds where renewables are available. The greater the demand for renewable energy, the more will be built out.

I think the best way to encourage this is through transparency. Data centres need to be required to report fully and regularly their complete energy and emissions.

Iceland is currently running one of the world’s most reliable energy grids (it doesn’t have any outages). As well as being highly reliable, it has the cheapest energy in the western world and it is 100% renewable.

Iceland is due to become a full member of the EU in the coming year – so that should help the EU in attracting cloud providers looking for a renewable energy source.

But that is quite a local solution.

The real requirement is to move our all energy generation away from fossil fuels as soon as possible – this is important not just for cloud computing, but for every aspect of our life.

As Paul says above, mandating data centres to use Green power is not an answer, moving our generation to renewables (and requiring full transparency and reporting from data centres) is.

So there you have it – my recipe for making Cloud computing Green is to require full (auditable) reporting from all data centres (and every significant energy consumer, why stop at data centres?) of the entirety of their energy and emissions. This will create a significant demand for more renewable energy, leading the generators to re-double their efforts to bring more renewables resources on-line and rewarding those who have already done so.

So if you want to influence EU policy on cloud computing to make it more Green, why not head over to the Green Cloud discussion at the Digital Agenda and let your voice be heard too?

Photo Credit supertin

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GreenMonk Sustainability Customer Reference series – AkzoNobel

I have recently started a cool project – it involves my going to SAP customers and interviewing them about the sustainability solutions they have implemented. The first SAP customer I visited was AkzoNobel in Sweden.

There I chatted with Lisbeth Svensson about their rollout of the SAP product safety solution.

Here’s a transcription of our conversation:

Tom Raftery: Hi everyone, welcome to the GreenMonk Sustainability Customer Reference Series, sponsored by SAP. With me I have Lisbeth Svensson from AkzoNobel. Lisbeth can you tell me a little bit about your role in AkzoNobel and also a little bit about AkzoNobel itself?

Lisbeth Svensson: Yes, I am a Development Manager in the area of regulatory affairs and in my role I have been managing implementation projects and development projects in the area of product safety.

Safety is, of course, very important for us to give the correct handling information, risk reduction measures and such.

Tom Raftery
: Okay and AkzoNobel?

Lisbeth Svensson: And AkzoNobel is the largest global paints and coatings manufacturer and also a major player in the area of specialty chemicals.

Tom Raftery: With your job function being around regulation and your company being involved in producing chemicals, I imagine there are a lot of issues that you have to deal with.

Lisbeth Svensson: Yes, chemicals need to be regulated in different regulations all over the world and we have to comply with that and its differences from one country to the other. And to do that of course we need to have some — some IT solutions for — to support the product safety area. So I have been involved in implementing solutions for — to support REACH and GHS, which is Globally Harmonized System, and classification and labeling requirements.

Tom Raftery: And you recently rolled out the SAP product, safety solutions, how does that help you meet these challenges?

Lisbeth Svensson: It’s helping us in a way that we can manage input data from one location and still manage to get the compliant safety data sheets and labels in different countries all over the world.

And that helps us also if we want to put a new product on the market, that we already have a system in place to manage the safety data sheets and labels for that country.

Tom Raftery: Okay and finally Lisbeth what are your plans for the SAP product safety solution going forward?

Lisbeth Svensson
: In the next few years, we will finalize all the implementation in the business units in specialty chemicals and when we have done that, all our safety data sheets and label will have the same look and feel across all the countries, all the business units and that will give us a perception of one AkzoNobel.

Tom Raftery: Lisbeth that’s been great, thanks a million for talking to us today.

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Danone’s carbon reduction collaboration with SAP has additional cost, recruitment and retention benefits

Danone

Most of the news these days is around energy efficiency wins, so it makes a welcome change to hear a pure carbon reduction story from Danone.

In 2008 Danone set very aggressive carbon reduction goals for itself. It decided to reduce its carbon emissions 30% by end of year 2012. This was a deliberately ambitious aim because it meant galvanising everyone in the company to become involved, if the aim were to be met. On a call with Danone CIO Jean-Marc Lagoutte last week I learned that Danone have already passed their 30% target – an impressive achievement.

How did they do it? They used a combination of information and incentives. On the incentives front, 30% of every plant manager’s bonus was made dependent on carbon reductions. While on the information front, Danone rolled out a carbon calculation and management system which made the full lifecycle carbon emissions of every aspect of every one of Danone’s 35,000 products readily available.

Danone teamed up with SAP to co-innovate on this project. SAP was an easy choice according to Lagoutte because Danone was already an SAP house, so the majority of the data their carbon system would need was already in their SAP system. It has now been rolled out to the majority of Danone’s affiliates and should be in all of them by 2013. Danone is hoping that this will become a standard offering from SAP so that it will be covered under SAP’s standard maintenance contract. SAP in turn have said that they do plan to offer the solution to new customers.

Next steps for Danone, said Lagoutte, include calculating the water footprint of its products, the effect on biodiversity and when labeling standards have been reached, making that information available to consumers.

Internally in Danone, a carbon master has been appointed for every country business unit. The carbon master is in charge of carbon reductions for that business unit. Making one person per unit responsible and arming them with the information the need to affect that change was obviously critical to the success of this program (that and the incentivising of the plant managers to ensure buy-in).

I asked Jean-Marc if it were just the carbon footprints’ of their products ingredients which were considered but he said that no, it was everything in the lifecycle, including their suppliers’ carbon footprints and the packaging. In fact, several of the carbon reduction wins that Danone achieved came from reductions in packaging. Four packs of Danone yoghurt sold in France had a cardboard surround. This has been done away with, for example, with a consequent carbon footprint reduction.

Other changes were to substitute the PET used in plastic bottles with a mix of recycled plastic and bio-plastic (from cane sugar). This change reduced the carbon footprint of Actimel bottles by 70%.

As well as reducing Danone’s carbon footprint, this project is also saving Danone significant costs on several fronts. PET was one of the most expensive ingredients which Danone used. Substituting bio-plastic, not only reduces Danone’s carbon footprint, but saves them money as bio-plastic is cheaper. Other packaging reductions also lead to easy cost and carbon reductions.

Also, this project led to Danone’s needing to revisit all their processes, many of which hadn’t been examined in quite some time. This re-assessment identified inefficiencies and led to many reductions and simplifications of processes.

And because all purchasing contracts had to be re-negotiated with a carbon dimension, all of Danone’s suppliers had to sell themselves once more to Danone. This led to big improvements in the supply contracts.

Finally, the carbon reduction program generated a lot of internal pride in Danone around the company’s goals and achievements. This has led, according to Lagoutte, to significant recruitment and retention benefits for Danone.

A win for the planet, a win for SAP and several nice wins for Danone!

Photo Credits Tom Raftery and sashafatcat

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Can IBM continue to support blatant sexual discrimination?

Ginni Rometty, CEO, IBM

I’ve always admired IBM’s achievements in the diversity and equality arena.

Some of their milestones down through the years include:

  • In 1914, 76 years before the US Disabilities Act, IBM hired its first disabled employee.
  • In 1942 IBM launched a disabled employee training program.
  • In 1943 Ruth Leach Amonette was elected IBM’s first female Vice President.
  • In 1946 IBM hired T.J. Laster, their first black sales representative, 18 years before the Civil Rights Act of 1964.
  • In 1953 IBM chairman Thomas Watson issued the company’s first Equal Opportunity Policy letter.
  • And in 2011, IBM announced that Ginni Rometty would take over as President and CEO – the first female CEO in the history of the company.

Consequently, I was stunned to read at the weekend that IBM’s CEO was snubbed by the organisers of the US Open at Augusta simply because she is a woman, and despite this IBM continued to sponsor the event!

A bit of background – the Augusta National Golf Club is a private club, so it can set its own rules. Its rules have been notoriously discriminatory through the years – it didn’t admit black members until 1990, until recently it had a policy requiring all caddies to be black, and it continues to refuse women membership.

The fact that it refuses to allow female membership is now sharply in focus because the club has traditionally invited the CEO’s of the main sponsors of the US Masters to become members. By the end of this year’s tournament, despite IBM’s significant sponsorship, Ms Rometty had not been invited to become a member, because of her gender.

Now Ms Rometty is reportedly not a frequent golfer, so while it may not be a devastating blow to her game, it is a slap in the face that she wasn’t asked to be a member when her predecessors at IBM were. As were the CEO’s of the two other Masters sponsors (AT&T and Exxon Mobil).

IBM’s involvement with the event goes back many years and they are tied into it deeply not just financially but also at a technological level. According to Bloomberg

IBM is featured in the tournament’s TV commercials and runs its website, mobile-phone applications and media-center technology. Palmisano serves on Augusta’s technology tournament committee. He remains IBM’s chairman — a role Rometty is likely also to assume upon his retirement

Augusta may need IBM more than IBM needs the Masters.

No Irish

Despite that, IBM went ahead with its sponsorship of the event and made no statement about the bigoted position of the club or its treatment of their CEO (and any other woman who may wish to become a member).

It would be outrageous if IBM were to continue to sponsor an organisation which practices such blatant discrimination. If the club’s rules banned people based on their religion, or their sexual preference, or as they did until recently, their race, would IBM sponsor them? Of course not. This is no different.

Some will argue that IBM gets great publicity from the Masters. Publicity which it would be loath to lose. I doubt that is the case for two reasons – 1. IBM would likely get tremendous press if it very publicly withdrew its sponsorship from the event on the grounds of the club’s prejudicial rules and 2. I’d like to think IBM is not the type of company that sells its ethics and reputation just for a couple days in the limelight.

If nothing is done to correct this, the fact that IBM is financially (and technically) backing such a sexist organisation, threatens to do serious damage to the good name IBM has built-up as a corporate citizen over the years. And that’s not at all to touch on the message this sends to IBM’s female employees – what must they be thinking about IBM’s attitude to women now?

For example, I can’t help wondering how this squares up with IBM’s Workforce Diversity Policy states [my emphasis added]:

Business activities such as hiring, training, compensation, promotions, transfers, terminations and IBM-sponsored social and recreational activities are conducted without discrimination based on race, color, genetics, religion, gender, gender identity or expression, sexual orientation, national origin, disability, age or status as a special disabled veteran or other veteran covered by the Vietnam Era Veterans Readjustment Act of 1974, as amended.

These business activities and the design and administration of IBM benefit plans comply with all applicable federal, state and local laws, including those dealing with equal opportunity. IBM also makes accommodation for religious observances, which IBM determines reasonable.

In respecting and valuing the diversity among our employees and all those with whom we do business, managers are expected to ensure that there is a work environment free of all forms of discrimination and harassment.

We can only hope that work is going on behind the scenes to fix this. It will be interesting to see what the position will be for the 2013 Masters Tournament – will IBM still be a sponsor? will Ginni Rometty be admitted as a member as an exception to the all-male rule on the basis of IBM’s sponsorship? or will the club finally change its misogynistic rules?

If next year the club still refuses to have women members, and IBM continues to sponsor the Masters, it will see IBM become the unlikely new champion of discrimination against women.

Photo Credits Tom Raftery and sashafatcat

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