Search Results for: smart grids

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Guido Bartels of GridWise and IBM discusses Smart Grids with GreenMonk

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High Voltage power line

Photo credit Ian Muttoo

Guido Bartels is General Manager of IBM’s Global Energy and Utilities Industry. Guido leads IBM’s corporate initiative around building an ‘Intelligent Utility Network,’ IBM’s portfolio of offerings and capabilities for the Smart Grid.

Guido is also a member of the Electricity Advisory Committee at Department of Energy, an organization whose mission is to

provide advice to the U.S. Department of Energy in implementing the Energy Policy Act of 2005, executing the Energy Independence and Security Act of 2007, and modernizing the nation’s electricity delivery infrastructure

And Guido holds the position of Chairman at GridWise Alliance, the US Smart Grid industry association.

[audio:http://media.libsyn.com/media/redmonk/GuidoBartels.mp3]

I invited Guido onto the show to discuss the current state of Smart Grid roll-outs globally and I asked him, amongst others, the following questions:

Define what is a smart grid (there are a lot of definitions out there!)

Why do we need them? What are the benefits of smart grid?

What is your vision of what the ideal Smart Grid rollout would be?

and what would be necessary to achieve it.

What differences are there in global geographies?

Are regulationss affecting rollout?

Can you point to any good smart grid rollouts?

Download the entire interview here
(12.7mb mp3)

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Not so Smart Grids, doomed to fail?

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Command and control

Photo credit Mikey aka DaSkinnyBlackMan in Iraq

I was invited by James McClelland and Maureen Coveney to participate in a panel at SAP’s Sapphire conference earlier this year discussing Smart Grids.

One of the key points I made was that utilities are not used to having to deal with customers. The only real interactions utilities have with customers are 1) sending out bills and 2) when the power goes and customers ring up to complain. It is highly unusual to have a utility company poll its customers when rolling out a new product, for example (for that matter, when was the last time your utility rolled out a new product?).

With the requirement to roll-out smart grids and the increasing empowerment of customers using web 2.0 technologies, for example, utilities are now going to have to learn to listen to their customers very quickly. Any roll-out of demand response programs which doesn’t take customer concerns into account is almost certain to run into serious difficulties. I have heard several utilities talk about using smart grids to come into customers houses and turn down their air conditioning at times of peak demand. Wrong! This kind of message will not sell easily.

A recent example of a not-so-smart grid was highlighted by 3News in New Zealand recently when they reported that the smart grids being rolled out there were ones where:

the benefits from smart meters almost entirely accrue to the retailer… Consumers will end up paying for meters that provide them with minimal benefits

Utilities are going to have to radically change how they deal with their customers, and quickly or they risk having spectacular failures when they launch their smart grid initiatives!

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Why Smart Grids are good!

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I have made no secret of the fact that I am a big fan of Smart Grids and Demand Response programs (properly rolled out, of course!). I have also spoken at various international conferences propounding the benefits of Smart Grids and Demand Response for quite a while now.

You can imagine my disappointment then when I read an article entitled Outsmarting the Smart Grid which was strongly anti-Smart Grids, on The EnergyCollective site by William Tucker, a pro-nuclear writer.

William sets a facetious tone for the article in his opening paragraph:

The latest delusion about energy is the “smart grid.” This bright new technological miracle will once again help us overcome the realities of physics and allow us to live in a world run on wind and sunshine.

The genesis for Mr Tucker’s displeasure appears to be the above GE ad informing people of the benefits of Smart Grids.

He says

It’s fitting that the girl is standing in front of a clothes dryer because that and washing dishes are the only examples anyone has ever been able to come up with about how residential users are going to “redistribute” their energy consumption.

What else can they do? Are they going to wait until after midnight to watch prime-time television? Are they going to heat up dinner at 4 a.m.? Are they going to turn on lights at sunrise instead of sunset? And how about air conditioning, that most voracious consumer of electricity?

Again with the unhelpful sarcasm.

While it is true that not all loads in the home are movable – I use the example that I am highly unlikely to get up at 3am to cook my dinner just because energy is cheaper – there are more than just the dish washer and the dryer. Mr Tucker neglects to mention here air conditioning (though he does mention it elsewhere in his post so he is aware of it). Nor does he mention heating water in an immersion, refrigeration, PHEVs or storage heaters for example – all very movable residential loads. Of course, he neglects to mention industrial scale demand response altogether!

Mr Tucker then re-defines the Smart Grid to suit his argument

the underlying presumption of the smart grid is that it will somehow help us conserve significant amounts of energy

Uh, no it isn’t. The presumption of the Smart Grid is that it will more closely align demand with supply, thereby stabilising the grid and facilitating the further penetration of renewables onto it, thereby lowering our carbon footprint. The Smart 2020 report (7mb pdf) estimates that Smart Grids will reduce CO2 by 2.03 GtCO2e by 2020.

Mr Tucker seems hell-bent though on criticising Smart Grids for not reducing consumption quoting from the Electric Power Research Institute (EPRI) “The Green Grid,” study published last June

its most optimistic prediction was that by 2030 we could reduce electrical consumption by 7 to 11 percent below what is now being projected. That’s not an absolute reduction in consumption but only a slowing of its anticipated rise. Second, as the study concludes, “shift[ing] load from on-peak to off-peak periods may not necessarily save energy.” It will only save money. And when you make electricity cheaper, people may consumer more of it.

What Mr Tucker is again conveniently forgetting is that electrical consumption is not the problem, per se. The problem occurs when that energy is generated using coal, oil or some other non-renewable form.

In fact, there are times when we have too much electricity and you are increasingly seeing wind farms curtailed as a result of this phenomenon. Instead of curtailing wind energy when we have an excess, what we should be doing is demand stimulation – stimulating people to increase their demand at this time of excess supply. This can be achieved by dropping the price of electricity to 0 or even making it negatively priced and making that information available via Demand Response programs rolled out over Smart Grids.

Mr Tucker concludes by once more poking fun at the GE ad

In that light, it’s worth going back to that last little GE vignette where the girl says, “It’s sunny in Arizona.” She is standing at a window looking at a waxing half moon about three hours above the horizon. If she’s in the Midwest, that means the sun has already set in Arizona. If she’s on the East Coast, then it’s about to go down. She’d better get to bed because in another twenty minutes the lights, refrigerator, television, computers and everything else are going to turn off.

Meeting pointless pedantry with more pointless pedantry, the girl is looking at a street light, not a waxing moon.

Mr Tucker’s main argument is that Smart Grids won’t necessarily reduce consumption so we shouldn’t bother with them.

Energy is very abstract, no-one really cares how much they use. What they do care about is the utility bill at the end of the month and increasingly, the carbon footprint of that consumption. If I consume 10 TeraWatt hours in my home daily (not possibly obviously!), as long as it has a negligible carbon footprint, so what?

What Smart Grids and intelligent Demand Response programs will do is, massage the demand for electricity so that it lines up with the supply. This stabilises the grid for the ISO (the grid operator) allowing them to add even more variable generation sources (i.e. renewables) to the system lowering costs and carbon footprints. Win, win.

The discussion continues in the comments where Mr Tucker rails against Demand Response

Now that I think about it, here’s what’s going to happen if the utility can cut off 1/6th of its air conditioning load on a rotating basis. If people know this – which they will – they’re just going to run their air conditioning a little higher while it’s on in order to compensate for the 1/6th of the time it’s off. It’s like the low-flush toilets that you have to flush twice to do the job.

However, for once he has a valid point!

This is why when you roll out Demand Response programs, you put the control directly in the hands of the consumer. The top-down, command and control utility attitude of “we’ll turn off your aircon when it suits us” will only turn people against Demand Response.

Instead, you roll out home area networks and home energy portals where people decide themselves how they want their devices to respond to pricing signals. You’d be able to program your dishwasher to wash the dishes when electricity at 6c/KWh or 6am, which ever came sooner, for example. If you put the washer on at 8pm, for the most part, as long as the dishes are washed by 7am the following morning, you don’t care when it happens.

Similarly with your immersion, if it selectively heats the water when electricity drops below either a set price or a set temperature, as long as you have enough hot water, you are happy.

Obviously any home energy portal like this would allow the home owner full control over all the devices in the house because they belong to the home owner, not the utility!

Long term, what I want to see happen is, I want utilities to publish their generation mix (% coal, % natural gas, % oil, % hydro, % chg, % wind, etc.), as well their prices, in realtime. That way I should be able not only to control my devices but also have the ability to select the Greenest utility supplier dynamically at any time – now that’s a Smart Grid well worth having.

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Oracle Utilities, Smart Grids and vehicle to grid

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I was talking to Guerry Waters, the VP Industry Strategy in the Oracle Utilities Global Business Unit the other day.

Guerry was telling me about Oracle Utilities’ background and how they came about as the result of Oracle’s acquisition of SPL back in Nov 2006 and Lodestar in 2007.

We got onto the subject of Demand Response (surprise, surprise!) and I raised my concerns about utilities being too command and control. When I said that for DR to really take off consumers need to be in control of their devices Guerry said:

The idea of automatic control of your Demand Response in the home is very intriguing but very much on the edge now, so what we are doing is we are working with a number of companies, like Tendril, that provides Home Area Networks (HANs) and control of devices in the home, where there can be parameters set from signals that are being passed to the HAN about price…. and bring that down to the HAN and let the HAN respond according to parameters that have been set by the consumer themselves…. and give the consumer opt-out capabilities from that.

Guerry went on to describe scenarios where your Home Area Network can contact you via SMS, for instance if you are away from home to alert you that your HAN is about to respond to a DR signal and do you want to overide or not!

Guerry did say that there are very few utilities thinking this far out but the fact that there are any is hugely heartening!

Our conversation went on to discussing vehicle to grid technologies and it was super to see that Oracle are thinking about the challenges to be overcome and ways to roll out the technologies required to make this a reality.

With both SAP and Oracle rolling out enabling technologies in this space, the Electricity 2.0 vision is quickly becoming a reality.

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Smart Grids and unlocked Smart Meters

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Smart Meter

Photo Credit Tom Raftery

I have been talking to a lot of Smart Meter and utility companies in the last few weeks and it has been fascinating. I have learned a huge amount about some of the challenges and opportunities involved in rolling our Smart Grids.

The first thing to say is that Smart Grids are coming. None of the utilities I have spoken to have given me feedback to indicate that they are rolling back on their Smart Grid projects – and they all have Smart Grid projects at some level, whether it is in planning, in trial or in roll out.

One of the questions I have asked and not received a satisfactory answer to yet is “What happens if I decide to change utility co.? Does my existing utility come along, take the Smart Meter off my wall and my new utility then needs to send an engineer to install their Smart Meter?” Unfortunately, so far the answer to this appears to be “Yes”!

In reality, this will probably be solved with some kind of cost or asset transfer solution.

As an electricity consumer (be that industrial or residential), ideally what I want is either an ‘unlocked’ Smart Meter, or one which is owned by the grid management company, as opposed to one which is locked into a particular utilitity.

In fact, for me the ultimate solution would be a neutral Smart Meter which can go out at all times, find the cheapest electricity at that time and pull from that utility!

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GreenMonk interviews Stefan Engelhardt about SAP’s vision for Smart Grids

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One of the more interesting keynote talks at the recent SAP for Utilities conference in San Antonio TX was the one given by Stefan Engelhardt, SAP’s Head of Industry Business Unit Utilities.

In his keynote he discussed decarbonisation and SAP’s vision around Smart Grids and Smart Meters. I asked him if he’d be willing to come on camera to talk about some of these topics and he very graciously agreed.

With the vast majority of the world’s utilities using SAP’s software, they have their fingers firmly on the pulse of this sector. What was pleasantly surprising to me was the amount of interest SAP is seeing from their utility client companies in Smart Grids. As Stefan himself said in the interview:

For the next couple of years we see a clear trend towards the deployment of Smart Metering technology in the Utilities industry… and that means we have to adapt the existing business processes to this new technology

It was also fascinating to hear Stefan’s predictions around how Smart Grids will be rolled out gradually by utilities. Polling of smart meters by utilities will be ramped up bit-by-bit from maybe once a day to once every 10-15 minutes and this will have huge implications for the amount of data utilities will have to manage. Previously they may have collected 1 terabyte every 10 years. With smart meters reporting energy usage every 10-15 minutes they could be collecting 1 terabyte every month, or less!

With the roll-out of Smart Grids, utility companies will be able to publish energy prices in realtime based on supply and demand. This is important because electricity is more plentiful when renewables are contributing to the mix, so cheaper electricity should also track closely with Greener electricity!.

Utilities will now be able to offer new products like critical peak pricing for peak shaving in times of electricity shortage and even demand stimulation, to encourage people to consume electricity when supply is exceeding demand. This will encourage people to shift some of their loads to times when renewables are contributing more, thereby reducing the CO2 emissions associated with that load.

[Disclosure – SAP covered my expenses to attend this conference]

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Trilliant’s Bill Vogel on Smart Grids, Demand Response and Investment

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Electrical grid
Photo Credit ogimogi

[audio:http://media.libsyn.com/media/redmonk/Bill_Vogel_Podcast.mp3]

Episode 3 of the GreenMonk Podcasts – 42 mins 47 secs

My guest on this podcast is President, Chief Executive Officer, and Founder of Trilliant Bill Vogel. Trilliant are a company that

provides intelligent network solutions and software to utilities for advanced metering, demand response, and smart grid management. With more than twenty years experience solving meter communications needs, Trilliant focuses on the adoption of open standards-based technologies for electric, gas, and water utilities.

And Trilliant recently announced that it had closed a $40m funding round so I was interested to know how Bill felt smart grids could help reduce carbon footprints. I invited him to come on the show to discuss this and also to answer questions I solicited from readers of this site.

Here are the questions I asked Bill and the approx. times I asked them:

For anyone who is not sure what a Smart Grid is, can you give us a quick Smart Grid 101? – 0:18

How does that differ from the current grid infrastructure that we have? – 01:12

How does that work? – 02:22

And why would that be of benefit to consumers? – 03:48

Questions from readers:

Asa Hopkins
In the Trilliant vision of the future, what level of access will an individual consumer have to their own energy data, and with what time resolution? Will they be able to export raw data? Manipulate it through Trilliant software? Compare with neighbors? In the future will there be an open ecosystem of tools to allow individuals to learn more about their energy use and make their own efficiency gains? – 06:05

Are there intelligent enough systems right now to allow your smart meter communicate with your appliances, change your thermostat settings up or down based on energy pricing, that kind of thing, is that a reality yet or is that still a bit of a pipe dream? – 09:22

More questions from readers:

Jerry Sweeney
Trilliant sees its customers as large utility companies. Does Bill see any path where electrical grids could become more democratised. Where dynamic pricing could facilitate the sale and purchase of electricity by small consumers and producers depending on the current real time price. This could lead to huge growth in the production of distributed renewable energy and to the growth in demand response to pricing signals that suggested scarcity or abundance. How can the grid become more like eBay given the stranglehold that TSOs and Utility companies have over it. – 10:21

Are any of the utilities thinking of Demand Response in respect to demand stimulation and not just the traditional peak shaving? – 16:34

Still more questions from readers(!):

Andy
-Is there any evidence that information on its own is enough to change consumption? – 18:43
– Is multi-utility metering a real prospect/ has this been done by you? – 20:29
– Is there added value in a ‘Utility Data Channel’ that could be used for Security Systems, Water/Gas/BioHeat/Oil/Sub metering/ equipment control? – 21:47
– Is there interest in Smart Grids from makers of Electric Heating, Micro CHP, and Energy Storage Technologies? – 23:18
– Has electric heating been integrated with the operation of smart grids before? – 24:46
– Can such systems be modular and expandible? – 25:13
– Can open standards have a role in maintaining the long term value of smart metering infrastructure? – 26:00
– How can smart metering support markets in carbon reduction? – 27:45
– What happens if we do not do a form of advanced smart metering in Ireland, what is a worst case? – 29:39
– If Ireland is pioneering high levels of grid wind penetration, which other countries may follow? – 31:26
– How may energy prices impact on your business, is your technology a hedge against rising prices? – 32:28

Mr Energy Rating
What is Trilliant’s definition of the minimum functionality required for a meter to become a smart meter? – 34:07

How fat do the data pipes need to be between smart meters to have a real smart-grid? – 36:47

How do you overcome consumer rejection of Demand Response and avoid the situation in California where a major DR program had to be shelved because of a consumer backlash? – 38:35

You are heavily involved in the HydroOne project in Ontario – what have you learned from such a big project? – 39:50

Final question – you recently announced that you closed a $40m round of funding – what are you going to do with $40m? – 41:28

Download the entire interview here
(39.2mb mp3)

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IBM’s coming on board will speed up the rollout of Smart Grids

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Light House

The observant amongst you may have noticed that we have talked quite a bit about smart grids here on GreenMonk. That is because we believe fundamentally in what it is they are trying to achieve and how they are going about it.

And we are not alone in that!

SAP’s AMI Lighthouse Council is all about Smart Grids and hence SAP are holding their SAP for Utilities conference in San Antonio Texas in October where there will be a major focus on Smart Grids.

As well as SAP, not surprisingly the utilities are all over this space because Smart Grids will give them the ability to far better manage their energy supply and the demand, thereby reducing the number of outages. It seems that every day brings news of a new Smart Grid trial by some utility.

ComEd are looking at Smart Grids in Chicago, Manitoba Hydro is testing about 4,500 smart meters in Winnipeg, Xcel Energy has announced plans to make Boulder the first SmartGridCityTM, PEPCO has rolled out a Smart Grid trial in 1,000 homes in Washington DC, Austin Energy plans to have all its meters converted to Smart Meters by December 2008, etc. In fact, here is a Google Map of all the Smart Grid projects currently underway globally!

As well as the utilities, because this is a whole new area, there are literally hundreds of startups in this space from the likes of SynergyModule in Ireland to more established names like Echelon and Itron in the US.

Because of the involvement of these myriad players, IBM has also come on board to try to bring some standards to the table. According to this recent article in CNet,

The idea is to create a common set of communication protocols and data formats that utilities and smart-grid start-ups can adhere to.

With these technical blueprints, based on standards like TCP/IP, new technologies can be plugged into the grid on a large scale…. What’s happening now is a patchwork of smart-grid trials using differing products, an approach that prevents fast technology change.

This is great news for the rollout of Smart Grids globally. If we have a universally agreed set of standards that everyone adheres to then the creation and integration of smart grids and smart grid devices suddenly becomes far less complex.

It will still take some time before there are the devices in place, and the regulators and utilities sign-up to convert completely to Smart Grids but a heavy weight like IBM’s coming on board can only help move things along.

[Full disclosure: SAP have invited me to attend the SAP for Utilities conference, I am a sometime unpaid advisor to SynergyModule and IBM are a RedMonk client, though not a GreenMonk client!]

Photo Credit MumbleyJoe

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Energy efficiency, demand response and smart grids all part of the solution

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Hymn Sheet
Photo Credit glynnish

The IEEE (the Institute of Electrical and Electronics Engineers), a non-profit organization, is the world’s leading professional association for the advancement of technology. The IEEE released a position paper on Energy Efficiency recently.

In the paper they make the case for the importance of energy efficiency policies and urge legislators to promote aggressive policies and legislation to nurture development of energy efficient products and services.

Through improved energy efficiency, the United States can grow the economy, improve balance of payments, strengthen national security, and mitigate the environmental impacts of energy use by reducing emission of both air pollutants that reduce air quality and impact public health, and greenhouse gases that affect climate change. Increased energy efficiency will help to decrease our vulnerability to oil supply disruptions.

Specifically make eight recommendations for the US federal government to implement:

  1. Promoting user awareness of economical energy efficiency opportunities
  2. Promulgating minimum efficiency standards for products consistent with life cycle
    analysis and internalization of environmental costs
  3. Providing incentives for capital investment in energy efficient technologies and processes
    in all sectors, such as residential, commercial, industrial and transportation
  4. Developing technologies to further reduce energy losses in electric power generation,
    transmission and distribution
  5. Developing, commercializing and using more efficient electric-drive technologies in
    public transit, freight, truck and personal transportation, such as plug-in hybrid electric
    vehicles
  6. Improving and upgrading transportation systems to reduce energy consumption, and
    adopting “smart growth” policies that reduce distances traveled
  7. Using communications and information technologies, such as teleconferencing and the
    Internet, to reduce the need for business travel, such as in telecommuting
  8. Using demand management programs to reduce peak demand, in lieu of building new
    generation.

Again we see reference to Demand Management and smart grid technologies. I had an analyst briefing with Cisco this morning and they too were referring to smart grids as were SAP yesterday.

When you see large commercial entities like SAP and Cisco and august non-profits like the IEEE and The Climate Group all singing off the same hymn sheet, about similar technologies to solve our energy problems you can be pretty confident that Demand Response and smart grid technologies are going to play a significant role in solving the energy crunch.

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Grid Watch: smartgrids meet smartcomms

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New Meter

We have pointed to the ongoing convergence of wireless communications and smart grids before, for example in this video about Tropos Networks and in Tom’s stump pitch on sustainability and mobility, but some news from this week throws the trend into stark relief.

Carbon Trust investments, the VC arm of a non-profit organisation working to lower the UK’s carbon emissions just announced it is to invest in a network management company called Arieso.

Why would Carbon Trust do that? After all, what does mobile network optimisation have to do with energy management? According to the newenergyworldnetwork story:

Rachael Nutter of CT Investment Partners said, ?Energy consumption in mobile phone base stations is a significant proportion of the opex of mobile operators, as high as 50 per cent in the most extreme cases.

That’s the thing about sustainability – it doesn’t need to be seen as a cost center… rather it can, and should be, part of optimisation activities. Lower carbon, lower energy, cheaper mobile roll-outs. What’s not to like?

If you’ve been following GreenMonk for a while you should know we’re wedded to bottom up sustainability approaches – “from the roots up” as we call it, which is one reason we’ve sponsored, and contributed to the awesome UK HomeCamp community, founded by Chris Dalby, who now works at UK smartmeter firm Current Cost. Seems things are moving along there too.

One of the key players attempting to drive home automation as an activity for “civilians” is ZigBee. It just started working with GreenPeak, which specialises in ultra low power mobile silicon chips, designed to be used in battery-free devices. [See a theme emerging? ;-)] No batteries isn’t just a lower carbon play though- it also means less heavy metals and toxic chemicals. What’s the news? GreenPeak is now Zigbee compliant.

Finally some smart grid news.

Swiss smart meter player just took $165m in new funding.

Could be smart timing.

The Climate Group, sponsored by GE, Google, HP, Intel, Nokia and others? just called on Barack Obama to adopt a goal of providing every household with real time information about their electricity use.

Meanwhile last week Microsoft hohm and Ford announced they are working together on home energy to Electric Vehicle management and integration, to help people that own these EVs charge them cost effectively. Its worth pointing to one of my favourite GreenMonk interviews in that light- we talk to Greg Frenette of Ford about EV smart grid convergence.

It really is time to run the first HomeCamp US!

Ironically enough, when I searched for a creativecommons attribution only shot of a smartmeter i found one from my colleague Michael Cot? in Austin. His utility called it a smartmeter, but unless he? has access to the data generated I don’t see how it deserves the name. But that’s a subject for a different blog, and indeed a line of Greenmonk research.

The really keen eyed among you may have noticed how many of the links above come from newnet news. No accident. I love the feed. Its like a shot of good news tequila every morning – something to warm your spirits.