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]
One of the key challenges for any new technology, like Smart Grids, is finding intelligent ways to manage them.
Smart Grids contain new assets for utilities (Smart Meters) which collect data about energy usage and pass it back to the utility. They should also be capable of receiving data from the utility (price signals) and communicating that with the household.
Because this is an extremely immature technology as yet, there are many new entrants in the field with solutions around managing Smart Grids.
At the SAP for Utilities conference, I spoke to Krishna Kumar of Space-Time-Insight and he demonstrated their Smart Grid management software. I was impressed at the way the software used Google Maps and was able to zoom in or out to report at the city/block/individual residence level!
The fact that it also allows for the management of assets like wind turbines makes this an interesting piece of software for utilities, I suspect.

The Energy Collective
This coming Wednesday, Nov 5th, sees the second installment in the
Energy Collective’s Fall Webinar Series!
Up next:
Wind and Solar Come of Age: Making Renewables Full Partners in Our Energy Future - Wednesday, November 5 @ 1 PM Eastern / 10 AM Pacific, Featuring Scott Sklar of The Stella Group and Tom Raftery of GreenMonk (that’s me!).
Scale, advances in technology, and the rising cost of fossil fuels mean wind turbines and solar panels are no longer novelties. But getting the most out of solar and wind involves more than new installations. In this Webinar, we’ll examine the challenges and opportunities associated with integrating peak-load, distributed power sources in our base-load-expectant society with an electrical infrastructure built for centralized generation. More info here.
And, don’t forget the final Webinar in the Series:
Decarbonization and Nuclear Power? - Thursday, November 13th @ 11 a.m. Eastern/8 a.m. Pacific, Featuring Duke Energy CEO Jim Rogers, Dan Yurman of Fuel Cycle Week and Ashton Poole of Morgan Stanley’s Global Power and Utility Group
This controversial energy source appears to promise massive benefits, but also presents some serious obstacles. Our panelists will explore the possibility of a nuclear future in America, discussing the costs of adding new nuclear plants, the potential impact of carbon pricing, and whether NIMBY politics and regulatory barriers can be overcome. More info here
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