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Curt Johnson, Chair of Diversey, talks RoI of Sustainability, “CO2 is Waste” and energy savings

Diversey invited me to attend their Climate Change Summit in Amsterdam earlier this week. I went along and was very pleasantly surprised by Diversey’s commitment to corporate sustainability.

Towards the end of the day I had a chat with Curt Johnson, the Chair of Diversey, about their sustainability initiatives. Some of the highlights of the conversation:

  • Sustainability goes back to Curt’s grandfather leading an expedition into the Amazon in the 1930’s! – 1:00
  • Curt’s father (Sam Johnson) banned CFC’s as propellants from all SC Johnson products before there was any legislative requirement – 1:20
  • A cost/benefit analysis shows that being sustainable produces ROI – 2:40
  • Diversey are tripling their target and now aim to reduce CO2 emissions 25% by 2013 over their 2003 baseline – 3:56
  • Diversey’s experience is that for every $1 invested in emissions reductions, they get $2 back – 4:30
  • Diversey are tripling their target and now aim to reduce CO2 emissions 25% by 2013 over their 2003 baseline – 3:56
  • CO2 is a waste by-product of our operations… if you can reduce CO2 it is inevitable that you will create a more efficient system that is more cost effective – 4:40
  • CO2 is waste, so if you minimise CO2, you minimise waste and you maximise efficiency and increase profits – 6:00
  • Diversey’s sustainability initiatives have a huge influence on employee morale, engagement and retention – 6:31

Some other great tidbits which were left on the cutting room floor were:

  • Diversey participate in the EPA’s SmartWay program to reduce the impact of shipping
  • Diversey intend to be the first company to publish the carbon footprint of all of their products on the products
  • Diversey have converted to a daylight office cleaning regime for a one-off cost of $100,000. This move is now saving Diversey 8% on their annual energy bill and
  • Diversey actively works with their customers to help them to reduce their chemical usage!
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Cloud Energy Consumption: Google, Twitter and the Systems Vendors

Yesterday Tom posed a question: just how green is cloud computing? We have been frankly disappointed by Cloud computing providers reticence to start publishing numbers on energy consumption. We know for sure that energy is a big deal when it comes to the huge data centers the likes of Facebook are building- these firms are siting data centers next to rivers to take advantage of hydro-electric power, and in Google’s case are even looking at building their own wind turbine farms.

Some of you may remember the huge fuss when Alex Wissner Gross, a researcher from Harvard University estimated how much energy the net consumed, which became a Sunday Times story about Google Searches in terms of kettles boiled. The story claimed:

performing two Google searches from a desktop computer can generate about the same amount of carbon dioxide as boiling a kettle” or about 7g of CO2 per search

Perhaps surprisingly, Google responded, to debunk the news story:

In terms of greenhouse gases, one Google search is equivalent to about 0.2 grams of CO2.

The story petered out- which is somewhat of a shame. A real, open debate, with shared figures, bringing in all of the main players, would clearly benefit us all. With that in mind I was pleased to see that one of Raffi Krikorian, tech lead of the Twitter API team, chose to talk about power/tweet at the company’s Chirp developer conference last week:

In summary, Raffi estimated that energy consumed is around 100 Joules per tweet.

Before jumping to a conclusion that Twitter is more efficient than Google its important to note that Raffi’s estimates, unlike Google’s, don’t include the power of the PC in the equation. You should also watch the video of his presentation – for the simple reason that Raffi seems to channel Jay-Z in his presenting: the guy’s body language is straight out of a hip hop video.

I discussed Twitter’s “disclosure” with my colleague Tom this morning. He questioned its value because its an estimate, rather than a measurement. He has a point. It may be however that Raffi is just the man to take this debate to the next level. He is clearly deeply technical, can think at the level of the isolated API – and is finally a Sustainability advocate of note- I first heard of him through his seminal How Valentine’s Day Causes Global Warming riff.

We need to encourage competition on the basis of power efficiency.

I’d like to close with a call to action. Surely its time for the major web players to get together with Dell, HP and IBM in order to agree standards so we can move from estimates to measurements of Cloud energy consumption, perhaps using AMEE ($client) as a back end for standard benchmarks. You can’t have sustainability through obscurity. Open data is key to working through the toughest environmental challenges.

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Just how green is cloud computing?

Clouds

Photo credit tipiro

Cloud computing may not be as Green as you think.

I mentioned previously that I gave a keynote presentation at the Green IT Summit in Dublin last week.

In the question and answers session after the talk, Sean Baker asked about cloud computing and whether I thought companies using cloud computing weren’t simply outsourcing their emissions.

As Gordon Smith picked up in a piece for SiliconRepublic.com, I replied that I

was ?quite sceptical? about this issue. ?None of the cloud providers such as Amazon, Microsoft or IBM are publishing metrics at all. Intuitively you have to think that because you?re outsourcing that to someone of that scale that they?re being more efficient but we?ve no way of knowing. Frankly, that?s worrisome. I don?t know why they?re not publishing it and I wish they would,?

This is no sudden realisation on my part. In fact, I have been concerned about Cloud Computing’s Green credentials for some time now as you can see from a series of Tweets (here, here and here, for instance) I posted on this issue in early to mid 2009.

It is vital that cloud providers start publishing their energy metrics for a number of reasons. For one, it is a competitive differentiator. But perhaps more importantly, in the absence of any provider numbers, one has to start wondering if cloud computing is in fact Green at all.

IBM, for example, are not known for being shy when given an opportunity to talk up their Green initiatives. However, on cloud, they are conspicuously silent. The same is true for Amazon, Microsoft, SalesForce and Google.

I’m not sure why cloud providers are not publishing their energy metrics but if I had to guess I would say it is related to concerns around competitive intelligence. However this is not a sustainable position (if you’ll pardon the pun).

As the regulatory landscape around emissions reporting alters and as organisations RFP’s are tending to demand more details on emissions, cloud providers who refuse to provide energy-related numbers will find themselves increasingly marginalised.

So is cloud computing Green?

I put that question toSimon Wardley, cloud strategist for Canonical in this video I recorded with him last year and he said no, cloud computing is very definitely not Green.

To be honest, until cloud providers start becoming more transparent around their utilisation and consumption numbers there is really no way of knowing whether cloud computing is in any way Green at all.

You should follow me on twitter here.

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Dude – Where’s My Customer? On Telcos, Utilities and Smart Grids. Towards a “SIM Card” for Smart Grids

SIM card reader
We had a really solid briefing with Convergys today. The firm sells software and services to telcos and utilities for customer care and billing – it has 80k employees worldwide, 550+ clients, and $3bn in revenue.

According to Greenmonk research most?utilities are failing to understand the the need to put the customer right at the center of their Smart Grid strategies. I pushed Kit Hagen, senior director of marketing, on the issue and he came back with a strong response.

“We often see utilities refer to IT as “the meter to cash process”- there is no customer in that. They’re calling the customer a meter.

Now you’re not going to just have disaggregated generation, but potentially a bunch of devices sitting behind the meter itself, and utilities should want to understand whats going on there. The world doesn’t end at the smart meter: think of kitchen appliances, for example.

This is an area the utilities need to start addressing. We can enable the technology, we can help the utilities…”

Electricity microgeneration, supported, for example, by feedin tariffs. How would a utility handle that from a billing perspective, send out two bills – one for consumption and one for production?

Kit’s colleague Mary Ann Tillman, director of product marketing, offered up a near perfect analogy for the kinds of challenge we’ll need to fix – mobile phones and SIM cards.

“Think of roaming. We need the same model for electric vehicles. How is someone that travels from London to Edinburgh in their EV going to be billed for recharging?”

Great analogy Mary – and that’s just within the UK… what about Pan-European requirements? For context – in case you have missed it, it turns out that EVs are one of the promising distributed storage mechanisms- the car battery becomes part of a “virtual utility”, as per Better Place.?We’re going to need the equivalent of GSM, and SIM card standards to support smart grid ecosystems of networked devices.

Not to put too fine a point on it – wireless communications companies are rather more used to this kind of model than traditional utilities, which could prove to be a competitive advantage. The role of the traditional utility billing engine fundamentally changes in smart grids – its definitely time to start refactoring these systems. T-Mobile is already driving a SIM to smart grid integration strategy.

Top down, customer takes what we give them just won’t work in smart grids. Roaming puts the customer first, and “number portability” will have to be part of the model. As we have been saying lately – smart grids and wireless networking are converging.

disclosure: Convergys is not a client.

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Friday Green Numbers round-up 04/23/2010

Green numbers

Photo credit Unhindered by Talent

And here is this week’s Green numbers:

Posted from Diigo. The rest of my favorite links are here.

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My “Green IT – driving efficiency, sustainability and enabling efficient working practices” presentation

Conference organising company iQuest contacted me last year to ask me to deliver a keynote presentation at their Green IT Summit.

The event took place in Dublin yesterday and my keynote talk entitled “Green IT – driving efficiency, sustainability and enabling efficient working practices” is above.

The organisers prudently decided that they didn’t want to take the risk of any of their international speakers not making it to the event because of the ashcloud. This would have left them with a hole in the schedule at the last minute so they contracted the services of OnlineMeetingRooms and three of the presenters were able to present to the audience in Dublin, over an online video connection, without having to travel!

The title I was asked to present on was quite broad and I had 30 minutes to try cover it all so I had to go at quite a clip but the feedback has been extremely positive so it seemed to work out very well.

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Power Companies and Smart Grids: a Greenmonk link roundup

One of our prospects asked about relevant Greenmonk research? in her space- that is: utility company customer care and billing. So Tom compiled a few links and fired them over. It seems to me though that you might also find the roundup interesting. So here are some links showing you the kind of thing Greenmonk is thinking and researching about in terms of Smart Grids and how they will affect utility companies and their customers:

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Are utility companies ready for full smart grids?

Power management display

In the Smart Grid Heavy Hitters video interview series I have been publishing here on GreenMonk, one of the questions I ask all interviewees is, “What is a Smart Grid?” Almost all the interviewees talk about an infrastructure capable of full end-to-end, two-way communications. That is, communication from utilities down to the appliance level in-home, and from appliances back up to utilities.

Great. But what does this mean in practice and is this something utility companies have given enough thought to?

Utility companies currently typically take one meter reading per month. With the roll out of smart meters and smart grids that will change drastically. If a utility goes to 15 minute meter reads, we are talking about a shift from one meter read a month to around 2,880 meter reads a month (4 x 24 x 30 = 2,880).

This has huge implications for a utility company’s IT infrastructure. They will need to capture and store orders of magnitude more information than they have ever needed to previously.

On top of that, the information coming from smart meters is vastly more complex than the simple output of analog meters, as well. Particularly if the consumer is also a producer, selling energy back to the grid (via generation or from storage), getting rebates for lowering consumption in times of peak demand and/or getting roaming bills for charging up electric vehicles at public charging facilities, for example.

What will utility companies do with this new data?

Well, the primary use of this data will be for billing. Do utility companies have billing systems in place which are able to take in these vast quantities of data and output sensible bills?

Today’s bills are generated off that single monthly meter read, however bills generated from 2,880 meters reads a month (or even 720 – one meter read per hour) will be very different. They should be easy to understand, reflect the intelligence gained from the extra information and offer customers ways to reduce their next bill based on this.

Crucially too, utility companies will need to be pro-active in contacting people who go out of their normal pattern of usage/billing, otherwise we’ll see even more consumer backlash against smart grid roll-outs.

Obviously, transitioning away from paper bills to electronic ones will vastly enrich the possibilities utilities have with data presentation for customers as well as offering utilities ways to monetise their billing delivery (Google Adwords for bills anyone?).

On the consumer side, consumers will need to be able to see their energy consumption in real-time. Not only that, but to ensure that they act appropriately on the information, the user interface will be critical. A poor user experience will see a deluge of calls swamping customer care as people struggle to understand their consumption patterns. Or worse, mis-understand and send their bills soaring!

Consumers will need to be given ubiquitous, secure access to their energy consumption information. But more than that, consumers will also need to be given the tools to help them reduce their bills, without necessarily reducing their consumption (i.e. load shifting).

This will also necessitate a move to smart appliances by the consumer (appliances which can listen for price signals from the smart grid and modify behaviour according to a configurable set of rules). The Smart Appliances market is expected to reach $15bn by 2015 so the move to smart appliances can represent a new revenue stream for utility companies. Especially if they, with consumers consent, utilise energy-profile information from consumers smart meters to make more appropriate energy saving suggestions.

All of these changes require seismic shifts by utility companies both in terms of IT investments, but also in terms of their approach to customer care and communications.

Are they up for the challenges ahead? With the increasing liberalisation of energy markets and growth in consumer choices, they better be!

You should follow me on twitter here.

You should follow me on twitter here.

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Friday Morning Green Numbers round-up 04/16/2010

Green numbers

Photo credit Unhindered by Talent

And here is this week’s Green numbers:

Posted from Diigo. The rest of my favorite links are here.

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Smart Grid Heavy Hitters – Jon Wellinghoff, Chair of US Federal Energy Regulatory Commission – part 1

Jon Wellinghoff is the Chairman of the United States Federal Energy Regulatory Commission (FERC) – the FERC is the agency that regulates the interstate transmission of electricity, natural gas, and oil. As such, the FERC was the agency which Google Energy applied to for its licence to buy and sell electricity on the wholesale market, for example.

Shortly after his appointment as Chair of the FERC in 2009 by Barack Obama, Chairman Wellinghoff made headlines when he said

No new nuclear or coal plants may ever be needed in the United States… renewables like wind, solar and biomass will provide enough energy to meet baseload capacity and future energy demands

A chance came up recently to have him on this show, so I obviously jumped at it!

We had a great chat – so good, in fact that I turned it into two shows rather than edit any of it out.

In this first video we discussed:

  • What a smart grid is and its benefits
  • The backlash to early smart grid rollouts in Texas and California
  • How long it will be before we see full smart grids deployments

I will publish the second part of the interview next week.

In part two Chairman Wellinghoff will once again state that the US does not need to build any more coal or nuclear power plants, that renewables can meet the energy requirements of the US and he will discuss how electric car owners in some trials are being paid over $3,000 per annum for use of their batteries for grid regulation services by their utilities!