Tag Archive for 'demand response'Page 3 of 4

Why don’t we already have a real time market for electricity?

Published
by
Tom Raftery
on September 2, 2008
in demand response
. 3 Comments

Supply and Demand
Photo Credit whatnot

If Demand Response is such a good idea and will help get more renewables onto the grid, why isn’t it being embraced by the grid management companies?

Most grid management companies have been in business for decades managing a grid in which the supply is manageable and the demand is variable but reasonably predictable - typically daily demand is “this day last year +2.5%”!

Now grid management companies are faced with a situation where an increasing percentage of their supply is coming from variable sources (i.e. wind) - if the wind blows more than anticipated, too much electricity is generated and if it blows less than anticipated, the converse is true. This totally messes up their planning and consequently grid management companies hate wind, and think of it as unpredictable, negative demand!

Instead of having such a negative attitude to renewables and shutting them down in favour of fossil fuels they should be asking how can we facilitate the greater penetration of clean renewable energy sources onto the grid.

In the coming years, the demand for electricity will increase significantly as transportation goes more electric (electric and plug-in electric cars, bikes, trucks, etc.) and as heating moves more to electricity. This will add demand to the grid system but this increased demand is eminently movable - for the most part you don’t care if your car re-charges at 7pm or 4am as long as it is re-charged when you want to leave for work at 8am. Similarly with heating, if you use storage heaters (and they will become more common) you don’t care when they suck in the heat as long as they heat the house the following day.

If you can move the demand to a time when traditionally the requirement for electricity was low, you can deliver it over the same infrastructure, thereby selling significantly more electricity without having to massively upgrade the network.

The upshot of this is that an increasing movable demand (the ability to time shift consumption) should be a strong business case for a real-time electricity market. Let demand be guided by supply (as indicated by price). With a real time market for electricity you need never shut down wind farms in favour of fossil fuels, you sell more electricity and you enable a greater penetration of renewables onto the grid. Win, win, win.

Why hasn’t this happened already? Ask your local grid management company.

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Demand response - how to get more wind energy onto the grid

Published
by
Tom Raftery
on August 29, 2008
in demand response
. 3 Comments

Wind Energy Curtailment

I read a fascinating article in the New York Times yesterday about how the electricity grid in New York can’t always cope with the amount of electricity being produced by the Maple Ridge wind farm and so from time to time the wind farm has to shut down production!

This problem is not unique to New York according to the article:

That is a symptom of a broad national problem. Expansive dreams about renewable energy, like Al Gore’s hope of replacing all fossil fuels in a decade, are bumping up against the reality of a power grid that cannot handle the new demands.

The dirty secret of clean energy is that while generating it is getting easier, moving it to market is not.

This is a problem for the owners/operators of Maple Ridge and similar facilities - how do you get a return on investment if the grid operators can shut you down at a moment’s notice? In fact, how do you get investment in the first place if your income is completely controlled by another company?

Nor is this just an American problem, I heard reports this morning that in the last few days, for the first time ever, Eirgrid (the Irish transmission service operator - grid management company) had curtailed production from Irish wind farms. I contacted Eirgrid’s customer services department and confirmed that this had in fact happened and I will be receiving more information from Eirgrid about this early next week.

Ireland is currently sourcing an average 9% of its energy requirements from wind but has committed to moving to a 33% average from renewables by 2020. If the grid is having difficulties taking in wind energy at 9%, how do they hope to get anywhere near 33%?

Even more insane is the fact that if you are a wind energy producer in Ireland, you have to sign a contract allowing Eirgrid to shut you down up to 17% of the time. Yes, you read that right - at a time when countries are trying to reduce their carbon footprint to comply with Kyoto, the Irish grid operator is dissuading investment in wind energy projects by inserting curtailment clauses and now by going the full hog and shutting down wind farms!

Have Eirgrid not heard of Kyoto? Or CO2 emissions? Or the obvious solution to problems like over capacity from wind - demand response?

The problem Eirgrid have is not an over-supply of energy from wind. It is an over-supply of wind energy when demand for electricity is low (6am on a warm summer weekend morning, for example).

With a proper demand response mechanism in place, if too much electricity is being created by wind, instead of shutting down wind farms and risking future investment in renewables, you simply reduce the price of electricity to the market to stimulate an increase in demand!

The market gets cheaper electricity, from clean sources, investors are less wary of investing in wind so more wind farms are financed, the government stands a better chance of reaching its 33% from renewables by its 2020 target and Eirgrid get a more stable grid (as well as helping the govt reach its target) - win, win, win,win, and win!

Nor is this issue limited to Ireland and the US. Any countries hoping to increase the penetration of renewable (variable) energy supplies will need to initiate a demand response mechanism to manage the demand, thereby stabilising the system and allowing for even greater uptake of renewable energy.

You can be sure I will be putting this to Bill Vogel, CEO of Trilliant, when I am talking to him next week.

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Any questions for Trilliant CEO Bill Vogel?

Published
by
Tom Raftery
on August 25, 2008
in smart grid
. 4 Comments

Question
Photo Credit e-magic

Trilliant, are a Smart Network infrastructure provider who

provides intelligent network solutions and software to utilities for advanced metering, demand response, and smart grid management

Last week they announced that they had

closed a $40 million equity investment from an affiliate of MissionPoint Capital Partners and zouk ventures

Next Tuesday, Sept 2nd, I will be interviewing Bill Vogel, Trilliant’s President, Chief Executive Officer and Founder, for a podcast to be published here later in the week.

In the interview, amongst other things, we will be discussing what smart networks and smart grids are, and why they are such a good thing for the consumer as well as the utilities. We will be discussing the $40 million investment and where that money will be deployed and we will also talk about the Hydro One Smart Grid project (28kb pdf), a project to deploy 1.4m smart meters throughout Ontario.

If you have any questions you’d like me to ask Bill during the interview, please feel free to leave them here in the comments of this post (or email them to tom@redmonk.com) and I’ll ask them for you during the podcast.

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IBM’s Vik Chandra on how software can help reduce your carbon footprint

Published
by
Tom Raftery
on August 15, 2008
in Podcast
. 2 Comments

IBM Green Data Center in Second Life
The IBM Green Data Center in Second Life

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Episode 2 of the GreenMonk Podcasts - 27 mins 27 secs

My guest on this podcast is IBM’s Vik Chandra. According to IBM Vik

is currently responsible for Market Management and Strategy for IBM software offerings that enable organizations to reduce their energy consumption and environmental impact. IBM’s software group offers middleware from its Tivoli, Rational, WebSphere, Lotus and Information Management brands.

I was interested to know how Vik felt software could help companies reduce their carbon footprint so 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 Vik and the approx. times I asked them:

It is easy to see how more efficient hardware can help drop a company’s energy use but how is software helping companies reduce their carbon footprint? - 00:20

Demand response - the ability to have devices adjust their settings dynamically in response to pricing signals from utilities etc is recently gaining a lot of attention. Is this something IBM are looking into? 03:23

Questions from readers:

Chris Dalby
Are there any plans to expand the current cost craze that has hit Hursley? With rising energy and utility costs in general, are there plans to help companies intelligently manage and automate their energy infrastructure using mqtt? - 05:57


Alan in Belfast
As CPU/core speeds increase, software has become more and more processor hungry, driving up heat, fan, power etc. Energy efficient machines - even Eee PC 1000s! - start to alter the processor speed to keep power demands down. Are IBM serious about de-bloating their software to make it more light-weight? And do they have any feel for whether that could make a 1% difference or a 20% difference to desktop/laptop/server power usage? - 08:14

Is it more efficient to build features into hardware or software? A lot of the enterprise monitoring software that gets installed to instrument PCs/servers runs continuously. Better to make lighter hardware modules to do the same? Is there a day when a Linux-on-a-chip (etc) will be embedded in PCs/servers as a more energy-efficient method of performing these tasks? (Bring back the PIC chip!) - 10:28

Jim Spath
We’re moving toward more virtualization, currently running IBM AIX on Power5 LPARs, starting to run virtual CPUs, memory, storage and I/O. What are the limiting factors for software licensing in such a landscape? It seems we save money on hardware but pay more for software that could run in different frames.
I think Linux is a partial answer, but there are corporate concerns with having multiple OS images, not to mention uneasiness about GNU and BSD license models. - 14:23

Jim Hughes
I see plenty of power management software going into desktop and laptop PCs (clock slowing, fans that run only when necessary etc.), but precious little into servers.

As many enterprises appear to be shuffling ever more equipment into noisy, over heating server rooms, surely power (and noise) management should be a big issue here.

Are IBM ignoring servers because they’re hidden away from all but the long suffering sys admins? - 17:01

Ed Gemmell
Of the $1 billion IBM said they would invest in Green IT. How much has already been invested (can we see it in the financials?) and how much has been in Software. What do you have to show for the $1billion so far? - 21:31

Uldis Bojārs
It would be interesting to learn more about what is IBM’s experience and lessons learned in enterprise use of new social media and collaboration tools such as microblogging and virtual 3D worlds. - 25:58

Download the entire interview here
(25.1mb mp3)

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

Published
by
Tom Raftery
on July 28, 2008
in smart grid
. 0 Comments

Light House
Photo Credit MumbleyJoe

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!]

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ICT could deliver approximately 7.8 GtCO2e of emissions savings in 2020

Published
by
Tom Raftery
on July 17, 2008
in co2
. 4 Comments

Measuring time
Photo Credit aussiegall

James has, in previous posts referred to the fact that IT is responsible for 2% of the world’s CO2 emissions but that it can have a disproportionate influence on the other 98%. This is something we believe fundamentally in GreenMonk so it is great to see others vindicating our position.

The Climate Group and the Global e-Sustainability Initiative (GeSI) recently published a report, independently audited by McKinsey and Company called Smart 2020. The report is a fascinating read and comes to the conclusion that ICT could:

deliver approximately 7.8 GtCO2e of emissions savings in 2020. This represents 15% of emissions in 2020 based on a BAU [Business As Usual] estimation. It represents a significant proportion of the reductions below 1990 levels that scientists and economists recommend by 2020 to avoid dangerous climate change. In economic terms, the ICT-enabled energy efficiency translates into approximately €600 billion ($946.5 billion) of cost savings. It is an opportunity that cannot be overlooked.

Apart from emissions associated with deforestation, the largest contributors to climate change are transportation and power generation, so how could IT help these functions?

According to the report the use of

  1. Smart motor systems - optimised motors and industrial automation would reduce 0.97 GtCO2e [0.97 giga tons CO2 emissions] in 2020, worth €68 billion ($107.2 billion)
  2. Smart logistics - global savings from smart logistics in 2020 would reach 1.52 GtCO2e, with energy savings worth €280 billion ($441.7 billion)
  3. Smart buildings - smart buildings technologies would enable 1.68 GtCO2e of emissions savings, worth €216 billion ($340.8 billion) and
  4. Smart grids - smart grid technologies were the largest opportunity found in the study and could globally reduce 2.03 GtCO2e , worth €79 billion ($124.6 billion)

Even though we have been heavily promoting the use of smart grids and demand response on this blog I was impressed that they could reduce CO2 emissions by 2 giga tons by 2020. This is one of the reasons why I was super-excited today when SAP’s Mike Prosceno invited me to attend their SAP for Utilities conference which is going to be in San Antonio Texas in October. This is a conference about the future of utilities and there will be a big focus on smart grids, smart meters and AMI (Advanced Metering Infrastructure).

How will IT help reduce emissions? It comes back to that old chestnut - if you can’t measure it, you can’t manage it.

Or as Steve Howard, CEO, The Climate Group said in his opening address in the report:

When we started the analysis, we expected to find that ICT could make our lives ‘greener’ by making them more virtual – online shopping, teleworking and remote communication all altering our behaviour. Although this is one important aspect of the ICT solution, the first and most significant role for ICT is enabling efficiency.

Consumers and businesses can’t manage what they can’t measure. ICT provides the solutions that enable us to ‘see’ our energy and emissions in real time and could provide the means for optimising systems and processes to make them more efficient. Efficiency may not sound as inspirational as a space race but, in the short term, achieving efficiency savings equal to 15% of global emissions is a radical proposition.

Via Doug Neal (aka gblnetwkr)

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