Search Results for: "smart grid"

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Flexible Power Alliance develops open source software and standard for smart grid demand management

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We have been talking here on GreenMonk about energy demand management since early 2008, and our take on it has always been that for demand management to work, it will need to be automated. Unfortunately, finding a decent automated demand management solution has proven elusive. In part, the recent rise of the Internet of Things technologies has helped spur more interest and developments in this area.

Last week, for example, we attended the European Utility Week in Vienna, and amongst the many fascinating stands that were there, I came across the Flexible Power Alliance on CGI‘s stand.

The Flexible Power Alliance is an open source software alliance comprised of software companies (CGI, and Accenture), Utilities (Alliander and Stedin), and research organisations (such as TNO). This Alliance has developed a standard called FAN which is a communication layer between devices and energy services, and open source software called PowerMatcher, which helps to match the supply and demand of electricity on a grid.

The software developed with Java and OSGI, is Apache 2.0 licensed, and is available to download (or fork) on Github.

And in the video above, we talk to Alliander DevOps Consultant Alexander Krstulovic, and he demonstrates the software in action on a small microgrid. The software turns up and down the consumption of a bank of LED lights, and changes the price of electricity depending on the realtime availability of energy on the virtual market created by the software.

It is worth pointing out that Alliander has trialled this software in the real world, and are now in the process of commercialising it.

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EPRI releases open, standards based software, to connect smart homes to the smart grid

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Smart Appliance Screen

Automated Demand Response (ADR) is something we’ve talked about here on GreenMonk for quite a while now. And in other fora, at least as far back as 2007.

What is Automated Demand Response? Well, demand response is the process whereby electricity consumers (typically commercial) reduce their usage in response to a signal from the utility that they are in a period of peak demand. The signal often takes the form of a phone call.

Automated demand response, as you would imagine, is when this procedure is automated using software signals (often signals of price fluctuation). The development of ADR technologies received a big boost with the development of the OpenADR standard, and the subsequent formation in 2010 of the OpenADR Alliance to promote its use.

Consequently, EPRI‘s recent announcement that it has developed automated demand response software, is to be welcomed.

In their announcement EPRI say the new software will:

provide a common way for devices and appliances on the electric grid to respond automatically to changes in price, weather, and demand for power, a process called automated demand response (ADR).

ADR makes it possible to translate changes in wholesale markets to corresponding changes in retail rates. It helps system operators reduce the operating costs of demand response (DR) programs while increasing its resource reliability. For customers, ADR can reduce the cost of electricity by eliminating the resources and effort required to achieve successful results from DR programs.

The EPRI ADR software was certified by the OpenADR Alliance. “Making this software freely available to the industry will accelerate the adoption of standards-based demand response” said Mark McGranaghan, vice president of Power Delivery and Utilization at EPRI.

This software has the potential to finally bring the smart grid into the home, allowing smart appliances to adjust their behaviour depending on the state of the grid. Some manufacturers have been fudging this functionality already with a combination of internet connected devices and cloud computing resources (see Whirlpool 6th Sense device above). And others, like GE are planning to bring older appliances into the connected fold, by sending out wifi modules that add new sensor capabilities.

Connecting appliances to the grid has the ability to make them far smarter. We’ll be discussing this, and more IoT topics in far more detail at ThingMonk, our upcoming Internet of Things event, in Denver next month. Hope to see you there.

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The coming together of the Internet of Things and Smart Grids

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I was asked to speak at the recent SAP TechEd && d-code (yes, two ampersands, that’s the branding, not a typo) on the topic of the Internet of Things and Energy.

This is a curious space, because, while the Internet of Things is all the rage now in the consumer space, the New Black, as it were; this is relatively old hat in the utilities sector. Because utilities have expensive, critical infrastructure in the field (think large wind turbines, for example), they need to be able to monitor them remotely. These devices use Internet of Things technologies to report back to base. this is quite common on the high voltage part of the electrical grid.

On the medium voltage section, Internet of Things technologies aren’t as commonly deployed currently (no pun), but mv equipment suppliers are more and more adding sensors to their equipment so that they too can report back. In a recent meeting at Schneider Electric’s North American headquarters, CTO Pascal Brosset announced that Schneider were able to produce a System on a Chip (SoC) for $2, and as a consequence, Schneider were going to add one to all their equipment.

And then on the low voltage network, there are lots of innovations happening behind the smart meter. Nest thermostats, Smappee energy meters, and SmartThings energy apps are just a few of the many new IoT things being released recently.

Now if only we could connect them all up, then we could have a really smart grid.

In case you are in the area, and interested, I’ll be giving a more business-focussed version of this talk at our Business of IoT event in London on Dec 4th.

The slides for this talk are available on SlideShare.

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Just where does Intel fit in the Smart Grid ecosystem?

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Intel Solar Installation Vietnam

When we think of smart grids, Intel is not the first name we think of.

This is a perception that Intel is anxious to change. The multinational chip manufacturer, which has seen its revenues drop in recent years, is looking for new markets for its products. The smart grid space with increasing billions being spent annually begins to look very attractive. And Intel’s place in it? Intel is positioning itself very much at the smart in the smart grid. The distributed compute and intelligence needed to power the smart grid.

One of the most important functions of an electricity grid is to precisely balance electricity supply from its various generators, to the demand from consumers. This is an increasingly complex task in a world where consumers are more and more becoming prosumers (producers and consumers). Utilities need transparency to forecast how much energy will be consumed, and where to help stabilise the energy flows, and the price of energy on the grid.

To achieve this transparency, particularly towards the edges of the network, chips like Intel’s Quark SoC will be important.

Intel isn’t relying on its silicon chops alone though. Speaking recently to Intel’s Hannes Schwaderer (Director of Energy and Industrial Applications for EMEA), Hannes was keen to point out the other strengths Intel brings to the table. Smart grids generate big data, and lots of it. Intel’s investments in Cloudera, and Mashery give Intel a big footprint in the big data and analytics spaces, according to Hannes.

And then there’s the old security chestnut. Apart from your health, no data is as personal, and so in need of privacy, as your energy information. Intel’s purchase of computer security company McAfee allows it to offer quite a unique combination of hardware (the chips), analytics, and security to its potential customers.

And while end consumers were never Intel’s customers in the PC world, similarly in the smart grid space utilities are not the end customer for Intels smart grid solutions. Rather expect to see Intel selling to the Schneider Electronics, the GE’s, the Siemens of this world.

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Logica’s Global Utilities Director, Nigel Spooner talks Smart Meters, Smart Grids and the DCC

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At the recent Logica Utility Analyst day, I talked to Logica’s Global Utilities Director, Nigel Spooner about Smart Meters, Smart Grids and the DCC – here’s a transcription of our conversation:

Tom Raftery: Hi everyone, welcome to GreenMonk TV, I’m in the Logica building in London with Nigel Spooner. Nigel is Global Utility Director for Logica. Nigel we’ve had a bit of a discussion here during the analyst event that I have just been attending, around smart meters and smart grids. Now we’re in the middle of one of the world’s worst economic crises in a long time, why would utilities want to be spending money on rolling out smart meters?

Nigel Spooner: Yeah it’s a good question isn’t it, it is difficult when money is tight, but there are benefits to smart metering, both in terms of the consumer being able to manage their energy consumption more closely, and also in terms of the distribution companies being able to run their networks more efficiently, but also and importantly being been able to cater for consumers doing their own generation for instance with photovoltaics and also for things like incorporating electric vehicles into the network.

Tom Raftery: So this is kind of life smart grid stuff and can you give us a quick idea, I mean you talked just a little bit about it sidewise, give me kind of an overall picture of what a smart grid is?

Nigel Spooner: A smart grid is difficult to define very succinctly, but it is a distribution grid where there is much more control over the way that power flows both on to and off the grid. At the moment grids are very much one way. The power goes in from the power station, it goes through the network and into the consumer.

Increasingly we’re having to cope for the fact that the consumers themselves are generating power, they are also using things like electric vehicles which have to be charged up at particular times, they need to be controlled if the networks are not to be overloaded, and therefore the distribution grids have to be much more responsive to those loads and those demands going on them. Smart metering gives the distribution companies the opportunity to know what’s going on on that grid to a much closer degree, and in real time than they having been doing so far.

Tom Raftery: And advantages to consumers…

Nigel Spooner: To consumers the advantage is that they can get first of all more flexible tariffs, so we may be able to get tariffs that are much more aligned with the way in which we actually consume energy, rather than being just a blanket tariff that’s the same for everyone. There will be much more information on the energy that one is using, so that for instance one can see when one is going for a rather large load and to turn things off if you need to, but also there is the ability increasingly to respond to variable pricing, so that if we know for instance electricity is going to be expensive in three days time because of demands on the system, then we can react to that and make sure that our large items like air-conditioning units that’s on, do not get turned on when the price is very high. So we should be able to save both energy and money through the information that smart metering gives.

Tom Raftery: And, I’ve heard a bit about this DCC thing that’s been rolled out here in the UK, can you tell me a little bit about that?

Nigel Spooner: Well DCC is simply the organization that is going to be setup or is been setup by the British government to basically take charge of all the data that is coming off smart meters as we roll them out. This will be collected centrally and then distributed to the market participants and the view is that, that will be the most efficient way to manage this huge increase in information that smart meters are providing. By doing that it should make it easier for participants to come into the market and it should make it easier for consumers to get the best deal on their energy.

Tom Raftery: Where is Logica in all this?

Nigel Spooner: Well I’m delighted to say that all the things we’ve been talking about require relatively sophisticated information technology services to enable them to happen. Logica has for many years been in the business of providing the systems and the services that are required to make those infrastructures operate effectively and we will of course continue to do so.

Tom Raftery: Okay, great. Nigel that’s been fantastic, thanks for talking to us today.

Nigel Spooner: Thank You Tom.

Full disclosure – Logica paid my travel and accommodation to attend this event.

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Logica and EdP’s smart grid trial in Évora

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Energy management devices

Logica brought me to the pretty Portuguese town of Évora recently to check out the InovGrid project which they have been participating in, along with EdP and other partner companies.

InovGrid is an ambitious project to roll out smart grid technologies to six million customers across Portugal. Évora’s InovCity is the first stage of the project. There are 35,000 people living in Évora, almost all of whom have been issued with smart meters by now.

The smart meters are connected in realtime to in-home displays (like the one pictured above) which takes energy consumption readings every two seconds and plots it on the screen. It can display the usage data as kWh, CO2 or more tangibly, the € cost. If the home or business has an internet connection, this information can be viewed remotely on a computer or mobile device (as seen on the laptop on the right in the image above). Interestingly, there is two-way communication going on here, so if smart plugs are installed in the house, they can be controlled (on/off) from the in-home display, or remotely.

The information displayed on the in-home displays, and remotely, is not the same information which is sent to the utility for billing purposes. This may lead to some discrepancies in the € amount on the displays versus the amount on the bill at the end of the month. The smart meters send billing information to the utilities over Power Line Communications (with a GPRS backup). Even with the PLC connection, there is far too much data in 2 second reads, so a lower rate of reads is sent to the utility for billing purposes.

Interestingly, the in-home device shown above was installed in a coffee shop in Évora and it was possible to watch the fluctuations in the consumption graph in realtime as coffee was being made for customers. Also, the coffee shop realised €500 savings per annum in their energy bill when they examined the information from the device and realised they were not on the optimal tariff. It also demonstrated to them the savings to be had from turning off the coffee machine overnight, so the extra information from the device helped influence their behaviour.

EV Parking spot

EV Parking spot

Other than the smart meters, we were shown the information display in the town hall, which shows the realtime energy consumption of the building. This information is also supposed to be available on the town hall’s website for citizens to see remotely, though I failed to find it there (doubtless due to my lack of Portuguese!).

Other nice features on display were dedicated parking places for electric vehicles (EV’s), complete with charging stations as well as LED streetlights with motion sensors which dim the lights in the absence of people on the streets. The EV parking place was predictably empty due more to the general unavailability of EV’s than anything else. The LED streetlights though was interesting. Very few towns or cities have, as yet, embraced LED streetlights and yet 50% of a town’s energy spend can be on streetlights. LED lights can save 80-90% of the energy cost over traditional streetlights, they can report back their status (obviating the need to have staff checking for lighting failures) and they have a much longer lifetime, so they save on maintenance costs as well as energy.

It would be interesting to hear back from the InovCity people how much Évora is saving on lighting costs from the move to LED (even if only the energy savings) but even more interesting would be to try to see if the rollout of the smart meters and in-home displays has led to any sustained, per home, energy consumption reduction.

One last comment on this project – I can’t help but feel that the provision of in-home displays is an idea whose time has past. These days most people have access to a tablet, a smartphone or a computer where they can access this information. I suspect as the InovGrid project rolls out beyond the 35,000 inhabitants of Évora to rest of Portugal, the IHD’s will become at best, an added extra option, or quietly killed off.

Photo credits Tom Raftery

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If Utilities don’t step up their customer communications, they risk their considerable smart grid investments

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Smart meter

Smart grids don’t come cheap.

They are typically projects costing in the order of hundreds of millions of dollars (or Euro’s, or pounds or whatever your currency of choice). Just think, the most fundamental piece of the smart grid, the smart meter, alone costs in the order of $100. When you factor in the costs of installation, etc., you are looking at over $200 per smart meter. Therefore if you have in the order of one million customers it’s going to cost you around $200m just for the smart meter rollout.

Given that they are so costly to implement, you’d think utility companies would do everything possible to protect these projects from failure – not so, according to the latest smart grid research from Oracle.

The report from Oracle surveyed 150 North American C-level utility executives about their vision and priorities for smart grids over the next ten years. The findings are both interesting and disturbing.

It is interesting but not too surprising for example, that when asked to select their top two smart grid priorities over the next 10 years, they chose improving service reliability (45%) and implementing smart metering (41%) at the top of the list.

What is worrying though is that while 71% of utilities say securing customer buy-in is key to successful smart grid roll-outs, only 43% say they are educating their customers on the value proposition of smart grids. This is hugely problematic because, as I have written about previously, customer push-back can go a long way to de-railing smart grid projects.

And those who are educating their customers, how are they doing it?

Well, from the report, to communicate with their customers 76% of utilities use postal communications, and 72% use their own website. Only 20% use social media (and who knows how well those 20% are using their social media channels).

Tellingly, the report also mentions that only 38% of utility customers take advantage of energy conservation programs when they are made available. There are a number of reasons for this:

  1. the savings from these programs often require work on the part of the customer for no immediately visible benefit
  2. the savings are typically small (or put another way, energy is still too cheap) and
  3. Because of the extremely poor job utility companies have done on communications to-date, their customers don’t trust them, or their motivations. There is no quick fix for this. It will take time and a significant improvement in how utility companies converse with their customers before they start to be trusted

I have written lots of times over the years about the need for utilities to improve their communications.

Utilities have a lot of work to do rolling out their smart grids – but if they don’t step up their customer communications, they risk their considerable smart grid investments.

Photo credit Tom Raftery

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Smart Grids for Europe white paper presented by SAP to EU Energy Commissioner

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12036 NM Smart Grids for Europe En

SAP recently presented a white paper entitled Smart Grids for Europe – Benefits, Challenges and Best Practices to EU commissioner G?nter Oettinger.

The paper makes the case that there are few (i.e. no) ICT transformations that are as promising as Smart Grids in meeting Europe’s urgent energy challenges. The paper also makes a compelling case for Europe to leverage its continental scale and develop a single market Smart Grid. In such a market, on cloudy days, excess electricity generated from wind and wave energy in Ireland and Spain, could be sold into the German market if solar farms, for example were under-producing! Wind is a notoriously variable supplier, but given a large enough grid, it becomes quite stable (the wind is always blowing somewhere!).

The paper identifies the challenges facing the European energy sector currently –

  • Growing demand and rising prices
  • Ageing infrastructure – the electric utility infrastructure in most of Europe is between 60 and 80 years old
  • Climate change and sustainability – 20% reduction in GHG by 2020
  • Energy efficiency – the EU has a 20% energy efficiency target
  • Energy market liberalisation – both generators and consumers now have the right to transact business across internal EU borders
  • Security of supply – reduction of imports and esp fossil fuels

The paper went on to outline the advantages to Europe of smart grids – benefits for both the consumer (residential as well as industrial) and for the retailers and generators. Further benefits come from helping Europe meet its GHG reduction targets by facilitating greater penetration of renewables onto the grid and from making Europe more competitive in world Smart Grid markets.

The current state of Smart Grid deployments in Europe is, however, at best, early stage. The existing efforts are largely national with little coordination among them.

The white paper recommends developing an EU legislative Framework for Smart Grids – complete with proposed milestones. It further recommends incentives for investments in Smart Grids, common European standards for Smart Grids, ensuring privacy, security and trust in Smart Grids and consumer awareness campaigns, amongst other suggestions.

This paper is well worth a read, whether you are EU-based or not, if you have any interest in our future energy roadmap.

You should follow me on Twitter here

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IBM AsiaPac Smart Grid announcements

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Smart Meter install

Photo credit pgegreenenergy

IBM seems to be making big moves in AsiaPac!

IBM made two significant announcements last week about projects it is involved in in South Korea and Shanghai. In the South Korean project, IBM is partnering with POSCO ICT “to develop South Korea’s first renewable energy management system for a smart grid.” When you combine this with the announcement last week that South Korea is investing $8.2bn to build out massive offshore wind farms, you can see why they might need a renewable energy management system!

The Shanghai project is a collaboration with Shanghai Electric Power to pilot new technology, developed by IBM Research and designated the Integrated Distribution Outage Planner (IDOP). IDOP upgrades a grid to reduce outage frequency and the duration of black-out time. According to the release:

Since the project was completed earlier this year, the rate of equipment availability at Shanghai Power has increased significantly, and the company’s sale of electricity has increased by 50 million kWh per month, which is equal to an incremental revenue of 35 million Yuan (US$5.1 million) a month.

So $5.1m in increased sales alone per month? That’s not to be sneezed at – kudos to the folks at IBM Research. Job well done.

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Smart Grid Technology conference

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Trust

Photo credit TerryJohnston

I attended the Smart Grid Technology conference in London last week and there were a number of interesting themes which became apparent.

The main theme to emerge was the question of how utilities could engage the residential customer. This is good news – the first step on the road to recovery is acknowledging that you have a problem!

The other two discussion points which came to the fore were 1) that energy is too cheap for small price shifts to incentivise behavioural change and 2) what to do with all the data arising from smart meter roll-outs (the prevailing opinion was that data from smart meters should be used for billing purposes only because that there was far too much data to be of any practical use!). I’ll talk about these in other posts.

The question of how to engage customers is a new one for utilities. Remember, this is an industry that refers to its customers as ‘load points’ or ‘rate payers’! Traditionally, the only time utilities interact with customers is to send a bill, to disconnect, or when the customer calls to enquire why their power is out. Not the most positive of communications, I’m sure you’ll agree! Consequently consumer attitudes to utilities vary from outright distrust to, at the very best, indifference.

How to change this?

Well, any councillor will tell you the best way to fix a relationship is through increased communication. Utilities need to really step up their game when it comes to communicating with their customers. This needs to be done using a combination of updating traditional communications, targeted, viral social media campaigns and good old-fashioned outreach. And this needs to be an ongoing, sustained two-way communication, not once-off and not not one-way.

It is only by building an ongoing conversation with their clients that utilities can build the necessary trust to engage customers in smart grids.