Search Results for: "smart grid"

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Smart Grid Heavy Hitters – Dr Ann Cavoukian, Information and Privacy Commissioner of Ontario, Canada

I recently had an opportunity to interview Dr Ann Cavoukian, the Information and Privacy Commissioner for Ontario, Canada about Smart Grid data privacy. Commissioner Cavoukian has written and presented extensively about Smart Grid privacy. She is also the author of a white paper on Smart Grid privacy called SmartPrivacy for the Smart Grid and Dr. Cavoukian partnered with two major utilities to develop a practical roadmap for utilities to achieve the gold standard in data protection (Privacy by Design: Achieving the Gold Standard in Data Protection for the Smart Grid).

Here is the full transcription of our chat:

Tom Raftery: Hi everyone, and welcome to the Smart Grid Heavy Hitter Series. My guest on the program, today, is Commissioner Ann Cavoukian, the Information and Privacy Commissioner for Ontario. Commissioner, I?m curious, why is the Information and Privacy Commissioner of Ontario concerned about Smart Grids?

Commissioner Cavoukian: Well, I always say that in order to protect the privacy of the citizens of Ontario, I have to protect the privacy of people anywhere in the world. Privacy knows no bounds and technology transcends jurisdiction. So, whatever new technologies arise that have privacy implications, we need to get right in there and ensure as much as we can that protections are built into, especially, new technologies and new developments like the smart grid. The ideal opportunity to protect privacy is at the outset and ideally embed privacy into the design of new technologies like the smart grid.

Tom Raftery: Why is there a concern at all about privacy and smart grids? What?s the danger?

Commissioner Cavoukian: Anytime that there?s the possibility of collecting personally identifiable information either directly or through some data linkage to it, privacy enters into the equation.

So, with the smart grid you start with smart meters. And I should tell you that here in Toronto, Ontario we are leading in the smart grid, smart meter applications. By the end of this year, all houses in Toronto will have smart grids and in Ontario by the end of 2012. So, it?s widespread application.

Now, what smart girds enable the utility to do is to on a real time basis go in to your home and give you a very clear indication of your electricity usage, which is very good because it will promote energy consumption reduction, and a number of other programs – this is all very positive. As long as the information is kept between the electrical utility and the consumer, there?s no issue. It?s no different than now so to speak.

However, with the possibility of third parties being interested in this information, the possibility of unauthorized data usage of this information there?s link to an identifiable individual and with the growth of smart appliances – your computer, your television, your refrigerator; everything is going to be telling you and telling the utility what you?re doing, when you?re doing at, at what times – this introduces a whole new element of potential profiling of a consumer?s activities within the household, which is after all your castle, right? Your home is sacrosanct.

No one has been able to peer into the activities within the home before now. They?ll be able to do that. So, we have to ensure that this information is protected like Fort Knox.

Tom Raftery: How widespread are the concerns? How many people are aware that this is an issue and how are people trying to deal with that issue?

Commissioner Cavoukian: And you are absolutely right. About a year, a year-and-a-half ago I did an article. And I call privacy the sleeper issue of the smart grid; because certainly last year not a lot of activity associated with this area, but I can tell you that in the past year the interest has grown dramatically.

In Canada, we have jurisdiction over electrical utilities. So, I?ve been working with Hydro One, here, in Ontario, Canada and Toronto Hydro and they not only understand the issues, of course, they?re regulated. I oversee complaints with these two utilities; however, I want to tell people – don?t rely on regulation.

I want to exceed regulation. I want appeal to electrical utilities that in order for the smart grid to work you need consumers to sign up and to become involved, you need to build trust and consumer confidence.

The way you do that is by ensuring that they know what you?re doing as an utility, they know what information you have from them, and most important, you are not going to disclose this information, you?re not going to share it with any third parties without their consent – this is big.

So, my appeal to utilities, and I?ve been working with utilities throughout North America and the US Smart Grid Alliance. I?m an active member there.

My pitch to them, is do this because it?s good for your utility, because you want to get the buy-in of consumers, you want to get their cooperation, you must have their trust, you must have their confidence.

So, by embedding privacy into the design of the smart grid you will be able to grow your smart grid in a way that attracts more consumers to it and that?s the win-win proposition of this.

Tom Raftery: It?s great that you?re telling utilities this. What are they actually doing? Are they taking what you say on board, are they saying, ?Oh! Commissioner, Cavoukian is a nut case and we?ll just put her concerns to one side,? or are there a range of reactions?

Commissioner Cavoukian: Well, I am sure it is some of them think I am a nut case, I give you that, but I think the majority the ones who have reached out to us have been actually quite positive about our approach.

They?ve actually given me a complement and they?ve said, ?You?re not like most regulators we know.? And I take that as a complement, because once there?s — my message to utilities and to everyone is do a positive-sum paradigm not a zero-sum paradigm.

By that, I mean, I definitely want you always to protect the privacy. I don?t care if you?re the private sector, the public sector. If you?re doing individual?s personally identifiable information you must protect that information.

However, I don?t say protected to the exclusion of your own interests, your business interests. You have a business model, it has to survive, and hopefully strive. In this case, with the smart gird electrical utilities want to grow this in an effort to promote conservation of energy, grow green programs, reduce reduction, consumption of energy, empowering your users your users. We are all for that; so we?re not doing this — we?re not saying protect the privacy to the exclusion of those interests, not at all.

We?re saying you can do both. We show you how to do both by embedding privacy into the design of the smart grid, and I should tell you it?s at the ideal time. This is the time to do it when you?re at the nascent stage. It?s at it?s infancy, the smart grid development, starting with the smart meters and I?m not giving you a pie in the sky. I?m telling you how to do it in a very defined way. We?ve worked with Hydro One, for example, and Toronto Hydro.

We have two papers that we?ve produced that are available on our website. This one, the latest one with Hydro One is called, ?Achieving the Gold Standard in Data Protection for the Smart Grid?.

So, we?re trying to get people to reach for the sky on this in terms of doing it now, embed privacy, and we tell you how to do it. This is best practices on exactly how to do it and we do it in partnership with an electrical utility. So, we give you the road map on how to do this and also respect privacy and enhance your business interests, positive-sum win-win.

Tom Raftery: Commissioner, we?re running low on time, so one final question. Is there anything about privacy on smart grids that I haven?t asked you that you would like to address?

Commissioner Cavoukian: Just one final point for the people listening to this. I would like them to view the smart grid and how to protect information in a way that is not the usual ?who owns the data?. The question of ownership often comes up and I?m going to suggest to you that?s the wrong language to frame this in.

When you talk about privacy and personally identifiable information, data protection you use the language sort of bundles of rights associated with that information. It?s the language of custody and control of the information as opposed to ownership; because it?ll be easy for the utility to say, ?You know, it?s our data, we collect it, and then you get mired into this whole legalese about who owns the data. It?s not one of ownership.

Of course, the utility is collecting the data, they?re providing a service to consumers, and there?s an exchange of information. I think it?s better to talk about what obligations and duties are associated with that.

So, for a utility, who has custody and control over the data they also have a duty of care and obligations with respect to protecting that data, they have a duty of care, confidentiality, and ensuring that the consumer not only knows what you?re doing. So, you?re transparent with respect to your practices, but they have access to their own data and ideally they have full ability to say no, no third party use of its data unless I consent to it.

That?s the Gold Standard and that?s what I?m hoping that, that language will be embraced in this area.

Tom Raftery: Commissioner, thanks a million for coming on the show.

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GE’s U.S. Consumer Impressions of the Smart Grid survey

Results of GE Smart Grid consumer survey

GE published a U.S. Consumer Impressions of the Smart Grid [pdf] survey* recently.

I spoke to the general manager of Metering and Sensing Systems for GE?s Digital Energy business, Luke Clemente about the survey and he told me that the main points of the survey were:

  • 96% of Americans who are familiar with the smart grid are overwhelmingly positive about the technology and what it will do for the country
  • while only 2% thought that smart grid was not a smart investment by utilities and/or consumers
  • 80% of U.S. consumers are excited about upgrading the electrical network with smart grid so that their country can rely more on clean domestic energy sources
  • 78% think that the smart grid would help reduce the number of power outages and restore power more quickly when outages do occur
  • 74% understand that the smart grid will give them the info they need to make better decisions about electricity usage
  • 72% think the smart grid will help them save money on their monthly bills
  • 63% believe the smart grid will create new jobs in the energy sector
  • 66% agree they would buy smart appliances and other in-home devices to maximize their control over energy once smart grid rolls out in their community

In our follow-up conversation Luke said

One of the awareness issues which needs to be driven, is that it does cost more to generate electricity at two o’clock in the afternoon than it does at 2am. To the extent that we can shift our use of energy to less intensive times, that will end up driving better utilisation of the grid and better economics

Luke went on to mention the Department of Energy’s year-long study which showed that consumers, when given information on their electricity consumption, reduced their bills by 10% and reduced peak demand by 15%.

There are three crucial points here –
consumers have quite a positive attitude to Smart Grids
consumers will adjust their behaviour when given information related to their energy use and
that response is good for the grid (and by extension, for its users).

We have seen some instances where utilities failure to communicate effectively with their customers has led to blowback against Smart Meter and Smart Grid projects.

However, as this survey shows, overall consumer sentiment to Smart Grids is positive. Utility companies need to beware that they don’t squander this goodwill – right now it is theirs to lose.

You should follow me on twitter here.

* The survey was conducted in March 2010 by StrategyOne among a census representative sample of 1,000 U.S. consumers via telephone. The margin of error for the sample of U.S. consumers (n=1,000) is + 3.1% at the 95% level of confidence.

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What is the best communications protocol for Smart Grids?

Communications tower

Photo credit urbanfeel

One of the key tenets of a Smart Grid is that you have real-time, two-way communications between the consumer and the utility company. To enable this a communications infrastructure needs to be rolled out. Before that can happen though, we need to examine the different communications protocols to find the most suitable one.

I was talking to Andy Slater, the EMEA Marketing Director for Sensus, the other day. Sensus are the company providing the communications platform for UK-based Arqiva’s Smart Grid pilot in Reading [PDF]. And their proposed Smart Grid communications infrastructure for all of Britain. While, in North America Sensus have 8 million end points rolled out across 225 utilities.

The Sensus solution uses long range radio to communicate with smart meters. This allows Sensus to achieve a 99.5% first-time connection rate during installations, according to Slater. This is higher than most other technologies (GPRS, WiMax, etc.) and so saves a considerable amount of money by obviating the need for a second call out or re-engineering.

When I mentioned that Power Line Communications (PLC) would, by definition, have as close as possible to 100% first-time connectivity, Andy countered that that’s all well and good for electrical meters but the Sensus solution also works for gas and water meters. He then went on to point out that PLC requires far more repeaters to boost the signal and that it is not suitable for high voltage equipment.

The other advantage which Andy mentioned is that for gas and water meters which are not powered, battery life is going to be an issue. GPRS and mobile solutions require a lot of power and their battery life may be as short as 5 years whereas Andy claimed because the power requirement of long range radio is lower, the batteries in their meters could last up to 15 years, thereby reducing service calls to replace depleted batteries.

Listening to Andy, you could be forgiven for wondering why any utility would go with a communications protocol other than long-range radio – so can anyone enlighten me – what is the best communications protocol for Smart Grids?

You should follow me on twitter here.

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Can Arqiva provide the Smart Grid communications infrastructure for Britain?

Communications Mast

Photo credit Lee Jordan

We had a really interesting Smart Grid related conversation with a company called Arqiva the other day.

I hadn’t heard of Arqiva before but they are quite a significant player in communications infrastructure. They own or have exclusive marketing rights for 16,000 communication masts in UK – what they call vertical real-estate! They also own, operate and maintain all of the UK’s terrestrial television network as a regulated monopoly. And they are responsible for rolling out the switch-over from analog to digital broadcasting for the country.

If that weren’t enough Arqiva are Europe’s largest provider of satellite linkage services!

All very well I hear you say, but what does this have to do with Smart Grids?

Well, Arqiva have a fascinating proposition. They are expecting Ofgem (the regulator for the electricity and gas markets in Great Britain) to announce some kind of central procurement for a Great Britain-wide network and if that occurs, Arqiva would be in a very strong position to bid for it.

They have dedicated UHF spectrum (412 MHz) and a nationwide mast footprint already capable of reaching 100% of the homes in the country. A significant advantage of the dedicated long range spectrum (apart from the lack of contention) is that it will have no problem reaching into houses where meters can be located under stairs or in basements, for example. Cellular networks don’t have the same luxury and are more plagued with health concerns around the transmissions from their masts.

Having a single provider of the communications infrastructure for smart grids is a very appealing proposition – especially if it has regulated returns and contestable pricing which you would expect in a system like this.

Arqiva announced [PDF] just the other day that nPower is joining Arqiva’s Smart Grid proof-of-concept network which covers 80 square kilometres around Reading. nPower are a significant utility with around 6.5 million residential gas and electricity accounts throughout the UK. This will allow Arqiva to test smart gas as well as smart electricity meters and they ultimately want to include smart water meters in their network as well.

Arqiva say they have thought about security as well (which is just as well seeing as a single communications network for electricity, gas and water makes for an extremely attractive strategic target). They are using encrypted communications over licensed spectrum, and are operating a closed system so that should help but security is a constant battle so it is one they will need to stay on top of.

If Arqiva manages to roll this out successfully in the UK, this will leave them in a very strong position to reproduce this model in other countries.

You should follow me on twitter here.

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Understanding the Smart Grid – my TreeHugger interview

Interview

Photo credit Lee Jordan
Jaymi Heimbuch contacted me recently to ask if I’d agree to be interviewed for a TreeHugger article she was planning to write on Smart Grids. “Love to”, I said.

Jaymi sent on the questions, I replied and today she posted the interview on TreeHugger.

Here are the questions and my answers:

TH: What’s the biggest barrier with smart grids right now? Is it utilities not latching on? Is the technology too new? Is it that not enough people understand what it is?

There are multiple barriers to complete smart grid roll-outs at the moment. The biggest one, as far as I can see is money!

The smart meter roll-out alone costs in the order of $150 per household just for the device. Then there is the installation engineer on top of that. And the software to back it up. In terms of the software, remember that presently utilities take maybe one meter reading a month. When they start taking readings from smart meters they will be taking up to 2880 per 30-day month when they are taking 15 minute readings (or 720 for hourly readings). If they have 1 million customers they go from 1m meter readings a month to 720m per month (or 2,880m). That’s a massive jump in the amount of incoming data which needs to be stored, queried for billing, and held for however long.

A lot of the software to handle this is still being developed and utilities, being very conservative, don’t want to be guinea pigs. And newer technologies tend to have a price premium.

Circling back to the price for the utilities. If they have 1 million customers, they are looking at spending hundreds of millions on the smart grid roll-out (smart meters, communications infrastructure for smart meters, back-end database for data, back-office apps for using the data – customer care, billing, etc.).

One of the big deals about smart grids is that it will help us reduce our consumption – from the utilities perspective, they should invest these large sums of money so we can reduce the amount we purchase from them? You can start to see the difficulties.

TH: What’s the most apparent way a smart grid will change the average person’s daily life? What about the most important way?

You know, the best way a smart grid could change the average person’s life is ‘not a jot’ – apart from reduced utility bills.

Utilities are talking up demand response programs and how they will be able to come into your house or apartment and turn down your air conditioner (for example) at times when supply is short and demand is high. This is a top-down approach destined to piss off customers and will in no way get buy-in from a skeptical public.

Far preferable would be some kind of automated demand response, completely controlled by the consumer, so far example as a homeowner I’d set my dishwasher at 8 PM to come on at 5c per kWh or 5 AM, whichever comes first. As long as the dishes are done by 7 AM, I’m happy. Similarly with other devices. Plenty of loads in the home are movable. You don’t care when your hot water is heated, as long as it is hot when you need it hot. A well lagged (insulated) boiler would mean you could heat it when electricity is cheap, and then use it whenever.

By the way, totally counter-intuitive but cheaper electricity has a higher renewable percentage so actively selecting for cheaper electricity means you are actively selecting for electricity with a higher percentage of renewables in the mix. How does this work?

Well, electricity prices on the wholesale market are very volatile. Consumers are protected from this but electricity prices can fluctuate by orders of magnitude within a 24-hour period. Price is set by good old supply and demand. Demand fluctuates according to day of week, time of day and by season. As the price drops on the wholesale market, it becomes less attractive for more expensive generators (the ones with start-up costs for their generation – the fossil fuel burners, for example) to stay selling in so they drop out. The renewables, on the other hand, are price takers. They don’t have significant start-up costs for generation so they stay in the market no matter what price they get. So, as the price drops, more and more fossil fuel generators drop out and the percentage of renewables in the mix increases!

TH: Other than this change in demand and timing, how will the smart grid help us incorporate renewables into the grid?

Utilities are used to dealing with a situation where their generation (gas coal, oil) is steady and predictable in its output and their customers’ demand is unsteady but generally predictable (demand tomorrow = demand this day last year +1-2%, say).

For various reasons utilities are having to move to a situation where they need to incorporate more renewables into their mix. Renewables generation is not steady and is only slightly predictable (via weather forecasts, for example). Because electricity has to be used as it is generated (can’t be stored, generally), the more unstable the generation, the more unstable the grid.

How can you fix this? Well, one way would be to align the demand with the supply.

How do you do that? Well, as supply and demand shift, they affect price on the wholesale market. So, if you expose people to the real price, they will modify their behaviour to select for when price is lowest (when electricity is in lower demand (or when their is a higher percentage of renewables as I mentioned earlier)). This is demand response.

Now, however you do it, if you roll out a demand response program, you are aligning demand with supply. The more you do that, the more stable you make the grid. The more stable the grid, the more renewables that can be added to it.

TH: Many people in the US are concerned with information privacy – they want to own their energy usage data and don’t want utilities handing it over to governments and third parties. What are some of the steps both businesses and people can take to appease people’s concerns?

Let me tell you, people in the EU are far more sensitive to data privacy issues that in the US! Honestly, on this question, I’m not sure there is a good answer though.

Consider your mobile phone. It is a tracking device. As long as it is on, it knows where you are 24×7 (and tells your mobile provider). Mobile phone records have been used to both exonerate and help convict people in recent years.

Now consider people working in the call center of your mobile phone company. How much are they paid per annum? If I offer to slip one of them $2k do you think I could have access to your movements for the last 6 months? Similarly for your energy consumption data soon.

The best way to protect against this is legislation. Legislate to keep data private and have very heavy fines for the utilities (and mobile phone co.s) for breaches. This will incent them to put processes in place to track inappropriate accesses to people’s data (and disable export functions, etc.).

TH: What’s your favorite saying about the smart grid, or a quote or insight that you always remember?

I spoke to Dr Monika Sturm a couple of years back. Monika is director of Siemens Center of Competency for smart meters – their research and development facility. She told me that the output from smart meters is extremely granular. So much so, that it is possible to look at the output of smart meters and identify all the devices which make up the reading. So by looking at the output from my smart meter, it would be possible to see that I have a 2008 Philips 37″ LCD TV, and a 2006 Indesit BHZ model fridge and a …. You get the idea.

This plays back to the privacy question you asked earlier but it also offers an alternative revenue option for utilities who are looking at people reducing their consumption. It goes something like this:

I get an email from my utility saying

Dear Tom,
we notice that you have an Indesit BHZ fridge. This is currently costing you ?25 per month to run. We have a newer, more energy efficient model on special this month for ?10 per month. It will cost you roughly ?10 per month to operate so overall you will save ?5 per month if you avail of this offer.

If you sign up, by simply replying to this email, we will have our partner install the fridge by the end of the week and we can take away your old fridge for you, for no extra charge.

Or similar.

TH: Anything you want TH readers to be sure to know about?

The problems associated with smart meters in places like Bakersfield were entirely predictable. [Editor’s note: Bakersfield residents felt the new smart meters from Pacific Gas & Electric led to inflated energy bills. It resulted in a lawsuit.] Utilities are not used to communicating with their customers. They do so only when it is time to send the monthly bill. With the advent of smart grids, utilities will need to be in far closer communication with their customers. If people’s consumption is approaching a threshold which could push them into a higher band, send them a text/email/IM/Tweet/all of the above (or whatever the customers preferred method of communication is) to let them know. If the customer’s consumption is lowest in their block/zipcode/subdivision/whatever, let them know, etc.

Communications is not something utilities have not traditionally needed to invest any time in. However as Bakersfield has shown, it will be a vital skill for utilities in the future, especially as the markets open up and people have a choice of who to buy their electricity from.

You should follow me on twitter here.

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“The face of the Smart Grid will be paper!”

Utility bill

Photo credit Tom Raftery

We had a briefing from a company called Opower the other day. We take lots of briefings but this one struck a different chord straight away when Ogi Kavazovic, Opower’s Sr. Director of Marketing and Strategy who was giving the briefing, said Opower is “one of the few new companies in the energy efficiency space, as distinct from the smart grid space”. A company claiming not to be in the smart grid space? How refreshing!

Opower set out, when set up three years ago to unlock the information in people’s electricity meters and came up with its first product, the Home Energy Report. This is a printed report sent to home-owners to motivate them to change their behaviour so that they reduce their energy consumption. The report is personalised, benchmarked against peers and contains targeted tips on how to reduce their consumption.

The Home Energy Report initially was rolled out to 35,000 homes but is now being delivered to over a million homes across the US (and later this year it is expected to go to up to 5 million homes). And the Home Energy Report is currently delivering savings of 2-3% per annum, year on year.

One of the interesting things about Opower is that they have been able to deliver on the notion of behaviour based energy efficiency.

Ogi made the point that people are just not interested in checking their energy information online (apart from a very few energy geeks). This leads us to an interesting point – in today’s Smart Grid ecosystem, the two primary mechanisms companies are hoping to rely on for customer engagement are the website and in-home devices. However, Ogi contends that this is flawed because people are not interested enough seek out this information.

One of Opower’s learnings from two years of doing this is that you have to push information to home owners which is why Opower went with the paper-based mail channel for delivery. This was completely counter-intuitive to me. I love digital information and shun paper-based communications. If I receive it in paper, I can’t click on it, I can’t drill down for more information but seemingly, I am in a minority!

Opower have done surveys on the recipients of their reports and found that close to 70% of the recipients have talked to their families about the reports i.e. not only have they read them and acted on them (the 2-3% reduction) but they have discussed them with their families!

Hence Ogi’s assertion that “the face of the Smart Grid will be paper” – it seems high tech meter’s primary communication interface with home-owners will be with the low tech medium that is paper, at least for the time being!

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Smart Grid FUD: Its time to cut the crap

HI!.jpg
Greenmonk spends most of its time researching smart grid approaches and deployments.? I hired Tom Raftery largely because of his visionary take on the future of energy networks – Electricity 2.0. So you can imagine how happy I am that smart grid stimulus funds are being aggressively spent… on antivirus and encryption software. Yay – that’s just the market we want to track.

The “security industry” just loves to sell FUD. Its what they do. But the almost ghoulish lip-smacking around smart grids as the next great revenue opportunity is really off-putting. Is security important in a distributed energy network? Of course- but really its a small part of the puzzle, not the prize itself. With all this in mind I really enjoyed a post from EMC’s RSA stable this week. A guy called Sam Curry explains that customers are getting wise to the FUD, or are at least bored of it.

Sam: so?how’s your SmartMeter deployment going?
Security Director (SD): great! we’re rolling out about 1,000 a month
Sam: so, which ones are you using?
SD: COMPANY X
Sam: great, great, I heard they’re implementing encryption into their products
SD: yeah, I heard about that; but it’s not in the meters yet
Sam: ah — so what are you using for encryption?
SD: nothing
Sam: <gasp>
SD: uh, oh — here comes the FUD

And then it hit me?most of the time security people come in and try to scare customers and partners. What’s the point in that? Well?it’s a confidence scam. You scare people with FUD and then you comfort them with your brand

Sam seems like a good guy, a smart guy, and he understands that the real goal, the carrot as he calls it, is the hope of “better, greener power generation”. The real train wreck though will be our economies if we can’t fix some pressing energy concerns. The RSA post is excellent, and of course utilities need to rethink their entire risk profile and processes, just as IT does in the age of the internet. I am going to ping Sam and talk to RSA’s real smart grid offerings, so expect an update in the near future.

I want to start getting under the skin of smart grid deployments, and make sure we’re not substituting real smart grid innovation with unrelated product and service purchasing. After all- those stimulus funds… that’s our money. So we should be scrutinising the spend. There has to be more to smartgrids than AV.

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Smart Grid Heavy Hitters – Jon Wellinghoff, Chair of US Federal Energy Regulatory Commission – part 2

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.

I recorded an interview with Jon a few weeks back. The resulting video was too good to reduce to a single piece, so I split it into two. I published the first part of the interview a couple of weeks ago, this is part two.

In this second video we discussed:

  • Why it is a good thing for utilities that customers consume less electricity – 0:36
  • How smart grids help increase the penetration of renewables on the grid – 2:12
  • How electric vehicle owners are being paid up to $3,600 per annum to provide regulation services for utilities while charging! – 2:54
  • How renewable energy sources can be used as baseload power (no coal or nuclear baseload need ever be built) – 4:34
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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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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: