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The Electricity 2.0 revolution has begun

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Smart meter projects globally

This is a map of current smart meter/smart grid projects globally overlaid on Google maps.
Screenshot credit Me(!)

I wrote my first Greenmonk post about Smart Grids and Demand Response back in April 2008 and followed up with a few more in the next few weeks including one in June 2008 where I said the electrical distribution system needed to be more like the Internet. Those posts were extremely cutting edge at the time but the world has caught up considerably in the last 18 months due in no small part to the election of Barack Obama and the focus on energy efficiency in his stimulus package!

Under Obama’s administration the US Dept of Energy announced in June of this year the rules for $3.9billion in Smart Grid stimulus grants. The first winners of $3.9 billion in smart grid stimulus grants will be announced in mid-November according to DOE deputy press secretary Jen Stutsman.

In a very positive move earlier this week, US Energy Secretary Steven Chu endorsed the importance of Demand Response as part of the solution when he said that electricity costs should move to reflect demand. Secretary Chu went further though arguing for the kind of automated Demand Response we have proposed here on GreenMonk when he said:

“Price signals do matter, but you can’t just simply use a price signal,” Chu said. “You really have to make it very easy to save energy.”

Consumers need to have a very simple system that will provide them with specific information about their energy use and they should be able to adjust their appliances so that they run mostly during non-peak energy hours

Adrian Tuck, CEO of Tendril announced last week that mass market home energy management is three years away. Obviously, being the CEO of a company in the space, he would say that, wouldn’t he? But looking at the slew of announcements which came out of the Gridweek conference (see below) it is hard to fault his optimism.

And just yesterday U.S. Commerce Secretary Gary Locke and the National Institute of Standards and Technology (NIST) presented for public comment a major new report on Smart Grid interoperability standards. The approximately 90-page document [pdf] identifies about 80 initial standards that will enable the vast number of interconnected devices and systems that will make up the US Smart Grid to communicate and work with each other.

You know that the administration is taking Smart Grids seriously when the Commerce Secretary presents for public comment a report on standards!

This week saw the GridWeek conference happening in Washington DC and with it a massive slew of Smart Grid related news. I’ll try to do a quick round-up of the main stories:

Partnerships

Acquisitions

Smart Cities

Launch

Other Announcements

With finance, administration backing and so many announcements (many of which are worthy of blog posts in their own right) there is no doubt but that the Smart Grid train has well and truly left the station. There are still a significant number of issues to be addressed by companies involved in the Smart Grid space. Some companies will founder, some deployments will fail (esp as utilities are notoriously bad at customer communications!) but there is no doubt that finally the Electricity 2.0 revolution has begun – there’s no turning back now.

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Oracle’s Utilities Meter Data Management taking off

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Oracle

Photo credit Not Quite a Photographr

Interesting bits of news from Oracle on the Smart Grid front in the last couple of days:

  1. Oracle recently released Oracle Utilities Meter Data Management 1.5, which includes enhancements to help accelerate advanced metering infrastructure (AMI) integrations, to ultimately lower implementation costs for utilities that are implementing smart metering programs, to detect outages more quickly, drive energy efficiency initiatives and provide more accurate billing information to customers.
  2. UtiliPoint reported that Oracle won seven out of 14 major meter data management customers in 2008 (no link, sorry as UtilitiPoint charge around $3,000 for their reports!)
  3. Modesto Irrigation District is rolling out a Smart Meter project to more than 91,270 residential and about 12,700 commercial and industrial customers using Oracle’s Meter Data Management. Tom Kimball, MID’s Assistant General Manager for Transmission and Distribution, said

    Smart meters make good economic sense for consumers and utilities alike in this time of rising electric rates. Moreover, the California Energy Commission may soon require this type of electric meter, and the Legislature is moving in the same direction

  4. And news just in today that Italy’s Acea Distribuzione selected Oracle Utilities Meter Data Management to support its Automatic Meter Management (AMM) project, covering approximately 1.6 million meters – making it one of the largest AMM deployments in Europe to date.

    The Oracle solution will help us to provide our customers with advanced options including consumption profiles as well as consumption information online – ultimately allowing the consumer to make more informed decisions about their energy use

    said Delio Svaluto Moreolo, Metering Department, Acea Distribuzione S.p.A.

We have been writing a lot on this blog about the advantages of Smart Grids, and president Obama has recently called for the rollout of 40m smart meters in the US so it is great to see the big software vendors pushing out the necessary apps to help utilities make smart grids a reality.

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

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Light House

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!]

Photo Credit MumbleyJoe

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Energy Demand Management II – the sequel!

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SANY0030
Creative Commons License photo credit: owlhere

The post I wrote about energy demand management (EDM) last week certainly stimulated some discussion and got people thinking – always good.

It appears it was a timely post too as I came across two announcements which seem to indicate that the big utilities are looking very seriously at smart grids and EDM.

The first news came out of SAP’s recently formed AMI Lighthouse Council when they announced the integration of Advanced Metering Infrastructure (AMI) with Enterprise technology.

The AMI lighthouse consists of SAP, CenterPoint Energy, CLP Power Hong Kong Limited, Consumers Energy, Energy East, Florida Power & Light, Oklahoma Gas & Electric and Public Service Electric & Gas as well as several strategic vendors like eMeter, Itron and OSIsoft.

AMI short for Advanced Metering Infrastructure refers to systems that measure, collect and analyse energy usage, from smart electricity meters on request or on a pre-defined schedule.

From Wikipedia

This infrastructure includes hardware, software, communications, customer associated systems and meter data management software.
The network between the measurement devices and business systems allows collection and distribution of information to customers, suppliers, utility companies and service providers. This enables these businesses to either participate in, or provide, demand response solutions, products and services.

The idea is that the AMI Lighthouse Council are working towards the integration of SAP® solutions with AMI solutions for business processes, including customer relationship and billing and enterprise asset management. All vital to making EDM a reality.

The second announcement which caught my eye is that IBM is working with Country Energy (a utility co. which owns and operates Australia’s largest energy supply network) to develop a smart grid in Australia. From the announcement:

Country Energy is pursuing the Intelligent Network concept to improve reliability, support the growth of renewables like solar and wind, and make energy efficiency simpler for customers.

When you see tech companies like SAP, and IBM betting heavily on the smart grid concept and utilities like Country Energy, CenterPoint Energy and CLP Power Hong Kong Limited coming on board to make it happen you know that smart grids are coming.

This next generation of smart grids will be able to absorb far more energy from unpredictable (destabilising) renewable energy sources without compromising grid stability which is in all our best interests.