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The Internet of Things is bringing Electricity 2.0 that much closer

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One of the reasons I started working with GreenMonk back in 2008 was that James heard my Electricity 2.0 vision, and totally bought into it.

The idea, if you’re not familiar with it, was that as smart grids are deployed, homes will become more connected, devices more intelligent, and home area networks would emerge. This would allow the smart devices in the home (think water heaters, clothes dryers, dish washers, fridges, electric car chargers, etc.) to listen to realtime electricity prices, understand them, and adjust their behaviour accordingly. Why would they want to do this? To match electricity demand to its supply, thereby minimising the cost to their owner, while facilitating the safe incorporation of more variable suppliers onto the grid (think renewables like solar and wind).

That was 2008/2009. Fast forward to the end of 2013 and we see that smart meters are being deployed in anger, devices are becoming more intelligent and home area networks are becoming a reality. The Internet of Things, is now a thing (witness the success of devices like Nest’s Thermostat and Protect, the Philips Hue, and Belkin’s WeMo devices). Also, companies like Gridpoint, Comverge and EnerNoc are making demand response (the automatic reduction of electricity use) more widespread.

We’re still nowhere near having realised the vision of utility companies broadcasting pricing in realtime, home appliances listening in and adjusting behaviour accordingly, but we are quite a bit further down that road.

One company who have a large part to play in filling in some of the gaps is GE. GE supplies much of the software and hardware used by utilities in their generation, transmission and distribution of electricity. This will need to be updated to allow the realtime transmission of electricity prices. But also, GE is a major manufacturer of white goods – the dish washers, fridges, clothes dryers, etc. which will need to be smart enough to listen out for pricing signals from utilities. These machines will need to be simple to operate but smart enough to adjust their operation without too much user intervention – like the Nest Thermostat. And sure enough, to that end, GE have created their Connected Appliances division, so they too are thinking along these lines.

More indications that we are headed the right direction are signalled by energy management company Schneider Electric‘s recently announced licensing agreement with ioBridge, and Internet of Things connectivity company.

Other big players such as Intel, IBM and Cisco have announced big plans in the Internet of Things space.

The example in the video above of me connecting my Christmas tree lights was a trivial one, obviously. But it was deliberately so. Back in 2008 when I was first mooting the Electricity 2.0 vision, connecting Christmas tree lights to the Internet and control them from a phone wouldn’t have been possible. Now it is a thing of nothing. With all the above companies working on the Internet of Things in earnest, we are rapidly approaching Electricity 2.0 finally.

Full disclosure – Belkin sent me a WeMo Switch + Motion to try out.

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Friday Green Numbers round-up for Jan 28th 2011

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Green Numbers

And here is a round-up of this week’s Green numbers…

  1. 50% rise in companies using software to monitor sustainability performance, says new survey

    The proportion of companies that use software to monitor their sustainability performance increased by 50 percent between 2006 and 2010, according to the results of a new international survey released today, Thursday 27 January 2011, by the Global Reporting Initiative (GRI).

    Experts from GRI say this means that guidance for people producing sustainability reports should be kept up to date with emerging trends in software use and digital reporting.

  2. Efficiency could cut world energy use over 70 per cent

    Simple changes like installing better building insulation could cut the world’s energy demands by three-quarters, according to a new study.

    Discussions about reducing greenhouse gas emissions usually concentrate on cleaner ways of generating energy: that’s because they promise that we can lower emissions without having to change our energy-hungry ways. But whereas new generation techniques take years to come on stream, efficiency can be improved today, with existing technologies and know-how.

  3. AZ Republicans and Democrats Agree, Energy Efficiency Saves Billions

    Much has been made in recent weeks of the stark political controversies that haunt Arizona politics. There, intense debates over immigration, over healthcare, over a host of issues, have led to a growing sense that Arizona?s politics have left the mainstream behind.

    But there is another Arizona, an Arizona of bipartisan unanimity and progress hidden beneath the saddening headlines of late. That hidden story of Arizona reveals a state that is leading the country down the new and much-needed road to energy efficiency, with standards that are among the most ambitious in the nation. It is a story that has been lost. But it is a story that Arizonans of all political stripes deserved to be celebrated for and a story the rest of us need to hear.

  4. Dow Moves to Make Nature Part of the Bottom Line

    Dow Chemical and the Nature Conservancy (TNC) announced a partnership on January 25 during a press conference at the Detroit Economic Club to develop tools and demonstrate models for valuing nature in business. Dow committed $10 million over the next five years to the collaboration with TNC. Jennifer Molnar, manager of TNC?s Analysis Team, called the partnership a ?breakthrough.?

    The partnership will use scientific models, maps, and analysis for biodiversity and ?ecosystem services?, a Dow press release states, and apply them to the company?s business decisions. The partnership will also ?inform Dow on setting new policies and approaches in the areas of land and water management, siting considerations, the benefits of natural resources on Dow lands and waterways, and more explicit management of biodiversity.?

  5. GM takes $7 million stake in battery startup Envia

    General Motors Co has invested $7 million in Envia Systems, a California-based start-up that has been developing more powerful and cheaper batteries for electric vehicles.

    Newark, California-based Envia has developed cathode technology for lithium-ion batteries that it says will make them both cheaper and more powerful.

    GM said Wednesday it also reached a separate licensing agreement to use the Envia cathode technology in future electric vehicles.

  6. What I Learned in Two Years of Running GridWise Alliance

    As I take my leave as president of the GridWise Alliance, I feel pride in our accomplishments and gratitude for having been involved in a period of enormous growth in the industry and organization. Alliance membership grew during my tenure from 70 to 150 members. These new members included stakeholder groups like the automotive and buildings sector that could join forces with the existing ICT, telecom, and manufacturing components and the utility and system operator member base.

    We started building relationships with consumer groups and were founding members of the Smart Grid Consumer Collaborative, bringing together regulators, consumer advocates, and industry leaders.

  7. EnerNOC Acquires M2M Communications and hundreds of megawatts of demand response capacity

    EnerNOC, Inc., a provider of energy management applications, has acquired M2M Communications, a provider of wireless technology solutions for energy management and demand response.

    According to EnerNOC, its solutions reduce real-time demand for electricity, increase energy efficiency, improve energy supply transparency in competitive markets, and mitigate emissions. Some of the energy management applications offered by EnerNOC includes DemandSMART for comprehensive demand response, EfficiencySMART for data-driven energy efficiency, SupplySMART for energy price and risk management, and CarbonSMART for enterprise carbon management.

    By acquiring M2M Communications, EnerNOC plans to expand its portfolio of automated resources, thereby augmenting third-party automated demand response.

  8. SAP reduces 2010 Greenhouse Gas Emissions despite double-digit revenue growth

    SAP today announced its preliminary report of greenhouse gas (GHG) emissions for 2010. The company?s worldwide GHG emissions for 2010 totaled 430 kilotons, a four percent decrease from the 450 kiloton level of 2009. In its third year of consecutive reductions, SAP has cut GHG emissions by 24 percent from its peak levels in 2007, putting the company well on track to achieve its target of reducing emissions to 2000 levels by 2020.

    Using its own software to measure, report and reduce its carbon footprint, SAP can attribute the emissions decrease to a variety of efforts and investments in energy and carbon efficiency projects. Contributing factors to the company?s footprint reduction also include changes in employees? commuting practices and the purchase of renewable energy.

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Photo credit house of bamboo

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Introducing the NegaWatt!

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Feather in the sky
Photo Credit Sarey*

Yes, you read the title correctly and no, NegaWatt is not one of my normal typos!

What then is a NegaWatt? A NegaWatt, is a MegaWatt of electricity that you don’t use! Huh?

Think of it like this, suppose a utility company has 100MW to supply.
Now let’s say their typical demand is 90MW.
If a potential customer contacts them looking for 20MW, they have a problem.

They can either try to build new generation of 20MW (expensive) or, try to get their existing customers to reduce their demand by 20MW. The reduced demand is typically done through efficiencies and the required reduction, when achieved, is 20 NegaWatts – 20 MW of virtually generated electricity.

Now, take the concept of a NegaWatt a little further. If you could ‘generate’ a lot of NegaWatts it should be possible to sell these demand side units back to the utilities. They are just as useful to the utilities for meeting demand as actual MegaWatts. More useful when demand for electricity is high and supply is low.

This is not some fictional futurescape. It is actually happening now to a limited extent in some parts of the US and will be rolled out far more widely in the coming years as energy markets and smart grids become more sophisticated.

How might someone create NegaWatts? Well, have a look at some of the posts we have written here about Energy Demand Management for some ideas.

A lot of the work in this area currently is looking at things like changing settings on thermostats (think aircon, refrigeration and water heating), bringing diesel generators online, and time-shifting of consumption (think storage heaters and pre-cooling buildings early in the day when demand is lower).

Companies like Comverge, EnerNoc and Echelon are making devices and systems that let consumer monitor and adjust their electricity use in real time.

This is a whole new market which is about to open up. There are massive opportunities there for people to write software to manage this, to build the hardware to do this, and to aggregate NegaWatts for sale to utility companies.

This all feeds back into the read/write grid we have discussed here previously. With the rise of the NegaWatt, electricity becomes a far more two-way tradeable commodity and the implications for the uptake of renewables on the grid are enormous.