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Why Smart Grids are good!

I have made no secret of the fact that I am a big fan of Smart Grids and Demand Response programs (properly rolled out, of course!). I have also spoken at various international conferences propounding the benefits of Smart Grids and Demand Response for quite a while now.

You can imagine my disappointment then when I read an article entitled Outsmarting the Smart Grid which was strongly anti-Smart Grids, on The EnergyCollective site by William Tucker, a pro-nuclear writer.

William sets a facetious tone for the article in his opening paragraph:

The latest delusion about energy is the “smart grid.” This bright new technological miracle will once again help us overcome the realities of physics and allow us to live in a world run on wind and sunshine.

The genesis for Mr Tucker’s displeasure appears to be the above GE ad informing people of the benefits of Smart Grids.

He says

It’s fitting that the girl is standing in front of a clothes dryer because that and washing dishes are the only examples anyone has ever been able to come up with about how residential users are going to “redistribute” their energy consumption.

What else can they do? Are they going to wait until after midnight to watch prime-time television? Are they going to heat up dinner at 4 a.m.? Are they going to turn on lights at sunrise instead of sunset? And how about air conditioning, that most voracious consumer of electricity?

Again with the unhelpful sarcasm.

While it is true that not all loads in the home are movable – I use the example that I am highly unlikely to get up at 3am to cook my dinner just because energy is cheaper – there are more than just the dish washer and the dryer. Mr Tucker neglects to mention here air conditioning (though he does mention it elsewhere in his post so he is aware of it). Nor does he mention heating water in an immersion, refrigeration, PHEVs or storage heaters for example – all very movable residential loads. Of course, he neglects to mention industrial scale demand response altogether!

Mr Tucker then re-defines the Smart Grid to suit his argument

the underlying presumption of the smart grid is that it will somehow help us conserve significant amounts of energy

Uh, no it isn’t. The presumption of the Smart Grid is that it will more closely align demand with supply, thereby stabilising the grid and facilitating the further penetration of renewables onto it, thereby lowering our carbon footprint. The Smart 2020 report (7mb pdf) estimates that Smart Grids will reduce CO2 by 2.03 GtCO2e by 2020.

Mr Tucker seems hell-bent though on criticising Smart Grids for not reducing consumption quoting from the Electric Power Research Institute (EPRI) “The Green Grid,” study published last June

its most optimistic prediction was that by 2030 we could reduce electrical consumption by 7 to 11 percent below what is now being projected. That’s not an absolute reduction in consumption but only a slowing of its anticipated rise. Second, as the study concludes, “shift[ing] load from on-peak to off-peak periods may not necessarily save energy.” It will only save money. And when you make electricity cheaper, people may consumer more of it.

What Mr Tucker is again conveniently forgetting is that electrical consumption is not the problem, per se. The problem occurs when that energy is generated using coal, oil or some other non-renewable form.

In fact, there are times when we have too much electricity and you are increasingly seeing wind farms curtailed as a result of this phenomenon. Instead of curtailing wind energy when we have an excess, what we should be doing is demand stimulation – stimulating people to increase their demand at this time of excess supply. This can be achieved by dropping the price of electricity to 0 or even making it negatively priced and making that information available via Demand Response programs rolled out over Smart Grids.

Mr Tucker concludes by once more poking fun at the GE ad

In that light, it’s worth going back to that last little GE vignette where the girl says, “It’s sunny in Arizona.” She is standing at a window looking at a waxing half moon about three hours above the horizon. If she’s in the Midwest, that means the sun has already set in Arizona. If she’s on the East Coast, then it’s about to go down. She’d better get to bed because in another twenty minutes the lights, refrigerator, television, computers and everything else are going to turn off.

Meeting pointless pedantry with more pointless pedantry, the girl is looking at a street light, not a waxing moon.

Mr Tucker’s main argument is that Smart Grids won’t necessarily reduce consumption so we shouldn’t bother with them.

Energy is very abstract, no-one really cares how much they use. What they do care about is the utility bill at the end of the month and increasingly, the carbon footprint of that consumption. If I consume 10 TeraWatt hours in my home daily (not possibly obviously!), as long as it has a negligible carbon footprint, so what?

What Smart Grids and intelligent Demand Response programs will do is, massage the demand for electricity so that it lines up with the supply. This stabilises the grid for the ISO (the grid operator) allowing them to add even more variable generation sources (i.e. renewables) to the system lowering costs and carbon footprints. Win, win.

The discussion continues in the comments where Mr Tucker rails against Demand Response

Now that I think about it, here’s what’s going to happen if the utility can cut off 1/6th of its air conditioning load on a rotating basis. If people know this – which they will – they’re just going to run their air conditioning a little higher while it’s on in order to compensate for the 1/6th of the time it’s off. It’s like the low-flush toilets that you have to flush twice to do the job.

However, for once he has a valid point!

This is why when you roll out Demand Response programs, you put the control directly in the hands of the consumer. The top-down, command and control utility attitude of “we’ll turn off your aircon when it suits us” will only turn people against Demand Response.

Instead, you roll out home area networks and home energy portals where people decide themselves how they want their devices to respond to pricing signals. You’d be able to program your dishwasher to wash the dishes when electricity at 6c/KWh or 6am, which ever came sooner, for example. If you put the washer on at 8pm, for the most part, as long as the dishes are washed by 7am the following morning, you don’t care when it happens.

Similarly with your immersion, if it selectively heats the water when electricity drops below either a set price or a set temperature, as long as you have enough hot water, you are happy.

Obviously any home energy portal like this would allow the home owner full control over all the devices in the house because they belong to the home owner, not the utility!

Long term, what I want to see happen is, I want utilities to publish their generation mix (% coal, % natural gas, % oil, % hydro, % chg, % wind, etc.), as well their prices, in realtime. That way I should be able not only to control my devices but also have the ability to select the Greenest utility supplier dynamically at any time – now that’s a Smart Grid well worth having.

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GreenMonk discusses Barack Obama’s energy plans with Trilliant’s Eric Miller

Barack Obama

Photo credit Wa-J

[audio: http://media.libsyn.com/media/redmonk/EricMillerTrilliant.mp3]

My guest on this podcast is Eric Miller. Eric is Chief Solutions Officer of Trilliant Inc.

We invited Eric onto the show to discuss President Elect Barack Obama’s energy plans for the US for the next few years. Eric has a lot of inside knowledge of the incoming administration’s plans so we had a fascinating discussion.

Listen in and let me know what you think…

Download the entire interview here
(23.2mb mp3)

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Utilities are too top-down, command and control

Top-Down

Photo Credit Mikey aka DaSkinnyBlackMan

Utilities are top-down.

Whenever I talk to utilities about Smart Grids and Smart Meters they always trot out the same speech. They want to use Demand Response for peak shaving and they want to implement it by having a mechanism whereby they can come in to their customer’s houses at times of maximum demand and turn down the settings on the aircon, immersion heater, etc.

Unfortunately this kind of traditional top-down, command and control attitude is more likely to turn people off Demand Response programs than to sell it to them.

I know that as a consumer I want to be able to program my appliances myself so that I decide when they turn on/off in response to price signals from the grid. The same is true for fridges/freezers and water immersions – I want them to change thermostat settings to take in electricity at times when energy is cheap and not when it is expensive by MY definitions of cheap and expensive.

I want control of my appliances. I do not want the utility deciding to come in and adjust or turn them on/off for me because it suits them.

Demand Response programs will be hugely beneficial to the utilities and consumers alike but they are complex to explain. If you couple that with the utility having control of your appliances they suddenly become a far harder sell.

Give customers more control of their electricity bill. Allow them reduce costs without reducing usage, by owner controlled, programmatic, time-shifting of consumption and suddenly Demand Response programs becomes an easy sell.

And when you couple that with how Demand Response will stabilise the grid facilitating greater penetration of variable supplies (i.e. weather-based renewables like wind and solar) and you have a win, win, win!

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Smart Grids and unlocked Smart Meters

Smart Meter

Photo Credit Tom Raftery

I have been talking to a lot of Smart Meter and utility companies in the last few weeks and it has been fascinating. I have learned a huge amount about some of the challenges and opportunities involved in rolling our Smart Grids.

The first thing to say is that Smart Grids are coming. None of the utilities I have spoken to have given me feedback to indicate that they are rolling back on their Smart Grid projects – and they all have Smart Grid projects at some level, whether it is in planning, in trial or in roll out.

One of the questions I have asked and not received a satisfactory answer to yet is “What happens if I decide to change utility co.? Does my existing utility come along, take the Smart Meter off my wall and my new utility then needs to send an engineer to install their Smart Meter?” Unfortunately, so far the answer to this appears to be “Yes”!

In reality, this will probably be solved with some kind of cost or asset transfer solution.

As an electricity consumer (be that industrial or residential), ideally what I want is either an ‘unlocked’ Smart Meter, or one which is owned by the grid management company, as opposed to one which is locked into a particular utilitity.

In fact, for me the ultimate solution would be a neutral Smart Meter which can go out at all times, find the cheapest electricity at that time and pull from that utility!

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GreenMonk talks to Vint Cerf about Google.org

Google.org is the not-for-profit arm of Internet search company Google.

After hearing about some of their initiatives, I was curious to learn more about Google.org. I contacted my friend Vint Cerf, Google Vice President and Chief Internet Evangelist and asked him if he’d come on the show to talk about Google.org and Google’s sustainability projects.

Vint very graciously agreed to and so we have this video. Thanks Vint.

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GreenMonk interviews Stefan Engelhardt about SAP’s vision for Smart Grids

One of the more interesting keynote talks at the recent SAP for Utilities conference in San Antonio TX was the one given by Stefan Engelhardt, SAP’s Head of Industry Business Unit Utilities.

In his keynote he discussed decarbonisation and SAP’s vision around Smart Grids and Smart Meters. I asked him if he’d be willing to come on camera to talk about some of these topics and he very graciously agreed.

With the vast majority of the world’s utilities using SAP’s software, they have their fingers firmly on the pulse of this sector. What was pleasantly surprising to me was the amount of interest SAP is seeing from their utility client companies in Smart Grids. As Stefan himself said in the interview:

For the next couple of years we see a clear trend towards the deployment of Smart Metering technology in the Utilities industry… and that means we have to adapt the existing business processes to this new technology

It was also fascinating to hear Stefan’s predictions around how Smart Grids will be rolled out gradually by utilities. Polling of smart meters by utilities will be ramped up bit-by-bit from maybe once a day to once every 10-15 minutes and this will have huge implications for the amount of data utilities will have to manage. Previously they may have collected 1 terabyte every 10 years. With smart meters reporting energy usage every 10-15 minutes they could be collecting 1 terabyte every month, or less!

With the roll-out of Smart Grids, utility companies will be able to publish energy prices in realtime based on supply and demand. This is important because electricity is more plentiful when renewables are contributing to the mix, so cheaper electricity should also track closely with Greener electricity!.

Utilities will now be able to offer new products like critical peak pricing for peak shaving in times of electricity shortage and even demand stimulation, to encourage people to consume electricity when supply is exceeding demand. This will encourage people to shift some of their loads to times when renewables are contributing more, thereby reducing the CO2 emissions associated with that load.

[Disclosure – SAP covered my expenses to attend this conference]

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Smart Grid management software

One of the key challenges for any new technology, like Smart Grids, is finding intelligent ways to manage them.

Smart Grids contain new assets for utilities (Smart Meters) which collect data about energy usage and pass it back to the utility. They should also be capable of receiving data from the utility (price signals) and communicating that with the household.

Because this is an extremely immature technology as yet, there are many new entrants in the field with solutions around managing Smart Grids.

At the SAP for Utilities conference, I spoke to Krishna Kumar of Space-Time-Insight and he demonstrated their Smart Grid management software. I was impressed at the way the software used Google Maps and was able to zoom in or out to report at the city/block/individual residence level!

The fact that it also allows for the management of assets like wind turbines makes this an interesting piece of software for utilities, I suspect.

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Smart Grid demo at the SAP for Utilities Conference

I attended the SAP for Utilities conference last week in San Antonio and was pleasantly surprised to find that many of the Utilities attending were thinking about rolling out Smart Grids or were already running pilot Smart Grids. There were even a couple who were well underway with their Smart Grid rollout project.

Demand Response was being discussed extensively and was cited by most as one of the principal advantages of Smart Grids.

Smart Grids and Demand Response are topics we have covered extensively here on GreenMonk.net and they are core to the Electricity 2.0 talk I gave in Berlin at the Web 2.0 Expo. The importance of Smart Grids and Demand Response cannot be overstated when it comes to energy efficiencies and energy demand management.

SAP are working closely with utilities through the Lighthouse Council, to ensure that whenever a utility wants to go from a traditional grid to a smart grid infrastructure, SAP will have the necessary software pieces in place for them (Enterprise Asset Management, Customer Relationship Management, and the newer Energy Capital Management).

In the video above, Russell Boyer demonstrates a Smart Grid in action. In this use case, Russell acts as the utility call center for a customer who is moving out and wants their power disconnected. The Smart Grid allows the agent to take a meter reading, and shut off power to the meter remotely. This isn’t the best demonstration of the potential of Smart Grids but it was the first time I saw Smart Grid technologies live in action and I have to admit to being wow’d by it.

[Disclosure – SAP covered my expenses for attending this conference]