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Trilliant’s Bill Vogel on Smart Grids, Demand Response and Investment

Electrical grid
Photo Credit ogimogi

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

Episode 3 of the GreenMonk Podcasts – 42 mins 47 secs

My guest on this podcast is President, Chief Executive Officer, and Founder of Trilliant Bill Vogel. Trilliant are a company that

provides intelligent network solutions and software to utilities for advanced metering, demand response, and smart grid management. With more than twenty years experience solving meter communications needs, Trilliant focuses on the adoption of open standards-based technologies for electric, gas, and water utilities.

And Trilliant recently announced that it had closed a $40m funding round so I was interested to know how Bill felt smart grids could help reduce carbon footprints. I invited him to come on the show to discuss this and also to answer questions I solicited from readers of this site.

Here are the questions I asked Bill and the approx. times I asked them:

For anyone who is not sure what a Smart Grid is, can you give us a quick Smart Grid 101? – 0:18

How does that differ from the current grid infrastructure that we have? – 01:12

How does that work? – 02:22

And why would that be of benefit to consumers? – 03:48

Questions from readers:

Asa Hopkins
In the Trilliant vision of the future, what level of access will an individual consumer have to their own energy data, and with what time resolution? Will they be able to export raw data? Manipulate it through Trilliant software? Compare with neighbors? In the future will there be an open ecosystem of tools to allow individuals to learn more about their energy use and make their own efficiency gains? – 06:05

Are there intelligent enough systems right now to allow your smart meter communicate with your appliances, change your thermostat settings up or down based on energy pricing, that kind of thing, is that a reality yet or is that still a bit of a pipe dream? – 09:22

More questions from readers:

Jerry Sweeney
Trilliant sees its customers as large utility companies. Does Bill see any path where electrical grids could become more democratised. Where dynamic pricing could facilitate the sale and purchase of electricity by small consumers and producers depending on the current real time price. This could lead to huge growth in the production of distributed renewable energy and to the growth in demand response to pricing signals that suggested scarcity or abundance. How can the grid become more like eBay given the stranglehold that TSOs and Utility companies have over it. – 10:21

Are any of the utilities thinking of Demand Response in respect to demand stimulation and not just the traditional peak shaving? – 16:34

Still more questions from readers(!):

Andy
-Is there any evidence that information on its own is enough to change consumption? – 18:43
– Is multi-utility metering a real prospect/ has this been done by you? – 20:29
– Is there added value in a ‘Utility Data Channel’ that could be used for Security Systems, Water/Gas/BioHeat/Oil/Sub metering/ equipment control? – 21:47
– Is there interest in Smart Grids from makers of Electric Heating, Micro CHP, and Energy Storage Technologies? – 23:18
– Has electric heating been integrated with the operation of smart grids before? – 24:46
– Can such systems be modular and expandible? – 25:13
– Can open standards have a role in maintaining the long term value of smart metering infrastructure? – 26:00
– How can smart metering support markets in carbon reduction? – 27:45
– What happens if we do not do a form of advanced smart metering in Ireland, what is a worst case? – 29:39
– If Ireland is pioneering high levels of grid wind penetration, which other countries may follow? – 31:26
– How may energy prices impact on your business, is your technology a hedge against rising prices? – 32:28

Mr Energy Rating
What is Trilliant’s definition of the minimum functionality required for a meter to become a smart meter? – 34:07

How fat do the data pipes need to be between smart meters to have a real smart-grid? – 36:47

How do you overcome consumer rejection of Demand Response and avoid the situation in California where a major DR program had to be shelved because of a consumer backlash? – 38:35

You are heavily involved in the HydroOne project in Ontario – what have you learned from such a big project? – 39:50

Final question – you recently announced that you closed a $40m round of funding – what are you going to do with $40m? – 41:28

Download the entire interview here
(39.2mb mp3)

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Any questions for Trilliant CEO Bill Vogel?

Question
Photo Credit e-magic

Trilliant, are a Smart Network infrastructure provider who

provides intelligent network solutions and software to utilities for advanced metering, demand response, and smart grid management

Last week they announced that they had

closed a $40 million equity investment from an affiliate of MissionPoint Capital Partners and zouk ventures

Next Tuesday, Sept 2nd, I will be interviewing Bill Vogel, Trilliant’s President, Chief Executive Officer and Founder, for a podcast to be published here later in the week.

In the interview, amongst other things, we will be discussing what smart networks and smart grids are, and why they are such a good thing for the consumer as well as the utilities. We will be discussing the $40 million investment and where that money will be deployed and we will also talk about the Hydro One Smart Grid project (28kb pdf), a project to deploy 1.4m smart meters throughout Ontario.

If you have any questions you’d like me to ask Bill during the interview, please feel free to leave them here in the comments of this post (or email them to [email protected]) and I’ll ask them for you during the podcast.

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

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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What if electricity were like the Internet?

Power Lines
Photo Credit Bob Fornal

So, Nick Carr writes regularly about cloud computing and how the Internet is heading more and more towards the same model as the utilities. And he’s right. And this is a good thing.

Now let’s turn that on its head.

When will the utilities start to become more like the Internet? Specifically, when will disparate, disconnected electrical grids join up to give us one global electricity super-grid?

Can you imagine the resilience of a massively connected super-grid? One which can route around problems.

Then think about how much more stable the super-grid would be if the excess energy produced by, for instance, Scandanavian wind farms on windy nights could simply be sold to meet capacity shortages in the US as people arrive home from work, or in Japan as they start to wake up.

What if the grid were smart, publishing prices in real-time, based on supply and demand fluctuations?

And further, what if smart meters in homes and businesses could adjust appliances based on the real-time pricing (thermostats up/down, devices on/off, etc.)?

And what if, again like the Internet, the super-grid were read/write i.e. if you could be a producer as well as a consumer? Think plug-in hybrid vehicles, for example. In times of more abundant electrical supply when energy is cheap or negatively priced (sun shining on Spanish PhotoVoltaic arrays and/or wind blowing on Northern European wind farms), plug-in hybrids could suck in electricity and act as a distributed electrical storage mechanism. Several hours later, if the wind dies down, or the sun sets electricity prices jump and the smart meters realise it is now financially advantageous for plug-in hybrids to sell electricity back to the grid. So they do.

What if most of the technologies to make this happen already existed? How long will it be before the utilities embrace the Internet model in the same way the Internet is jumping on the utility model?

UPDATE: Simon Wardley writes that:

According to wikipedia, “the concept of an interconnected global grid linked to renewable resources was first suggested by Buckminster Fuller” in the 1970s.

There are even organisations such as the Global Energy Network Institute (GENI) who apparently have been working on the “viability of the interconnection of electric power networks between nations”.

This subject deserves a higher profile.

It seems I am in august company!

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Energy Demand Management II – the sequel!

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.