Friday, July 31, 2009
Smart Grids Make Fridges Smarter
The smart grid may make our home appliances smarter too. Jorge RIbas finds out how.
Thursday, July 30, 2009
NYTIMES.COM: DOE Makes $30B Available to Jumpstart Renewable Energy,' Smart Grid' Projects
July 30, 2009
DOE Makes $30B Available to Jumpstart Renewable Energy,' Smart Grid' Projects
By KATHERINE LING of Greenwire
The Energy Department is making up to $30 billion in loan guarantee authority available for renewable energy and electric grid modernization projects.
DOE announced yesterday it was ready to accept applications for about $8.5 billion in loan guarantee authority for advanced renewable energy projects made available in the department's 2009 spending bill and $3.25 billion provided by the American Recovery and Reinvestment Act to cover the subsidy costs that will unleash the billions of dollars in loan guarantee authority for renewable energy, transmission projects and biofuels.
Of the $3.25 billion in subsidy costs from the stimulus act, $500 million is specifically for biofuel projects, and $750 million is for large transmission projects that begin construction before Sept. 30, 2011.
Applicants have 45 days to apply for the new guarantee authority, DOE said.
The government-backed authority should help boost lending capital for renewable and other clean-energy technology projects, which has dried up with the financial recession. The stimulus act also included an extension of tax credits for renewable energy and added flexibility where companies can apply for grants instead of using tax credits that the Treasury Department also made available this month (E&ENews PM, July 9).
"This administration has set a goal of doubling renewable electricity generation over the next three years," Energy Secretary Steven Chu said in a statement. "To achieve that goal, we need to accelerate renewable project development by ensuring access to capital for advanced technology projects. We also need a grid that can move clean energy from the places it can be produced to the places where it can be used and that can integrate variable sources of power, like wind and solar," he said.
The loan guarantee authority should decrease the cost of the investments, making a "smart grid" investment a lower investment risk and thus less costly for consumers. DOE also announced the availability of almost $4 billion for demonstration and grants for smart grid projects last month (E&ENews PM, June 25).
This is the sixth and seventh solicitations for loan guarantees since the 2005 energy bill provided the authority, DOE said. But much to the dismay of Congress, the department has given about 1 percent of the available authority to three conditional loan guarantees. DOE offered the almost $600 million to a solar panel manufacturer, a wind turbine manufacturer and an energy storage plant (E&ENews PM, July 7).
"The Department has streamlined its processes to accelerate these new loan solicitations," DOE said.
DOE Makes $30B Available to Jumpstart Renewable Energy,' Smart Grid' Projects
By KATHERINE LING of Greenwire
The Energy Department is making up to $30 billion in loan guarantee authority available for renewable energy and electric grid modernization projects.
DOE announced yesterday it was ready to accept applications for about $8.5 billion in loan guarantee authority for advanced renewable energy projects made available in the department's 2009 spending bill and $3.25 billion provided by the American Recovery and Reinvestment Act to cover the subsidy costs that will unleash the billions of dollars in loan guarantee authority for renewable energy, transmission projects and biofuels.
Of the $3.25 billion in subsidy costs from the stimulus act, $500 million is specifically for biofuel projects, and $750 million is for large transmission projects that begin construction before Sept. 30, 2011.
Applicants have 45 days to apply for the new guarantee authority, DOE said.
The government-backed authority should help boost lending capital for renewable and other clean-energy technology projects, which has dried up with the financial recession. The stimulus act also included an extension of tax credits for renewable energy and added flexibility where companies can apply for grants instead of using tax credits that the Treasury Department also made available this month (E&ENews PM, July 9).
"This administration has set a goal of doubling renewable electricity generation over the next three years," Energy Secretary Steven Chu said in a statement. "To achieve that goal, we need to accelerate renewable project development by ensuring access to capital for advanced technology projects. We also need a grid that can move clean energy from the places it can be produced to the places where it can be used and that can integrate variable sources of power, like wind and solar," he said.
The loan guarantee authority should decrease the cost of the investments, making a "smart grid" investment a lower investment risk and thus less costly for consumers. DOE also announced the availability of almost $4 billion for demonstration and grants for smart grid projects last month (E&ENews PM, June 25).
This is the sixth and seventh solicitations for loan guarantees since the 2005 energy bill provided the authority, DOE said. But much to the dismay of Congress, the department has given about 1 percent of the available authority to three conditional loan guarantees. DOE offered the almost $600 million to a solar panel manufacturer, a wind turbine manufacturer and an energy storage plant (E&ENews PM, July 7).
"The Department has streamlined its processes to accelerate these new loan solicitations," DOE said.
The Ambient Smart Grid™ Communications Network
Ambient Smart Grid™
The Ambient Smart Grid™ Communications Network
The Ambient Smart Grid™ communications solution is a modular network overlaid on the medium-voltage and low-voltage segments of the power distribution system allowing real-time insight into the operations of the electrical distribution grid while supporting any IP-based application. High-speed backhaul connections (which go to the Internet or to private networks) connect the Ambient Smart Grid™ network at any point along the medium voltage circuit allowing for IP data traffic to be carried, via a choice of multiple technologies including BPL, Wi-Fi, cellular, and/or low bit rate power line carrier (PLC).
To date, no single solution or technology exists which provides the necessary flexibility in a cost-effective solution enabling a comprehensive digital communications network, incorporating standards-based technologies. Ambient’s Smart Grid™ communications platform was developed specifically to fill this void and meet the utility’s needs by integrating various technologies within the Ambient platform.
Making up the Ambient platform are nodes configured to act as individual data processors and collectors that receive and transmit the Ambient Smart Grid™ communications signal from other networked devices including other nodes, couplers or end-user devices. Ambient's node can directly interface with any device with a serial or Ethernet port, and can deliver high-speed communications data using existing and developing technologies including BPL, Wi-Fi, Cellular, low bit rate PLC or any combination of these communications protocols. Our node is a modular device that can be configured for different roles within the network. Nodes can repeat (regenerate) the signal, and accept backhaul connections (fiber, Ethernet, etc) or various end-user connections. Within the Ambient network, each node is individually addressed and can be remotely accessed to detect system status (such as power and low battery conditions) and perform management functions. Ambient’s nodes are built for use in the exposed electrical distribution grid and meet the necessary certifications.
Couplers are another key component of Ambient’s network for select applications. Couplers transfer the communications signal to and from medium voltage and low voltage power lines in a BPL or PLC network, and also serve to read, in real-time, the current of the electrical distribution grid. Since a single coupler cannot span this entire range of options, we have developed inductive couplers for medium voltage overhead and underground lines and inductive and capacitive couplers for low voltage applications.
To manage the large numbers of nodes, devices, and customers on a smart grid network, Ambient has developed a network management system, trademarked as AmbientNMS™. AmbientNMS™ has a simple to use, browser-based interface and supports auto-discovery of network resources, VLANs, provisioning, multiple networks, event logging, data collection, alerts, reporting, and multiple levels of users and security. The AmbientNMS™ will continue to be enhanced with additional features and functionality.
Concerns with data security and data integrity are considered and addressed at all levels of the system. Safety and compliance with regulatory requirements are top priorities throughout the design, development, manufacture and deployment of all of our equipment. Our nodes are tested, and certified as complying to applicable United States and Canadian safety standards for information technology equipment. Our overhead couplers are tested to ANSI Standards for electrical power insulators and are designed for safe non-contact installation with either hot sticks or rubber gloves.
The Ambient Smart Grid™ Communications Network
The Ambient Smart Grid™ communications solution is a modular network overlaid on the medium-voltage and low-voltage segments of the power distribution system allowing real-time insight into the operations of the electrical distribution grid while supporting any IP-based application. High-speed backhaul connections (which go to the Internet or to private networks) connect the Ambient Smart Grid™ network at any point along the medium voltage circuit allowing for IP data traffic to be carried, via a choice of multiple technologies including BPL, Wi-Fi, cellular, and/or low bit rate power line carrier (PLC).
To date, no single solution or technology exists which provides the necessary flexibility in a cost-effective solution enabling a comprehensive digital communications network, incorporating standards-based technologies. Ambient’s Smart Grid™ communications platform was developed specifically to fill this void and meet the utility’s needs by integrating various technologies within the Ambient platform.
Making up the Ambient platform are nodes configured to act as individual data processors and collectors that receive and transmit the Ambient Smart Grid™ communications signal from other networked devices including other nodes, couplers or end-user devices. Ambient's node can directly interface with any device with a serial or Ethernet port, and can deliver high-speed communications data using existing and developing technologies including BPL, Wi-Fi, Cellular, low bit rate PLC or any combination of these communications protocols. Our node is a modular device that can be configured for different roles within the network. Nodes can repeat (regenerate) the signal, and accept backhaul connections (fiber, Ethernet, etc) or various end-user connections. Within the Ambient network, each node is individually addressed and can be remotely accessed to detect system status (such as power and low battery conditions) and perform management functions. Ambient’s nodes are built for use in the exposed electrical distribution grid and meet the necessary certifications.
Couplers are another key component of Ambient’s network for select applications. Couplers transfer the communications signal to and from medium voltage and low voltage power lines in a BPL or PLC network, and also serve to read, in real-time, the current of the electrical distribution grid. Since a single coupler cannot span this entire range of options, we have developed inductive couplers for medium voltage overhead and underground lines and inductive and capacitive couplers for low voltage applications.
To manage the large numbers of nodes, devices, and customers on a smart grid network, Ambient has developed a network management system, trademarked as AmbientNMS™. AmbientNMS™ has a simple to use, browser-based interface and supports auto-discovery of network resources, VLANs, provisioning, multiple networks, event logging, data collection, alerts, reporting, and multiple levels of users and security. The AmbientNMS™ will continue to be enhanced with additional features and functionality.
Concerns with data security and data integrity are considered and addressed at all levels of the system. Safety and compliance with regulatory requirements are top priorities throughout the design, development, manufacture and deployment of all of our equipment. Our nodes are tested, and certified as complying to applicable United States and Canadian safety standards for information technology equipment. Our overhead couplers are tested to ANSI Standards for electrical power insulators and are designed for safe non-contact installation with either hot sticks or rubber gloves.
Tuesday, July 28, 2009
Qualcomm, Verizon Plan Smart Grid Services as Part of New JV
Jeff St. John July 28, 2009
The two wireless giants are forming a joint venture to link devices – including smart grid devices – to one another in the burgeoning “machine to machine” market. But details are yet to emerge.
Verizon is already getting smart meters and other smart grid devices to talk to one another. A new joint venture between Verizon Wireless and leading wireless chip maker Qualcomm, targeting opportunities in the broader "machine-to-machine" market, could expand that.
Executives with both companies provided few details on the focus of the new joint venture in a Tuesday morning press conference at Qualcomm's San Diego headquarters. Nor did they discuss the financial backing the venture would get from both companies – or even the name it would go under.
"What we're doing now is looking across every vertical," said Tony Lewis, Verizon Wireless' vice president of open development.
But the two did list utilities as one of the industries the new joint venture would target, along with healthcare, manufacturing, distribution and consumer products. They also made a point of highlighting smart grid technology, "which enables utilities to wirelessly connect to their grid assets, such as circuit breakers, transformers and other sub-station equipment," in their press release.
Also noteworthy is the presence of executives with Southern California utility holding company Sempra Energy and Swiss power distribution and transmission equipment maker and power automation services provider ABB at Qualcomm's Tuesday Smart Services Leadership Summit event.
Let the speculation begin. Verizon, for one, has been making moves into the smart grid space, with deals such as one announced in April with smart meter maker Itron to link Itron's smart meter networks to utility control centers via Verizon's wireless networks. That's similar to work the wireless provider is doing with utility Duke Energy, and potentially other utilities (see Green Light post).
Cellular networks are already one key option for utilities looking to link distribution and transmission grid sensors and controls (see AT&T Links Cooper Power Systems' Smart Grid Devices).
Using cellular networks to link smart meters and other devices at customers' premises is a popular option in Europe, but less so in North America, where utility-owned wireless mesh networks have taken the lead (see RF Mesh, ZigBee Top North American Utilities' Wish Lists).
Still, some analysts see cellular networks as a natural medium for carrying data from devices utilities are installing at customers' premises and amidst their electricity grids, since it avoids the cost utilities face in installing and maintaining their own communication gear.
In search of such opportunities, AT&T is working with smart meter communications provider SmartSynch to connect residential smart meters, something the two already do with SmartSynch's more prevalent services for commercial and industrial smart meters (see Your Electrical Meter Becomes a Cell Phone and
KORE Telematics uses AT&T's wireless network to connect smart meters being installed by utility Arizona Public Service (see Green Light post). Smart meter maker Echelon has a similar deal with T-Mobile USA (see Echelon, T-Mobile Team on Smart Meter Contracts).
Qualcomm, for its part, hasn't made any overt moves into the smart grid space as of yet.
Steve Pazol, the vice president of global smart services at Qualcomm who will lead the new joint venture, noted that linking consumer electronics via cellular networks will be a focus of the new effort.
"Qualcomm has products that are really optimized for those connected consumer devices," he said.
Theoretically, that could include various home energy monitoring and management devices Verizon may be looking at bringing to homes in the coming months. The idea is to link appliances, heating and air conditioning systems and other home energy-using devices to networks that could allow homeowners or utilities to power them down to mitigate peak electricity demand loads or save energy (see The Smart Home, Part I).
That includes the potential for Verizon to add energy management services through its FiOS broadband home router (see Verizon to Add Energy Management to FiOS). AT&T is rumored to be looking at a similar strategy (see Telecoms Eyeing Home Energy Management?).
While Verizon hasn't said when it might start supporting energy management, companies like OpenPeak, a Boca Raton, Fla.-based maker of touch screen and voice-over internet protocol (VOIP) devices that is adding energy management services to the applications it hosts on its devices, have said telecoms will be rolling out those systems this year (see The Telco Home Energy Invasion).
But just how much the new Qualcomm-Verizon joint venture will focus on smart grid and home energy management, versus the plethora of other opportunities in linking devices to one another – a market representing a potential 85 million devices by 2012, Pazol noted in a press release – remains to be seen.
The two companies did say the new joint venture would use cloud computing solutions to automate device provisioning, and to track, monitor and manage assets, as well as support for other device manufacturers and data integration and back office support
The two wireless giants are forming a joint venture to link devices – including smart grid devices – to one another in the burgeoning “machine to machine” market. But details are yet to emerge.
Verizon is already getting smart meters and other smart grid devices to talk to one another. A new joint venture between Verizon Wireless and leading wireless chip maker Qualcomm, targeting opportunities in the broader "machine-to-machine" market, could expand that.
Executives with both companies provided few details on the focus of the new joint venture in a Tuesday morning press conference at Qualcomm's San Diego headquarters. Nor did they discuss the financial backing the venture would get from both companies – or even the name it would go under.
"What we're doing now is looking across every vertical," said Tony Lewis, Verizon Wireless' vice president of open development.
But the two did list utilities as one of the industries the new joint venture would target, along with healthcare, manufacturing, distribution and consumer products. They also made a point of highlighting smart grid technology, "which enables utilities to wirelessly connect to their grid assets, such as circuit breakers, transformers and other sub-station equipment," in their press release.
Also noteworthy is the presence of executives with Southern California utility holding company Sempra Energy and Swiss power distribution and transmission equipment maker and power automation services provider ABB at Qualcomm's Tuesday Smart Services Leadership Summit event.
Let the speculation begin. Verizon, for one, has been making moves into the smart grid space, with deals such as one announced in April with smart meter maker Itron to link Itron's smart meter networks to utility control centers via Verizon's wireless networks. That's similar to work the wireless provider is doing with utility Duke Energy, and potentially other utilities (see Green Light post).
Cellular networks are already one key option for utilities looking to link distribution and transmission grid sensors and controls (see AT&T Links Cooper Power Systems' Smart Grid Devices).
Using cellular networks to link smart meters and other devices at customers' premises is a popular option in Europe, but less so in North America, where utility-owned wireless mesh networks have taken the lead (see RF Mesh, ZigBee Top North American Utilities' Wish Lists).
Still, some analysts see cellular networks as a natural medium for carrying data from devices utilities are installing at customers' premises and amidst their electricity grids, since it avoids the cost utilities face in installing and maintaining their own communication gear.
In search of such opportunities, AT&T is working with smart meter communications provider SmartSynch to connect residential smart meters, something the two already do with SmartSynch's more prevalent services for commercial and industrial smart meters (see Your Electrical Meter Becomes a Cell Phone and
KORE Telematics uses AT&T's wireless network to connect smart meters being installed by utility Arizona Public Service (see Green Light post). Smart meter maker Echelon has a similar deal with T-Mobile USA (see Echelon, T-Mobile Team on Smart Meter Contracts).
Qualcomm, for its part, hasn't made any overt moves into the smart grid space as of yet.
Steve Pazol, the vice president of global smart services at Qualcomm who will lead the new joint venture, noted that linking consumer electronics via cellular networks will be a focus of the new effort.
"Qualcomm has products that are really optimized for those connected consumer devices," he said.
Theoretically, that could include various home energy monitoring and management devices Verizon may be looking at bringing to homes in the coming months. The idea is to link appliances, heating and air conditioning systems and other home energy-using devices to networks that could allow homeowners or utilities to power them down to mitigate peak electricity demand loads or save energy (see The Smart Home, Part I).
That includes the potential for Verizon to add energy management services through its FiOS broadband home router (see Verizon to Add Energy Management to FiOS). AT&T is rumored to be looking at a similar strategy (see Telecoms Eyeing Home Energy Management?).
While Verizon hasn't said when it might start supporting energy management, companies like OpenPeak, a Boca Raton, Fla.-based maker of touch screen and voice-over internet protocol (VOIP) devices that is adding energy management services to the applications it hosts on its devices, have said telecoms will be rolling out those systems this year (see The Telco Home Energy Invasion).
But just how much the new Qualcomm-Verizon joint venture will focus on smart grid and home energy management, versus the plethora of other opportunities in linking devices to one another – a market representing a potential 85 million devices by 2012, Pazol noted in a press release – remains to be seen.
The two companies did say the new joint venture would use cloud computing solutions to automate device provisioning, and to track, monitor and manage assets, as well as support for other device manufacturers and data integration and back office support
Saturday, July 25, 2009
Con Ed proposes new *Smart Grid* technology to monitor flow, avoid blackouts - for $385M
Con Ed proposes new technology to monitor flow, avoid blackouts - for $385M
BY WILLIAM SHERMAN
DAILY NEWS STAFF WRITER
Friday, July 24th 2009, 4:00 AM
State regulators on Friday will review a $385 million plan for Con Edison to use new grid technology to streamline electricity flow and avert crippling blackouts.
Consumers would pay almost half - about $176 million - a one-time hike added to bills over three years that averages $57 per customer. The tab will vary depending on usage. Big businesses, like a Wall St. brokerage, might pay more, while residents would pay less, Con Ed officials said.
Under proposals before the state Public Service Commission, sensors and other devices would be placed throughout the 94,000 miles of Con Ed's network to continuously update a central computer on power use and possible breakdowns.
"We'll get advance knowledge of equipment failure in a particular area and be able to reroute electricity around that area to prevent a loss of power," said Aubrey Braz, a Con Ed vice president in charge of smart grid technology.
The likelihood of large feeder cables burning out during peak demand on hot summer days - incidents that triggered the Washington Heights blackout of 1999 and the Long Island City blackout of 2006 - would be minimized with the automated system, he said.
"The digital [computerized] system will regulate the flow of power and automatically isolate a cable breakdown to stop a failure from spreading," Braz said.
Customers could get "smart meters" in their homes that would show not only how much electricity was being used on a real-time basis, but how much electricity individual appliances were using.
That would let consumers tailor their use of appliances to take advantage of off-peak hours, said Stuart Nachmias, Con Ed vice president of energy policy and regulatory affairs.
"Use a washer and dryer when the power is cheaper, like after 9p.m. as opposed to 3 p.m.," Nachmias said.
The technology is universally regarded as a necessary wave of the future for power transmission.
Even persistent critics of Con Ed's performance like Councilman Eric Gioia (D-Queens) lauded the plan.
"I'm happy to see that Con Ed has seen the light," Gioia said. "New York City needs a smart grid because it saves people money, it avoids blackouts and it's better for the environment, so it makes a world of sense that this gets done," said Gioia.
The costs for the Con Ed smart grid are currently pegged at $385million, but ratepayers will not have to foot the full bill, the PSC said. More than 50% of the total is coming from federal stimulus funds - taxpayers' money - available in a Department of Energy grant.
Other utilities throughout the state have also submitted smart grid proposals to the PSC for a total of $1 billion.
The PSC is expected to approve the proposal, particularly because of the federal matching funds.
PSC Chairman Gary Brown is a major advocate of the new technology.
"It will significantly improve system reliability," he said in a recent speech, noting that "power interruptions and disturbances cost the U.S. electricity consumer at least $79 billion per year."
BY WILLIAM SHERMAN
DAILY NEWS STAFF WRITER
Friday, July 24th 2009, 4:00 AM
State regulators on Friday will review a $385 million plan for Con Edison to use new grid technology to streamline electricity flow and avert crippling blackouts.
Consumers would pay almost half - about $176 million - a one-time hike added to bills over three years that averages $57 per customer. The tab will vary depending on usage. Big businesses, like a Wall St. brokerage, might pay more, while residents would pay less, Con Ed officials said.
Under proposals before the state Public Service Commission, sensors and other devices would be placed throughout the 94,000 miles of Con Ed's network to continuously update a central computer on power use and possible breakdowns.
"We'll get advance knowledge of equipment failure in a particular area and be able to reroute electricity around that area to prevent a loss of power," said Aubrey Braz, a Con Ed vice president in charge of smart grid technology.
The likelihood of large feeder cables burning out during peak demand on hot summer days - incidents that triggered the Washington Heights blackout of 1999 and the Long Island City blackout of 2006 - would be minimized with the automated system, he said.
"The digital [computerized] system will regulate the flow of power and automatically isolate a cable breakdown to stop a failure from spreading," Braz said.
Customers could get "smart meters" in their homes that would show not only how much electricity was being used on a real-time basis, but how much electricity individual appliances were using.
That would let consumers tailor their use of appliances to take advantage of off-peak hours, said Stuart Nachmias, Con Ed vice president of energy policy and regulatory affairs.
"Use a washer and dryer when the power is cheaper, like after 9p.m. as opposed to 3 p.m.," Nachmias said.
The technology is universally regarded as a necessary wave of the future for power transmission.
Even persistent critics of Con Ed's performance like Councilman Eric Gioia (D-Queens) lauded the plan.
"I'm happy to see that Con Ed has seen the light," Gioia said. "New York City needs a smart grid because it saves people money, it avoids blackouts and it's better for the environment, so it makes a world of sense that this gets done," said Gioia.
The costs for the Con Ed smart grid are currently pegged at $385million, but ratepayers will not have to foot the full bill, the PSC said. More than 50% of the total is coming from federal stimulus funds - taxpayers' money - available in a Department of Energy grant.
Other utilities throughout the state have also submitted smart grid proposals to the PSC for a total of $1 billion.
The PSC is expected to approve the proposal, particularly because of the federal matching funds.
PSC Chairman Gary Brown is a major advocate of the new technology.
"It will significantly improve system reliability," he said in a recent speech, noting that "power interruptions and disturbances cost the U.S. electricity consumer at least $79 billion per year."
Friday, July 24, 2009
GOVERNOR PATERSON APPLAUDS New York State Public Service Commission (PSC) APPROVAL OF $434 Million SMART GRID PROJECTS
PSC Authorizes NYPA Smart Grid Project Filing
Northern NY News
Written by Contributor
Friday, 24 July 2009 13:39
GOVERNOR PATERSON APPLAUDS PSC APPROVAL OF SMART GRID PROJECTS
Core Component of Governor Paterson’s New Economy Plan Approved
New York Seeks $434 Million in Federal ARRA Funds to Create Energy Grid of the Future
Governor David A. Paterson today congratulated the New York State Public Service Commission (PSC) for its decision to authorize six investor-owned utilities in New York to apply to the federal Department of Energy (DOE) to receive upwards of $434 million in federal stimulus funds as provided in the American Recovery and Reinvestment Act (ARRA). The funds being sought will be used primarily to support the creation of a smart electric grid in New York, one of the core proposals in Governor Paterson’s New Economy jobs plan.
“We are taking a collaborative approach to positioning New York as a leader in the New Economy. I am pleased that the PSC is moving forward quickly and decisively to capitalize on federal stimulus funding for smart grid technology,” said Governor Paterson. “Now is the time to take bold new steps to prepare New York to lead in the creation of a new economy based on knowledge, technology and innovation. I’m confident New York will receive its share of ARRA funding for these critically important economic development projects.”
The development of a smart grid system is just one of the dynamic economic development steps announced in June by Governor Paterson in his Bold Steps to the New Economy Jobs Plan. The plan capitalizes on ARRA funding to drive economic recovery in the fields of energy, environmental protection, technology and health care. The initiative ensured New York would capitalize on federal stimulus funding for smart grid technology, with minimal ratepayer impact.
The investor-owned utilities applying for federal stimulus funding for smart grid projects include Consolidated Edison Company of New York, Inc.; Orange and Rockland Utilities, Inc.; National Grid; New York State Electric and Gas Corporation; Rochester Gas and Electric Corporation; and Central Hudson Gas and Electric Corporation.
In addition to a host of proposed improvements designed to incorporate cutting-edge smart grid technology in the transmission and distribution electric grid, utilities will submit proposals to fund smart meter pilot projects in several cities and towns across New York, including Manhattan, Long Island City, Mt. Vernon, Yonkers, Syracuse, Poughkeepsie, Saratoga, Cooperstown, Saugerties, Horseheads, Canandaigua, Bloomfield and West Nyack. Smart grid meters, representing a component of the future electric grid, will potentially give consumers an unprecedented ability to control their individual energy usage and potentially save hundreds of dollars a year on energy bills.
The term smart grid refers to the application of various digital technologies to, among other things, modernize and automate transmission and distribution assets to anticipate and respond to system disturbances, enable greater use of variable energy sources, including renewable energy, and provide needed information and capability for customers to control their energy consumption effectively.
The New York utility projects being put forth for consideration to DOE, which include several other energy-related federal funding opportunities, are valued at $825 million in total. Because federal grants will only cover up to 50 percent of programs costs, utilities require ratepayer funding for the remaining portion.
The timing of the Commission’s action allows utilities to demonstrate in their DOE application a commitment to cover portions not covered by the federal grant. The expectation is that this commitment should place New York’s electric utilities in an advantageous position at DOE to secure a portion of the available competitive grants.
The Long Island Power Authority (LIPA) and the New York Power Authority (NYPA) also plan to submit several proposals in response to DOE’s programs for Smart Grid, including LIPA’s proposal to create the Smart Energy Corridor along the Route 110 Corridor announced in May. This project will demonstrate smart metering at approximately 250 residential and 250 commercial LIPA customers; distribution and substation automation; the integration of renewable, energy storage, and demand response; cybersecurity testing of smart grid devices; and training programs.
NYPA is submitting a proposal with the New York Independent System Operator to provide a high speed fiber-optic communication backbone to support future Smart Grid technologies that will enable better operation of the grid, ability to sense changes that could disrupt stability, and the ability to react to the knowledge in milliseconds by 'control' of smart devices.
Northern NY News
Written by Contributor
Friday, 24 July 2009 13:39
GOVERNOR PATERSON APPLAUDS PSC APPROVAL OF SMART GRID PROJECTS
Core Component of Governor Paterson’s New Economy Plan Approved
New York Seeks $434 Million in Federal ARRA Funds to Create Energy Grid of the Future
Governor David A. Paterson today congratulated the New York State Public Service Commission (PSC) for its decision to authorize six investor-owned utilities in New York to apply to the federal Department of Energy (DOE) to receive upwards of $434 million in federal stimulus funds as provided in the American Recovery and Reinvestment Act (ARRA). The funds being sought will be used primarily to support the creation of a smart electric grid in New York, one of the core proposals in Governor Paterson’s New Economy jobs plan.
“We are taking a collaborative approach to positioning New York as a leader in the New Economy. I am pleased that the PSC is moving forward quickly and decisively to capitalize on federal stimulus funding for smart grid technology,” said Governor Paterson. “Now is the time to take bold new steps to prepare New York to lead in the creation of a new economy based on knowledge, technology and innovation. I’m confident New York will receive its share of ARRA funding for these critically important economic development projects.”
The development of a smart grid system is just one of the dynamic economic development steps announced in June by Governor Paterson in his Bold Steps to the New Economy Jobs Plan. The plan capitalizes on ARRA funding to drive economic recovery in the fields of energy, environmental protection, technology and health care. The initiative ensured New York would capitalize on federal stimulus funding for smart grid technology, with minimal ratepayer impact.
The investor-owned utilities applying for federal stimulus funding for smart grid projects include Consolidated Edison Company of New York, Inc.; Orange and Rockland Utilities, Inc.; National Grid; New York State Electric and Gas Corporation; Rochester Gas and Electric Corporation; and Central Hudson Gas and Electric Corporation.
In addition to a host of proposed improvements designed to incorporate cutting-edge smart grid technology in the transmission and distribution electric grid, utilities will submit proposals to fund smart meter pilot projects in several cities and towns across New York, including Manhattan, Long Island City, Mt. Vernon, Yonkers, Syracuse, Poughkeepsie, Saratoga, Cooperstown, Saugerties, Horseheads, Canandaigua, Bloomfield and West Nyack. Smart grid meters, representing a component of the future electric grid, will potentially give consumers an unprecedented ability to control their individual energy usage and potentially save hundreds of dollars a year on energy bills.
The term smart grid refers to the application of various digital technologies to, among other things, modernize and automate transmission and distribution assets to anticipate and respond to system disturbances, enable greater use of variable energy sources, including renewable energy, and provide needed information and capability for customers to control their energy consumption effectively.
The New York utility projects being put forth for consideration to DOE, which include several other energy-related federal funding opportunities, are valued at $825 million in total. Because federal grants will only cover up to 50 percent of programs costs, utilities require ratepayer funding for the remaining portion.
The timing of the Commission’s action allows utilities to demonstrate in their DOE application a commitment to cover portions not covered by the federal grant. The expectation is that this commitment should place New York’s electric utilities in an advantageous position at DOE to secure a portion of the available competitive grants.
The Long Island Power Authority (LIPA) and the New York Power Authority (NYPA) also plan to submit several proposals in response to DOE’s programs for Smart Grid, including LIPA’s proposal to create the Smart Energy Corridor along the Route 110 Corridor announced in May. This project will demonstrate smart metering at approximately 250 residential and 250 commercial LIPA customers; distribution and substation automation; the integration of renewable, energy storage, and demand response; cybersecurity testing of smart grid devices; and training programs.
NYPA is submitting a proposal with the New York Independent System Operator to provide a high speed fiber-optic communication backbone to support future Smart Grid technologies that will enable better operation of the grid, ability to sense changes that could disrupt stability, and the ability to react to the knowledge in milliseconds by 'control' of smart devices.
Thursday, July 23, 2009
U.S. electric grid needs major overhaul: utility
Thu Jul 23, 2009 10:29pm EDT
By Tom Doggett
WASHINGTON (Reuters) - The U.S. electric grid is outdated and needs a major overhaul if it is to carry electricity generated by renewable energy sources, a senior official with Southern California Edison told Congress on Thursday.
The Obama administration has called for doubling the amount of U.S. electricity produced by renewable sources, such as wind and solar power, during the next three years to reduce greenhouse emissions that cause global warming.
However, a so-called "smart" grid will be needed to transmit those power supplies from where they are generated in remote areas to consumers and businesses in cities.
"The electricity infrastructure delivering power from a variety of generating sources to our homes, businesses and communities is not suitable for today's needs," said Paul De Martini, SCE's vice president for advanced technology.
"The challenges that face our nation's energy future simply cannot be met by our aging electric grid," Martini said at a House Science subcommittee hearing on how to update the grid.
SCE is a subsidiary of Edison International, one of the largest U.S. electric utilities that serves nearly 14 million people.
Subcommittee chairman Rep. Brian Baird pointed out that parts of the U.S. electric infrastructure are almost 100 years old and America's growing demand for electricity, to run computers for example, is straining the system.
"In order to improve efficiency of power delivery and incorporate renewable energy technologies we need to modernize our grid," he said.
The problem hit home for Texas oil billionaire T. Boone Pickens, who said earlier this month he was delaying plans to build the world's biggest wind farm in the Texas Panhandle because of the difficulty in building the transmission lines that would carry the power supplies.
To help pay for upgrading power lines, the economic stimulus package approved by Congress earlier this year provides $4.5 billion in government assistance for electric transmission projects.
That's just a fraction of the $40 billion to $50 billion needed to update certain areas of the grid, according to the Energy Department.
Separate climate legislation passed by the House of Representatives would make it easier to site new smart grid power lines by allowing a government agency, the Federal Energy Regulatory Commission, to step in and override state objections to issuing permits for such projects. The full Senate is expected to take up a climate change bill this autumn.
"A coordinated and timely deployment of smart grid can provide many positive benefits to the Nation's electric industry and its customers," said FERC commissioner Suedeen Kelly.
By Tom Doggett
WASHINGTON (Reuters) - The U.S. electric grid is outdated and needs a major overhaul if it is to carry electricity generated by renewable energy sources, a senior official with Southern California Edison told Congress on Thursday.
The Obama administration has called for doubling the amount of U.S. electricity produced by renewable sources, such as wind and solar power, during the next three years to reduce greenhouse emissions that cause global warming.
However, a so-called "smart" grid will be needed to transmit those power supplies from where they are generated in remote areas to consumers and businesses in cities.
"The electricity infrastructure delivering power from a variety of generating sources to our homes, businesses and communities is not suitable for today's needs," said Paul De Martini, SCE's vice president for advanced technology.
"The challenges that face our nation's energy future simply cannot be met by our aging electric grid," Martini said at a House Science subcommittee hearing on how to update the grid.
SCE is a subsidiary of Edison International, one of the largest U.S. electric utilities that serves nearly 14 million people.
Subcommittee chairman Rep. Brian Baird pointed out that parts of the U.S. electric infrastructure are almost 100 years old and America's growing demand for electricity, to run computers for example, is straining the system.
"In order to improve efficiency of power delivery and incorporate renewable energy technologies we need to modernize our grid," he said.
The problem hit home for Texas oil billionaire T. Boone Pickens, who said earlier this month he was delaying plans to build the world's biggest wind farm in the Texas Panhandle because of the difficulty in building the transmission lines that would carry the power supplies.
To help pay for upgrading power lines, the economic stimulus package approved by Congress earlier this year provides $4.5 billion in government assistance for electric transmission projects.
That's just a fraction of the $40 billion to $50 billion needed to update certain areas of the grid, according to the Energy Department.
Separate climate legislation passed by the House of Representatives would make it easier to site new smart grid power lines by allowing a government agency, the Federal Energy Regulatory Commission, to step in and override state objections to issuing permits for such projects. The full Senate is expected to take up a climate change bill this autumn.
"A coordinated and timely deployment of smart grid can provide many positive benefits to the Nation's electric industry and its customers," said FERC commissioner Suedeen Kelly.
Monday, July 20, 2009
DOE Rolls Out $47M for Smart Grid Demos, Unveils First Smart Grid Status Report
DOE Rolls Out $47M for Smart Grid Demos, Unveils First Smart Grid Status Report
Written by Josie Garthwaite
Posted July 20th, 2009 at 12:33 pm in Policy,smart grid
Eight smart grid demonstration projects in seven states have just hit pay dirt. The Department of Energy today announced awards of more than $47 million in stimulus funds for the projects, adding to the $17 million that the agency invested in them last year after a competitive application process. Among the companies cashing in today are Massachusetts-based American Superconductor, Consolidated Edison (Con Edison) of New York, California’s Zenergy Power and the University of Nevada, Las Vegas.
The eight projects cover a cross section of smart grid technologies. We’ll be interested to see results from the University of Nevada at Las Vegas demo, which the DOE says will receive more than $5.72 million to trial distributed generation (e.g. home solar panels) and energy management tools in a residential development that’s meant to provide a large-scale “laboratory atmosphere” for testing these technologies.
American Superconductor and Zenergy Power, meanwhile, are both working on advanced technology (different types) for what are called fault current limiters to control power surges and help stabilize the grid. American Superconductor has been awarded more than $12.4 million for two projects, including the fault current limiter project and another dealing with high-temperature superconductor electrical cables.
The city of Fort Collins, Colo., has also made the cut, receiving about $4.84 million to help it “research, develop and demonstrate a coordinated and integrated system” for bringing more distributed renewable energy onto the grid. Con Edison has snagged $5.63 million for its demand-response demonstration, and the University of Hawaii at Manoa’s Natural Energy Institute is getting $5.55 million for distribution system technologies. For the full list of awards and projects, check out the DOE announcement here.
In addition to announcing the $47 million in stimulus awards for demo projects, the DOE has issued its first status report (PDF) today on smart grid technology and deployments, as required by the 2007 Energy Act (it will be updated biennially). While the report is intended as an assessment of progress “across many fronts” of the smart grid, the agency notes key findings in the areas of distributed energy, electricity infrastructure, business and policy and “high-tech culture change,” calling for a “cross-disciplinary change that instills greater interaction among all the stakeholders,” from consumers to electricity brokers to policy makers and investors.
The status report details 20 different metrics that the DOE has created for tracking progress in future reports, although they may be “reviewed for continued relevance and appropriate emphasis of major smart grid attributes” in coming years. For now, they include venture capital activity, the portion of on-road vehicles that are all-electric or plug-in hybrids and adoption/maturity levels for interoperability standards, as well as the percentage of utilities using several smart grid technologies.
Written by Josie Garthwaite
Posted July 20th, 2009 at 12:33 pm in Policy,smart grid
Eight smart grid demonstration projects in seven states have just hit pay dirt. The Department of Energy today announced awards of more than $47 million in stimulus funds for the projects, adding to the $17 million that the agency invested in them last year after a competitive application process. Among the companies cashing in today are Massachusetts-based American Superconductor, Consolidated Edison (Con Edison) of New York, California’s Zenergy Power and the University of Nevada, Las Vegas.
The eight projects cover a cross section of smart grid technologies. We’ll be interested to see results from the University of Nevada at Las Vegas demo, which the DOE says will receive more than $5.72 million to trial distributed generation (e.g. home solar panels) and energy management tools in a residential development that’s meant to provide a large-scale “laboratory atmosphere” for testing these technologies.
American Superconductor and Zenergy Power, meanwhile, are both working on advanced technology (different types) for what are called fault current limiters to control power surges and help stabilize the grid. American Superconductor has been awarded more than $12.4 million for two projects, including the fault current limiter project and another dealing with high-temperature superconductor electrical cables.
The city of Fort Collins, Colo., has also made the cut, receiving about $4.84 million to help it “research, develop and demonstrate a coordinated and integrated system” for bringing more distributed renewable energy onto the grid. Con Edison has snagged $5.63 million for its demand-response demonstration, and the University of Hawaii at Manoa’s Natural Energy Institute is getting $5.55 million for distribution system technologies. For the full list of awards and projects, check out the DOE announcement here.
In addition to announcing the $47 million in stimulus awards for demo projects, the DOE has issued its first status report (PDF) today on smart grid technology and deployments, as required by the 2007 Energy Act (it will be updated biennially). While the report is intended as an assessment of progress “across many fronts” of the smart grid, the agency notes key findings in the areas of distributed energy, electricity infrastructure, business and policy and “high-tech culture change,” calling for a “cross-disciplinary change that instills greater interaction among all the stakeholders,” from consumers to electricity brokers to policy makers and investors.
The status report details 20 different metrics that the DOE has created for tracking progress in future reports, although they may be “reviewed for continued relevance and appropriate emphasis of major smart grid attributes” in coming years. For now, they include venture capital activity, the portion of on-road vehicles that are all-electric or plug-in hybrids and adoption/maturity levels for interoperability standards, as well as the percentage of utilities using several smart grid technologies.
Sunday, July 19, 2009
Smart meters cracking into U.S. homes
July 17, 2009 9:15 AM PDT
Smart meters cracking into U.S. homes
by Martin LaMonica
The number of smart electricity meters with two-way communications is poised to mushroom in the next two years, according to a study.
Research company Park Associates this week released figures for smart-meter installations in the U.S., saying that there are 8 million units installed, or about 6 percent of all meters.
(Credit: Martin LaMonica/CNET)
As utilities upgrade equipment as part of smart-grid trials, the number of smart meters is forecast to grow to 13.6 million installed next year and to over 33 million in 2011.
Having a method to broker regular communications between a utility and a customer will set the foundation for a widening array of home-energy management tools, said Bill Ablondi, Park Associates' director of home systems.
Home energy management systems can be relatively simple displays or Web-based programs that show how much electricity a home is using. More high-end systems can be built around home-area networks where consumers can program smart appliances and lighting to cut power consumption.
The enabling technology for the more sophisticated home-energy management systems includes various wireless communications options for within the home and for smart meters. But even though many of the technology components are now available, there are a number of barriers to widespread adoption of the smart grid, even with billions of stimulus dollars targeted for smart-grid programs.
Upgrading the electricity distribution system is expensive and variable pricing structures that reflect the cost of peak-time electricity could take a long time to be implemented, Ablondi said in a recent presentation. Also, consumer interest in managing energy, which is high right now, could wane, he added.
Smart meters cracking into U.S. homes
by Martin LaMonica
The number of smart electricity meters with two-way communications is poised to mushroom in the next two years, according to a study.
Research company Park Associates this week released figures for smart-meter installations in the U.S., saying that there are 8 million units installed, or about 6 percent of all meters.
(Credit: Martin LaMonica/CNET)
As utilities upgrade equipment as part of smart-grid trials, the number of smart meters is forecast to grow to 13.6 million installed next year and to over 33 million in 2011.
Having a method to broker regular communications between a utility and a customer will set the foundation for a widening array of home-energy management tools, said Bill Ablondi, Park Associates' director of home systems.
Home energy management systems can be relatively simple displays or Web-based programs that show how much electricity a home is using. More high-end systems can be built around home-area networks where consumers can program smart appliances and lighting to cut power consumption.
The enabling technology for the more sophisticated home-energy management systems includes various wireless communications options for within the home and for smart meters. But even though many of the technology components are now available, there are a number of barriers to widespread adoption of the smart grid, even with billions of stimulus dollars targeted for smart-grid programs.
Upgrading the electricity distribution system is expensive and variable pricing structures that reflect the cost of peak-time electricity could take a long time to be implemented, Ablondi said in a recent presentation. Also, consumer interest in managing energy, which is high right now, could wane, he added.
Thursday, July 16, 2009
NORTHEAST Utilities and the Connecticut Municipal Electrical Energy Cooperative aim to tap federal stimulus money for 'smart grid'
Utilities aim to tap federal stimulus money for 'smart grid'
Thu. July 16, 2009; Posted: 06:33 AM
Jul 16, 2009 (New Haven Register - McClatchy-Tribune Information Services via COMTEX) -- CNLPM | Quote | Chart | News | PowerRating -- Northeast Utilities and the Connecticut Municipal Electrical Energy Cooperative said Wednesday they are each seeking millions of dollars in federal stimulus money through the federal Department of Energy to pay for technology that will help consumers use electricity more wisely.
NU will apply for between $50 million and $75 million in DOE grant money to install so-called "smart grid" technology at its subsidiaries in New Hampshire and Western Massachusetts, as well as expand the use of the equipment at the Connecticut Light & Power Co., said Al Lara, a spokesman for the Berlin, Conn.-based corporate parent.
At the same time NU was announcing its plans, Norwichbased CMEEC was in Wallingford outlining its plans to seek $5 million in federal money to cover half the cost of a $10.3 million plant to launch a smart grid pilot program among the seven communities it serves.
Wallingford is one of those seven communities with public power companies, and would be responsible for coming up with roughly $1.5 million of the project cost that wouldn't be covered by the grant, said George Adair, the town's public utilities director.
Smart grid technology refers to devices that transmit real-time price information for electricity or sends some other kind of signal directly to consumers, allowing them to determine how to use energy more efficiently, CMEEC officials explained to Wallingford's Public Utilities Commission.
"What we are doing is allowing customers ... to help themselves," said Maurice Scully, CMEEC executive director. Scully said initial estimates are that the 3,000 commercial and industrial customers and the 2,000 residential consumers who participate in the pilot program could collectively avoid $7.4 million in electric costs over 10 years, compared to those who didn't participate in the program.
CL&P is already in the midst of a three-month pilot program called Plan-It Wise that is testing the technology in 1,500 businesses around the state, and in 1,500 homes in the Hartford and Stamford areas, Lara said.
The program began June 1 and runs through August, Lara said. The federal grant money would be used to install the smart grid devices in additional homes.
"We do expect the majority of the money to be used in Connecticut because we've already laid a foundation for a smart grid there," Lara said.
The installation and expansion of smart grid technology by CL&P, as well as by sister companies Public Service Co. of New Hampshire and Western Massachusetts Electric Co. will cost between $100 million and $175 million, Lara said. If NU is awarded the grant, it would pay the remaining 50 percent of the costs associated with the project, he said.
The smart grid technology in use in the CL&P pilot program includes a device that changes color as the actual cost that the utility pays to supply the electricity changes from hour to hour, Lara said. When the device glows red, that signals to the consumer that the cost of electricity being used is at a peak, he said.
But smart grid technology is not without its detractors.
The plan that WMECO officials have presented to Bay State utility regulators would have some lowincome customers pay for electricity in advance, while others would be charged a premium for any power used beyond 300 kilowatt hours per month.
The pilot program, which WMECO hopes to roll out next summer, is drawing criticism from Massachusetts Attorney General Martha Coakley.
In Greater New Haven, two Wallingford PUC commissioners expressed misgivings about smart grid technology.
"My concern is it's a step towards having the RTOs (Regional Transmission Organizations like grid operator ISONew England) tell us when we can run things," said Robert Beaumont, PUC chairman. "I see the feds pushing this and I'm skeptical."
Thu. July 16, 2009; Posted: 06:33 AM
Jul 16, 2009 (New Haven Register - McClatchy-Tribune Information Services via COMTEX) -- CNLPM | Quote | Chart | News | PowerRating -- Northeast Utilities and the Connecticut Municipal Electrical Energy Cooperative said Wednesday they are each seeking millions of dollars in federal stimulus money through the federal Department of Energy to pay for technology that will help consumers use electricity more wisely.
NU will apply for between $50 million and $75 million in DOE grant money to install so-called "smart grid" technology at its subsidiaries in New Hampshire and Western Massachusetts, as well as expand the use of the equipment at the Connecticut Light & Power Co., said Al Lara, a spokesman for the Berlin, Conn.-based corporate parent.
At the same time NU was announcing its plans, Norwichbased CMEEC was in Wallingford outlining its plans to seek $5 million in federal money to cover half the cost of a $10.3 million plant to launch a smart grid pilot program among the seven communities it serves.
Wallingford is one of those seven communities with public power companies, and would be responsible for coming up with roughly $1.5 million of the project cost that wouldn't be covered by the grant, said George Adair, the town's public utilities director.
Smart grid technology refers to devices that transmit real-time price information for electricity or sends some other kind of signal directly to consumers, allowing them to determine how to use energy more efficiently, CMEEC officials explained to Wallingford's Public Utilities Commission.
"What we are doing is allowing customers ... to help themselves," said Maurice Scully, CMEEC executive director. Scully said initial estimates are that the 3,000 commercial and industrial customers and the 2,000 residential consumers who participate in the pilot program could collectively avoid $7.4 million in electric costs over 10 years, compared to those who didn't participate in the program.
CL&P is already in the midst of a three-month pilot program called Plan-It Wise that is testing the technology in 1,500 businesses around the state, and in 1,500 homes in the Hartford and Stamford areas, Lara said.
The program began June 1 and runs through August, Lara said. The federal grant money would be used to install the smart grid devices in additional homes.
"We do expect the majority of the money to be used in Connecticut because we've already laid a foundation for a smart grid there," Lara said.
The installation and expansion of smart grid technology by CL&P, as well as by sister companies Public Service Co. of New Hampshire and Western Massachusetts Electric Co. will cost between $100 million and $175 million, Lara said. If NU is awarded the grant, it would pay the remaining 50 percent of the costs associated with the project, he said.
The smart grid technology in use in the CL&P pilot program includes a device that changes color as the actual cost that the utility pays to supply the electricity changes from hour to hour, Lara said. When the device glows red, that signals to the consumer that the cost of electricity being used is at a peak, he said.
But smart grid technology is not without its detractors.
The plan that WMECO officials have presented to Bay State utility regulators would have some lowincome customers pay for electricity in advance, while others would be charged a premium for any power used beyond 300 kilowatt hours per month.
The pilot program, which WMECO hopes to roll out next summer, is drawing criticism from Massachusetts Attorney General Martha Coakley.
In Greater New Haven, two Wallingford PUC commissioners expressed misgivings about smart grid technology.
"My concern is it's a step towards having the RTOs (Regional Transmission Organizations like grid operator ISONew England) tell us when we can run things," said Robert Beaumont, PUC chairman. "I see the feds pushing this and I'm skeptical."
Sunday, July 12, 2009
Investing in the Smart Grid
Investing in the Smart Grid
July 12, 2009
With the likely passage of the “Cap and Trade” bill, many investors are jumping on the renewable energy bandwagon. And why not? With the government about to mandate a cap-and-trade program that will drive up the cost of electricity, there are many new opportunities to capitalize on the flow of investment dollars from public and private sources. They also are looking for investment opportunities through stocks of smart grid companies.
This headlong push into alternative power generation is causing investors to take a new look at the old electrical grid system. While there have been attempts to move to a market based power generation system, most of these efforts have failed to achieve their original goals.
Moreover, the electricity transmission and distribution system remains much the same and is a big problem. For example, T. Boone Pickens has announced he is curtailing his plans to build the world’s largest wind farm in West Texas. Part of the reason is the lack of adequate transmission lines to carry electricity from the remote wind sites to cities. This is where a smart grid investment program makes sense for investors.
Investing in the Smart Grid
This old electrical grid system is designed to distribute power from consistent generation facilities that are close by. Building large wind farms in West Texas requires a way to move that power to urban areas that need it. Moreover, what happens if the wind stops blowing during the hottest days of the summer?
Our current electrical grid system is ill suited to handle the variability of new sources of electrical power. Solving the transition to new power sources is only half the battle. After generating the power, you need to distribute it to where it is needed at the right time, in the right amounts and at a lower cost.
You can make an interesting comparison with the current electrical grid and communications network. If Alexander Graham Bell, the inventor of the telephone, were to come back today, he would not recognize the modern day communication system with digital based internet and wireless networks with their cell phones, Web 2.0, YouTube and Twitter.
On the other hand, if Thomas Edison were to return, he would readily recognize our electrical transmission and distribution scheme, as he was one of the grid’s earliest architects. While it has grown significantly, the basic design remains the same.
The smart grid is the conceptual answer to the vast changes needed to adapt the current electrical system to one that is more efficient, adaptable, and capable of handling the variability of the sources of power while helping customers use electricity more efficiently. Like the evolution of the internet and the dotcom boom and bust, this is a huge opportunity with many unknown risks.
The Opportunity
According to Cisco (CSCO), the smart grid offers major investment opportunities that are bigger than the internet for those prepared to take advantage of them. Jeff Immelt, CEO of GE (GE) believes the smart grid will be the biggest investment of the first half of the 21st century. President Obama is counting on investments by the government and companies in the smart grid to help the United States release it from its dependence on foreign oil.
According to a 2009 report by the American Society of Civil Engineers, $2 trillion will need to be invested in our electric infrastructure by 2030. The Brattle Group estimates that it will take $1.5 trillion to between 2010 and 2030 to pay for the upgrades necessary for the additional infrastructure for tomorrow’s electrical system.
These investments will take place throughout the electrical grid, in the home, in buildings, on campuses, neighborhoods in cities and across continents. Already we are seeing a few of these improvements. Some homes have smart meters that track electricity use in detail, providing the information to utilities.
Eventually, homeowners will be able to access this data so they can make adjustments in their power consumption. The cost of these meters is quite high and is passed on to consumers. The hope is that once consumers have access to the information on their electricity usage, they will take steps to cut their consumption of electricity offsetting the cost.
The Risks of Investing in the Smart Grid
This raises the question whether there is a cost-benefit trade off from many of the investments to achieve the goal of a smart grid. Many people equate the smart grid to the growth of the internet. Much like the investment that came with the growth of the internet, there were some that provided valuable benefits. Others never paid off.
I suspect we will see many smart grid investments experience the same fate. For example, as reported by the WSJ on APRIL 27, 2009, the home smart meters cost $250 to $500 per installed device. At this price, it is not clear if the meters will provide sufficient benefit to cover their costs.
The parallel to investing in the internet is an interesting analogy. The big winners were able to attach themselves to the “killer application” that drove business to them. However, there were many losers who failed to achieve their promise. Finally, those who provide many of the components and installed the infrastructure did well, even if they were not big winners.
OK, what is the killer application of the smart grid? The best definition I found for a killer app comes from NetReturn.com:
A new good or service that establishes an entirely new category and by being first dominates it creating an enormous return on the initial investment.
Some people believe the smart grid killer app will be the electric plug in car. Not sure, that meets the definition very well.
Anyone remember the smart home? It has been trying to get off the ground for a number of years. This was another idea some put forward that has not received much success, as the payoff has been hard to generate.
Smart Grid Companies and Stocks
There is a number of start-up and established smart grid companies creating products for this market. Smart grid stock pure plays such as Comverge (COMV)), RuggedCom (RCM.TO) and EnerNOC (ENOC) all became public in the second quarter of 2007. Some very large companies like GE, Honeywell (HON), Cisco, and Google (GOOG) have smart grid offerings. Keep in mind, the size of their smart grid services is relatively small when compared to their total sales.
Companies that provide and install many of the components of a smart grid should offer good returns; much like the companies who sold picks and shovels to the miners. Stocks of smart grid companies like ABB Ltd (ABB), Siemens A.G., and GE are likely to benefit as electric utilities build the new infrastructure for the smart grid.
One way to approach this market is through an ETF that holds stocks in a smart grid fund. The Cleantech Index CTIUS, created by The Cleantech Group LLC is the basis for exchange-traded funds (ETFs) that hold smart grid stocks in the PowerShares Cleantech Portfolio ETF (AMEX: PZD) and the KSM Cleantech ETF in Israel. The index includes large companies like ABB and Siemens as well as smaller firms like Vestas Wind systems (VWS.CO), Itron (ITRI), Trimble Navigation (TRMB) and RuggedCom [RCM.TO]. These ETFs hold stocks of companies that focus on clean technology, not just smart grid companies.
Investing in smart grid stocks will offer exceptional opportunities. It will also create substantial losses for those who do not tread carefully. While it is tempting to bet on what will be the killer app for the smart grid, a more conservative strategy is to focus on the companies that can show real cost benefit from their products or services and who generate positive cash flow.
July 12, 2009
With the likely passage of the “Cap and Trade” bill, many investors are jumping on the renewable energy bandwagon. And why not? With the government about to mandate a cap-and-trade program that will drive up the cost of electricity, there are many new opportunities to capitalize on the flow of investment dollars from public and private sources. They also are looking for investment opportunities through stocks of smart grid companies.
This headlong push into alternative power generation is causing investors to take a new look at the old electrical grid system. While there have been attempts to move to a market based power generation system, most of these efforts have failed to achieve their original goals.
Moreover, the electricity transmission and distribution system remains much the same and is a big problem. For example, T. Boone Pickens has announced he is curtailing his plans to build the world’s largest wind farm in West Texas. Part of the reason is the lack of adequate transmission lines to carry electricity from the remote wind sites to cities. This is where a smart grid investment program makes sense for investors.
Investing in the Smart Grid
This old electrical grid system is designed to distribute power from consistent generation facilities that are close by. Building large wind farms in West Texas requires a way to move that power to urban areas that need it. Moreover, what happens if the wind stops blowing during the hottest days of the summer?
Our current electrical grid system is ill suited to handle the variability of new sources of electrical power. Solving the transition to new power sources is only half the battle. After generating the power, you need to distribute it to where it is needed at the right time, in the right amounts and at a lower cost.
You can make an interesting comparison with the current electrical grid and communications network. If Alexander Graham Bell, the inventor of the telephone, were to come back today, he would not recognize the modern day communication system with digital based internet and wireless networks with their cell phones, Web 2.0, YouTube and Twitter.
On the other hand, if Thomas Edison were to return, he would readily recognize our electrical transmission and distribution scheme, as he was one of the grid’s earliest architects. While it has grown significantly, the basic design remains the same.
The smart grid is the conceptual answer to the vast changes needed to adapt the current electrical system to one that is more efficient, adaptable, and capable of handling the variability of the sources of power while helping customers use electricity more efficiently. Like the evolution of the internet and the dotcom boom and bust, this is a huge opportunity with many unknown risks.
The Opportunity
According to Cisco (CSCO), the smart grid offers major investment opportunities that are bigger than the internet for those prepared to take advantage of them. Jeff Immelt, CEO of GE (GE) believes the smart grid will be the biggest investment of the first half of the 21st century. President Obama is counting on investments by the government and companies in the smart grid to help the United States release it from its dependence on foreign oil.
According to a 2009 report by the American Society of Civil Engineers, $2 trillion will need to be invested in our electric infrastructure by 2030. The Brattle Group estimates that it will take $1.5 trillion to between 2010 and 2030 to pay for the upgrades necessary for the additional infrastructure for tomorrow’s electrical system.
These investments will take place throughout the electrical grid, in the home, in buildings, on campuses, neighborhoods in cities and across continents. Already we are seeing a few of these improvements. Some homes have smart meters that track electricity use in detail, providing the information to utilities.
Eventually, homeowners will be able to access this data so they can make adjustments in their power consumption. The cost of these meters is quite high and is passed on to consumers. The hope is that once consumers have access to the information on their electricity usage, they will take steps to cut their consumption of electricity offsetting the cost.
The Risks of Investing in the Smart Grid
This raises the question whether there is a cost-benefit trade off from many of the investments to achieve the goal of a smart grid. Many people equate the smart grid to the growth of the internet. Much like the investment that came with the growth of the internet, there were some that provided valuable benefits. Others never paid off.
I suspect we will see many smart grid investments experience the same fate. For example, as reported by the WSJ on APRIL 27, 2009, the home smart meters cost $250 to $500 per installed device. At this price, it is not clear if the meters will provide sufficient benefit to cover their costs.
The parallel to investing in the internet is an interesting analogy. The big winners were able to attach themselves to the “killer application” that drove business to them. However, there were many losers who failed to achieve their promise. Finally, those who provide many of the components and installed the infrastructure did well, even if they were not big winners.
OK, what is the killer application of the smart grid? The best definition I found for a killer app comes from NetReturn.com:
A new good or service that establishes an entirely new category and by being first dominates it creating an enormous return on the initial investment.
Some people believe the smart grid killer app will be the electric plug in car. Not sure, that meets the definition very well.
Anyone remember the smart home? It has been trying to get off the ground for a number of years. This was another idea some put forward that has not received much success, as the payoff has been hard to generate.
Smart Grid Companies and Stocks
There is a number of start-up and established smart grid companies creating products for this market. Smart grid stock pure plays such as Comverge (COMV)), RuggedCom (RCM.TO) and EnerNOC (ENOC) all became public in the second quarter of 2007. Some very large companies like GE, Honeywell (HON), Cisco, and Google (GOOG) have smart grid offerings. Keep in mind, the size of their smart grid services is relatively small when compared to their total sales.
Companies that provide and install many of the components of a smart grid should offer good returns; much like the companies who sold picks and shovels to the miners. Stocks of smart grid companies like ABB Ltd (ABB), Siemens A.G., and GE are likely to benefit as electric utilities build the new infrastructure for the smart grid.
One way to approach this market is through an ETF that holds stocks in a smart grid fund. The Cleantech Index CTIUS, created by The Cleantech Group LLC is the basis for exchange-traded funds (ETFs) that hold smart grid stocks in the PowerShares Cleantech Portfolio ETF (AMEX: PZD) and the KSM Cleantech ETF in Israel. The index includes large companies like ABB and Siemens as well as smaller firms like Vestas Wind systems (VWS.CO), Itron (ITRI), Trimble Navigation (TRMB) and RuggedCom [RCM.TO]. These ETFs hold stocks of companies that focus on clean technology, not just smart grid companies.
Investing in smart grid stocks will offer exceptional opportunities. It will also create substantial losses for those who do not tread carefully. While it is tempting to bet on what will be the killer app for the smart grid, a more conservative strategy is to focus on the companies that can show real cost benefit from their products or services and who generate positive cash flow.
Saturday, July 11, 2009
Forbes.com: Korea Hot Stocks - **SMART GRID ISSUES RALLY ON G8 NEWS**
07.10.09, 01:13 AM EDT
SEOUL, July 10 (Reuters) - Stocks on the move on Friday include:
**SMART GRID ISSUES RALLY ON G8 NEWS**
Smart grid-related issues rallied on Friday after the Ministry of Knowledge Economy confirmed South Korea was picked at the summit of G8 industrialised nations to spearhead efforts to advance the efficient power delivery technology.
Omnisystem and Nuri Telecom spiked nearly 15 percent each and LS Industrial System rose 3.6 percent.
SEOUL, July 10 (Reuters) - Stocks on the move on Friday include:
**SMART GRID ISSUES RALLY ON G8 NEWS**
Smart grid-related issues rallied on Friday after the Ministry of Knowledge Economy confirmed South Korea was picked at the summit of G8 industrialised nations to spearhead efforts to advance the efficient power delivery technology.
Omnisystem and Nuri Telecom spiked nearly 15 percent each and LS Industrial System rose 3.6 percent.
Friday, July 10, 2009
CNET NEWS FAQ: What the smart grid means to you
July 10, 2009 4:00 AM PDT
FAQ: What the smart grid means to you
by Martin LaMonica
Yet again, the tech industry has a buzzword everyone seems to be using but few really understand.
The smart grid follows the footsteps of the Internet and the interstate highway system--they are giant investments in infrastructure. It's not so much a single thing as it is a goal to give the electricity system a digital makeover to make it more efficient and reliable.
Governments and utilities around the world are devoting billions of dollars to lay new transmission lines and make the electricity network operate more like the computer networks we access every day. Big tech vendors and hundreds of start-ups are jockeying for prominence in the smart grid.
The buzz reflects how important reliable, affordable, and cleaner energy is to our modern lifestyle and economy. But what does it mean for individuals? And what technologies make up the smart grid? To give you a clue on what the smart-grid fuss is all about, we offer this FAQ.
What is the smart grid?
Building the smart grid means adding computer and communications technology to the existing electricity grid. With an overlay of digital technology, the grid promises to operate more efficiently and reliably. It can also accommodate more solar and wind power, which are inconsistent sources of energy that can become more reliable with better controls. Much like computers and routers manage the flow of bits on the Internet, smart-grid technologies use information to optimize the flow of electricity.
What would a smart grid be able to do that today's not-so-smart grid can't?
Right now, if there's a breakdown at your local substation, the utility usually finds out when customers call to complain. Placing a networked sensor inside a transformer or along wires could locate and report a problem, or prevent it from happening in the first place.
Despite living in the age of information, most of us only get a glimpse of our energy consumption when the utility bills come once a month. In people's homes, the smart grid should mean more detailed information through home energy-monitoring tools. These can be small displays or Web-based programs that give a real-time view of how much energy you're using, which appliances consume the most, and how your home compares to others. Just surfacing that information will give people ideas on how to shave energy bills by 5 to 15 percent, utility executives say.
What's needed to start is a smart meter with two-way communications or some other kind of gateway. Once that conduit is put in place, consumers can get more detailed energy data and start taking advantage of efficiency incentives, such as charging your plug-in electric vehicle in the middle of the night to get off-peak rates.
In theory, networked appliances are smarter and more efficient. GE and start-up display-maker Tendril, for example, will test big appliances--refrigerators, washing machines, and the like--that can get information on fluctuating electricity prices to do its job more efficiently. It could be as simple as making ice or running the dishwasher in the middle of the night. Or, as part of a home-area network, consumers could program lighting and major appliances on a schedule.
The next step toward efficiency is what's called demand response. The goal here is to dial back energy consumption at peak times. This is very important to utilities because it's costly and polluting to bring on auxiliary power plants to meet, say, a spike in demand from the air conditioning load on a hot summer day. Consumers and businesses have financial incentives to participate, such as a discounted rate. "Shedding load" could mean turning the gas heat off of the clothes drier for a few minutes or dimming the lights in a supermarket in the middle of the day.
A smarter grid also makes distributed energy, such as home solar systems, more viable and user-friendly. With a smart meter and monitoring software, a homeowner can see how much solar panels are producing and their carbon footprint is being reduced. A utility, too, is keenly interested in how much distributed energy is available so it can calibrate its own daily power generation.
What are some examples?
Xcel Energy has dubbed Boulder, Colo., "Smart Grid City" and is installing the equipment on power lines and people's homes. Consumers get access to a free Web-based program that gives them a real-time read-out of use, which helps them lower their usage. It also lets them know when they are buying electricity made from clean sources.
When you go deeper into the smart grid, though, you realize it isn't just about a more detailed utility bill. It can also diversify our energy sources, potentially avoiding the need to build new power plants to meet growing demand.
Consider Duke Energy's smart-grid trial in Charlotte, N.C. A substation--the point that distributes electricity from long-haul transmission lines to a neighborhood--is equipped with 213 solar panels and a large battery. About 100 households have smart meters and in-home energy management tools.
When the sun is shining, the 50-kilowatt solar array makes electricity for the homes in the neighborhood. It also feeds the battery, giving the area a few hours of backup power in the case of an outage and a buffer to draw from during peak times. Consumers can take part in demand-response programs, too, to get a reduction on their electricity bill.
One of the more aggressive utilities in this area, Duke plans to have millions of smart meters installed in homes over the next two years. In addition, it envisions putting sensors along power lines, and networking gear, such as routers, in substations and transformers. In people's homes, individual appliances like water heaters could eventually be networked as well.
The project reflects how the utility industry seems to be following the path of the computing industry, which went from centralized processing with mainframes to a much more distributed and varied architecture.
Who are the companies participating in the smart grid?
The smart grid is shaping up to be a giant mash-up of the electricity utility, computing, and communications industries.
Heavyweight tech companies--Cisco, IBM, Microsoft, and Google--all have serious initiatives in this area and loom large among utility executives working on smart-grid programs.
IBM, which sees big dollar signs when it gets involved in large infrastructure projects, is building the technology backbone for many grid modernization programs. That includes installing communications equipment along the grid as well as the software and servers to process the mountains of data that need to be processed.
Cisco, too, is jumping in with both feet with a broad initiative to supply networking equipment for utilities as well as in-home energy management tools. Verizon is looking at this as well, seeing the home network as a point to gather data on home energy use and, potentially, control lighting and appliances for better efficiency.
Microsoft and Google are going after consumers as well while trying to sign on utility partners.
The other key players are the host of start-ups in the area, many of which focus on energy displays. A handful of stronger network-oriented companies are emerging, notably Silver Spring Networks, which offers a wireless card that goes into smart meters.
Finally, there's the electrical infrastructure itself: meters, transformers, transmission equipment, and other hardware that makes the grid tick. In addition to a number of smart meter makers, there are the global infrastructure companies like GE, Siemens, and ABB that are introducing modern control systems to manage the flow of electricity.
OK, so the smart grid is supposed to reduce wasted energy, give consumers better information, and allow the grid to use more solar and wind power. What's the hold-up?
Where to start?
Utilities aren't known as the most fleet-of-foot businesses and the energy industry invests a lower percentage of revenue in technology than most industries. This helps explain why we've been hearing about the grid for 10 years but very few of us actually have it.
But lack of investment is only part of the picture. The whole point of a smarter grid is to use electricity more efficiently, but in many states in the U.S. utilities operate without strong incentives for efficiency, say industry executives. They invest big dollars--think multibillion-dollar power plants--based on their ability to sell more kilowatt-hours, not less. The more progressive utilities have found ways to justify their investments in the smart grid based on savings from energy reductions, but many utilities aren't nearly as enthusiastic because of how they are regulated.
A key regulatory piece of the smart grid is time-of-day pricing, which is supposed to reflect the fluctuating cost of energy delivery in a day. Some sort of tiered pricing would allow a consumer to take advantage of off-peak rates, but it isn't the norm in many states.
Then there's the lack of standards for a dizzying number of tasks. The National Institute of Standards and Technology, which is responsible for establishing an interoperability framework for smart-grid standards, recently released a road map but everyone agrees there's much work to be done.
The basic idea: be more efficient, resilient, and able to use more renewable energy.
(Credit: Department of Energy)
Amid all the technical and business challenges, there's the question of consumer acceptance. Consumers, in general, are likely to welcome more detailed information on how much electricity, natural gas, and water they use. But even though there's the promise of energy savings, it's not clear that people are willing to pay much money for home energy-management tools.
Some people and businesses are willing to allow a utility to communicate through a smart meter to remotely control the thermostat on the air conditioner in exchange for cheaper rates. But these demand-response programs are clearly not for everyone. The trick for successful demand response programs is to entice consumers with lower electricity bills without being intrusive or forcing a dramatic change, say industry executives.
Finally, these technology businesses need to be profitable, but many of the technologies and business models need to be ironed out. There's even some concern that a mini-investment bubble is building around smart grids.
Is the smart grid more secure?
Given the smart grid's fledgling status, it's hard to provide a definitive report card. But the rush to modernize the grid has gotten some security experts raising the alarm and calling for more scrutiny.
The increased use of the Internet instead of private networks for Supervisory Control and Data Acquisition (SCADA) control systems and the bleeding together of existing corporate networks with energy providers' control networks opens up more potential cyber-vulnerabilities, they say. Security experts are calling for security to be better baked into the standards for the smart grid and for industry professionals to use better security practices to avoid dangerous hacks.
So when will I have my smart grid?
Like the highways and the Internet, the smart grid will take years to build, probably decades.
The first signs will be better energy-saving tools for consumers, much like the Web brought consumers better tools for managing personal finances. Some enthusiasts will want to closely monitor energy use and ratchet down consumption for environmental and financial reasons. Others may just set up "auto pilot" programs to take advantage of off-peak rates, much like you might use a programmable thermostat.
That said, it's early on and there may be a killer application that will emerge from the smart grid platform.
FAQ: What the smart grid means to you
by Martin LaMonica
Yet again, the tech industry has a buzzword everyone seems to be using but few really understand.
The smart grid follows the footsteps of the Internet and the interstate highway system--they are giant investments in infrastructure. It's not so much a single thing as it is a goal to give the electricity system a digital makeover to make it more efficient and reliable.
Governments and utilities around the world are devoting billions of dollars to lay new transmission lines and make the electricity network operate more like the computer networks we access every day. Big tech vendors and hundreds of start-ups are jockeying for prominence in the smart grid.
The buzz reflects how important reliable, affordable, and cleaner energy is to our modern lifestyle and economy. But what does it mean for individuals? And what technologies make up the smart grid? To give you a clue on what the smart-grid fuss is all about, we offer this FAQ.
What is the smart grid?
Building the smart grid means adding computer and communications technology to the existing electricity grid. With an overlay of digital technology, the grid promises to operate more efficiently and reliably. It can also accommodate more solar and wind power, which are inconsistent sources of energy that can become more reliable with better controls. Much like computers and routers manage the flow of bits on the Internet, smart-grid technologies use information to optimize the flow of electricity.
What would a smart grid be able to do that today's not-so-smart grid can't?
Right now, if there's a breakdown at your local substation, the utility usually finds out when customers call to complain. Placing a networked sensor inside a transformer or along wires could locate and report a problem, or prevent it from happening in the first place.
Despite living in the age of information, most of us only get a glimpse of our energy consumption when the utility bills come once a month. In people's homes, the smart grid should mean more detailed information through home energy-monitoring tools. These can be small displays or Web-based programs that give a real-time view of how much energy you're using, which appliances consume the most, and how your home compares to others. Just surfacing that information will give people ideas on how to shave energy bills by 5 to 15 percent, utility executives say.
What's needed to start is a smart meter with two-way communications or some other kind of gateway. Once that conduit is put in place, consumers can get more detailed energy data and start taking advantage of efficiency incentives, such as charging your plug-in electric vehicle in the middle of the night to get off-peak rates.
In theory, networked appliances are smarter and more efficient. GE and start-up display-maker Tendril, for example, will test big appliances--refrigerators, washing machines, and the like--that can get information on fluctuating electricity prices to do its job more efficiently. It could be as simple as making ice or running the dishwasher in the middle of the night. Or, as part of a home-area network, consumers could program lighting and major appliances on a schedule.
The next step toward efficiency is what's called demand response. The goal here is to dial back energy consumption at peak times. This is very important to utilities because it's costly and polluting to bring on auxiliary power plants to meet, say, a spike in demand from the air conditioning load on a hot summer day. Consumers and businesses have financial incentives to participate, such as a discounted rate. "Shedding load" could mean turning the gas heat off of the clothes drier for a few minutes or dimming the lights in a supermarket in the middle of the day.
A smarter grid also makes distributed energy, such as home solar systems, more viable and user-friendly. With a smart meter and monitoring software, a homeowner can see how much solar panels are producing and their carbon footprint is being reduced. A utility, too, is keenly interested in how much distributed energy is available so it can calibrate its own daily power generation.
What are some examples?
Xcel Energy has dubbed Boulder, Colo., "Smart Grid City" and is installing the equipment on power lines and people's homes. Consumers get access to a free Web-based program that gives them a real-time read-out of use, which helps them lower their usage. It also lets them know when they are buying electricity made from clean sources.
When you go deeper into the smart grid, though, you realize it isn't just about a more detailed utility bill. It can also diversify our energy sources, potentially avoiding the need to build new power plants to meet growing demand.
Consider Duke Energy's smart-grid trial in Charlotte, N.C. A substation--the point that distributes electricity from long-haul transmission lines to a neighborhood--is equipped with 213 solar panels and a large battery. About 100 households have smart meters and in-home energy management tools.
When the sun is shining, the 50-kilowatt solar array makes electricity for the homes in the neighborhood. It also feeds the battery, giving the area a few hours of backup power in the case of an outage and a buffer to draw from during peak times. Consumers can take part in demand-response programs, too, to get a reduction on their electricity bill.
One of the more aggressive utilities in this area, Duke plans to have millions of smart meters installed in homes over the next two years. In addition, it envisions putting sensors along power lines, and networking gear, such as routers, in substations and transformers. In people's homes, individual appliances like water heaters could eventually be networked as well.
The project reflects how the utility industry seems to be following the path of the computing industry, which went from centralized processing with mainframes to a much more distributed and varied architecture.
Who are the companies participating in the smart grid?
The smart grid is shaping up to be a giant mash-up of the electricity utility, computing, and communications industries.
Heavyweight tech companies--Cisco, IBM, Microsoft, and Google--all have serious initiatives in this area and loom large among utility executives working on smart-grid programs.
IBM, which sees big dollar signs when it gets involved in large infrastructure projects, is building the technology backbone for many grid modernization programs. That includes installing communications equipment along the grid as well as the software and servers to process the mountains of data that need to be processed.
Cisco, too, is jumping in with both feet with a broad initiative to supply networking equipment for utilities as well as in-home energy management tools. Verizon is looking at this as well, seeing the home network as a point to gather data on home energy use and, potentially, control lighting and appliances for better efficiency.
Microsoft and Google are going after consumers as well while trying to sign on utility partners.
The other key players are the host of start-ups in the area, many of which focus on energy displays. A handful of stronger network-oriented companies are emerging, notably Silver Spring Networks, which offers a wireless card that goes into smart meters.
Finally, there's the electrical infrastructure itself: meters, transformers, transmission equipment, and other hardware that makes the grid tick. In addition to a number of smart meter makers, there are the global infrastructure companies like GE, Siemens, and ABB that are introducing modern control systems to manage the flow of electricity.
OK, so the smart grid is supposed to reduce wasted energy, give consumers better information, and allow the grid to use more solar and wind power. What's the hold-up?
Where to start?
Utilities aren't known as the most fleet-of-foot businesses and the energy industry invests a lower percentage of revenue in technology than most industries. This helps explain why we've been hearing about the grid for 10 years but very few of us actually have it.
But lack of investment is only part of the picture. The whole point of a smarter grid is to use electricity more efficiently, but in many states in the U.S. utilities operate without strong incentives for efficiency, say industry executives. They invest big dollars--think multibillion-dollar power plants--based on their ability to sell more kilowatt-hours, not less. The more progressive utilities have found ways to justify their investments in the smart grid based on savings from energy reductions, but many utilities aren't nearly as enthusiastic because of how they are regulated.
A key regulatory piece of the smart grid is time-of-day pricing, which is supposed to reflect the fluctuating cost of energy delivery in a day. Some sort of tiered pricing would allow a consumer to take advantage of off-peak rates, but it isn't the norm in many states.
Then there's the lack of standards for a dizzying number of tasks. The National Institute of Standards and Technology, which is responsible for establishing an interoperability framework for smart-grid standards, recently released a road map but everyone agrees there's much work to be done.
The basic idea: be more efficient, resilient, and able to use more renewable energy.
(Credit: Department of Energy)
Amid all the technical and business challenges, there's the question of consumer acceptance. Consumers, in general, are likely to welcome more detailed information on how much electricity, natural gas, and water they use. But even though there's the promise of energy savings, it's not clear that people are willing to pay much money for home energy-management tools.
Some people and businesses are willing to allow a utility to communicate through a smart meter to remotely control the thermostat on the air conditioner in exchange for cheaper rates. But these demand-response programs are clearly not for everyone. The trick for successful demand response programs is to entice consumers with lower electricity bills without being intrusive or forcing a dramatic change, say industry executives.
Finally, these technology businesses need to be profitable, but many of the technologies and business models need to be ironed out. There's even some concern that a mini-investment bubble is building around smart grids.
Is the smart grid more secure?
Given the smart grid's fledgling status, it's hard to provide a definitive report card. But the rush to modernize the grid has gotten some security experts raising the alarm and calling for more scrutiny.
The increased use of the Internet instead of private networks for Supervisory Control and Data Acquisition (SCADA) control systems and the bleeding together of existing corporate networks with energy providers' control networks opens up more potential cyber-vulnerabilities, they say. Security experts are calling for security to be better baked into the standards for the smart grid and for industry professionals to use better security practices to avoid dangerous hacks.
So when will I have my smart grid?
Like the highways and the Internet, the smart grid will take years to build, probably decades.
The first signs will be better energy-saving tools for consumers, much like the Web brought consumers better tools for managing personal finances. Some enthusiasts will want to closely monitor energy use and ratchet down consumption for environmental and financial reasons. Others may just set up "auto pilot" programs to take advantage of off-peak rates, much like you might use a programmable thermostat.
That said, it's early on and there may be a killer application that will emerge from the smart grid platform.
Thursday, July 09, 2009
Study: Utility investment in smart grid remains strong
Study: Utility investment in smart grid remains strong
Ellicott City, Md., July 9, 2009 – In spite of the weakened economic conditions in countries around the world, electric power utilities continue to make financial commitments in smart grid building blocks and related automation programs.
The majority of the large public and private utilities participating in the June 2009 Newton-Evans study are poised to continue many of their long-term capital investment programs as had been originally planned back in January of 2008. However, in several instances, the projects have been deferred from their initial planned start-up dates.
In a new tracking study released today by the Newton-Evans Research Company, a significant majority of the 118 electric power grid officials from 36 countries participating in the CAPEX and O&M budget planning study indicated that capital spending for control systems, substation automation, smart grid-related programs,and advanced metering rollouts are largely on track albeit with some pushback in timing.
However, several planned investments for transmission and distribution grid infrastructure components have been deferred for this year, but are expected to rebound perhaps as early as the fourth quarter of 2010.
On the upside were planned increases for most smart grid building blocks, based on the responses from the surveyed officials. Projects related to advanced metering infrastructure (AMI) initiatives and for substation automation and new or upgraded grid control and monitoring systems and protection and control equipment appear to be "pre-approved" at this time for 2010.
Some utilities will benefit for some of these smart grid-related projects under government stimulus funding provisions, while others will proceed using their own sources of capital.
The total amount of capital spending for transmission and distribution of electricity by electric power utilities around the world is currently estimated by Newton-Evans to be in the range of $85-$100 billion. The 2009 outlook overall is trending toward the lower end of that range. If industrial demand for electricity picks up even moderately by mid-2010, the outlay for CAPEX investment will likely see a solid increase by late 2010 and such an increase in demand would result in additional billions of dollars for smart grid and infrastructure investments into 2011 and beyond.
According to the research firm's lead analyst and CEO, Charles Newton, "In its latest July release, the U.S. Department of Energy's EIA unit foresees only a 0.8 percent rise in electricity demand in the U.S. for 2010, following a likely 2 percent decrease in demand anticipated for 2009. When coupled with the International Energy Agency's forecast of a 3.5 percent drop in global demand for electricity in 2009, this information supports the more cautious investment outlook we are seeing here and abroad since our last survey in December. Two regional exceptions include some Asia-Pacific countries and substantial portions of the Middle East. These regions continue to grow their electric power infrastructure more rapidly than other regions."
There are five key reasons for the continued relatively strong investment in transmission and distribution of electricity. These include: 1) regulatory pressure and mandates for service reliability improvements; 2) smart grid initiatives aimed at modernizing the power grid infrastructure and enabling energy efficiencies; 3) obsolescence of existing grid infrastructure equipment; 4) long-term investment view being necessary to accommodate future growth in electricity consumption; and 5) the development of government funded stimulus programs such as the U.S. ARRA provisions for funding some electric power investments in smart grid technology.
Frequently, utility capital projects are complex and multi-year in nature, so project deferrals are often out of the question, even when the overall economic outlook is poor.
Ellicott City, Md., July 9, 2009 – In spite of the weakened economic conditions in countries around the world, electric power utilities continue to make financial commitments in smart grid building blocks and related automation programs.
The majority of the large public and private utilities participating in the June 2009 Newton-Evans study are poised to continue many of their long-term capital investment programs as had been originally planned back in January of 2008. However, in several instances, the projects have been deferred from their initial planned start-up dates.
In a new tracking study released today by the Newton-Evans Research Company, a significant majority of the 118 electric power grid officials from 36 countries participating in the CAPEX and O&M budget planning study indicated that capital spending for control systems, substation automation, smart grid-related programs,and advanced metering rollouts are largely on track albeit with some pushback in timing.
However, several planned investments for transmission and distribution grid infrastructure components have been deferred for this year, but are expected to rebound perhaps as early as the fourth quarter of 2010.
On the upside were planned increases for most smart grid building blocks, based on the responses from the surveyed officials. Projects related to advanced metering infrastructure (AMI) initiatives and for substation automation and new or upgraded grid control and monitoring systems and protection and control equipment appear to be "pre-approved" at this time for 2010.
Some utilities will benefit for some of these smart grid-related projects under government stimulus funding provisions, while others will proceed using their own sources of capital.
The total amount of capital spending for transmission and distribution of electricity by electric power utilities around the world is currently estimated by Newton-Evans to be in the range of $85-$100 billion. The 2009 outlook overall is trending toward the lower end of that range. If industrial demand for electricity picks up even moderately by mid-2010, the outlay for CAPEX investment will likely see a solid increase by late 2010 and such an increase in demand would result in additional billions of dollars for smart grid and infrastructure investments into 2011 and beyond.
According to the research firm's lead analyst and CEO, Charles Newton, "In its latest July release, the U.S. Department of Energy's EIA unit foresees only a 0.8 percent rise in electricity demand in the U.S. for 2010, following a likely 2 percent decrease in demand anticipated for 2009. When coupled with the International Energy Agency's forecast of a 3.5 percent drop in global demand for electricity in 2009, this information supports the more cautious investment outlook we are seeing here and abroad since our last survey in December. Two regional exceptions include some Asia-Pacific countries and substantial portions of the Middle East. These regions continue to grow their electric power infrastructure more rapidly than other regions."
There are five key reasons for the continued relatively strong investment in transmission and distribution of electricity. These include: 1) regulatory pressure and mandates for service reliability improvements; 2) smart grid initiatives aimed at modernizing the power grid infrastructure and enabling energy efficiencies; 3) obsolescence of existing grid infrastructure equipment; 4) long-term investment view being necessary to accommodate future growth in electricity consumption; and 5) the development of government funded stimulus programs such as the U.S. ARRA provisions for funding some electric power investments in smart grid technology.
Frequently, utility capital projects are complex and multi-year in nature, so project deferrals are often out of the question, even when the overall economic outlook is poor.
Wednesday, July 08, 2009
GE, Tendril Partner to Hook Up Smart Appliances to the Grid
GE, Tendril Partner to Hook Up Smart Appliances to the Grid
Wed Jul 8, 2009 8:00am EDT
By Katie Fehrenbacher - Earth2Tech
General Electric has said it could start selling some of its smart appliances — dishwashers, water heaters, microwaves and other devices embedded with communications technology — as early as this summer. But how will those appliances securely and efficiently connect with the grid so that utilities can turn them down during peak electricity hours? One answer will come from Tendril, the 5-year-old Boulder, Colo.-based startup that has developed energy management software and hardware for utilities and consumers. Tendril and GE say this morning that they will co-develop software that will hook GE’s smart appliances up to the grid and the utility back office based on Tendril’s energy management platform.
It’s a big win for Tendril, which announced it raised a third round of funding of $30 million just last month. GE will be Tendril’s first appliance partner, though Tendril CEO Adrian Tuck tells us that the company plans to announce other appliance partners in the future. For GE, the Tendril partnership will bring the startup’s experience of working with — and building software for — utilities and delivering the features that utilities are particularly concerned about: security and privacy of data, cost of the system, and ease of use. Utilities that buy GE and Tendril’s offer will be using Tendril’s energy management system on the back-end.
On the consumer-facing side, GE and the utility won’t necessarily be using Tendril’s energy dashboard hardware, as GE has its own energy management dashboard. GE has said it plans to start selling the smart energy dashboard in late 2009 or early 2010 and plans to supply 500 smart dashboards for a test project for Florida utility FPL.
Tendril also makes smart plugs, which sit between the appliance plug and the outlet, and can monitor and remotely turn appliances off and on. It’ll be interesting to see if consumers and utilities will opt more for adding smart plugs to the appliances for smart grid services or will end up turning more to appliances with the embedded connection. (For more on consumer preferences for the smart home read GigaOM Pro’s report, subscription required). Tendril’s Tuck says that he envisions smart plugs as an interim solution and far down the road most appliances will likely get an embedded connection. “You can do so much more with an embedded product,” says Tuck, explaining that the service for the customer can be more subtle and transparent with an embedded appliance.
Tuck expects that the GE appliances with the Tendril system will start pilot testing as soon as the fourth quarter of this year, and a potential first utility partner could be Texas utility Reliant Energy.
Wed Jul 8, 2009 8:00am EDT
By Katie Fehrenbacher - Earth2Tech
General Electric has said it could start selling some of its smart appliances — dishwashers, water heaters, microwaves and other devices embedded with communications technology — as early as this summer. But how will those appliances securely and efficiently connect with the grid so that utilities can turn them down during peak electricity hours? One answer will come from Tendril, the 5-year-old Boulder, Colo.-based startup that has developed energy management software and hardware for utilities and consumers. Tendril and GE say this morning that they will co-develop software that will hook GE’s smart appliances up to the grid and the utility back office based on Tendril’s energy management platform.
It’s a big win for Tendril, which announced it raised a third round of funding of $30 million just last month. GE will be Tendril’s first appliance partner, though Tendril CEO Adrian Tuck tells us that the company plans to announce other appliance partners in the future. For GE, the Tendril partnership will bring the startup’s experience of working with — and building software for — utilities and delivering the features that utilities are particularly concerned about: security and privacy of data, cost of the system, and ease of use. Utilities that buy GE and Tendril’s offer will be using Tendril’s energy management system on the back-end.
On the consumer-facing side, GE and the utility won’t necessarily be using Tendril’s energy dashboard hardware, as GE has its own energy management dashboard. GE has said it plans to start selling the smart energy dashboard in late 2009 or early 2010 and plans to supply 500 smart dashboards for a test project for Florida utility FPL.
Tendril also makes smart plugs, which sit between the appliance plug and the outlet, and can monitor and remotely turn appliances off and on. It’ll be interesting to see if consumers and utilities will opt more for adding smart plugs to the appliances for smart grid services or will end up turning more to appliances with the embedded connection. (For more on consumer preferences for the smart home read GigaOM Pro’s report, subscription required). Tendril’s Tuck says that he envisions smart plugs as an interim solution and far down the road most appliances will likely get an embedded connection. “You can do so much more with an embedded product,” says Tuck, explaining that the service for the customer can be more subtle and transparent with an embedded appliance.
Tuck expects that the GE appliances with the Tendril system will start pilot testing as soon as the fourth quarter of this year, and a potential first utility partner could be Texas utility Reliant Energy.
GE to Transform U.S. Military Base into Smart Grid Showcase
GE to Transform U.S. Military Base into Smart Grid Showcase
08.07.2009
With the goals of increasing energy security, energy efficiency, and promoting cleaner, alternative energy at U.S. military bases, GE today announced it has been awarded $2 million in Federal stimulus funding from the U.S. Department of Defense (DOD) for a smart microgrid demonstration project at Twentynine Palms Base, California.
The base is the world's largest Marine Corps Base and it is the premier training facility in the world for Marine operations, drawing military personnel from all over the world for Combined Arms Exercises. GE and the Environmental Security Technology Certification Program (ESTCP) office at DOD are in the process of finalizing a contract for the project.
GE will design and demonstrate a smart energy management system that enables installations to more optimally manage on-site power generation and energy storage, while interacting with the regional electrical grid in a more intelligent and efficient way.
Additionally, GE’s system will provide enhanced capabilities for installations to integrate renewable resources, such as solar energy, to help meet their electricity needs and reduce their carbon footprints.
According to the 2009 Defense Appropriations Act, U.S. military installations consumed 3.8 billion kilowatt-hours of electricity last year, enough electricity to power 350,000 households in the United States.
In addition to high energy costs for these installations, critical defense facilities must operate seamlessly through a power outage or other infrastructure disturbance.
These are two key challenges that a smarter, more intelligent grid management system will help to address.
"GE’s smart microgrid demonstration project will show how a more intelligent energy management system can help military bases further safeguard the operation of their power systems while also reducing overall energy costs,” said John Kern, Manager of GE’s Smart Grid Research Lab. "This project will serve as a model for other bases and it also will demonstrate how similar types of facilities, such as industrial complexes and universities, can take advantage of a smarter grid.”
U.S. military bases typically manage power in two ways:
local power is generated on site for critical facility needs; and, the bases are connected to the larger U.S. electrical grid network.
As part of the project, GE will provide an enhanced suite of microgrid control system technologies that will enable a military base to more effectively manage its local energy resources as well as the interaction with the larger electrical grid network.
To develop this new system, researchers at GE Global Research in Upstate New York will develop and incorporate advanced algorithms and computational decision engines into a microgrid controller built by GE Digital Energy. This microgrid controller will optimize the power generation and distribution within the microgrid. GE Fanuc Intelligent Platforms will also integrate many of these advanced technologies into a new supervisory control and software system that can span power generation and distribution as well as major power consumers within the microgrid.
GE has completed considerable research and development in microgrids in recent years for both the U.S. Department of Energy and the Canadian government.
Because microgrids are essentially self-contained systems, they have great potential for enabling a higher penetration of clean, renewable power sources into the electrical distribution network.
For contained complexes like a military base that can supplement their own power needs with power generation onsite, microgrids can be an attractive option for bringing more renewable power online.
08.07.2009
With the goals of increasing energy security, energy efficiency, and promoting cleaner, alternative energy at U.S. military bases, GE today announced it has been awarded $2 million in Federal stimulus funding from the U.S. Department of Defense (DOD) for a smart microgrid demonstration project at Twentynine Palms Base, California.
The base is the world's largest Marine Corps Base and it is the premier training facility in the world for Marine operations, drawing military personnel from all over the world for Combined Arms Exercises. GE and the Environmental Security Technology Certification Program (ESTCP) office at DOD are in the process of finalizing a contract for the project.
GE will design and demonstrate a smart energy management system that enables installations to more optimally manage on-site power generation and energy storage, while interacting with the regional electrical grid in a more intelligent and efficient way.
Additionally, GE’s system will provide enhanced capabilities for installations to integrate renewable resources, such as solar energy, to help meet their electricity needs and reduce their carbon footprints.
According to the 2009 Defense Appropriations Act, U.S. military installations consumed 3.8 billion kilowatt-hours of electricity last year, enough electricity to power 350,000 households in the United States.
In addition to high energy costs for these installations, critical defense facilities must operate seamlessly through a power outage or other infrastructure disturbance.
These are two key challenges that a smarter, more intelligent grid management system will help to address.
"GE’s smart microgrid demonstration project will show how a more intelligent energy management system can help military bases further safeguard the operation of their power systems while also reducing overall energy costs,” said John Kern, Manager of GE’s Smart Grid Research Lab. "This project will serve as a model for other bases and it also will demonstrate how similar types of facilities, such as industrial complexes and universities, can take advantage of a smarter grid.”
U.S. military bases typically manage power in two ways:
local power is generated on site for critical facility needs; and, the bases are connected to the larger U.S. electrical grid network.
As part of the project, GE will provide an enhanced suite of microgrid control system technologies that will enable a military base to more effectively manage its local energy resources as well as the interaction with the larger electrical grid network.
To develop this new system, researchers at GE Global Research in Upstate New York will develop and incorporate advanced algorithms and computational decision engines into a microgrid controller built by GE Digital Energy. This microgrid controller will optimize the power generation and distribution within the microgrid. GE Fanuc Intelligent Platforms will also integrate many of these advanced technologies into a new supervisory control and software system that can span power generation and distribution as well as major power consumers within the microgrid.
GE has completed considerable research and development in microgrids in recent years for both the U.S. Department of Energy and the Canadian government.
Because microgrids are essentially self-contained systems, they have great potential for enabling a higher penetration of clean, renewable power sources into the electrical distribution network.
For contained complexes like a military base that can supplement their own power needs with power generation onsite, microgrids can be an attractive option for bringing more renewable power online.
Monday, July 06, 2009
Re: Obama Admin Unveils $4 Bln In Smart-Grid Power Tech Funding
By Ian Talley
Of DOW JONES NEWSWIRES
* APRIL 17, 2009, 7:37 A.M. ET
WASHINGTON (Dow Jones)--The Obama Administration Thursday unveiled a new solicitation for around $4 billion in stimulus funding for new power-transmission technology.
The Administration wants to spur development of a new artificially intelligent "smart" grid that could drastically increase the efficiency of the nation's electricity infrastructure.
The Department of Energy announced plans to distribute $3.4 billion in smart-grid technology grants and $615 million for smart-grid demonstration projects.
"We need an upgraded electrical grid to take full advantage of the vast renewable resources in this country - to take the wind from the Midwest and the sun from the Southwest and power areas across the country," said Vice President Joe Biden, making the announcement at an ABB Ltd. (ABB) transformer plant in Missouri.
By better managing electricity use and supply - particularly as the country's power infrastructure becomes more complicated as renewable energy and local generation comes online - a smart grid would help to reduce greenhouse gas emissions per kilowatt-hour of electrons consumed.
Under the $3.375 billion Smart Grid Investment Grant Program, the DOE will provide grants ranging from $500,000 to $20 million for smart-grid technology deployments, and $100,000 to $5 million for grid-monitoring devices.
Renewable and transmission companies are eagerly awaiting a new funding opportunity under the stimulus bill signed into law earlier this year, especially as investments had fizzled in the current economic crisis. The federal government approved around $60 billion in loan guarantee authority and more than $30 billion in energy grants under the stimulus bill signed into law earlier this year.
Firms such as ABB, Beacon Power Corp (BCON), Siemens AG (SI), Ambient Corp. (ABTG), and National Grid Plc (NGG) stand to gain from federal investments in the power transmission system.
Power analysts have said it would likely take several hundred billion dollars to completely modernize the power grid.
Of DOW JONES NEWSWIRES
* APRIL 17, 2009, 7:37 A.M. ET
WASHINGTON (Dow Jones)--The Obama Administration Thursday unveiled a new solicitation for around $4 billion in stimulus funding for new power-transmission technology.
The Administration wants to spur development of a new artificially intelligent "smart" grid that could drastically increase the efficiency of the nation's electricity infrastructure.
The Department of Energy announced plans to distribute $3.4 billion in smart-grid technology grants and $615 million for smart-grid demonstration projects.
"We need an upgraded electrical grid to take full advantage of the vast renewable resources in this country - to take the wind from the Midwest and the sun from the Southwest and power areas across the country," said Vice President Joe Biden, making the announcement at an ABB Ltd. (ABB) transformer plant in Missouri.
By better managing electricity use and supply - particularly as the country's power infrastructure becomes more complicated as renewable energy and local generation comes online - a smart grid would help to reduce greenhouse gas emissions per kilowatt-hour of electrons consumed.
Under the $3.375 billion Smart Grid Investment Grant Program, the DOE will provide grants ranging from $500,000 to $20 million for smart-grid technology deployments, and $100,000 to $5 million for grid-monitoring devices.
Renewable and transmission companies are eagerly awaiting a new funding opportunity under the stimulus bill signed into law earlier this year, especially as investments had fizzled in the current economic crisis. The federal government approved around $60 billion in loan guarantee authority and more than $30 billion in energy grants under the stimulus bill signed into law earlier this year.
Firms such as ABB, Beacon Power Corp (BCON), Siemens AG (SI), Ambient Corp. (ABTG), and National Grid Plc (NGG) stand to gain from federal investments in the power transmission system.
Power analysts have said it would likely take several hundred billion dollars to completely modernize the power grid.
Saturday, July 04, 2009
The Smart Grid Will Offer Exceptional Investing Opportunities !!!
Jul 03, 2009 - 03:15 PM
By: Hans_Wagner
With the likely passage of the “Cap and trade” bill, many people are excited that renewable energy is set for further growth. Investments in wind turbines, solar panels, biomass, and capturing the power of ocean waves continue to interest investors. All of these technologies generate electrical power with minimal carbon emissions. Other investors are looking for ways to benefit from a cap and trade system.
The design of the U.S. transmission and distribution system is a century old. This old grid system is designed to distribute electrical power from consistent generation facilities that are close by. Building large wind farms in West Texas still require ways to move that power to urban areas that need it. Moreover, what happens when the wind stops blowing during the hottest days of the summer? Our current electrical grid system is ill suited to handle the variability of new sources of electrical power.
Solving the transition to new power sources is half the battle. After generating the power, you need to distribute it to where it is needed at the right time, in the right amounts and at a lower cost. The Smart Grid is the conceptual answer to the vast changes to adapt our current electrical system to one that is more efficient, adaptable, etc.
An interesting comparison can be made between our electrical grid and our communications network. If Alexander Graham Bell, the inventor of the telephone, were to come back today, he would not recognize the modern day communication system with its cell phones, internet, YouTube, twitter, and wireless communication. On the other hand, if Thomas Edison were to return, he would readily recognize our electrical transmission and distribution arrangement. For Thomas Edison was one of the grid’s earliest architects. While it has grown significantly, the basic design remains the same.
According to Cisco, the Smart Grid offers major investment opportunities that are bigger than the. Jeff Immelt, CEO of GE believes the Smart Grid will be the biggest investment of the first half of the 21st century. President Obama is counting on investments in the Smart Grid to help the United States release it from its dependence on foreign oil.
According to a 2009 report by the American Society of Civil Engineers, $2 trillion will need to be invested in our electric infrastructure by 2030. The Brattle Group estimates that it will take $1.5 trillion to between 2010 and 2030 to pay for the upgrades necessary for the additional infrastructure for tomorrow’s electrical system.
These investments will take place throughout the electrical grid, in the home, in buildings, on campuses, neighborhoods in cities and across continents. Already we are seeing a few of these improvements. Some homes are being fitted with smart meters that track electricity use in detail. This data is sent to the utilities to help them manage electricity demand and supply. Eventually, homeowners will be able to access this data so they can make adjustments in their power consumption. The cost of these meters is quite high and is passed on to consumers. The hope is that once consumers have access to the information on their electricity usage, they will take steps to cut their consumption of electricity offsetting the cost. At a cost of $250 to $500 per meter when all costs are included, it is not clear if the meters are worth the expense as reported recently by the WSJ on APRIL 27, 2009.
This raises the question whether there is a cost-benefit trade off from the incremental investments to achieve the goal of a smart grid. Many people equate the smart grid to the growth of the internet. Investments in the internet provided valuable benefits. Others never paid off. I suspect we will see many smart grid investments experience the same fate.
The parallel to investing in the internet is an interesting analogy. The big winners were able to attach themselves to the “killer application” that drove business to them. However, many losers failed to achieve their promise. Those who sold the network components and installed the infrastructure did well. Many invested in ideas looking for the killer app. Unfortunately most never succeeded, leading to significant losses.
What is the killer application of the smart grid? The best definition I found for a killer app comes from www.netreturn.com. “A new product or service that establishes an entirely new category and by being first dominates it creating an enormous return on the initial investment”. Some people believe the smart grid killer app will be the electric plug in car. Not sure, that meets the definition very well.
Anyone remember the smart home? It has been trying to get off the ground for a number of years. The payoff of the smart home was difficult to realize, despite numerous attempts to promote the concept.
So far. There are a number of start-up companies creating products for the smart grid market. Smart grid pure plays such as Comverge (COMV), RuggedCom (RCM.TO) and EnerNOC (ENOC) all became public in the second quarter of 2007. Some very large companies like GE, Honeywell, Cisco and Google have smart grid offerings. Unfortunately, the size of their smart grid services is relatively small when compared to their total sales.
Companies that provide and install many of the components should offer superior returns; much like the companies who sold picks and shovels to the miners. Companies like ABB Ltd (ABB), Siemens A G, and GE are likely to benefit as electric utilities build the new infrastructure for the smart grid. One way to approach this market might be through an ETF that holds companies in the sub-sector. The Cleantech Index CTIUS, created by The Cleantech Group LLC is the basis for the exchange-traded funds (ETFs) PowerShares Cleantech Portfolio ETF (AMEX: PZD) and the KSM Cleantech ETF in Israel. The index includes large companies like ABB and Siemens as well as smaller firms like Vestas Wind systems (VWS.CO), Itron (ITRI), Trimble Navigation (TRMB) and RuggedCom (RCM.TO).
The smart grid will offer exceptional investing opportunities. It will also create substantial losses for those who do not tread carefully. While it is tempting to bet on what will be the killer app for the smart grid, a more conservative strategy is to focus on the companies that can show real cost benefit from their products or services and who generate positive cash flow.
By: Hans_Wagner
With the likely passage of the “Cap and trade” bill, many people are excited that renewable energy is set for further growth. Investments in wind turbines, solar panels, biomass, and capturing the power of ocean waves continue to interest investors. All of these technologies generate electrical power with minimal carbon emissions. Other investors are looking for ways to benefit from a cap and trade system.
The design of the U.S. transmission and distribution system is a century old. This old grid system is designed to distribute electrical power from consistent generation facilities that are close by. Building large wind farms in West Texas still require ways to move that power to urban areas that need it. Moreover, what happens when the wind stops blowing during the hottest days of the summer? Our current electrical grid system is ill suited to handle the variability of new sources of electrical power.
Solving the transition to new power sources is half the battle. After generating the power, you need to distribute it to where it is needed at the right time, in the right amounts and at a lower cost. The Smart Grid is the conceptual answer to the vast changes to adapt our current electrical system to one that is more efficient, adaptable, etc.
An interesting comparison can be made between our electrical grid and our communications network. If Alexander Graham Bell, the inventor of the telephone, were to come back today, he would not recognize the modern day communication system with its cell phones, internet, YouTube, twitter, and wireless communication. On the other hand, if Thomas Edison were to return, he would readily recognize our electrical transmission and distribution arrangement. For Thomas Edison was one of the grid’s earliest architects. While it has grown significantly, the basic design remains the same.
According to Cisco, the Smart Grid offers major investment opportunities that are bigger than the. Jeff Immelt, CEO of GE believes the Smart Grid will be the biggest investment of the first half of the 21st century. President Obama is counting on investments in the Smart Grid to help the United States release it from its dependence on foreign oil.
According to a 2009 report by the American Society of Civil Engineers, $2 trillion will need to be invested in our electric infrastructure by 2030. The Brattle Group estimates that it will take $1.5 trillion to between 2010 and 2030 to pay for the upgrades necessary for the additional infrastructure for tomorrow’s electrical system.
These investments will take place throughout the electrical grid, in the home, in buildings, on campuses, neighborhoods in cities and across continents. Already we are seeing a few of these improvements. Some homes are being fitted with smart meters that track electricity use in detail. This data is sent to the utilities to help them manage electricity demand and supply. Eventually, homeowners will be able to access this data so they can make adjustments in their power consumption. The cost of these meters is quite high and is passed on to consumers. The hope is that once consumers have access to the information on their electricity usage, they will take steps to cut their consumption of electricity offsetting the cost. At a cost of $250 to $500 per meter when all costs are included, it is not clear if the meters are worth the expense as reported recently by the WSJ on APRIL 27, 2009.
This raises the question whether there is a cost-benefit trade off from the incremental investments to achieve the goal of a smart grid. Many people equate the smart grid to the growth of the internet. Investments in the internet provided valuable benefits. Others never paid off. I suspect we will see many smart grid investments experience the same fate.
The parallel to investing in the internet is an interesting analogy. The big winners were able to attach themselves to the “killer application” that drove business to them. However, many losers failed to achieve their promise. Those who sold the network components and installed the infrastructure did well. Many invested in ideas looking for the killer app. Unfortunately most never succeeded, leading to significant losses.
What is the killer application of the smart grid? The best definition I found for a killer app comes from www.netreturn.com. “A new product or service that establishes an entirely new category and by being first dominates it creating an enormous return on the initial investment”. Some people believe the smart grid killer app will be the electric plug in car. Not sure, that meets the definition very well.
Anyone remember the smart home? It has been trying to get off the ground for a number of years. The payoff of the smart home was difficult to realize, despite numerous attempts to promote the concept.
So far. There are a number of start-up companies creating products for the smart grid market. Smart grid pure plays such as Comverge (COMV), RuggedCom (RCM.TO) and EnerNOC (ENOC) all became public in the second quarter of 2007. Some very large companies like GE, Honeywell, Cisco and Google have smart grid offerings. Unfortunately, the size of their smart grid services is relatively small when compared to their total sales.
Companies that provide and install many of the components should offer superior returns; much like the companies who sold picks and shovels to the miners. Companies like ABB Ltd (ABB), Siemens A G, and GE are likely to benefit as electric utilities build the new infrastructure for the smart grid. One way to approach this market might be through an ETF that holds companies in the sub-sector. The Cleantech Index CTIUS, created by The Cleantech Group LLC is the basis for the exchange-traded funds (ETFs) PowerShares Cleantech Portfolio ETF (AMEX: PZD) and the KSM Cleantech ETF in Israel. The index includes large companies like ABB and Siemens as well as smaller firms like Vestas Wind systems (VWS.CO), Itron (ITRI), Trimble Navigation (TRMB) and RuggedCom (RCM.TO).
The smart grid will offer exceptional investing opportunities. It will also create substantial losses for those who do not tread carefully. While it is tempting to bet on what will be the killer app for the smart grid, a more conservative strategy is to focus on the companies that can show real cost benefit from their products or services and who generate positive cash flow.
Friday, July 03, 2009
Duke Energy Smart Grid Press Event (June 16, 2009)
June 30, 2009
David Mohler, Chief Technology Officer for Duke Energy, talks about the company's McAlpine project, where the company is focusing on building out the smart grid.
2-US green energy projects get $59 mln U.S. Energy Department guarantees
2-US green energy projects get $59 mln in guarantees
* Beacon Power storage project to get $43 mln guarantee
* Nordic Windpower gets $16 mln guarantee to expand plant
* Part of $6 bln stimulus funds to boost renewable energy (Recasts, updates throughout)
By Ayesha Rascoe
WASHINGTON, July 2 (Reuters) - The U.S. Energy Department on Thursday offered loan guarantees worth $59 million to two renewable energy companies as the agency tries to quickly boost green energy production with a windfall of funding from the economic stimulus package.
* Beacon Power storage project to get $43 mln guarantee
* Nordic Windpower gets $16 mln guarantee to expand plant
* Part of $6 bln stimulus funds to boost renewable energy (Recasts, updates throughout)
By Ayesha Rascoe
WASHINGTON, July 2 (Reuters) - The U.S. Energy Department on Thursday offered loan guarantees worth $59 million to two renewable energy companies as the agency tries to quickly boost green energy production with a windfall of funding from the economic stimulus package.
Thursday, July 02, 2009
More Smart Grid Partnerships: Echelon/Ambient and now Itron and Ambient Join Up
More Smart Grid Partnerships: Itron and Ambient Join Up
Jeff St. John July 1, 2009
Smart meter maker Itron and smart grid communications provider Ambient have agreed to link up their technologies and pitch the combination to utilities.
Yet another partnership between two smart grid players has emerged – this one between smart meter maker Itron and smart grid communications provider Ambient Corp.
The two companies said Tuesday they'll integrate their systems and market the combo to utilities. The integration isn't necessarily a novel concept – Ambient, which makes a variety of communications technologies to link smart meter networks to utilities' back offices, has worked with Itron, as well as smart meter maker Echelon.
But the marketing partnership represents a growing trend, in which companies that fit into certain parts of the smart grid puzzle – neighborhood area smart meter networks, distribution automation systems, transmission monitoring systems and the "backhaul" networks that link them to utility control rooms – are getting together.
There have been a lot of these announcements in the past few weeks. On Thursday, AT&T said it would provide communications for the voltage and power outage sensors made by Cooper Power Systems (see AT&T Links Cooper Power Systems' Smart Grid Devices).
A few days before that, Current Group said it would work with Qwest Communications to link Current's smart grid devices via Qwest's DSL networks (see Green Light post).
Smart meter networking technology providers Silver Spring Networks and Trilliant have recently announced ways they intend to integrate smart meters and distribution grid and utility backhaul networks as well – Silver Spring in partnership with grid devices maker ABB and Trilliant with its acquisition of SkyPilot (see Trilliant Buys SkyPilot for End-to-End Smart Grid Communications).
That fits in well with utilities' natural desire to work with fewer partners and integrated technologies. It's the same logic that has led to a spate of acquisitions and mergers in the smart grid field over the last year or so, most recently with GridPoint's purchase of Lixar (see GridPoint Buys Home Energy Management Startup Lixar and Acquisitions in Smart Grid: Get Used to It).
The Department of Energy has put interoperability high on its wish list for projects applying for $3.9 billion in federal smart grid stimulus grants, likely adding to utility interest in systems that have proven they work well together (see DOE Issues Rules for $3.9B in Smart Grid Stimulus Grants).
Itron has also partnered with demand response company Comverge to integrate its systems into Itron's smart meter networks. The idea is to power down home appliances, air conditioners and other energy users through smart meters, something that many utility pilot projects are tackling (see The Elusive Smart Meter-Demand Response Combo).
And of course, no mention of integrated smart grid systems could neglect to mention Cisco Systems, which in May announced its intentions to provide networking and data management for a wide array of smart grid systems, from distribution automation equipment to home energy management systems (see Cisco Wants to Be Everywhere in the Smart Grid).
Jeff St. John July 1, 2009
Smart meter maker Itron and smart grid communications provider Ambient have agreed to link up their technologies and pitch the combination to utilities.
Yet another partnership between two smart grid players has emerged – this one between smart meter maker Itron and smart grid communications provider Ambient Corp.
The two companies said Tuesday they'll integrate their systems and market the combo to utilities. The integration isn't necessarily a novel concept – Ambient, which makes a variety of communications technologies to link smart meter networks to utilities' back offices, has worked with Itron, as well as smart meter maker Echelon.
But the marketing partnership represents a growing trend, in which companies that fit into certain parts of the smart grid puzzle – neighborhood area smart meter networks, distribution automation systems, transmission monitoring systems and the "backhaul" networks that link them to utility control rooms – are getting together.
There have been a lot of these announcements in the past few weeks. On Thursday, AT&T said it would provide communications for the voltage and power outage sensors made by Cooper Power Systems (see AT&T Links Cooper Power Systems' Smart Grid Devices).
A few days before that, Current Group said it would work with Qwest Communications to link Current's smart grid devices via Qwest's DSL networks (see Green Light post).
Smart meter networking technology providers Silver Spring Networks and Trilliant have recently announced ways they intend to integrate smart meters and distribution grid and utility backhaul networks as well – Silver Spring in partnership with grid devices maker ABB and Trilliant with its acquisition of SkyPilot (see Trilliant Buys SkyPilot for End-to-End Smart Grid Communications).
That fits in well with utilities' natural desire to work with fewer partners and integrated technologies. It's the same logic that has led to a spate of acquisitions and mergers in the smart grid field over the last year or so, most recently with GridPoint's purchase of Lixar (see GridPoint Buys Home Energy Management Startup Lixar and Acquisitions in Smart Grid: Get Used to It).
The Department of Energy has put interoperability high on its wish list for projects applying for $3.9 billion in federal smart grid stimulus grants, likely adding to utility interest in systems that have proven they work well together (see DOE Issues Rules for $3.9B in Smart Grid Stimulus Grants).
Itron has also partnered with demand response company Comverge to integrate its systems into Itron's smart meter networks. The idea is to power down home appliances, air conditioners and other energy users through smart meters, something that many utility pilot projects are tackling (see The Elusive Smart Meter-Demand Response Combo).
And of course, no mention of integrated smart grid systems could neglect to mention Cisco Systems, which in May announced its intentions to provide networking and data management for a wide array of smart grid systems, from distribution automation equipment to home energy management systems (see Cisco Wants to Be Everywhere in the Smart Grid).
Wednesday, July 01, 2009
Smart Grid Today: Ambient, Itron team up for end-to-end smart grid play
Ambient, Itron team up for
end-to-end smart grid play
July 1, 2009
Ambient added another metering firm to its stable -- one whose size and global scope may well expand Ambient's footprint, Ambient CEO John Joyce told us yesterday. The smart grid networking integrator/operator works with Echelon for electric utilities, and Badger for water and gas utilities.
“We're incorporating both the PLC technology and the RF technology into our network,” so the new agreement with Itron helps, said Joyce. His firm holds patents on PLC equipment and has long been a leading contender in the business with deals doing trials at Duke Energy and Consolidated Edison.
Itron was an attractive business partner since “it's a global company that has a significant legacy system product in the field here in North America as well,” said Joyce. “We believe with the Itron/Verizon/Ambient name, we can offer a full solution to the utility.” Ambient has a joint-marketing agreement with Verizon as does Itron.
And Ambient's X-3000 node -- a newer, lighter version of the X-2000 -- is certified for the Verizon network. It is designed to be deployed at the transformer where it can give a utility “a real-time view into its distribution grid,” including current and voltage sensing, thus the grid can be better managed, said Joyce.
Ambient in April signed a supply and alliance pact for smart grid product development and deployment with Bel Fuse, a designer and maker of products used in networking, telecom, high-speed data transmission and consumer electronics (SGT, Apr-15).
The 40-employee Ambient would clearly like to do business around the world, but it sees plenty to be done with Itron's “significant” deployments in North America, Joyce noted. “We see this as a way to enhance our Ambient technology/product as well as to offer Itron a solution that will benefit its existing customers.”
As a matter of fact, the partnership began a couple of months ago, Joyce recalled, when Ambient and Itron created a way to incorporate into a utility's smart grid platform older Itron technology.
“That was the initial focus,” he explained -- taking some meters that were deployed and still part of the rate base and incorporating them into the evolving smart grid so as not to create stranded assets.
The pair found their engineering teams could pull into the communications network more regular reads than were happening in a drive-by system and bring the data back to the central office.
“That led to looking at different ways to incorporate Itron's core consumer and commercial AMI technologies with Ambient's high-capacity communications network for a complete utility-to-the-home smart grid solution,” said Joyce.
Ambient has been focused for a decade on “the digital communication backbone and the element-management system” that delivers advanced metering and other smart grid initiatives, Joyce reminded.
In addition to Ambient's X-3000 node, the pact with Itron includes Ambient's network management system. Itron is contributing AMR and AMI technology.
Ambient sees “huge” opportunities working with both older and newer Itron technology, Joyce said.
Itron and Ambient are set to jointly market their collaborative offerings to utilities.
BOTTOM LINE: That mention of stranded assets goes to the heart of a deep concern for utilities as they feel the pressure to replace equipment that, as we sometimes say, “ain't broke.” It's an issue we are probing in ongoing reporting including an interview in today's issue with a key Trilliant executive.
end-to-end smart grid play
July 1, 2009
Ambient added another metering firm to its stable -- one whose size and global scope may well expand Ambient's footprint, Ambient CEO John Joyce told us yesterday. The smart grid networking integrator/operator works with Echelon for electric utilities, and Badger for water and gas utilities.
“We're incorporating both the PLC technology and the RF technology into our network,” so the new agreement with Itron helps, said Joyce. His firm holds patents on PLC equipment and has long been a leading contender in the business with deals doing trials at Duke Energy and Consolidated Edison.
Itron was an attractive business partner since “it's a global company that has a significant legacy system product in the field here in North America as well,” said Joyce. “We believe with the Itron/Verizon/Ambient name, we can offer a full solution to the utility.” Ambient has a joint-marketing agreement with Verizon as does Itron.
And Ambient's X-3000 node -- a newer, lighter version of the X-2000 -- is certified for the Verizon network. It is designed to be deployed at the transformer where it can give a utility “a real-time view into its distribution grid,” including current and voltage sensing, thus the grid can be better managed, said Joyce.
Ambient in April signed a supply and alliance pact for smart grid product development and deployment with Bel Fuse, a designer and maker of products used in networking, telecom, high-speed data transmission and consumer electronics (SGT, Apr-15).
The 40-employee Ambient would clearly like to do business around the world, but it sees plenty to be done with Itron's “significant” deployments in North America, Joyce noted. “We see this as a way to enhance our Ambient technology/product as well as to offer Itron a solution that will benefit its existing customers.”
As a matter of fact, the partnership began a couple of months ago, Joyce recalled, when Ambient and Itron created a way to incorporate into a utility's smart grid platform older Itron technology.
“That was the initial focus,” he explained -- taking some meters that were deployed and still part of the rate base and incorporating them into the evolving smart grid so as not to create stranded assets.
The pair found their engineering teams could pull into the communications network more regular reads than were happening in a drive-by system and bring the data back to the central office.
“That led to looking at different ways to incorporate Itron's core consumer and commercial AMI technologies with Ambient's high-capacity communications network for a complete utility-to-the-home smart grid solution,” said Joyce.
Ambient has been focused for a decade on “the digital communication backbone and the element-management system” that delivers advanced metering and other smart grid initiatives, Joyce reminded.
In addition to Ambient's X-3000 node, the pact with Itron includes Ambient's network management system. Itron is contributing AMR and AMI technology.
Ambient sees “huge” opportunities working with both older and newer Itron technology, Joyce said.
Itron and Ambient are set to jointly market their collaborative offerings to utilities.
BOTTOM LINE: That mention of stranded assets goes to the heart of a deep concern for utilities as they feel the pressure to replace equipment that, as we sometimes say, “ain't broke.” It's an issue we are probing in ongoing reporting including an interview in today's issue with a key Trilliant executive.
Itron’s Automatic Meter Reading Technology Featured on BusinessWeek TV
Watch the video of Itron AMR deployment at Consolidated Edison in New York
(Windows Media Player required)
Itron’s Automatic Meter Reading Technology Featured on BusinessWeek TV
BusinessWeek Weekend is a subsidiary of BusinessWeek Magazine, a highly respected national publication.
Automatic meter reading (AMR) technology has been discovered by the mainstream media!
BusinessWeek Weekend, a syndicated national television program, recently featured a short segment on AMR, filming the AMR deployment at Consolidated Edison in New York. The segment features Itron’s technology. The feature clearly acknowledges Itron’s dominance in the AMR market.
The segment is a reflection of how more mainstream media is showing interest in the energy and water industry and how associated technologies can improve energy delivery and customer service. With the new energy bill, more mainstream media will likely focus attention on energy and water technologies.
The full story focuses on the high cost of energy this year and how people can save on their heating bills. Although the anchor of the segment described AMR as a “new” technology, nevertheless, it is exciting to see “invisible” technologies that help utilities work more efficiently and cost-effectively hit the mainstream market as news.
(Windows Media Player required)
Itron’s Automatic Meter Reading Technology Featured on BusinessWeek TV
BusinessWeek Weekend is a subsidiary of BusinessWeek Magazine, a highly respected national publication.
Automatic meter reading (AMR) technology has been discovered by the mainstream media!
BusinessWeek Weekend, a syndicated national television program, recently featured a short segment on AMR, filming the AMR deployment at Consolidated Edison in New York. The segment features Itron’s technology. The feature clearly acknowledges Itron’s dominance in the AMR market.
The segment is a reflection of how more mainstream media is showing interest in the energy and water industry and how associated technologies can improve energy delivery and customer service. With the new energy bill, more mainstream media will likely focus attention on energy and water technologies.
The full story focuses on the high cost of energy this year and how people can save on their heating bills. Although the anchor of the segment described AMR as a “new” technology, nevertheless, it is exciting to see “invisible” technologies that help utilities work more efficiently and cost-effectively hit the mainstream market as news.
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