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.
Thursday, July 09, 2009
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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