May 28, 2009
Friday, May 29, 2009
Wednesday, May 27, 2009
Smart Grid to Grow 21 Percent a Year to $17B in 5 Years
Tue May 26, 2009 1:17pm EDT
By Katie Fehrenbacher - Earth2Tech
Networking giant Cisco has said that the market for smart-grid communications will grow into a $20 billion a year opportunity as the infrastructure is built out over the next five years. Researchers at Specialists in Business Information (SBI) basically agree, and have issued a report that says the U.S. smart-grid market will grow to $17 billion per year by 2014 from its current size of $6 billion. That’s a compound annual growth rate (CAGR) of almost 21 percent through 2014 for technology that will provide better sensing and control systems and help integrate more renewable energy into the U.S. power supply.
This represents sizable growth and a pretty big market, but let’s put it in perspective with some of the other markets created through information technology:
* The worldwide market for home-networking products, like game consoles, TVs and set-top boxes, will rise to over $94 billion in 2010, from about $74 billion this year, according to ABI Research.
* The worldwide revenue from semiconductors was $255 billion in 2008, which was a decrease of $14.5 billion from 2007 revenue, according to Gartner.
* Worldwide spending on IT, which includes consumer and business spending on computing, IT services, telecom and software, is forecast to total $3.2 trillion in 2009, which is a 3.8 percent decline from $3.4 trillion in 2008, according to Gartner.
* The worldwide market for enterprise software is forecast to total $222.6 billion in 2009, which is basically flat from $221.9 billion last year, according to Gartner.
By Katie Fehrenbacher - Earth2Tech
Networking giant Cisco has said that the market for smart-grid communications will grow into a $20 billion a year opportunity as the infrastructure is built out over the next five years. Researchers at Specialists in Business Information (SBI) basically agree, and have issued a report that says the U.S. smart-grid market will grow to $17 billion per year by 2014 from its current size of $6 billion. That’s a compound annual growth rate (CAGR) of almost 21 percent through 2014 for technology that will provide better sensing and control systems and help integrate more renewable energy into the U.S. power supply.
This represents sizable growth and a pretty big market, but let’s put it in perspective with some of the other markets created through information technology:
* The worldwide market for home-networking products, like game consoles, TVs and set-top boxes, will rise to over $94 billion in 2010, from about $74 billion this year, according to ABI Research.
* The worldwide revenue from semiconductors was $255 billion in 2008, which was a decrease of $14.5 billion from 2007 revenue, according to Gartner.
* Worldwide spending on IT, which includes consumer and business spending on computing, IT services, telecom and software, is forecast to total $3.2 trillion in 2009, which is a 3.8 percent decline from $3.4 trillion in 2008, according to Gartner.
* The worldwide market for enterprise software is forecast to total $222.6 billion in 2009, which is basically flat from $221.9 billion last year, according to Gartner.
Tuesday, May 26, 2009
China to publish plans for smart grid in July, related shares soar
Tuesday, May 26, 2009
China to publish plans for smart grid in July, related shares soar
Grid related shares surged after China's State Grid announced that plans for its smart grid will be published in July.
Many stocks surged to the 10 percent trading cap early in the morning, including transmission equipment producers such as Yantai Dongfang Electronics Information Industry Co.（SZ:000682）, XJ Electric Co. （SZ:000400）and transformer produers such as San Bian Science & Technology Co.（SZ:002112）.
Smart grids use digital technology to reduce costs, save energy and increase reliability of electricity supply. China's smart grid will incraese the use of ultra high-voltage transmission of electricity over long distances from power bases such as Shanxi province tocoastal areas where demand is high.
Analysts say China may spend as much as RMB 680 billion on the smart grids and overall RMB 4 trillion on power grids from 2009 to 2020. China's State Grid Corporation's investment target for 2009 is RMB 260 billion.
Other grid related shares that also surged 10 percent include Jiangsu Dongyuan Electrical Group Co.（SZ:002074）, Shenzhen Clou Electronics Co. （SZ:002121）, Guangzhou Zhiguang Electric Co. （SZ:002169), Shanghai Hi-tech Control System Co. （SZ:002184）and Shanghai Zhixin Electric Co.（SH:600517）.
Wasion Group (HK:3393), an ammeter producer, surged 24.50 percent. Northeast Electric Development Co. (HK:0042) climbed 20.34 percent. It’s reported that Warren Buffet may have invested in the company.
China to publish plans for smart grid in July, related shares soar
Grid related shares surged after China's State Grid announced that plans for its smart grid will be published in July.
Many stocks surged to the 10 percent trading cap early in the morning, including transmission equipment producers such as Yantai Dongfang Electronics Information Industry Co.（SZ:000682）, XJ Electric Co. （SZ:000400）and transformer produers such as San Bian Science & Technology Co.（SZ:002112）.
Smart grids use digital technology to reduce costs, save energy and increase reliability of electricity supply. China's smart grid will incraese the use of ultra high-voltage transmission of electricity over long distances from power bases such as Shanxi province tocoastal areas where demand is high.
Analysts say China may spend as much as RMB 680 billion on the smart grids and overall RMB 4 trillion on power grids from 2009 to 2020. China's State Grid Corporation's investment target for 2009 is RMB 260 billion.
Other grid related shares that also surged 10 percent include Jiangsu Dongyuan Electrical Group Co.（SZ:002074）, Shenzhen Clou Electronics Co. （SZ:002121）, Guangzhou Zhiguang Electric Co. （SZ:002169), Shanghai Hi-tech Control System Co. （SZ:002184）and Shanghai Zhixin Electric Co.（SH:600517）.
Wasion Group (HK:3393), an ammeter producer, surged 24.50 percent. Northeast Electric Development Co. (HK:0042) climbed 20.34 percent. It’s reported that Warren Buffet may have invested in the company.
Will users complete smart-grid circuit? Duke Energy is planning a $1 billion makeover that might save both energy and money !!!
Duke Energy is planning a $1 billion makeover that might save both energy and money – if consumers use it.
By Bruce Henderson
bhenderson@charlotteobserver.com
Posted: Tuesday, May. 26, 2009
smartgrid_06
David Mohler, chief technology officer for Duke Energy, shows the energy-management system installed at his Lake Wylie home. The box houses batteries that can store 10 kilowatt-hours of backup electricity, feeding selected circuits in the house. DAVID T. FOSTER III – dtfoster@charlotteobserver.com
* Advocates say clean energy will create jobs
Imagine an electric system that talks to your dishwasher, automatically heals outages, and not only supplies power but pulls it from rooftop solar panels and hybrid cars.
It's called a smart grid, and it's coming to your neighborhood.
Over the next five years, Duke Energy will give its aging web of power lines and substations a $1 billion makeover. As utilities across the country upgrade, a system that has changed little since Thomas Edison's time will join a digital world of wireless sensors, mini-power plants and new consumer options.
“For the industry,” says chief technology officer David Mohler, “that is just a totally different way of doing business.”
For decades, utilities focused on reliably delivering enough juice to keep air conditioners humming on the hottest July afternoon. The U.S. grid, with its 9,200 power plants and 300,000 miles of transmission lines, is the world's largest interconnected machine, the Energy Department says.
Yet utility spending on research and development lags almost every other industry. Demand for electricity is outpacing the capacity to deliver it, and the system is failing more often.
Smart grid promises to transform the electric system as powerfully as e-mail did computing.
New technology will allow two-way communication between utilities and their customers, giving consumers new insights into their energy use.
Homeowners will be able to tailor their energy use, the way they now do their cell phone plans. Instead of paying flat rates, as they now do, customers could run energy-hungry appliances when rates are lowest.
If customers take advantage of the technology – and that's an open question – Duke estimates they could shave 8 to 9 percent off their electric bills.
“After decades of selling reliability, now we have to get customers to understand and buy in to how the system works,” said Duke spokesman Tim Pettit. “And we've got to make it painless for them.”
What's in it for utilities?
Savings by reducing outages, speeding repairs and detecting inefficiencies such as the leaks of electricity from power lines.
A new ability to smooth out demand peaks, such as on hot summer days.
And broader use of solar and wind energy, which is mandated in North Carolina and will grow as the nation cracks down on emissions from coal-burning power plants.
Duke's smart grid investment isn't a gamble. The company says the plan hinges on state regulators allowing Duke to recover its costs through customer rates.
Outside experts are cautious about smart grid's potential, particularly in its energy savings. The key, they say, is whether customers take advantage of the new technology to save money.
Most consumers don't understand how they use energy, said Dan York, a utilities expert with the American Council for an Energy-Efficient Economy. The hope of smart grid, he added, is that more information will change behavior, the way the miles-per-gallon readout focuses drivers of hybrid cars.
“We don't need just smarter grids and smarter meters,” York said, “we need smart programs and smart pricing” that would motivate consumers to use new technology and invest in energy efficiency.
Duke has opened a demonstration center on the N.C. State University campus in Raleigh to familiarize policy makers and regulators with smart-grid concepts.
Up to 200 customers in southeast Charlotte will also get a taste of the future this spring. Duke will begin a yearlong test of some smart-grid components to see how customers react.
For a real-life demonstration, visit Mohler's Lake Wylie home. It's the one that glows with light when storms knock out power to the rest of the neighborhood.
The solar panels on Mohler's roof only hint at what's inside. The panels are wired into a big metal box, called an energy-management system, in the garage. The box houses batteries that can store 10 kilowatt-hours of backup electricity, feeding selected circuits in the home.
In the kitchen, on a laptop computer, Mohler pulls up a window into the home's energy use.
The screen shows the house, in late afternoon, is using 900 watts of electricity. It details how much his heating and cooling system, plasma TV, kitchen range and clothes dryer are using, and shows that 54 hours of backup power is available.
Like Duke's test volunteers, the Mohlers can adjust their appliance use to save power.
“We fiddled with it when we first got it,” Mohler said, “then the novelty wore off.”
That's what most customers will do once the technology is widely available, Duke predicts – set controls and let technology do the rest.
That day will come inside a decade, Mohler predicted.
“Whatever comes next,” he said, “is whatever we haven't thought about.”
By Bruce Henderson
bhenderson@charlotteobserver.com
Posted: Tuesday, May. 26, 2009
smartgrid_06
David Mohler, chief technology officer for Duke Energy, shows the energy-management system installed at his Lake Wylie home. The box houses batteries that can store 10 kilowatt-hours of backup electricity, feeding selected circuits in the house. DAVID T. FOSTER III – dtfoster@charlotteobserver.com
* Advocates say clean energy will create jobs
Imagine an electric system that talks to your dishwasher, automatically heals outages, and not only supplies power but pulls it from rooftop solar panels and hybrid cars.
It's called a smart grid, and it's coming to your neighborhood.
Over the next five years, Duke Energy will give its aging web of power lines and substations a $1 billion makeover. As utilities across the country upgrade, a system that has changed little since Thomas Edison's time will join a digital world of wireless sensors, mini-power plants and new consumer options.
“For the industry,” says chief technology officer David Mohler, “that is just a totally different way of doing business.”
For decades, utilities focused on reliably delivering enough juice to keep air conditioners humming on the hottest July afternoon. The U.S. grid, with its 9,200 power plants and 300,000 miles of transmission lines, is the world's largest interconnected machine, the Energy Department says.
Yet utility spending on research and development lags almost every other industry. Demand for electricity is outpacing the capacity to deliver it, and the system is failing more often.
Smart grid promises to transform the electric system as powerfully as e-mail did computing.
New technology will allow two-way communication between utilities and their customers, giving consumers new insights into their energy use.
Homeowners will be able to tailor their energy use, the way they now do their cell phone plans. Instead of paying flat rates, as they now do, customers could run energy-hungry appliances when rates are lowest.
If customers take advantage of the technology – and that's an open question – Duke estimates they could shave 8 to 9 percent off their electric bills.
“After decades of selling reliability, now we have to get customers to understand and buy in to how the system works,” said Duke spokesman Tim Pettit. “And we've got to make it painless for them.”
What's in it for utilities?
Savings by reducing outages, speeding repairs and detecting inefficiencies such as the leaks of electricity from power lines.
A new ability to smooth out demand peaks, such as on hot summer days.
And broader use of solar and wind energy, which is mandated in North Carolina and will grow as the nation cracks down on emissions from coal-burning power plants.
Duke's smart grid investment isn't a gamble. The company says the plan hinges on state regulators allowing Duke to recover its costs through customer rates.
Outside experts are cautious about smart grid's potential, particularly in its energy savings. The key, they say, is whether customers take advantage of the new technology to save money.
Most consumers don't understand how they use energy, said Dan York, a utilities expert with the American Council for an Energy-Efficient Economy. The hope of smart grid, he added, is that more information will change behavior, the way the miles-per-gallon readout focuses drivers of hybrid cars.
“We don't need just smarter grids and smarter meters,” York said, “we need smart programs and smart pricing” that would motivate consumers to use new technology and invest in energy efficiency.
Duke has opened a demonstration center on the N.C. State University campus in Raleigh to familiarize policy makers and regulators with smart-grid concepts.
Up to 200 customers in southeast Charlotte will also get a taste of the future this spring. Duke will begin a yearlong test of some smart-grid components to see how customers react.
For a real-life demonstration, visit Mohler's Lake Wylie home. It's the one that glows with light when storms knock out power to the rest of the neighborhood.
The solar panels on Mohler's roof only hint at what's inside. The panels are wired into a big metal box, called an energy-management system, in the garage. The box houses batteries that can store 10 kilowatt-hours of backup electricity, feeding selected circuits in the home.
In the kitchen, on a laptop computer, Mohler pulls up a window into the home's energy use.
The screen shows the house, in late afternoon, is using 900 watts of electricity. It details how much his heating and cooling system, plasma TV, kitchen range and clothes dryer are using, and shows that 54 hours of backup power is available.
Like Duke's test volunteers, the Mohlers can adjust their appliance use to save power.
“We fiddled with it when we first got it,” Mohler said, “then the novelty wore off.”
That's what most customers will do once the technology is widely available, Duke predicts – set controls and let technology do the rest.
That day will come inside a decade, Mohler predicted.
“Whatever comes next,” he said, “is whatever we haven't thought about.”
Wednesday, May 20, 2009
Google dribbles out PowerMeter smart-grid service !!!
May 20, 2009 5:19 AM PDT
Google has signed on smart-meter manufacturer Itron and eight utilities to offer Google's PowerMeter Web service for monitoring home energy use.
PowerMeter reads a home's electricity meter and gives the consumer a detailed readout of usage. The idea is that a better understanding of electricity usage--presented via daily trends and data on individual appliances--will help people figure out how to cut consumption.
Google's home energy-monitoring software relies on meters, or add-on devices, that can communicate usage information back to utilties. In a blog post on Tuesday, Google engineer Ed Lu said that the company is seeking to find more smart-meter vendors and utilities to offer PowerMeter.
"For now, Google PowerMeter is only available to a limited group of customers, but we plan to expand our roll out later this year," Lu wrote.
In a document prepaid for utilities, Google says that PowerMeter is a free, opt-in service.
Google's push into home energy monitoring is likely to be well received by consumers who want details on how they are consuming electricity. It is estimated that simply surfacing information on trends and individual appliances will allow the typical consumer to lower electricity use by 5 to 15 percent.
Within the smart-grid industry, Google is poised to make an impact as well. A number of start-ups offer home energy monitoring, through Web sites or a small device in the home.
Large IT and telecommunications providers are developing smart-grid technology as well. Cisco Systems said Monday that it intends to offer home energy monitoring, potentially as an add-on to its home network hardware. Telecommunications companies including Verizon Communicationsare exploring adding energy monitoring to their broadband services.
Google has signed on smart-meter manufacturer Itron and eight utilities to offer Google's PowerMeter Web service for monitoring home energy use.
PowerMeter reads a home's electricity meter and gives the consumer a detailed readout of usage. The idea is that a better understanding of electricity usage--presented via daily trends and data on individual appliances--will help people figure out how to cut consumption.
Google's home energy-monitoring software relies on meters, or add-on devices, that can communicate usage information back to utilties. In a blog post on Tuesday, Google engineer Ed Lu said that the company is seeking to find more smart-meter vendors and utilities to offer PowerMeter.
"For now, Google PowerMeter is only available to a limited group of customers, but we plan to expand our roll out later this year," Lu wrote.
In a document prepaid for utilities, Google says that PowerMeter is a free, opt-in service.
Google's push into home energy monitoring is likely to be well received by consumers who want details on how they are consuming electricity. It is estimated that simply surfacing information on trends and individual appliances will allow the typical consumer to lower electricity use by 5 to 15 percent.
Within the smart-grid industry, Google is poised to make an impact as well. A number of start-ups offer home energy monitoring, through Web sites or a small device in the home.
Large IT and telecommunications providers are developing smart-grid technology as well. Cisco Systems said Monday that it intends to offer home energy monitoring, potentially as an add-on to its home network hardware. Telecommunications companies including Verizon Communicationsare exploring adding energy monitoring to their broadband services.
Cisco: Smart grid will eclipse size of Internet
May 18, 2009 5:00 AM PDT
by Martin LaMonica
Cisco knows a bit about building networks and it sees a $100 billion market opportunity in the smart grid.
The company, whose networking gear is installed in all corners of the Internet, on Monday will announce its intention to make communications equipment for the electricity grid--everything from routers in grid substations to home energy controllers. CEO John Chambers is scheduled to discuss Cisco's smart-grid push Monday morning at a JP Morgan conference in Boston.
Cisco's move is a sign that the creaky electricity distribution system is poised for a digital upgrade. Other high-tech companies, including IBM, Intel, and several start-ups, are ramping up smart-grid efforts to capitalize on expected investments from utilities and federal governments. Cisco estimates that the communications portion of that build-out is worth $20 billion a year over the next five years.
The idea of the "smart grid" is to modernize the electricity industry by overlaying digital communications onto the grid. Smart meters in a person's home, for example, can communicate energy usage to utilities in near real time. That allows the utility to more efficiently manage the electricity supply and potentially allow a consumer to take advantage of cheaper rates.
Cisco started devising a strategy to enter the smart-grid arena last fall. Some utilities are already testing how well its routers and switches can help more efficiently manage the flow of electricity and prevent outages in grid distribution equipment. Cisco also released EnergyWise software earlier this year for managing energy use in office buildings
Cisco's smart-grid program covers goods already part of its product portfolio, such as data center equipment. But in other cases, such as home networks and smart-meter security, Cisco is developing new products, said Marie Hattar, vice president of marketing in Cisco's Network Systems Solutions group.
For example, Cisco could make a home energy controller device or software for its Linksys routers and set-top boxes to give consumers a read-out of how much energy different appliances use.
More data
There's potential for communications gear in "neighborhood-area networks" as well. Using sensors or an embedded router in substation, a local utility could send information on the demand for electricity in real time to power generators. That will allow generators to run more efficiently and incorporate more wind and solar, said Hattar.
A "smart grid" infrastructure adds digital communications to the power grid so it can manage the flow of energy to run more efficiently and to incorporate more wind and solar power.
(Credit: Department of Energy)
Over time, people's homes will have more sensors in appliances, which will give consumers more detailed usage information to help cut usage and help utilities avoid stressing the grid during peak times, smart-grid advocates say. More sensors also mean that utilities will need to bulk up their data center communications to handle much more data, Hattar said.
Cisco's position is that the communications over the grid should be done using IP (Internet Protocol) in conjunction with existing industry protocols and standards. Not all smart-meter companies use IP to communicate information and the utility and IT industries are still defining a number of different standards.
Even though Cisco advocates IP, Hattar said that a modernized electricity grid will be separate from the Internet, which she indicated should lessen security vulnerabilities.
"Our expectation is that this network will be 100 or 1,000 times larger than the Internet. If you think about it, some homes have Internet access, but some don't. Everyone has electricity access--all of those homes could potentially be connected," she said.
Even though many vendors expect a lot of money to be spent on modernizing the grid, smart-grid technology is for the most part still in the testing phase at utility-sponsored trials.
Many utilities tend to be conservative about investing in IT. Another factor that makes at least some utilities unenthusiastic about smart-grid technology is that many states have regulations structured around power plant investments rather than efficiency-related IT.
Cisco--along with General Electric and SilverSpring Networks--was picked for a large smart-grid project in Miami from Florida Power & Light, which aims to install 1 million two-way utility meters.
by Martin LaMonica
Cisco knows a bit about building networks and it sees a $100 billion market opportunity in the smart grid.
The company, whose networking gear is installed in all corners of the Internet, on Monday will announce its intention to make communications equipment for the electricity grid--everything from routers in grid substations to home energy controllers. CEO John Chambers is scheduled to discuss Cisco's smart-grid push Monday morning at a JP Morgan conference in Boston.
Cisco's move is a sign that the creaky electricity distribution system is poised for a digital upgrade. Other high-tech companies, including IBM, Intel, and several start-ups, are ramping up smart-grid efforts to capitalize on expected investments from utilities and federal governments. Cisco estimates that the communications portion of that build-out is worth $20 billion a year over the next five years.
The idea of the "smart grid" is to modernize the electricity industry by overlaying digital communications onto the grid. Smart meters in a person's home, for example, can communicate energy usage to utilities in near real time. That allows the utility to more efficiently manage the electricity supply and potentially allow a consumer to take advantage of cheaper rates.
Cisco started devising a strategy to enter the smart-grid arena last fall. Some utilities are already testing how well its routers and switches can help more efficiently manage the flow of electricity and prevent outages in grid distribution equipment. Cisco also released EnergyWise software earlier this year for managing energy use in office buildings
Cisco's smart-grid program covers goods already part of its product portfolio, such as data center equipment. But in other cases, such as home networks and smart-meter security, Cisco is developing new products, said Marie Hattar, vice president of marketing in Cisco's Network Systems Solutions group.
For example, Cisco could make a home energy controller device or software for its Linksys routers and set-top boxes to give consumers a read-out of how much energy different appliances use.
More data
There's potential for communications gear in "neighborhood-area networks" as well. Using sensors or an embedded router in substation, a local utility could send information on the demand for electricity in real time to power generators. That will allow generators to run more efficiently and incorporate more wind and solar, said Hattar.
A "smart grid" infrastructure adds digital communications to the power grid so it can manage the flow of energy to run more efficiently and to incorporate more wind and solar power.
(Credit: Department of Energy)
Over time, people's homes will have more sensors in appliances, which will give consumers more detailed usage information to help cut usage and help utilities avoid stressing the grid during peak times, smart-grid advocates say. More sensors also mean that utilities will need to bulk up their data center communications to handle much more data, Hattar said.
Cisco's position is that the communications over the grid should be done using IP (Internet Protocol) in conjunction with existing industry protocols and standards. Not all smart-meter companies use IP to communicate information and the utility and IT industries are still defining a number of different standards.
Even though Cisco advocates IP, Hattar said that a modernized electricity grid will be separate from the Internet, which she indicated should lessen security vulnerabilities.
"Our expectation is that this network will be 100 or 1,000 times larger than the Internet. If you think about it, some homes have Internet access, but some don't. Everyone has electricity access--all of those homes could potentially be connected," she said.
Even though many vendors expect a lot of money to be spent on modernizing the grid, smart-grid technology is for the most part still in the testing phase at utility-sponsored trials.
Many utilities tend to be conservative about investing in IT. Another factor that makes at least some utilities unenthusiastic about smart-grid technology is that many states have regulations structured around power plant investments rather than efficiency-related IT.
Cisco--along with General Electric and SilverSpring Networks--was picked for a large smart-grid project in Miami from Florida Power & Light, which aims to install 1 million two-way utility meters.
Monday, May 18, 2009
Ambient’s Q1 earnings bode well for smart grid
Camille Ricketts | May 18th, 2009
Ambient Corporation (OTCBB: ABTG), provider of equipment that communicates energy consumption data to utilities, reported today that it brought in $826,593 in revenue during the first quarter this year, up from $63,642 last year.
Based in Newton, Mass. the company also released that its cost of goods sold totaled $731,236 for the quarter compared to $342,870 for last year’s period. Considering how much production has increased, those numbers reflect a spike in efficiency. It says it brought in $95,357 in profit, a significant improvement from the $279,228 loss it registered for Q1 2008.
Ambient landed a $10.7 million contract with Duke Energy last spring.
Ambient Corporation (OTCBB: ABTG), provider of equipment that communicates energy consumption data to utilities, reported today that it brought in $826,593 in revenue during the first quarter this year, up from $63,642 last year.
Based in Newton, Mass. the company also released that its cost of goods sold totaled $731,236 for the quarter compared to $342,870 for last year’s period. Considering how much production has increased, those numbers reflect a spike in efficiency. It says it brought in $95,357 in profit, a significant improvement from the $279,228 loss it registered for Q1 2008.
Ambient landed a $10.7 million contract with Duke Energy last spring.
Forbes.com: Smart Grids Get A Pay Raise !!!
Andy Greenberg, 05.18.09, 06:40 PM EDT
A U.S. energy policy change means that a smaller number of smart-grid projects could receive larger chunks of stimulus funds.
With its focus on technology upgrades to the electrical grid, the Obama administration may have found a worthy "shovel-ready" project, one that both stimulates the economy and alleviates energy woes. But it seems to have underestimated the size of the shovel.
On Monday, the Department of Energy announced that it would raise the maximum amount of the matching grants aimed at so-called smart grid projects tenfold, from $20 million to $200 million per project. The cap on grants for demonstration projects will also be raised, from $40 million per recipient to $100 million.
That shift in spending won't change the total amount of federal funds aimed at smart-grid projects, which was set at $4.5 billion in February's economic stimulus bill. But the change shows that large-scale smart-grid initiatives may be much more costly than previously expected, and likely means that a smaller number of initiatives grab larger chunks of funding, says DOE spokeswoman Jen Stutman.
"Our goal is to fund projects of all sizes as quickly as possible," she says. "If we hadn't raised the cap, we might have awarded a few more awards, instead of giving them at a larger scale."
Smart-grid projects, including smart-metering systems that allow users to change their energy use in real-time in response to energy supply, are expected to vastly increase the efficiency of America's power supply; smart-metering systems, for instance, could save utilities $35 billion over the next 20 years, according to the consulting firm Brattle Group.
But Monday's policy change comes as a response to protests from utilities and other grid-watchers that the DOE's original plan for smart-grid spending, submitted last month, undercut big revamps to electrical systems. Major utility companies including American Electric Power ( AEP - news - people ), Dominion Energy and Centerpoint Energy all plan to spend well over the $40 million per project imagined in the DOE's original program, says Katherine Hamilton, president of the Gridwise Alliance, a coalition of smart-grid supporters that includes utilities, technology companies and universities. "This is a whole new level of IT laid onto the grid," Hamilton says. "I don't think anyone knew exactly how much it would cost."
Raising the cap on grants for a single project will likely mean that the government distributes its $4.5 billion more quickly to utility companies, and may also shift the competitive landscape for the technology companies vying for deals with those utilities. Tech giants like General Electric ( GE - news - people ), IBM ( IBM - news - people ) and Cisco ( CSCO - news - people ) have all announced their intention to sell equipment aimed at making electrical grids more efficient and responsive, a market valued at around $100 billion, according to a Cisco announcement Monday. (See "Cisco Gets Smart.")
With the maximum grant for a single project dramatically raised, those companies will likely find themselves competing for fewer, more lucrative customers--a situation that could favor larger tech firms capable of grabbing big deals, the Gridwise Alliance's Hamilton says. "To get the money out the door as quickly as possible, the administration is focusing on fewer projects of larger scale," she says. "If you have a company that does entire end-to-end tech solutions, then a higher cap on spending means bigger opportunities."
A U.S. energy policy change means that a smaller number of smart-grid projects could receive larger chunks of stimulus funds.
With its focus on technology upgrades to the electrical grid, the Obama administration may have found a worthy "shovel-ready" project, one that both stimulates the economy and alleviates energy woes. But it seems to have underestimated the size of the shovel.
On Monday, the Department of Energy announced that it would raise the maximum amount of the matching grants aimed at so-called smart grid projects tenfold, from $20 million to $200 million per project. The cap on grants for demonstration projects will also be raised, from $40 million per recipient to $100 million.
That shift in spending won't change the total amount of federal funds aimed at smart-grid projects, which was set at $4.5 billion in February's economic stimulus bill. But the change shows that large-scale smart-grid initiatives may be much more costly than previously expected, and likely means that a smaller number of initiatives grab larger chunks of funding, says DOE spokeswoman Jen Stutman.
"Our goal is to fund projects of all sizes as quickly as possible," she says. "If we hadn't raised the cap, we might have awarded a few more awards, instead of giving them at a larger scale."
Smart-grid projects, including smart-metering systems that allow users to change their energy use in real-time in response to energy supply, are expected to vastly increase the efficiency of America's power supply; smart-metering systems, for instance, could save utilities $35 billion over the next 20 years, according to the consulting firm Brattle Group.
But Monday's policy change comes as a response to protests from utilities and other grid-watchers that the DOE's original plan for smart-grid spending, submitted last month, undercut big revamps to electrical systems. Major utility companies including American Electric Power ( AEP - news - people ), Dominion Energy and Centerpoint Energy all plan to spend well over the $40 million per project imagined in the DOE's original program, says Katherine Hamilton, president of the Gridwise Alliance, a coalition of smart-grid supporters that includes utilities, technology companies and universities. "This is a whole new level of IT laid onto the grid," Hamilton says. "I don't think anyone knew exactly how much it would cost."
Raising the cap on grants for a single project will likely mean that the government distributes its $4.5 billion more quickly to utility companies, and may also shift the competitive landscape for the technology companies vying for deals with those utilities. Tech giants like General Electric ( GE - news - people ), IBM ( IBM - news - people ) and Cisco ( CSCO - news - people ) have all announced their intention to sell equipment aimed at making electrical grids more efficient and responsive, a market valued at around $100 billion, according to a Cisco announcement Monday. (See "Cisco Gets Smart.")
With the maximum grant for a single project dramatically raised, those companies will likely find themselves competing for fewer, more lucrative customers--a situation that could favor larger tech firms capable of grabbing big deals, the Gridwise Alliance's Hamilton says. "To get the money out the door as quickly as possible, the administration is focusing on fewer projects of larger scale," she says. "If you have a company that does entire end-to-end tech solutions, then a higher cap on spending means bigger opportunities."
Ambient Corp`s CEO Applauds the Secretaries of Commerce and Energy's Efforts to Create National Standards Allowing Smart Grid to Become a Reality
WASHINGTON, May 18 /PRNewswire-FirstCall/ -- Ambient Corporation (OTCBulletinBoard: ABTG) today announced that its President and CEO, John J. Joyce, participated in a leadership meeting hosted by Commerce Secretary Gary Locke, Energy Secretary Steven Chu and FCC Acting Chairman Michael Copps to start the creation of a set of national standards that will allow the smart grid to become a near term reality.
Following the meeting, and expanding on his comments addressed to his industry colleagues, state commissioners from CA, D.C., NY and OH, as well as the host Chairmen, Mr. Joyce issued the following statement:
Industry leaders must support the standards development process and encourage smart grid standards based on Internet Protocol (IP), while remaining wary of other "standards" that will attempt to find their way into the initial language of what is to come out of the early meetings convened to initiate the process for establishing smart grid standards.
In developing smart grid standards, the National Institute of Standards and Technology (NIST) and other standard setting bodies must take a comprehensive approach that fosters implementation today, and will allow for open development in the future.
Perhaps reflecting on how the open standards for the Internet were created is an important first step in the process. The growth of the Internet has been successful because all developers, regardless of size and market presence, have been able to use open standards and free access to develop industry wide applications and services that became de facto standards. To develop a best in class long term solution, the smart grid must be based on open standards available today, not standards selected by a group of self-interested parties attempting to promote proprietary technology guised in the words "standard based."
Ambient applauds the Secretaries' efforts and full-heartedly endorses the standard setting process as well as today's announcement of the increase in smart grid investment grants from the ARRA, which will allow utilities to deploy more comprehensive smart grid projects.
This meeting kicks-off the Smart Grid Interoperability Standards Interim Roadmap Workshop hosted by the Electric Power Research Institute (EPRI) and NIST on May 19th and 20th. Ambient supports this meeting and is participating in the workshops.
Ambient is actively involved with developing smart grid standards by engaging with, and participating in groups such as NIST, the Edison Electric Institute (EEI), the GridWise Alliance and the Demand Response and Smart Grid (DRSG) Coalition. Ambient's engineers have also played a significant role in the standard setting process of the IEEE working groups, and will continue to actively participate in the future standard setting bodies.
Following the meeting, and expanding on his comments addressed to his industry colleagues, state commissioners from CA, D.C., NY and OH, as well as the host Chairmen, Mr. Joyce issued the following statement:
Industry leaders must support the standards development process and encourage smart grid standards based on Internet Protocol (IP), while remaining wary of other "standards" that will attempt to find their way into the initial language of what is to come out of the early meetings convened to initiate the process for establishing smart grid standards.
In developing smart grid standards, the National Institute of Standards and Technology (NIST) and other standard setting bodies must take a comprehensive approach that fosters implementation today, and will allow for open development in the future.
Perhaps reflecting on how the open standards for the Internet were created is an important first step in the process. The growth of the Internet has been successful because all developers, regardless of size and market presence, have been able to use open standards and free access to develop industry wide applications and services that became de facto standards. To develop a best in class long term solution, the smart grid must be based on open standards available today, not standards selected by a group of self-interested parties attempting to promote proprietary technology guised in the words "standard based."
Ambient applauds the Secretaries' efforts and full-heartedly endorses the standard setting process as well as today's announcement of the increase in smart grid investment grants from the ARRA, which will allow utilities to deploy more comprehensive smart grid projects.
This meeting kicks-off the Smart Grid Interoperability Standards Interim Roadmap Workshop hosted by the Electric Power Research Institute (EPRI) and NIST on May 19th and 20th. Ambient supports this meeting and is participating in the workshops.
Ambient is actively involved with developing smart grid standards by engaging with, and participating in groups such as NIST, the Edison Electric Institute (EEI), the GridWise Alliance and the Demand Response and Smart Grid (DRSG) Coalition. Ambient's engineers have also played a significant role in the standard setting process of the IEEE working groups, and will continue to actively participate in the future standard setting bodies.
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