The industry has been abuzz this past week over the announced acquisition (ahem – merger) of Progress Energy by Duke Energy. The combined entity will become the largest electric utility in the U.S. by revenue and generation capacity if approved by the various regulatory bodies, which is no sure thing. Like most mergers, the promised benefits, for shareholders and
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Smart Meter
Pike Research recently published its free (!) white paper Smart Grid: 10 Trends to Watch in 2011 and Beyond and have received some interesting feedback. Since most of this has been expressed privately, I thought I would aggregate comments on each trend and share it here.
No. 1 – Security Will Become the Top Smart Grid Concern. There was universal
Cisco and Itron announced a strategic alliance that promises to “advance the transformation of the world’s energy infrastructure”. It sounds pretty big, yes? The press release would be a good source for smart grid “buzzword bingo”, with the announcement of a joint collaboration on a standards-based, open, highly secure, interoperable, scalable, reliable, enterprise-
The first Smart Grid Cyber Security Summit was held recently in San Jose. IBM’s Andy Bochman, in his excellent Smart Grid Security blog provides a good review of the proceedings, and I’ll add a few of my own thoughts.
The attendance of approximately 75 people was not bad for a first time event,
The natural gas grid has been referred to as “the other grid,” taking the back seat while the electric “smart grid” receives significant attention. Although not in the spotlight – and receiving zero funding from the Obama administration’s American Recovery and Reinvestment Act (ARRA) – the gas grid has reason for celebration, due to the industry’s near flawless tenure in
Despite the promise of $200 million Smart Grid stimulus grant to BG&E in 2009 from the Department of Energy, according to BuildingGreen.com:
The Public Service Commission of Maryland rejected implementation of “smart grid” metering proposed by Baltimore Gas & Electric (BGE) in June 2010. The commission based the rejection on fears of rate increases and tiered pricing that would increase costs for consumers.
Other people have sued utilities in California and Texas over perceived issues
And now for a dose of reality.
No doubt smart meters are a good thing, but even their most ardent fans must admit that a degree of hoopla surrounds these little digital boxes. We hear that if consumers can just see how much power they use in real time, and what it costs, our energy woes will be no more.
Smart meters will even cure the blind. The energy blind that is.
“It can be difficult to separate the hype from legitimate claims,” said the American Council for an Energy-
Nissan is on tour promoting its upcoming electric vehicle, the Leaf, in select cities across the U.S. The 5-passenger EV will become available in December 2010, and faces many challenges in fostering a supporting vehicle charging infrastructure and creating consumer-friendly financing options, but thus far they seem to have a well-conceived plan. During an event in Portland this week I spoke with Nissan senior manager for corporate planning Brian Verprauskus about the Leaf launch plans.
Ensuring that consumers will be ready to charge on the day that they bring the vehicle home is a new challenge for Nissan and the other EV manufacturers. Nissan plans to partner with a nationally known company to provide the wall box for plugging in the vehicle and to manage matching vehicle owners with electricians. Nissan will choose a company that has experience going into consumers’ homes, and will likely announce the partner in early 2010. Consumers will need to connect the box to a dedicated circuit for EV charging, which requires carefully managing the process to reduce risk of a customer improperly plugging in a vehicle and causing damage to the vehicle or property. Nissan’s plan is smart because many consumers will need hand holding to understand the issues of EV charging, and a company with adept at customer relations will be key.
The Obama administration is awarding $3.4 billion in grants to modernize the national electric grid. One-hundred companies, utilities, manufacturers, and cities will receive the grants — ranging from $400,000 to $200 million — for projects that help build a “smart” grid that cuts energy costs, reduces blackouts, and has the capacity to deliver more wind and solar energy to American homes and businesses. Calling the nation’s grid system “dilapidated,” Carol Browner, the Obama administration’s top adviser on climate and energy issues, said federal funds would be used to expand the national grid and make it work more efficiently.
Turning the country’s vast islands of proprietary utility networks and isolated power equipment into an intelligent grid that manages the power going into homes, offices and factories will take decades and hundreds of billions of dollars. IBM is partnering with veteran energy efficiency and grid communications company Trilliant to ensure that the companies’ grid hardware and software will speak the same language.
The agreement to integrate IBM’s Websphere and Tivoli products for managing enterprise data into Trilliant’s smart grid communications system provides utilities with and end-to-end system for collecting information and administering grid operations.
Trilliant, which currently has more than 200 utility customers, provides technology that can relay information about power consumption and network performance from smart meters in homes, to utility equipment out in the field such as transformers and substations, and then on to centralized (head end) utility servers. The company will build its management system using Websphere’s application server and the Tivoli network management suite.
Some projects are just too big to let the private sector handle them alone. Updating our aging one-way system of centralized power production to a smart grid is one of those projects. Left mostly to its own initiative, the energy industry has done very little in technology innovation during the past fifty years to make the grid more efficient and to accommodate distributed power production.
The need is so clear that even a group that supports limited government agrees that building a smart grid that conserves energy, integrates renewables, and diminishes peak power requires the guiding hand of the federal government.
The Lexington Institute has published a paper that neatly summarizes the smart grid challenges, and concludes that “Just as the grid of today required presidential initiative, the smart grid will take a high-level policy push, too.” The public policy research group, which says it “actively opposes the unnecessary intrusion of the federal government into the commerce and culture of the nation,” adds that “Smart grid will most likely require federal, state and local government incentives” and that “Policy action is worthwhile to move promising technologies closer to full adoption.”
The Smart Grid is coming, but most people around the country are not aware of what it is or what it means to them. If a key goal of the Smart Grid is ultimately energy conservation, the Grid’s very success will be dependent upon consumer awareness and support.
The Smart Grid will bring exciting improvements to our utility infrastructure such as more reliable power delivery and options for renewable power. The new Grid will provide other benefits including peak load management for utilities and energy storage capabilities. For consumers, this will also mean the installation of a Smart Meter, an improvement on traditional electric meters designed to communicate power usage between the consumer and their utility and enable consumers to reduce their bills by managing consumption, at least in the long run. Stimulus funding will help pay for some of the development, but consumers will still need to cover more than a fair share.
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