The Galvin Electricity Initiative, a non-profit organization founded by former Motorola CEO Robert W. Galvin to promote "microgrids" (see Post # 45) has developed a ranking and recognition program for smart microgrid projects intended to encourage innovation in the electricity industry by emphasizing consumer needs.
Microgrids are small-scale versions of the centralized electricity system, generally, low voltage distribution networks with distributed energy sources. The Galvin Initiative’s new program, the Perfect Power Seal of Approval, will rank projects based on performance in the key categories of reliability, consumer empowerment, efficiency and environment, and cost.
The rating system was developed in collaboration with an advisory committee of professionals in several sectors, such as power distribution, environmental advocacy, utility benchmarking, green buildings and product safety. The committee uncovered precedence for each of the new metrics but found that until now, they have not been combined to form a comprehensive picture of electricity system performance from a consumer perspective.
The new program is based on the U.S. Green Building Council's LEED certification for buildings. The Galvin Initiative is working with Underwriters Laboratories, Inc. to train and certify evaluators. In a pilot phase, the program will test the beta version of the rating system by evaluating a select group of projects. Beyond the pilot phase, the program will expand to additional types of projects with the help of a broader stakeholder process.
Sunday, April 24, 2011
Sunday, April 17, 2011
Post # 64 - New Study Suggests Consumers May Be Ready to Look Beyond Traditional Utilities With Respect to Smart Energy Services
According to a recent report by Accenture, the global management consulting firm, most consumers would consider getting electricity and energy efficiency products and services from sources other than their electric utilities.
The Accenture report, Revealing the Values of the New Energy Consumer, provides the results from a survey of 10,199 consumers in 18 countries. Accenture reports that that 73% would consider buying electricity and related products and services from a company other than their local electric utility. More than half (59%) would consider buying from product retailers, and 49% from cable/phone companies and 45% from online sites and brands.
When considering the purchase of energy-efficient products such as smart thermostats, 54 percent would opt for their electricity supplier, 50 percent would consider buying from retailers, 32 percent from online sites and 22 percent from cable/phone companies. At least 90 percent of respondents in China, South Africa, South Korea, Singapore and Brazil would buy electricity, energy efficiency products and related services from non-traditional electricity providers, compared with 23 percent in France, 50 percent in Belgium and 59 percent in Germany.
The report also says 57% of consumers surveyed would use an electricity management program even if it didn't cut their utility bills – and that almost a third would pay a little more. While cost is an issue, consumers are getting more interested in the convenience of automated energy management and mobility, like being able to download apps on their mobile phone to keep track of their energy use.
Among Accenture's other findings: 60 percent of respondents would be interested in technology that can completely automate the management of their electricity. Thirty-five percent would install a smart device that automatically turns on or off pre-selected appliances, a ‘set and forget’ program. more than a third would be interested in monitoring and managing their usage through personal electronics (36 percent). Thirty-five percent would be interested in the ability to customize the design of the in-home display or the online portal of their electricity management program. Mobility is important with almost a third (32 percent) of consumers interested in applications they can download on their mobile phone to measure their consumption in real time.
At the same time, Accenture found that Consumers exhibit a strong preference for face to face contact when purchasing energy-related products and services. When buying energy-efficient products, such as smart thermostats, 52 percent of respondents say they want to make a purchase with a staff member in a store location. Only 29 percent would be happy purchasing online without interacting with staff. When buying a "set and forget" energy program, 63 percent would want to purchase from a staff member either in store or at their home.
Accenture's basic conclusion is that utilities will to, in effect, "retool."
Accenture finds that utilities/electricity providers still maintain "a trust advantage with energy consumers when compared to other commercial providers." Nonetheless, Accenture warns that to the extent that consumers are willing and able to purchase energy-related products and services from a broad set of providers, utilities and electric provides will have to reevaluate their marketing strategies.
The Accenture report, Revealing the Values of the New Energy Consumer, provides the results from a survey of 10,199 consumers in 18 countries. Accenture reports that that 73% would consider buying electricity and related products and services from a company other than their local electric utility. More than half (59%) would consider buying from product retailers, and 49% from cable/phone companies and 45% from online sites and brands.
When considering the purchase of energy-efficient products such as smart thermostats, 54 percent would opt for their electricity supplier, 50 percent would consider buying from retailers, 32 percent from online sites and 22 percent from cable/phone companies. At least 90 percent of respondents in China, South Africa, South Korea, Singapore and Brazil would buy electricity, energy efficiency products and related services from non-traditional electricity providers, compared with 23 percent in France, 50 percent in Belgium and 59 percent in Germany.
The report also says 57% of consumers surveyed would use an electricity management program even if it didn't cut their utility bills – and that almost a third would pay a little more. While cost is an issue, consumers are getting more interested in the convenience of automated energy management and mobility, like being able to download apps on their mobile phone to keep track of their energy use.
Among Accenture's other findings: 60 percent of respondents would be interested in technology that can completely automate the management of their electricity. Thirty-five percent would install a smart device that automatically turns on or off pre-selected appliances, a ‘set and forget’ program. more than a third would be interested in monitoring and managing their usage through personal electronics (36 percent). Thirty-five percent would be interested in the ability to customize the design of the in-home display or the online portal of their electricity management program. Mobility is important with almost a third (32 percent) of consumers interested in applications they can download on their mobile phone to measure their consumption in real time.
At the same time, Accenture found that Consumers exhibit a strong preference for face to face contact when purchasing energy-related products and services. When buying energy-efficient products, such as smart thermostats, 52 percent of respondents say they want to make a purchase with a staff member in a store location. Only 29 percent would be happy purchasing online without interacting with staff. When buying a "set and forget" energy program, 63 percent would want to purchase from a staff member either in store or at their home.
Accenture's basic conclusion is that utilities will to, in effect, "retool."
Utilities/electricity providers must focus on not only understanding how energy savings influence the decision to adopt a program, but also on building and managing programs that cater to many different needs and values. This means developing innovative offerings that blend the optimal mix of attributes, such as loyalty rewards and installation services. As a result, the traditional commodity service may no longer be at the heart of utilities’/electricity providers’ offering set, but just one component of a whole range of services making up the entire product offer.
Accenture finds that utilities/electricity providers still maintain "a trust advantage with energy consumers when compared to other commercial providers." Nonetheless, Accenture warns that to the extent that consumers are willing and able to purchase energy-related products and services from a broad set of providers, utilities and electric provides will have to reevaluate their marketing strategies.
Sunday, April 10, 2011
Post # 63 - Two New Reports Highlight the Benefits (and Costs) of Smart Grid Development
The past week saw the release of two major studies that emphasize both the benefits of fully implemented smart grid technologies and the costs of implementation.
First, and from an international perspective, a new report from the International Energy Agency (IEA), an autonomous organization of 28 member countries (including the U.S.) created to pursue reliable, affordable and clean energy initiatives, says that widespread smart grid deployment can play a significant role in enabling nearly all clean energy technologies, including renewables, electric vehicles and energy efficiency.
The IEA report, Smart Grids Technology Roadmap, provides a consensus view from more than 200 government, industry, academia and consumer representatives on the current status of smart grid technologies, and charts a course for expanding their use from today to 2050. As well as addressing current concerns with existing electricity systems, such as ageing infrastructure and increasing peak demand, the IEA report highlights smart grid technologies as important elements for expanding the use of a number of low-carbon technologies, such as electric vehicles. The report also outlines the potential for smart grids in rural areas of developing countries further down the line. Small "remote‟ systems - not connected to a centralized electricity infrastructure and initially employed as a cost-effected approach to rural electrification - could later be connected easily to a national or regional infrastructure. Further, smart grids could be used to get electricity to sparsely populated areas by enabling a transition from simple, "one-off" approaches to electrification (e.g. battery-based household electrification) to community grids that can then connect to national and regional grids.
IEA recommends greater international collaboration in sharing experiences of pilot programmes and in leveraging national investments in the development of required technology. It also stresses a need to develop common standards between countries that will help optimise and accelerate both the development and deployment of necessary technology while at the same time, reduce costs for all stakeholders - governments, industry, and the public.
But, as a second (and pro-smart grid report) indicates, there is a price tag. The Electric Power Research Institute (EPRI), an independent, non-profit company that conducts research and development relating to the generation, delivery and use of electricity, has just released a broad assessment of the costs and benefits to modernize the U.S. electricity system and deploy smart grid technologies.
The EPRI assessment, Estimating the Costs and Benefits of the Smart Grid, factors a wide range of new technologies, applications and consumer benefits the investment needed to implement a fully functional smart grid ranges from $338 billion to $476 billion and can result in benefits between $1.3 trillion and $2 trillion.
EPRI's estimate reflects new technologies related to the grid, information, and communication technologies; market structures; demands of an increasingly digital society; more widespread deployment of renewable power production and its integration into the grid; expansion and maintenance of existing infrastructure; and technologies and systems to address grid security. The report balances costs with benefits, which include: (1) more reliable power delivery and quality, with fewer and briefer outages; (2) enhanced cyber security and safety with a grid that monitors itself and detects and responds to security and safety situations; (3) a more efficient grid, with reduced energy losses and a greater capacity to manage peak demand, lessening the need for new generation; (4) environmental and conservation benefits, better support for renewable energy and electric-drive vehicles; and (5) potentially lower costs for customers through greater pricing choices and access to energy information.
The analysis updates EPRI's 2004 EPRI assessment, which estimated the cost of implementing a smart grid at $165 billion. The updated analysis assumes steady deployment of smart grid technologies beginning in 2010 and continuing through 2030.
First, and from an international perspective, a new report from the International Energy Agency (IEA), an autonomous organization of 28 member countries (including the U.S.) created to pursue reliable, affordable and clean energy initiatives, says that widespread smart grid deployment can play a significant role in enabling nearly all clean energy technologies, including renewables, electric vehicles and energy efficiency.
The IEA report, Smart Grids Technology Roadmap, provides a consensus view from more than 200 government, industry, academia and consumer representatives on the current status of smart grid technologies, and charts a course for expanding their use from today to 2050. As well as addressing current concerns with existing electricity systems, such as ageing infrastructure and increasing peak demand, the IEA report highlights smart grid technologies as important elements for expanding the use of a number of low-carbon technologies, such as electric vehicles. The report also outlines the potential for smart grids in rural areas of developing countries further down the line. Small "remote‟ systems - not connected to a centralized electricity infrastructure and initially employed as a cost-effected approach to rural electrification - could later be connected easily to a national or regional infrastructure. Further, smart grids could be used to get electricity to sparsely populated areas by enabling a transition from simple, "one-off" approaches to electrification (e.g. battery-based household electrification) to community grids that can then connect to national and regional grids.
IEA recommends greater international collaboration in sharing experiences of pilot programmes and in leveraging national investments in the development of required technology. It also stresses a need to develop common standards between countries that will help optimise and accelerate both the development and deployment of necessary technology while at the same time, reduce costs for all stakeholders - governments, industry, and the public.
But, as a second (and pro-smart grid report) indicates, there is a price tag. The Electric Power Research Institute (EPRI), an independent, non-profit company that conducts research and development relating to the generation, delivery and use of electricity, has just released a broad assessment of the costs and benefits to modernize the U.S. electricity system and deploy smart grid technologies.
The EPRI assessment, Estimating the Costs and Benefits of the Smart Grid, factors a wide range of new technologies, applications and consumer benefits the investment needed to implement a fully functional smart grid ranges from $338 billion to $476 billion and can result in benefits between $1.3 trillion and $2 trillion.
EPRI's estimate reflects new technologies related to the grid, information, and communication technologies; market structures; demands of an increasingly digital society; more widespread deployment of renewable power production and its integration into the grid; expansion and maintenance of existing infrastructure; and technologies and systems to address grid security. The report balances costs with benefits, which include: (1) more reliable power delivery and quality, with fewer and briefer outages; (2) enhanced cyber security and safety with a grid that monitors itself and detects and responds to security and safety situations; (3) a more efficient grid, with reduced energy losses and a greater capacity to manage peak demand, lessening the need for new generation; (4) environmental and conservation benefits, better support for renewable energy and electric-drive vehicles; and (5) potentially lower costs for customers through greater pricing choices and access to energy information.
The analysis updates EPRI's 2004 EPRI assessment, which estimated the cost of implementing a smart grid at $165 billion. The updated analysis assumes steady deployment of smart grid technologies beginning in 2010 and continuing through 2030.
Sunday, April 3, 2011
Post # 62 - Consumers Still Sketchy on What the Smart Grid Is.
A new survey says most consumers who are aware of smart grid technology only somewhat understand it and what it does.
The survey, prepared by the NAHB Research Center for appliance giant Whirlpool Corporation and Habitat for Humanity International as part of their joint global housing initiative, says that 70% of consumers who know about the technology are pretty shaky on the details. In addition, only 43 percent of all consumer respondents indicated they know what Smart Grid technology is, although the number was greater for respondents in the upper middle (63%) and high-income (57%) segments.
The survey reported opinions from consumers and builders on topics related to green home building. The consumer portion of the survey also showed that of all Smart Grid-aware respondents, only 35 percent believe their community somewhat understands Smart Grid technology. A total of 46 percent of the same segment said they feel their community does not understand the technology at all.
The builder portion of the survey showed a similar perception of consumer knowledge on the subject. Of all Smart Grid-aware respondents, 62 percent said that they believe homeowners do not understand Smart Grid technology at all. Smart Grid-aware builder respondents generally felt more confident with their own knowledge of the technology, with 79 percent answering that they at least somewhat understand how it works. A total of 51 percent of Smart Grid-aware builder respondents noted that they believe the home building industry as a whole understands how the technology works.
On the plus side, at least from Whirlpool’s point of view, 48 percent of Smart Grid-aware respondents to the consumer portion of the survey indicated that Smart Grid-compatible appliances will be very important to green homes. In the builder survey, 64 percent of Smart Grid-aware respondents said these appliances will be at least somewhat important to green homes in the future.
The survey, prepared by the NAHB Research Center for appliance giant Whirlpool Corporation and Habitat for Humanity International as part of their joint global housing initiative, says that 70% of consumers who know about the technology are pretty shaky on the details. In addition, only 43 percent of all consumer respondents indicated they know what Smart Grid technology is, although the number was greater for respondents in the upper middle (63%) and high-income (57%) segments.
The survey reported opinions from consumers and builders on topics related to green home building. The consumer portion of the survey also showed that of all Smart Grid-aware respondents, only 35 percent believe their community somewhat understands Smart Grid technology. A total of 46 percent of the same segment said they feel their community does not understand the technology at all.
The builder portion of the survey showed a similar perception of consumer knowledge on the subject. Of all Smart Grid-aware respondents, 62 percent said that they believe homeowners do not understand Smart Grid technology at all. Smart Grid-aware builder respondents generally felt more confident with their own knowledge of the technology, with 79 percent answering that they at least somewhat understand how it works. A total of 51 percent of Smart Grid-aware builder respondents noted that they believe the home building industry as a whole understands how the technology works.
On the plus side, at least from Whirlpool’s point of view, 48 percent of Smart Grid-aware respondents to the consumer portion of the survey indicated that Smart Grid-compatible appliances will be very important to green homes. In the builder survey, 64 percent of Smart Grid-aware respondents said these appliances will be at least somewhat important to green homes in the future.
Saturday, March 26, 2011
Post # 61 - PG&E Files Smart Meter "Opt-Out" Proposal
In response to consumer concerns about health risks from exposure to radio frequencies and radiation from wireless smart meter devices – and under heavy pressure from California regulators, see here and here – Pacific Gas & Electric Company last Thursday submitted a smart meter “opt-out” proposal to the California Public Utilities Commission. The PG&E proposal would allow the utility’s gas and electric customers to have the device's communications system turned off – but it will cost them more money for their power.
Under PG&E’s plan, which still needs CPUC approval prior to implementation, the utility is proposing upfront and monthly charges to offset the cost of disabling the meters, employing meter readers and changing its information technology system. The utility would charge customers a $270 upfront fee, plus a $14 monthly charge or an increase in gas and electric rates, or a $135 upfront charge and a $20 monthly fee or increase in rates. The fees would be discounted for low-income customers who qualify for PG&E's CARE program.
In a prepared statement, Greg Kiraly, PG&E’s Vice President for smart meter operations, said:
But many PG&E customers remain convinced that smart meters are hazardous to their health. They are not likely to be happy with covering any PG&E smart meter costs – particularly (and ironically) “opting out” costs.
In any event, PG&E remains at ground zero in the smart grid wars.
Under PG&E’s plan, which still needs CPUC approval prior to implementation, the utility is proposing upfront and monthly charges to offset the cost of disabling the meters, employing meter readers and changing its information technology system. The utility would charge customers a $270 upfront fee, plus a $14 monthly charge or an increase in gas and electric rates, or a $135 upfront charge and a $20 monthly fee or increase in rates. The fees would be discounted for low-income customers who qualify for PG&E's CARE program.
In a prepared statement, Greg Kiraly, PG&E’s Vice President for smart meter operations, said:
We believe this proposal addresses concerns some customers have about [smart meters] while still delivering the many benefits of [smart meter] technology to the majority of customers. The overwhelming weight of scientific evidence assures us that the low-level Radio Frequency signals from our [smart meters] are safe – in fact, even safer than many household products, including cell phones and microwave ovens. But we know some customers nevertheless have concerns about the meters and we take those concerns seriously.
But many PG&E customers remain convinced that smart meters are hazardous to their health. They are not likely to be happy with covering any PG&E smart meter costs – particularly (and ironically) “opting out” costs.
In any event, PG&E remains at ground zero in the smart grid wars.
Wednesday, March 16, 2011
Post # 60 - Some Validation for D.C. Pilot Program
The National Action Plan Coalition (NAPC), a coalition of non-profit organizations in the utility, smart grid, regulatory, energy efficiency, environmental, and consumer advocacy areas, has issued a case study examining the PowerCentsDC pilot program in the District of Columbia. As I’ve previously posted, PowerCentsDC involves smart meters and a number of different demand response options.
The NAPC was formed to formed to implement the National Action Plan on Demand Response issued last year by the Federal Energy Regulatory Commission and the U.S. Department of Energy. The new NAPC report, PowerCentsDC: A Model for Stakeholder Collaboration, states that the DC pilot was unique because “various stakeholders—including consumer advocates, regulators and the local utility—joined together from the beginning to design, plan and implement it. Early education and involvement of stakeholders has become a high-priority issue in the [Demand Response] and Smart Grid sector according to most experts in the field.”
NAPC also states that the case study represents an alternate way to interpret specific a demand response or smart grid activity after it has taken place. Instead of focusing on the quantified results, the NAPC focused a narrative version of how the effort went from start to finish. In addition, the case study enables readers to identify best practices.
The NAPC was formed to formed to implement the National Action Plan on Demand Response issued last year by the Federal Energy Regulatory Commission and the U.S. Department of Energy. The new NAPC report, PowerCentsDC: A Model for Stakeholder Collaboration, states that the DC pilot was unique because “various stakeholders—including consumer advocates, regulators and the local utility—joined together from the beginning to design, plan and implement it. Early education and involvement of stakeholders has become a high-priority issue in the [Demand Response] and Smart Grid sector according to most experts in the field.”
NAPC also states that the case study represents an alternate way to interpret specific a demand response or smart grid activity after it has taken place. Instead of focusing on the quantified results, the NAPC focused a narrative version of how the effort went from start to finish. In addition, the case study enables readers to identify best practices.
Saturday, March 5, 2011
Post # 59 - Austin (Smart Grid) City Limits
The Pecan Street Project, a smart grid and clean energy research and development organization headquartered at the University of Texas at Austin, last month completed systems installation and has gone live with the first phase of its smart grid demonstration project in Austin’s Mueller community. The project seeks to expand and develop smart grid system's in the Texas capital though a customer-oriented approach that often has been missing in utility smart grid roll outs.
Pecan Street's board includes representatives from UT Austin, Austin Energy (the local utility, which already deployed 400,000 smart meters), the Environmental Defense Fund, the Austin Technology Incubator, the City of Austin and the Greater Austin Chamber of Commerce. The new project itself has been deployed by Incenergy LLC, Austin-based Smart Grid software company.
Pecan Street's new home smart grid systems, which capture minute-to-minute energy usage for the whole home and six major appliances or systems, are deployed in 100 homes at Mueller, all of which are green built and 11 of which have rooftop solar PV systems (photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current electricity).
This spring, Pecan Street Project will deploy Incenergy systems in a second group of 100 homes outside Mueller that are at least 10 years old. All participants in both groups are volunteers. The project achieved an installed cost per home of $341 ($241 for equipment plus $100 for installation).
During the 12-month first phase, project researchers will learn about how homeowners use electricity, gas and specific appliances during the course of the day. This will mark only the second publicly-reported research on the daily energy profiles of Sunbelt homes (the other is a 1999 University of Central Florida study) and the first to incorporate data on output from rooftop solar panels and on the homes’ energy efficiency attributes.
In Pecan Street's announcement for the the rollout, executive director Brewster McCracken noted:
Together with selected companies, project researchers will use the information gathered from these homes to structure next generation home smart grid systems. These systems, which selected companies will deploy in the project’s second phase (beginning March 2012), will provide customers with the ability to manage – even over mobile phones – individual appliances and systems as well as electric vehicle charging and rooftop PV systems.
The installation and testing of these next generation technologies will take place in a larger group of up to 1,000 residential and 75 commercial customers. As with the first phase, all participants will be volunteers. Pecan Street Project will issue a Request for Information on February 15, 2011 for companies to deploy home energy management systems and to supply electric vehicles, in-home charging and rooftop PV systems.
This looks like a promising project. And it can provide a real test of utilities' ability to integrate consumer preferences into the smart grid.
Pecan Street's board includes representatives from UT Austin, Austin Energy (the local utility, which already deployed 400,000 smart meters), the Environmental Defense Fund, the Austin Technology Incubator, the City of Austin and the Greater Austin Chamber of Commerce. The new project itself has been deployed by Incenergy LLC, Austin-based Smart Grid software company.
Pecan Street's new home smart grid systems, which capture minute-to-minute energy usage for the whole home and six major appliances or systems, are deployed in 100 homes at Mueller, all of which are green built and 11 of which have rooftop solar PV systems (photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current electricity).
This spring, Pecan Street Project will deploy Incenergy systems in a second group of 100 homes outside Mueller that are at least 10 years old. All participants in both groups are volunteers. The project achieved an installed cost per home of $341 ($241 for equipment plus $100 for installation).
During the 12-month first phase, project researchers will learn about how homeowners use electricity, gas and specific appliances during the course of the day. This will mark only the second publicly-reported research on the daily energy profiles of Sunbelt homes (the other is a 1999 University of Central Florida study) and the first to incorporate data on output from rooftop solar panels and on the homes’ energy efficiency attributes.
In Pecan Street's announcement for the the rollout, executive director Brewster McCracken noted:
The customer will have final say about whether the smart grid is a smart idea. The truth is that we – those working on and advocating for the smart grid – need to learn a lot more from customers than they need to learn from us. Before anyone starts prescribing solutions, we must develop a much better understanding of what customers value and how they’re using energy now.
Together with selected companies, project researchers will use the information gathered from these homes to structure next generation home smart grid systems. These systems, which selected companies will deploy in the project’s second phase (beginning March 2012), will provide customers with the ability to manage – even over mobile phones – individual appliances and systems as well as electric vehicle charging and rooftop PV systems.
The installation and testing of these next generation technologies will take place in a larger group of up to 1,000 residential and 75 commercial customers. As with the first phase, all participants will be volunteers. Pecan Street Project will issue a Request for Information on February 15, 2011 for companies to deploy home energy management systems and to supply electric vehicles, in-home charging and rooftop PV systems.
This looks like a promising project. And it can provide a real test of utilities' ability to integrate consumer preferences into the smart grid.
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