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August 31, 2009

Smart Utility: Energy Efficiency

John Phelan is the Energy Services Manager at Fort Collins Utilities. The municipal utility provides electricity, water, wastewater, and stormwater services to city residents. They buy power from Platte River Power Authority. Fort Collins offers low-cost and reliable electricity at about 7 cents per kWh. Reliability is aided by the fact that 99 percent of their distribution system is underground. 

Fort Collins has been a leader in many areas of sustainability but John said the city's wake-up call for electricity was its historical trendline showing a period of 44% population growth to be matched by 74% energy growth and more than 100% growth in peak electrical demand. Managing peak demand has a major impact on the average price of electricity. The city government knew those trendlines were not sustainable. They certainly didn't match up with Fort Collin's growing reputation as one of America's green cities. As a result, Fort Collins Utilities has recently added the objectives of energy efficiency (EE) and renewable energy (RE) to their historical policy objectives of reliability and low cost.

John said that he has personally looked at dozens of studies on potential savings from energy efficiency. They vary in small ways but always come to the same conclusions:

  • EE is the lowest cost resource, bar none
  • EE savings compound over time, so small savings add up
  • EE programs never get the participation expected from economic models, so we cannot expect to achieve 100% of the theoretically possible benefits.

John shared his thoughts about some fundamental aspects of energy efficiency saying that:

  • EE requires capital investment, you have to spend some money to save even more
  • EE savings are fragmented into thousands of locations and millions of end-uses across the city
  • EE has very low mind share across the general population
  • EE is difficult to measure, if not impossible because we are always comparing our actual data with a projected scenario. The best we can do is make a good estimate. 

There is no "silver bullet" for energy efficiency. Instead, John said that we have to deal with "1000s of Silver BBs". Each small change (or BB) makes a tiny impact, that impact gets added to many other impacts, and each one compounds over time. By making small systemic changes, you can have a major impact over a period of years. 

Major initiatives at Fort Collins Utilities include the following:

  • Put EE programs in place and keep building on them
  • Put green building codes into place including high-performance incentives to go beyond code
  • Deploy an advanced meter infrastructure (AMI) for smart grid. With city budget approval, John believes they can deploy AMI in 18-24 months. AMI will then provide Fort Collins with a foundation for smart grid.
In Fort Collins' new policy framework, carbon reduction is an overarching goal that will include energy efficiency, conservation, renewable energy, and triple bottom line (TBL) accountability. The social and economic aspects of TBL will be covered by the utility's continued focus on reliability and affordability. The environmental aspect will be covered by reducing energy consumption and increasing use of renewable energy. Renewables are at the bottom of the planning stack because they will be used to make up whatever savings cannot be found through energy efficiency. John's immediate goal is to achieve in 1.5% in annual EE savings. That may not sound like much but it adds up to 22GWh per year. Little things do add up! Fort Collins is a great town, it is regularly named as one of the best places to live in the US. Residents should also be pleased that they receive their electricity from a smart utility.

August 28, 2009

Energy Smart: Flying vs. Computing

We have been conditioned to think that flying is a major cause of greenhouse gas emissions. It's true that aviation accounts for 2% of human carbon emissions, more than 800 million metric tons annually. But most people don't realize that IT and telecom also produce about 2% of human carbon emissions. Unlike flying, IT/telecoms emissions are growing at 6% per year. Even though technology keeps getting more efficient, the rapid growth in the installed base exceeds the efficiency increases. So next time you hold off on a flight as part of your carbon reduction program, make sure you power-off your computer before leaving the office for the night. If you have any influence over your company''s IT shop, ask them how they are taking advantage of “cloud computing.” That's when the business runs some of its IT services using a remote data center connected to the Internet. The delivery of computer services over the internet on shared machines, enables computers to be run more efficiently with lower costs and lower carbon footprints.

Source: Economist, 2009
http://www.economist.com/research/articlesBySubject/displayStory.cfm?story_id=14297036&subjectID=348924&fsrc=nwl

August 27, 2009

Smart Grid: Residential EMS

A residential energy management system (EMS) is a suite of hardware and software that works with the electricity meter (or behind the meter) to monitor and control home electricity consumption. An EMS tracks individual loads and appliances and makes information viewable through a display. The system includes an energy display, a web portal, a smart thermostat, and smart plugs to manage individual appliances.

Standalone EMS applications are available off-the-shelf at various retailers. These EMS bypass the utility altogether. They connect to the service panel behind the meter, monitor electricity flows, and send data wirelessly to an IHD. Some go a step further by connecting to the LAN, using the broadband connection to support a web portal. Some also add water metering to the mix.

We focus on EMS' designed to use the grid overlay network to connect with the utility EMS and its demand response applications. The full value of residential EMS comes from the utility and consumer working together in ways that promote energy efficiency and allow the utility to shave peak demand by reducing nonessential loads. Residential housing consumes more than one-third of all electricity in the US. Within a typical home, HVAC, appliances, and lighting represent more than 80 percent of electricity use. Equipping these electrical loads with demand response controls saves money for homeowners and the utility. Since electric utilities may also be in the water and gas business, EMS' may provide water and gas monitoring and reporting through the same application.

All components of the EMS communicate through the home area network (HAN) operating wirelessly or through power lines. Depending on its design and functionality, the EMS may or may not interconnect with the home LAN. Below, we profile some of the residential applications that take advantage of the capabilities of the smart grid and the home area network.



Residential EMS Applications

In-Home Display (IHD). Knowledge is power. The flip side of the smart grid is the smart consumer. In-Home Displays (IHDs) let consumers make informed decisions about their home energy consumption. They help consumers reduce their energy bills and do good things for the environment.

IHDs are connected to a smart meter (with AMI) to access realtime energy data. This allows utility customers to track their energy usage on a realtime basis and for past periods such as days, months, and years. Formats range from digital text to graphical charts to colorful high/low efficiency indicators. These displays also accept energy control messages from the utility. Messages from the utility can cover energy pricing, demand response events, billing, and more.

The display itself can vary from a tiny screen on a smart thermostat to a larger countertop or wall-mounted unit. Most operate on batteries to make them fully portable. Some have remote controls to move around the house. They use push buttons and/or touch screens to display information and allow control of all functions tied to the EMS. A key success factor for these devices is offering a simple user interface and a stylish appearance. They also need to be inexpensive. Cost-control is important for the entire suite of EMS devices because utilities may need to purchase quantities that will scale into the millions.

Web Portal. Web portals are popular in the residential environment because they let consumers adjust their energy usage while away from home. This can be convenient when you've rushed off to work without turning off the lights or you've left for vacation and forgot to adjust the thermostat.

Using standardized internet protocols, web access also means smartphone access. The smartphone market now exceeds 100 million consumers in the US and is growing rapidly. More and more people are relying on their phone for basic web functionality. With some EMS products, the same portal is used on the PC and on the mobile phone. In more advanced designs, the EMS includes a mobile portal customized for its small screen size.

Smart Thermostat. US consumers spend about $2,000 per year on energy bills. Heating and cooling accounts for about half of total household energy consumption and about one-third of electricity consumption.

Smart thermostats often appear to be positioned at the center of residential EMS because of their potentially high impact on energy efficiency. Even though most US homes are heated with natural gas or other fossil fuels, about one-third are heated electrically. In these homes, heat consumes more than 50% of total household electricity. Most homes in the US are air conditioned with electrical power. Air conditioning consumes about 16% of total household electricity. It accounts for a significant percentage of peak demand on hot summer afternoons.

Most digital thermostats are programmable to provide night time set-backs, day-of-week scheduling, and vacation mode. That may be one definition of smart, but it is not what we are talking about. What we refer to as a smart thermostat is one that is connected to the smart grid through the utility's AMI network. It communicates across the network with the utility's demand response application. An example can illustrate.

On a hot summer afternoon with millions of homes air conditioned at 72 degrees, the local utility can run low on power. To avoid a brownout, it will be forced to buy the needed power at peak prices. Smart thermostats work with the utility's demand response (DR) application to accept electronic requests to reduce electrical demand. For example, the utility DR application might ask the thermostat to change its set-point from 72 degrees to 76 degrees. Yes, it gets a little warmer in the house after an hour, but this may be acceptable if it puts money back into the household budget. If grandma is visiting, she can override the DR signal right on the thermostat (or IHD) using its remote opt-out capability. Most demand response events last only a hour or so. The DR application will reset the thermostat to its original set-point as soon as the utility sees its peak demand safely dropping off.

(Smart) Hot Water. Resistance heating is a major user of residential electricity. You see resistance heating in toasters and electric stovetops when the heating elements get red hot. Devices such as electric ranges, ovens, hot-water heaters, and space heaters are part of the long list of resistance heating equipment. Compared to air, water stores a lot of energy. So heating water requires a lot of electricity. This makes electric hot water tanks and dishwashers major users of household users of electricity. Dishwashers preheat their water and heat up the air afterwords to dry the dishes.

Water heating presents a significant electrical load. It makes up almost ten percent of total residential electrical demand. When tied to the utility demand response application, the temperature for hot water heating appliances can be turned down for short periods. This keeps the heating element from turning on and sheds an important part of the utility's electrical load. Hot water tanks are ideal candidates for dispatchable demand response because in most cases, turning down the temperature a few degrees won't ever be noticed in the household. Smart hot water water tanks will be very high-efficiency and connected to the smart grid with a demand-response controller.

There are about 60 Million U.S. homes with electric hot water heaters, if just 10 percent are converted to high-efficiency models, it would save billions of kilowatt-hours annually. If they also have demand-response control, the cost savings will far greater to higher peak pricing.

Other (Smart) Appliances. Although there are a number of smart-plug products that can endow legacy appliances with the networking and monitoring abilities required for the smart grid, these don't provide the fine-tuned capabilities that can be offered when the controller is fully integrated into the appliance. A new generation of appliances will be coming out in 2010 and 2011 that are designed to work with smart grid applications.

GE and Whirlpool, for example, are planning a full line of appliances designed to be connected to the home EMS and the smart grid. These include refrigerators, washers, dryers, ranges, dishwashers, and microwaves. All of these appliances will report usage to the EMS and coordinate with utility DR applications.

For example, GE's demand-response refrigerator can make adjustments to its settings based on time-of-use (TOU) price signals from the utility. It can also reduce its consumption significantly by deciding when to run the defrost cycle. Refrigerators normally defrost themselves based on how often the door is opened and closed. They start the defrost cycle as its sensors indicate, whatever the time of day. Energy costs can be reduced by running the defrost cycle and making ice, in the middle of the night when electricity demand and prices are low. GE has said that these capabilities only add $10 to the cost of the appliance but cut electrical use by 20 percent. That's a small premium for the typical $1,000 refrigerator and results in a payback period under two years.

Smart Plugs. Since smart appliances are still more of a thing of the future, consumers need a way to make legacy appliances work with their EMS. Smart plugs are simple devices that insert between an electrical appliance and a standard wall outlet. They come in different sizes to handle small or large loads. These plugs measure and control whatever is plugged into them. At minimum, they report power usage to the EMS. At best they communicate with utility DR applications through the smart grid to help shed loads during peak periods. Essentially these plugs turn legacy appliances into smart appliances.

EV Charging and V2G Storage. With tight budgets, energy security, and climate mitigation on their mind, consumers are gravitating towards high-efficiency vehicles. If automotive analysts are correct, we will put tens of millions of plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) on the road in the next two decades. This makes the batteries in these vehicles potentially available for buffering peak electrical demand using vehicle-to-grid (V2G) storage. Most EVs will be charged at night and will store enough power to let the utilities draw on battery power during peak demand. A DOE study found that the idle capacity of today’s electric power grid could supply 70% of the energy needs of today’s cars and light trucks without adding to generation or transmission capacity—IF the vehicles are charged during off-peak times.” DOE estimates the potential benefits to include: 1) displacement of about half of U.S. net oil imports, 2) reduction in U.S. carbon emissions by about 25 percent, and 3) reductions in emissions of urban air pollutants of 40 percent to 90 percent.

These benefits won't be achieved unless EVs are supplied with smart charging stations to ensure that daily charging is done at night at the lowest cost power. A challenge will be the development of smart charging stations that balance the customer's need for driving range with the utility's desire to borrow power during peak periods. It may seem futuristic but by next year, Nissan's Leaf will have many of the components needed for connection to the smart grid. This car includes network connectivity so that drivers can use their smart phones to modify charging preferences, reset the air conditioning temperature, or ask Nissan to run remote diagnostics.

What difference can a car battery can make? A lot. There is a lot of power packed into electric cars. We're not talking about today's car batteries. By 2020, EV battery packs should be able to store 100kWh. That's enough juice to power the electrical needs of several of your neighbors' homes for 24 hours. Since the utilities will draw power only to cover peak demand, the power stored in one EV can go a long ways.

Distributed Generation. Distributed generation is the opposite of centralized generation via gigantic power plants. It implies generation of small amounts of power close to the point of use. It employs small-scale power generation technologies typically in the range of 3-10 kW for residential applications and up to 10,000 kW for commercial applications. The power generated is used to provide a supplement to the electric power from the grid. Distributed generation reduces the amount of electricity lost during transmission because the power is generated very near where it is used, usually in the same building. For the utility, this reduces the size and number of power lines that must be financed and constructed.

Distributed generation has experienced high costs in the past. Technology breakthroughs for wind, solar, and small gas turbines make these sources more cost competitive every year. Government subsidies help make up the difference. Well-intentioned consumers use solar and wind as part of their sustainability and carbon-reduction efforts. Although payback periods can exceed 10 years, they make economic sense for anyone committed to long-term energy reduction and long-term savings. Homeowners can essentially lock-in part of their energy costs for 20-30 years. A well-designed distributed generation system has low maintenance costs. Manufacturer warranties on solar panels typically run for 25 years.

Within the residential segment, grid-tied, roof-top solar PV is growing rapidly in sunny regions of the US. Small wind turbines are gaining ground on farms and ranches. Solar thermal is also popular, but is used to generate heat or hot water rather than electricity.

In grid-tied systems, utilities use a net meter to track surplus electricity not consumed by the home. The surplus power feeds into the grid distribution system where it is used by neighboring homeowners. Depending on contract terms with the utility, the net meter is set up so that the utility gives full retail price credits to the homeowner. A future point of contention will be whether utilities should pay for power based on TOU pricing. If so, it would give a big edge to solar PV since it generates at peak capacity during the day when the utility experiences intermediate and peak demand.

While the most common rooftop solar applications today use silicon-based PV panels. Thin-film technologies are rapidly catching up. They lower up-front investment costs but also offer lower efficiency (requiring more space on the rooftop). But costs for thin-film are dropping rapidly and efficiencies are going up. One advantage is that thin-film can be more easily integrated into roofing products. That allows it to be integral with the building architecture rather than just bolted on.

DOE analyses have shown that in a best case scenario, the US could see installed rooftop solar generation rising from about 2,000 MW in 2008 to almost 25,000 MW in 2015. Utilities will need smart grid technologies in the sensor network to make sure this electricity gets used as efficiently as possible. 

August 26, 2009

Smart Grid: Commercial EMS

Commercial environments for energy management systems (EMS) are far more complex than residential environments. They are characterized by large scale, multiple tenants, diverse uses, and are often professionally managed by a full-time facilities staff.

 

Commercial EMS Applications

Building Management System (BMS) is an application for large commercial buildings and complexes. BMS includes a sensor network that monitors and controls the building’s mechanical and electrical equipment such as HVAC, lighting, power, fire systems, and security. These can account for up to 70% of the building's energy use. The US DOE has shown that 4-20% of energy used in commercial buildings is wasted. An effective BMS will eliminate the waste. BMS' are sometimes linked to security and surveillance including access control, closed-circuit television (CCTV), and motion detectors.

BMS' generally have a sophisticated user-interface that brings together its many functions and for control by security and facilities management. This may include an energy dashboard that bring together its energy control and usage functions. The most sophisticated systems will include diagnostic tools to alert facilities staff to potential problems.

BMS' can be configured to use (dynamic) time-of-use (TOU) pricing to shed non-critical loads to maximize energy savings during peak pricing periods. Some utilities give commercial customers TOU pricing if they have a smart meter installed. The utility may charge $0.11/kWh at peak, $0.07/kWh at intermediate, and $0.04/kWh during off-peak times. Shifting energy use into lower priced periods saves money for the customer and the utility.

Major suppliers of BMS include Siemens, Honeywell, Johnson Controls, and others. All of these companies are developing extensions to make their software compatible with the smart grid. Standardized communication paths and data protocols are needed to integrate systems within the building and to tie the building to the smart grid. These standards will be important for both utilities and commercial customers.

Heating Ventilating and Air Conditioning (HVAC) may be controlled by the BMS or by a demand-response subsystem supplied by the utility. Such controllers are complex because the building may be divided into many zones with different temperature thresholds. For example, mechanical rooms and store rooms will have different conditioning parameters than medical treatment rooms and general office space.

Thermal storage systems are employed to balance energy demand between day time and night time. In commercial buildings, thermal storage is typically from the production of ice or chilled water at night, which is then used to offset the need for electrically powered air conditioning during the day. A reasonably-size thermal storage facility can hold enough ice to cool a large building for a full day or more. With time-of-use pricing, this shifts electrical use from day time (high prices) to the night time (low prices). These systems are often integrated into the BMS.

Lighting Control applications manage interior and exterior lighting which makes up a significant proportion of total electrical energy consumed. In homes and offices it represents 20 to 50 percent of the electrical load. Lighting represents a critical component of commercial energy use and is often controlled by standalone applications or through integration with the BMS.

Lighting control systems consist of computers, sensors, and controllers that operate the lighting in a building. There are applications in the residential space, but lighting control is much more important in commercial buildings because it is often the largest consumer of electricity. For some commercial buildings over 90 percent of lighting energy consumed may be unnecessary due to over-illumination. Lighting control interfaces (standalone or in the BMS) provide the ability to raise or lower lighting levels throughout the building. The major advantage in commercial applications is the ability to control all lights on all floors in all buildings from a single interface. In addition, lighting can be controlled automatically based on events such as time of day, day of week, room occupancy, and many other conditions.

Energy Storage. A lot of money has gone into R&D for energy storage but we still have a lot more work to do. Whereas utilities can use large-scale solutions such as pumped hydro, compressed air energy storage (CAES), and massive batteries (flow and sodium sulfur), commercial electricity consumers do not have many options. For all storage systems, cheap night-time power is used to store energy, which is later drawn on to offset expensive peak power usage. Utility-scale storage solutions are too large and too expensive for use in commercial buildings.

An uninterruptible power supply (UPS) can provide short-term energy storage. A battery-based UPS provides emergency power that lasts anywhere from a few minutes to a few hours for small loads. A rotary UPS uses the inertia of a high-mass spinning flywheel to provide short-term ride-through in the event of power loss. The batteries and flywheels also act as a buffer against power spikes and sags. UPS' are commonly used to manage power quality by conditioning the line for highly sensitive electronic equipment.

Power Quality (PQ) Monitoring and Conditioning. A clean, continuous electrical supply is critical for automated processes and sensitive electronics. PQ applications ensure that electrical equipment can function as intended without damaging its performance or longevity. Potential problems include under- and over-voltage, harmonics, and spikes. The quality of the voltage is often of most concern. Without the proper voltage, electrical devices may malfunction, fail prematurely or not operate at all. The sensor network within the smart grid will help utilities deliver consistent power quality throughout the grid, including to sensitive commercial customers. On-site PQ monitors may be combined with conditioning equipment to bring power back into conformance with specifications.

Backup Power. Today, most commercial consumers see backup generators as their only viable means of “energy storage.” Backup generators are designed to start within seconds of a utility power outage. They supply power to the most important electrical circuits in the building. After utility power returns, the electrical load is automatically transferred back to the utility and the generator shuts off. Most commercial units run on diesel or natural gas. They are increasingly required by commercial building codes to support safety and security during power outages.

Backup generators cannot start instantly. This prevents them from providing realtime protection from momentary power loss. In some cases the UPS is designed to carry the load for just a few minutes until the backup generator can be turned on.

Vehicle-to-Grid (V2G) Storage. Major car manufacturers are developing electric vehicles (EVs) or plug-in hybrid electric vehicles (PHEVs) for launch in 2010-11. If analysts are correct, we will put tens of millions of PHEVs and EVs on the road in the next two decades. This makes the batteries in these vehicles potentially available for buffering peak electrical demand. EVs will be supplied with home-based smart charging stations that make sure that normal daily charging is done at night. In scenarios for commercial distributed generation, EVs will be topped off with power during the day by plugging them into solar panels in the company parking lot. These cars can charge themselves in the morning and then give some of the power back to the commercial building (or the utility) during the afternoon peak. Revenue sharing agreements between the employer (or building owners) and employees will be needed to equitably divide the benefits.

Thermal energy storage (not electrical) is the most cost-effective storage application based on current technology. In the future, V2G, hydrogen fuel cell generators, flywheels, and new battery systems show promise. In the smart grid, distributed energy storage represents another option for utilities to reduce peak demand by drawing on stored energy at critical points in time. Whatever its form, there is no doubt that distributed energy storage will grow in the future as new technologies are developed and commercialized.

Distributed Generation. Among commercial customers, distributed generation varies from putting up a token number of solar panels over the main entrance as a marketing ploy to investing hundreds of thousands of dollars in significant generating capacity.

As in the residential sector, rooftop solar PV is a common application. Commercial buildings often have large expanses of unshaded, flat roofs ideal for roof-mounted solar. Ground mounts can also be used where the land is spacious. Parking lots represent a great opportunity. Solar-PV can be combined with car-ports and parking garages to take advantage of the solar radiation that otherwise turns the parking lot into a heat island.

Southern California Edison (SCE) plans to install solar PV covering two square miles of existing commercial roofs with a total of 250 MW of capacity. Big-box stores such as Walmart and Kohl's are now generating a meaningful percentage of their electricity from solar and lowering their operating costs.

Rooftop wind is gaining attention among commercial customers but still faces questions about economic feasibility. Some new turbine designs are engineered for the gusty and turbulent conditions found on building rooftops. In partnership with MIT, the Boston Museum of Science put up several different rooftop wind turbines to compare their feasibility. Theoretically, these systems are well suited to the flat rooftops common on warehouses. The jury is still out on whether rooftop wind will be cost effective. Where land and wind are plentiful and high-rise towers are permitted, large commercial wind turbines can be installed. These are based on the same designs as used in utility-scale wind farms. Larger turbines are more cost-effective but they also require large initial investments and more specialized maintenance. For favorable sites, large wind turbine generation is less expensive than solar PV. In many cases, however, rooftop solar offers a better fit with commercial buildings.

Other technologies used for distributed generation include microhydro, bioenergy, fuel cells, gas microturbines, hydrogen, combined heat and power, and hybrid power systems. DOE's Distributed Energy Program website has the details.

I know that recent posts are getting long-winded, but we are laying a broad foundation for deeper analysis. Next we'll cover the residential side of smart grid energy management systems. With all the major applications identified, we'll be able to go deeper into the implications for privacy and security.

August 25, 2009

Smart Grid: Enterprise Apps

The smart grid brings a massive increase in realtime data collection and processing requirements. The volume of data could grow to 100x of legacy volumes. Utility operations centers must scale to support the increased data collection and the analytics needed to coordinate actions. They must provide a secure hosting point for integration of smart grid applications.

The complex distributed network to manage the smart grid involves grid optimization, automated transmission and distribution, and SCADA networks as part of the supply chain of bringing electric power to the consumer. Demand response systems and AMI networks enable new opportunities for peak energy shaving and shifting. Supporting systems include customer care and billing as well as mobile workforce management and asset management. New enterprise applications will require greater integration than in the past. Security will need to be improved to face new threats, both from external sources and from within the enterprise.

Below, we profile some of the utility enterprise applications that will need to be replaced or evolved to respond to the increasing level of sophistication of the grid.


Utility Enterprise Applications

 

Grid Optimization refers to the set of applications that automate the grid's sensor and control network. These typically include Transmission, Substation, and Distribution Automation along with the SCADA network. Together these applications provide the grid operations center with a realtime view of where the power is flowing, at what voltages, where the bottlenecks are building, and which lines are getting overheated (and therefore in danger of sagging into nearby trees). They know where power is needed and where an excess is being generated from rooftop solar systems. For example, Distribution Management Systems (DMS) can detect an electrical fault, determine its location, and open the nearest available switches to isolate the problem segment from the rest of the line. After further validation, these applications can automatically close switches to restore power to the undamaged parts of the line. This so called “grid optimization” lets the utility:

  • respond to peak demand loads more efficiently
  • identify outages more precisely
  • restore power more quickly
  • switch generation to cost-effective and low-carbon fuels
  • re-route energy to avoid bottlenecks and unnecessary strain
  • eliminate “truck rolls” with automated disconnects, reconnects, and troubleshooting

Supervisory Control And Data Acquisition (SCADA) generally refers to the computer systems for monitoring the flow of power across the grid. Today most utilities use SCADA to monitor their largest assets such as power plants and substations. Demands on SCADA will grow exponentially as the size of the sensor network increases. In the future, potentially millions of sensors and controllers will be deployed. In a smart grid, SCADA evolves beyond monitoring to include control functions. Automation of controls are necessary to provide the smart grid with self-healing capabilities. Functions include:

  • Sensor data acquisition
  • Real-time analytics
  • Remote control of grid devices

Outage Management System (OMS) applications help utilities improve public safety, shorten restoration time, and reduce the costs of outages. This area may integrate several functions including trouble management, outage analysis, operations dispatch, crew management, and safety documentation. OMS functionality may be standalone or be absorbed into other grid optimization applications. Functions may include:

  • Real-time monitoring
  • Asset status
  • Outage alerts
  • Dispatch notification
Demand Response (DR) and Demand Side Management (DSM) applications give the utility control over selected customer-premise equipment for shedding loads. DR is a subset of the broader category of customer energy efficiency solutions within DSM. DSM includes a broad range of energy efficiency programs. For example, air conditioning, electric hot water heating, and electric dryers can be adjusted for reduced power consumption for short periods of time without affecting the consumer. Energy conservation marketing combined with DR and DSM opens up new opportunities for utilities to shave or shift peak demand. Actively managing consumer demand helps utilities reduce the amount of power used during peak periods thereby reducing the costs of buying power at peak prices. Technologies are available and under development, to automate the process of demand response. Such technologies detect the need for load shedding, communicate this to participating consumers, automate load shedding, and verify compliance. Demand response is increasingly being classified as non-spinning reserves by many utilities. Dispatchable DR applications will support greater use of nondispatchable renewable energy by matching demand with supply. These applications may include functions such as:

  • Handling multiple types of DR programs
  • Remote control of customer premise devices on the HAN
  • Verification of load reductions
  • Communicate with customer care systems

Advanced Metering Infrastructure (AMI) and Meter Data Management (MDM) handle the greatly increased volume and complexity of meter data. Instead of monthly readings, AMI provides periodic readings around the clock. MDM applications support the loading, validation, editing, and estimation of meter data. Due to the very high volumes of data logged by smart meters, new MDM applications must achieve high levels of scalability. MDM may include functions such as:

  • Connections to meter systems
  • Meter data validation
  • Error handling
  • Estimations
  • Meter data access
  • Meter inventory management

Load Profiling and Settlement applications are used to settle energy purchases and sales across wholesale electricity markets. They may include functions such as:

  • Validating meter data
  • Making the necessary interval data calculations
  • Automating information flows across applications
  • Automate market settlements
Customer Information System (CIS) or Customer Relationship Management (CRM) applications manage customer service connections, meter readings, rating, and billing. They manage payment processing, collections, field service, and meter management. They provide all information needed by customer-facing personnel. This application may handle anywhere from a few thousand to many millions of customers. It includes features such as:
  • Enrollment in multiple products including multiple DR programs
  • Billing for multiple products
  • Transaction records and history
  • Analytical tools
  • General support for engaging with customers

Mobile Workforce Management (MWM) applications help ensure that field service delivery and maintenance are conducted in the most efficient way. Customer service representatives (CSRs), dispatchers, and technicians must be in sync with one another at all times. They need access to realtime status information to keep customers informed as appropriate. MWM applications manage information about service availability and automate field operations via dispatch, scheduling, and routing. Functions may include:

  • Dispatch routing
  • Automated field operations
  • Operating expense management
  • Embedded real-time scheduling

Enterprise Asset Management (EAM) applications provide real-time, enterprise-wide visibility into the status and location of grid assets. Geographic Information Systems (GIS) capabilities are often included to support locational awareness. Utilities have a massive investments in plant and equipment. Preventive and efficient maintenance can make a big difference to operations, in terms of productivity and expense control. EAM may include features such as:

  • Real-time asset visibility and availability
  • Maintenance scheduling
  • Cost-tracking
  • Capital asset management
  • Warranty recovery
  • GIS locators and tracking

As can be seen, utility IT data centers and grid operations grow in sophistication and complexity as intelligence is distributed throughout the grid. Enterprise applications will need to be carefully secured from attacks as will other components of the grid. Stay tuned for more discussion of security issues.

August 24, 2009

Smart Grid Security: Vulnerabilities

In contrast to the legacy grid, the smart grid will be dominated by an “overlay” of two-way digital networks. Some elements are already in existence, but not on the scale envisioned in the smart grid. These new networks will be constructed using a broad array of technologies including fiber optics, hybrid-fiber coax, twisted pair, broadband over power line (BPL), and wireless technology such as WiMAX, Wi-Fi, ZigBee, and 3G cellular (see smart grid communication discussion).

There is a lot at stake. The smart grid can help us achieve nationally important goals such as energy security, climate mitigation, and technology leadership. But at the same time, the smart grid must help protect:

  • Electricity flows (business continuity and society in general)
  • Physical security of grid (electronic disruption of surveillance systems)
  • Quality of service (voltage fluctuations, brownouts, etc.)
  • Integrity of AMI and grid overlay networks (intrusion protection)
  • Personal information (customer privacy)
  • Financial flows (fraudulent meter and generation data)

There are many layers in a smart grid network. Each layer will employ a set of technologies chosen for their cost effectiveness considering factors such as functionality, reliability, security, and longevity. For this discussion, we consider several of the layers in a smart grid communication network. We have marked the HAN-AMI connection as layer 1. It may be tightly connected with layer 2, the neighborhood area network (NAN) which connects a number of meters to a data collection/aggregation point. Meter aggregation-to-backhaul is labeled as layer 3. And other networks include #4, the sensor network for transmission and distribution and #5, the backhaul network connecting the other networks with the utility operations center.

Smart Grid Communication Network

Network topologies will vary from utility to utility. In the design of smart grid networks, tradeoffs must and will be made. Urban implementations dictate different technology choices than rural implementations. The AMI layer requires different choices than the backhaul network. Every network layer and every technology represents a potential avenue for attack. Here are some of the major areas of vulnerability:

Legacy grid communications – The legacy grid already uses many different communication paths and protocols to connect utility operation centers with system operators such as ISOs and RTOs. Paths range from public networks such as plain old telephony and the Internet to private networks such as dedicated fiber links and leased microwave connections. A wide variety of data transfer protocols are used. Most existing protocols have some form of vulnerability or another. Some (but not all) of these vulnerabilities are in the process of being mitigated.

AMI security – Advanced meter infrastructure and its network of smart meters provides a foundation for smart grid (layers 1 & 2). With approximately 340 million meters in North America, AMI will represent a large part of the grid-overlay network. Research firm Parks Associates estimates that 8.3M smart meters have been installed in US homes, about 6% penetration. They project rapid growth to 13.6 million smart meters by 2010 and 33 million by 2011. AMI will be composed of many different networks; most of which will not be directly connected to one another. Meters are important not just for their massive numbers, but because they are at the outer edge of the utility's network and must be accessible for ongoing maintenance and operations. Once a meter is compromised it can be used to attack other parts of the network. 

Energy management system (EMS) – In many architectures the meter provides a gateway from the advanced meter infrastructure (AMI) to the home area network (HAN). Smart thermostats, in-home displays, appliances, charging stations and various plug-loads are connected together by an EMS application running on the HAN. This myriad of devices on on the customer premises provides a secondary path for attacking the meter and upstream facilities. Any one of these devices could be compromised and used in an attack. This path is less likely to be used in large-scale assaults but represents a vulnerability for tampering with meter data and the related customer billing.

Wireless networks  – Wireless is the preferred communication strategy for HAN and AMI because it offers ubiquitous and inexpensive connectivity. Mesh topologies add to its reliability by offering multi-path connections between in-home devices, meters, and data aggregation points. This applies to layers 1 & 2, and potentially to layer 3. Many of the protocols under consideration are still in the early stages of development. Without more extensive testing, we cannot know whether the manufacturers will implement the meter and AMI network in the most secure way. In the rush to market, it is reasonable to assume that short-cuts will be taken during development and testing.

Substations – Transmission and distribution substations contain many power control devices such as circuit breakers, transformers, capacitors, and monitoring devices. According to the US DOE, most transmission substations (81%) and distribution substations (57%) already have some form of automation (layer 4). Potential consequences of successful substation cyber attacks include the destruction of generators, power outages, and grid instability. The smart grid increases the level of automation in substations. Increasing the number of electronic control elements increases the potential vulnerabilities.

Sensor networks – Because grid optimization is an important part of the smart grid business case, the size of the sensor will grow rapidly. The new sensors will enhance the situational awareness of the grid and enable operators to react to power anomalies more quickly. The data collected by these sensors will be used to optimize control of the grid both within a utility and across the national grid. These sensors will help make the grid self-healing but the sensor network itself opens up an additional line of attack. Increasing the scope and scale of the sensor network (further expanding layer 4) increases the number of potential vulnerabilities.

Utility operations centers – The operations center is often ignored in discussions of smart grid security, but it is one of the most important elements of the network. Vulnerabilities can exist in the utility enterprise firewall, its enterprise applications, and/or its operator authentication and training systems. This makes the ops center vulnerable to a top-down attack from an intruder or to an insider-attack from a disgruntled employee. With the ops center having full control over every network element and every power system element, security will be paramount. For major utilities, this is already true today. However, the scale and complexity of enterprise software and data will grow with the smart grid. This further increases the utility's need for a strong electronic security force.

The risk of successful attack is difficult to assess because every part of the smart grid is in motion. The grid itself is in a constant state of evolution and will be for the foreseeable future. There is an ongoing dynamic between new attack methods and the development of new defenses. This can be seen in everyday life on the internet and regular updates to virus databases.

Resistance to attack is one of the defining characteristics of the smart grid vision. There must be a coordinated and ongoing effort to secure the smart grid as it is developed and deployed. This challenge is being taken seriously. NIST, DOE, EPRI, and major utilities are taking the lead. One piece of the puzzle is setting technical standards for different elements of grid security so that manufacturers can produce interoperable equipment. Bringing all these moving parts together will be no easy task. Stay tuned for more coverage.

Reference: http://www.inl.gov/scada/publications/d/securing_the_smart_grid_current_issues.pdf

August 21, 2009

Energy Smart: Power Plants

Electric power plants vary greatly. Their distinguishing characteristics include capacity, fuel, number of generating units, and generation flexibility. They are designed and operated to meet a specific part of the utility's load profile, generally categorized as base, intermediate, and peak. 

  • A baseload generating unit satisfies all or part of the minimum or "base load" of electrical customer demand and, as a consequence, produces electricity at a relatively constant rate. These units run continuously 24x7 except for outages due to maintenance. Baseload units are generally the largest and most efficient, however, they do not have the flexibility to quickly turn their output up or down as demand changes. In the US, coal and nuclear are commonly used for baseload generation. Run-of-the-river hydro is used where available.
  • A peakload generating unit is used to meet requirements during the periods of highest demand for electricity. These plants are the most flexible since their output can be quickly turned up or down to meet changes in customer demand. Their drawback is their higher operating costs. As a result, they are used only when needed. In the US, natural gas is commonly used for peakload generation. Stored hydro is also used where available.
  • Intermediate-load generating units have characteristics that fall in between the other two. They are used during the transition between baseload and peak load demand.
Since electricity cannot be stored cost effectively, utilities must constantly match the supply of electricity with customer demand. Demand is dynamic, but when aggregated over a large customer base, it follows predicable patterns as shown below. Utilities use a combination of all three types of plants to meet this customer demand.

Sources: Enertyr and EIA, 2009

Energy Smart: Generation

Most electricity in the United States is generated with steam turbines. The steam comes from superheated water or gasses. Fossil fuels, such as coal, natural gas, and oil, or nuclear-fueled reactors heat water in large boilers to make steam. The steam turns a generator to produce electricity. Gas turbines, fueled by oil or gas, use hot gases to rotate turbines. For small-scale use, diesel engines are used to spin generators and produce electricity.

Instead of superheated water, hydroelectric generators use the pressure from gravity pulling water through a pipe to turn blades in a turbine. The turbine spins a generator to produce electricity. Stored water is released from reservoirs created by dams in a "falling water" hydro system. Alternatively, the force of a river current can be used to turn a turbine in "run-of-the-river" systems.

Coal, gas, and nuclear are the "big three" fuels in US electricity generation. Together they are used to generate about 90% of our electricity. Hydro is a respectable fourth. Renewables, especially wind, are the fastest growing sources of electricity, but they are dwarfed by the big three.  

Source: EIA, 2009

August 20, 2009

Security research partner

In my last post, I mentioned that we are collaborating with Securosis to take a detailed look at end-to-end security across the smart grid. I told you they were really good and that I was excited about the collaboration. Now that I have a few minutes to spare I can tell you why.

Rich and I go way back. I was a professor at the University of Colorado for eleven years through 1998. As a teacher, good students come and go. On the Boulder campus, I was lucky to have a lot of great students in my information technology classes. Many have gone on to build great high-tech companies.

Every few years, however, you get someone in class who is so talented and so much fun that you don't want to let them go. That's how I feel about Rich. He's got world-class talent, high integrity, and he's too much fun to let go. Over the past dozen years Rich and I have collaborated to produce online training for O'Reilly, start a successful e-commerce business, build a client-base in Europe, and rock the establishment at Gartner. And we had a blast working together on each project. Needless to say, I am thrilled to have Rich's firm as our research partner on grid security. As you read Securosis' work in the weeks ahead you'll see why. Below you can read the blurb Rich wanted me to post, but now you know the story behind our collaboration.

Securosis is an information security research and advisory firm dedicated to transparency, objectivity, and quality. It was founded in 2007 by Rich Mogull, who was Research Vice President at Gartner. Securosis works with some of the biggest (and smallest) companies in the security industry, providing users, vendors, and investors with clear, pragmatic advice on improving security without breaking the budget.

In upcoming posts Rich and I will lay out our research agenda and outline our report(s). Please read Rich's kick-off post at the Securosis blog. But do me a favor and skip the first few paragraphs. ;-)

Smart grid privacy and security

Electricity is fundamental to modern life. It fuels our government, the military, our hospitals, businesses, and homes. In the future it may power significant parts of our transportation fleet. Glancing at the figure, it's hard to imagine social continuity without a reliable supply of electricity.

Concern about grid security is nothing new. There has long been a danger from terrorists blowing up key substations and taking out large blocks of electricity consumers. The US federal government admits that the legacy grid is also susceptible to electronic attacks from cyberspace. In 2009, reports surfaced that unidentified assailants had infiltrated the U.S. electrical grid and left behind programs that could be used to disrupt the system.

The vulnerability of the grid represents a threat to national security and business continuity. Maintaining electrical service in the event of a crisis is crucial. Major military bases can isolate themselves from the grid and run off their own private generators and microgrids. But even the military would experience disruptions from civilian supply breakdowns in the event of regional blackouts. Businesses are the lifeblood of the economy and need to be able to continue operations. The economic impact of a grid failure can be enormous. The economic losses attributed to the 2003 blackout were at least $10 billion.

Given its reliance on digital networks, there is concern that smart grid will be even more vulnerable to cyber attack. Massive power outages caused by a cyber attack, could disrupt the economy, camouflage a military attack, or spread fear and panic. Bruce Willis' movie Die Hard 4 brought the specter of grid hijacking to the mass Hollywood audience. When designed properly, nothing like the movie will ever happen.

The Energy Independence and Security Act of 2007 directs federal agencies to support the modernization of the grid, including cyber security. The Department of Homeland Security (DHS) works with the utility industry to identify and minimize grid vulnerabilities. They are also working to ensure that security is built into the smart grid as it develops. The top-level regulator, Federal Energy Regulatory Commission (FERC), coordinates work across agencies. The Department of Energy (DOE) specifically requires all smart grid projects funded with stimulus dollars to include privacy and security measures in their proposals. The Electric Power Research Institute (EPRI) is working with the National Institute for Standards and Technology (NIST) to set standards for smart grid development. Together, they are responsible for leading the effort to establish electronic security standards.

The building blocks of smart grid include advanced meter infrastructure (AMI), transmission and distribution automation, distributed generation, electric vehicle charging, and dispatchable renewable energy generation.

AMI ties together the meters on the smart grid for a given utility and a given service territory. One of the things that makes a new digital meters “smart” is the ability to transmit and receive information from its (private) digital network connection. The network connection is used to read the meter remotely. In older designs, utility meter readers would drive down the street with a digital receiver automatically recording data from each meter. In the smart grid, these readings will be sent upstream through the grid's digital overlay network for permanent recording at the utility operation center. Data capture, transmission, and recording leads to concerns about privacy.

Privacy. Smart Grid technology potentially lets your utility know who, what, when, where, how much electrical stuff you are doing inside your home. Instead of simply logging a running total for electricity usage, smart meters will log data with a date, time, and usage every 15 to 60 minutes. They will also collect power quality data such as voltage, phase, and frequency. They can also gather detailed operating information from networked thermostats, smart appliances, vehicle chargers, and anything else on the home area network.

This is all for the good. The utility can use this information to help its customers reduce their energy use and save money. Appliance manufacturers will be able to remotely diagnose problems so they can send a repair professional with the right parts. Medical device manufacturers will do the same. Over time, the scope and scale of organizations wanting access to meter data will grow (think law enforcement, public safety, social services, insurance companies, etc.). But where there is light, there is dark. And it's the bad guys we worry about.

Smart grid surveillance will be a concern to consumers wishing to maintain a high degree of privacy. But it should be a concern to anyone who might not want the bad guys to know when they are away from home. Access to meter data gives potential burglars an electronic profile of daily activities otherwise hidden inside the home. The bad guys would be able to “case the joint” remotely. In competitive electricity markets, competing utilities could try to get this data for industrial espionage to attract and retain the most profitable customers. Just as the Internet enabled new threats such as identity-theft, the future will bring new ways to exploit meter data.

Security. Going beyond privacy, the current generation of smart meters have much more functionality than old ones. Burglars, terrorists, and others with political agendas could use unauthorized access to AMI command and control systems to disrupt the delivery of services, create blackouts, disrupt load balancing commands, or create fear and panic. Crackers may be interested in breaking into command and control systems for personal satisfaction and/or bragging rights.

Some utilities will use the meter network connection to connect and disconnect electrical service. It's a money-saving extension to meter reading. This leads to speculation about the potential for “drive-by blackouts” in which a vehicle-mounted device could break into a wireless meter network and send commands to shut-off service. Since the meter network is localized at the neighborhood level, these would be relatively small-scale problems. If the attackers were to break into the network at the utility operations center, disconnect commands could (theoretically) be issued system-wide. Even still, electricity distribution is highly decentralized across thousands of utilities. So an attack on one utility will not necessarily take out other utilities.

With proper security in place, smart meter deployments and grid optimization should make the grid stronger and more resilient. Much of the grid is already automated but with older technology that may not be able to withstand new types of electronic threats. The smart grid's advanced capabilities will allow utilities to anticipate problems and mitigate its effects on the system. It will support broad use of distributed generation and storage. These will give some customers the capability to operate in island mode, isolating themselves from the public grid.

There is a lot of work to do in the area of grid security and privacy. It is crucial to confront and solve problems during the development phase. It won't be easy, but given that we successfully run our government, the military, our hospitals, and businesses on computer and communications technology, we have the intelligence and the technology to surmount similar challenges on the smart grid.

Stay tuned for continuing in-depth analysis of grid security. Carbon-Pros is pleased to announce that we are partnering with Securosis for in-depth security research on the smart grid. These guys are good! This is an exciting collaboration, details will be announced soon. Meanwhile check out their blog at securosis.com/blog.

August 19, 2009

Energy Smart: Power vs. Energy

Electric power is the rate at which electricity does work. This is measured at a single point in time so it has no time dimension. The unit of measure for electric power is a watt (W). Watts are usually billed in blocks of a thousand known as a kilowatt (kW). The maximum amount of electric power that a piece of equipment can accommodate is the capacity of that equipment. Power plants are rated based on their maximum capacity, usually in megawatts (MW) or gigawatts (GW).

Electric energy is the amount of work that can be done by electricity. The unit of measure for electric energy is a watthour (Wh) with billing usually in blocks of one thousand known as a kilowatthour (kWh = 1,000 Wh). Electric energy is measured over a period of time and therefore has both energy and time dimensions. The amount of electric energy produced or used during a specified period of time by a piece of electrical equipment is referred to as generation or consumption. Larger units of work can be expressed as megawatthours (MWh = 1,000 kWh) or gigawatthours (GWh = 1,000 MWh). A large-scale unit of work used by national reporting agencies is terawatt-year (TWyr).

Energy units can be converted from one type of energy to another. For example, the energy in electric power can be converted to the energy in heat. Utilities usually bill natural gas consumption in therms. A therm is a unit of heat equal to 100,000 British thermal units (BTU). It is approximately the energy equivalent of burning 100 cubic feet of natural gas. National reporting agencies often report total energy consumption in quadrillions of BTUs or quads.

For detailed conversions see http://www.aps.org/policy/reports/popa-reports/energy/units.cfm

August 18, 2009

Smart Grid and the Telcos

Telecommunications technology is advancing so rapidly that there is considerable FUD factor (fear, uncertainty, and doubt) in the idea of locking in your communications strategy for 20 years. So the Telco says to the Utilityco: no worries, just outsource your grid communications to us!

Given the past problems with BPL and the expense of optical cable, wireless is attractive for avoiding the expense of adding relays and/or stringing new cable. Last week, we reviewed ZigBee as the emerging standard for short-range, wireless networks in the home and for aggregating data across the meters in a neighborhood. Here, we review the use of 3G cellular networks for wireless smart grid connectivity.

Third-generation (3G) cellular networks carry high-speed data as well as voice. They give your smartphone the ability to do email and surf the web. 3G is a collection of communication technologies including GSM EDGE, UMTS, HSPA, and CDMA2000 (details on Wiki). 3G supports data rates up to 14.4 megabits for downlink and 5.8 megabits for uplink. You'll never see these speeds on your smartphone, those speeds apply to stationary devices such as will be used on the grid. The two largest wireless carriers in the US use different versions of 3G. AT&T uses UMTS and Verizon Wireless uses CDMA2000. As you know from switching cell phone providers, their gear is not interoperable. Standards groups are already working on the next-generation (4G) which uses an all-IP infrastructure and achieves gigabit speeds

Smart grid deployments use the cellular network for machine-to-machine communication (M2M). This market it heating up. Verizon Wireless and Qualcomm have formed a joint venture to provide M2M wireless services to a wide range of markets including medical monitoring, consumer electronics, and utilities.

One approach is to embed tiny cell phone SIM cards into the meters. The meter uses the SIM card to communicate with software applications on the network and at the utility operations center. In some architectures, groups of meters will communicate via powerline with one meter acting as a router and using its SIM card to send data from the group to the utility backhaul network. Another approach is to use short-range wireless to aggregate a group of meters and put the cellular connection on the meter aggregator. The strength of cellular is the ability to install a connection anywhere it is needed on the grid. This could be at the meter, aggregator, substation, or anywhere in between. The architecture will vary for urban and rural environments.

3G cellular networks may be the fastest way for utilities to deploy a digital network. Major wireless carriers can connect grid assets such as meters, breakers, transformers and substations directly to the utility operations center. This minimizes up-front deployment costs and turns over network maintenance to the carrier who can do it cost-effectively. That said, the tilities are accustomed to financing infrastructure on 40-year life cycles. They know that in the long-run, it may be cheaper to build and own their own network. Cellular may prove too expensive to become the dominant solution but it will certainly be valuable for some utilities in some parts of their network. And if the wireless carriers drop their rates low enough, they could become major players.

 

SmartSynch is betting that 3G will be a cost-effective and scalable solution for many utilities. Given the conservative nature of utilities, they may be right. SmartSynch has teamed up with AT&T on smart grid deployments for both commercial and residential customers. They also work with other wireless carriers including T-Mobile and Rogers. Echelon also offers a cellular meter, partnering with T-Mobile.

Seeing smart grid as the next big thing (NBT), the telcos may not be satisfied just providing communications. Some telco giants are planning to offer utility enterprise applications that are optimized to work with their wireless communication infrastructure. These won't necessarily be installed in the utility data center. The telcos can provide “cloud computing solutions” to help automate device provisioning and manage grid assets. This moves the telcos out of the network layer and into applications and services.

Using a completely different strategy, the telcos can compete with utilities. Some telcos are offering energy management services directly to their customers. They bypass the utilities meter network (if it exists) with a combination of DSL to the home, with in-home devices connected via standard Wi-Fi network. In the wired world, Verizon plans to offer energy management to its FiOS (fiber optic) customers. While telcos can provide energy dashboards and home automation this way, the telcos won't see any direct benefits from demand response and grid optimization, two of the smart grid's killer applications. If the bypass strategy is successful, it may motivate the utility to jump into the partnership with demand response. In the long run, it makes more sense for telcos and utilities to partner in ways that reinforce their core competencies.

So far most utilities are building their own communications network for smart meter deployments. In Europe, utilities view 3G cellular networks more positively. But this market is just barely underway. The utilities will make most of their technology and supplier decisions in the next few years. 3G cellular networks are sure to be part of the communications strategy for many utilities. 

August 17, 2009

Smart grid and Wi-Fi

You probably know Wi-Fi well. It connects your laptop to local area networks and from there to the Internet. It probably lives on your smart phone and in your game console if you admit to having one. Wi-Fi supports short-range connections up to a few hundred feet depending on the amount of interference from walls and ceilings. Wi-Fi is based on IEEE 802.11 standards. It offers broadband speeds, from 10 to 100 megabits per second. It is a mature technology that is already embedded in many devices. The Wi-Fi Alliance is the industry association charged with development, certification, and promotion.

Wi-Fi has a lot going for it, but is still searching for a clear role in the smart grid. It is too expensive and power-hungry for many types of meters, sensors, and switches but it lacks the range to serve as a general-purpose backhaul network (with the exception high-density urban areas). Wi-Fi falls short of ZigBee inside the home and it falls short of WiMAX across the neighborhood. Different companies are working on solving both of these problems.

SkyPilot, makes a turbo-charged version of Wi-Fi that promises a range of up to 10 miles. That might remind you of WiMAX. Indeed, SkyPilot takes standard Wi-Fi chips and makes them look like WiMAX in terms of range and capacity. This development potentially puts Wi-Fi into the meter aggregation, backhaul part of the network. If Wi-Fi proves reliable in this role, it could be less expensive than cellular or WiMAX.

Trilliant supplies radio communications cards that go into meters and software for utilities to run these networks. Trilliant recently purchased SkyPilot. Trilliant said the acquisition complements its short-range technology (based on Zigbee) to link meter collection points.

Tropos places 1-2 Wi-Fi routers per square mile (less dense than a municipal Wi-Fi network). The Wi-Fi devices sit between the meter and the utility operations center. Tropos' equipment works with smart-meters from Itron, Elster and Echelon.

Cisco has been building municipal Wi-Fi networks since 2005 and plans to incorporate energy management features into Wi-Fi access points and other devices. They will certainly look at outdoor Wi-Fi networks as an adjacent market opportunity.

Duke Energy, the giant utility, has said it is planning to use Wi-Fi in its suite of communication technologies but they have not announced the details.

Wi-Fi is also being positioned to challenge ZigBee in the home-area-network (HAN). GainSpan, with funding from Intel, is producing a low-power Wi-Fi system-on-chip. It targets applications such as energy management and building automation using battery powered devices. This is right on top of ZigBee's space.

For now, Wi-Fi will retain its current role as the leading technology for wireless LANs. It remains a dark-horse within the smart grid communications landscape. We'll keep an eye on it, as this race is far from over.

August 14, 2009

Smart grid and ZigBee

ZigBee is a suite of radio frequency (RF) communication protocols designed for low cost, ultra-low power radio transceivers. It is based on IEEE 802.15.4 standards and engineered for use in short-range wireless communication. ZigBee targets low-bandwidth applications where cost, battery life, and security are at a premium. It works for large-scale, low cost deployments such as monitoring and control. Sensors don't require high bandwidth, but they require low latency (i.e. minimal delay in signaling) and low battery drain. Connection speeds are in the range of 10 to 250 kilobits. Batteries can last for years because the protocol is designed to minimize the time the radio is on. ZigBee includes standards for full-function devices and end-point devices, with the latter designed to absolutely minimize device footprint and cost. Within a few seconds, ZigBee nodes can wake, connect to the network, transmit a sensor reading, and go back to sleep to conserve power.

ZigBee is a registered trademark of the ZigBee Alliance, the industry association and standards body which guides definition of the protocols and promotes applications. For example, it publishes technical application profiles to assist suppliers in creating interoperable products. To give you and idea of the range of ZigBee applications, current profiles include:

  • Home Automation
  • ZigBee Smart Energy
  • Commercial Building Automation
  • Telecommunication Applications
  • Personal, Home, and Hospital Care

ZigBee operates in the ISM radio bands of 915MHz in the US, 868MHz in Europe, and 2.4 GHz in most jurisdictions worldwide. New designs placing all functionality on one chip reduce ZigBee's footprint and increase its reliability. The cost of this system-on-chip (SoC) is expected to fall to a few dollars at volume.

ZigBee's role in the smart grid will be to power the home area network (HAN) and related networks for commercial and industrial buildings. In the residential sector, this includes in-home displays, thermostats, plugs, appliances, electric vehicle chargers, and utility meter(s). ZigBee will also support home automation, home health monitoring, and security systems but those applications should not be confused with smart grid applications.

The ZigBee Smart Energy Profile defines the standard behaviors of smart grid devices. Utilities could potentially use it as their primary standard for AMI-HAN communication. Tendril Networks, GridPoint, Itron, and many other smart grid suppliers employ ZigBee in their customer premise equipment. Due to its broad scope, ZigBee could become the defacto global standard for sensor and control networks.

What's the difference between WiMAX, Wi-Fi, and ZigBee?

WiMAX supports long range connections, covering 10s of kilometers, similar to a cell phone tower. It uses licensed or unlicensed spectrum to deliver point-to-point connections. IEEE 802.16 standards define mobile and fixed access. Typical speeds are on the order of 1-3 megabits. WiMAX is an emerging technology. Unit costs are in the 100's of dollars.

Wi-Fi supports short range connections, covering 10s of meters. It uses unlicensed spectrum to provide access to a local area network (LAN), typically covering a home, small office, or a public space. It is based on IEEE 802.11 standards. Wi-Fi is often used to access a private network, which is usually connected to the Internet. Typical speeds are on the order of 10-100 megabits. Wi-Fi is ubiquitous and is embedded in desktop computers, laptops, printers, smartphones, gaming devices, and others. Unit costs are in the 10's of dollars.

ZigBee also supports short-range connections, covering 10s of meters. It is based on IEEE 802.15 standards and engineered for use in low-bandwidth applications where cost, battery life, and security are at a premium. ZigBee targets large-scale, low cost deployments such as monitoring and control. Connection speeds are in the range of 10 to 250 kilobits. Batteries can last for years. Unit costs are a few dollars.

If you think of WiMAX connections as similar to cell phones, then Wi-Fi connections are similar to cordless phones, and ZigBee connections are similar to digital watches with wireless heart rate monitors. 

Wi-Fi and WiMAX trade-off range versus speed. Wi-Fi and ZigBee trade-off cost and power consumption versus speed. All three can be successfully combined to take advantage of their complementary strengths. For example, ZigBee can be used to provide local access to tiny devices such as thermostats and light switches. Wi-Fi can be used to provide local access bandwidth-hungry devices such as laptops and home entertainment systems. WiMAX can connect with both and be used to provide long range backhaul capabilities. Together, they form a three-tier wireless wide-area-network. Since the smart grid is designed for sense and control applications, ZigBee and WiMAX make a good combination for utilities. WiMAX eliminates the need for intermediate collection points since it can go directly into the home. Wi-Fi will also be operating within many customer premises, but it will not necessarily interconnect with the ZigBee network unless the utility has specific applications that require it.

There is more to the smart grid connection puzzle than meets the eye. Stay tuned.

August 13, 2009

Smart grid and WiMAX

You may have never heard of Worldwide Interoperability for Microwave Access, but you probably have heard of WiMAX. This promising technology might be the solution for providing broadband wireless access over the troublesome “last mile” to the home and office. This technology for broadband wireless access is based on IEEE 802.16 standards. The strength of WiMAX is best understood by comparing it with more mature technologies such as WiFi and 3G cell networks. WiFi, for example, works at high speed but only at short range. It delivers megabit speeds while you are near the access point, but it fails as you move 10 to 20 meters away. 3G cellular networks such as GSM, UMTS, and HSPA work at lower speeds but at much longer range. They are used with smart phones and engineered to emphasize mobility over speed. The chart at the right shows WiMAX falling into a sweet spot between WiFi and the 3G technologies. Given its unique combination of range and speed, WiMAX has promise for many applications:

  • Connecting WiFi hotspots to the Internet
  • Wireless alternative to cable and DSL for broadband Internet access
  • Providing portable connectivity to mobile devices
  • Rapid recovery of communication following natural disasters
  • Connecting data from meters and home area networks on the smart grid

WiMAX can either operate at higher bitrates (20+ megabits) or over longer distances (20+ miles) but not both. Most WiMAX networks run between 1-3 Mbps. WiMAX has built-in algorithms for reducing contention problems, especially for distant network nodes and during peak traffic periods. Like most wireless systems, available bandwidth is shared between users in a given radio sector, so performance deteriorates with the number of connections in a sector.

The technology has some history and momentum. The WiMAX Forum is the industry association promoting the adoption of WiMAX compatible products and services. One of their major roles is to certify device interoperability across suppliers. Grid Net, backed by GE, is focused on using WiMAX to connect smart meters to utility back offices. GE produces a WiMAX smart meter. Intel produces chips and is a major supporter of the standard.

Even if adopted widely, WiMAX will be deployed alongside other communication technologies. Here is one scenario. Inside the home, ZigBee and/or WiFi appliances connect to a base station and from there to a WiMAX smart meter. The meter connects with a neighborhood WiMAX node. The neighborhood node collects electricity usage from many consumers and relays it to the utility backhaul network for long-distance transport.

Going wireless the last mile offers many advantages. It eliminates the speed bottleneck of broadband powerline (BPL), it can be simpler to install, and it provides a future-proof connection to support utility application bandwidth requirements for decades into the future.

Right now, most utilities are deploying low-bandwidth wireless for the last mile, since its hundred-kilobit speeds are sufficient for today's energy management applications. But as more complex applications are brought online, and as smart meters scale into the tens of millions, extra bandwidth will be required. Grid optimization, for example, requires very fast response times to react to real-time grid sensors and to make instantaneous decisions for routing power across the distribution network.

The catch for utilities is that WiMAX remains a technology of the future, even if it's the near future. Developmental issues include still evolving standards, too few technology suppliers, and limited network deployments. Utilities don't necessarily require widespread national deployment because they can set up their own private network. Lack of national deployments, however, does not inspire confidence.

WiMAX could solve a very important piece of the smart grid communication puzzle. In WiMAX, utilities are exposed to the risks of early adoption. But they can also reward themselves by future-proofing the troublesome last-mile. That's a risk/reward that cuts both ways.

August 12, 2009

Smart grid and fiber optics

Another approach to smart grid wireline communication is fiber optics. Rather than paying the high cost of full-scale PLC/BPL to achieve mid-range bandwidth, some utilities will build optical networks in certain regions of their service area. Compared to copper, optical cable uses light waves for signaling, offers higher capacity and propagates long distances. Optical cable is less expensive, thinner, lightweight, and ideally suited for digital signaling. It is immune to electrical interference.

Some of the major telephone companies are rebuilding their copper networks with fiber to the home (FTTH). Telcos justify the investment as a way to retain telephone customers, attract and retain internet customers, and sell new services such as high-definition video on demand. The telcos aging infrastructure based on twisted-pair copper wire is no match for their future bandwidth requirements.

Here are the fiber deployments (FTTH) in North America as of 1Q2009 (source FTTH Council):

  • 15.2 million homes passed
  • 4.4 million homes connected (~3.3M by telcos, mostly Verizon)
  • 2.7 million homes receive video over fiber
  • connections growing at 1.5 million homes per year
  • “take rate” is an impressive 32%
  • annual growth rate is 52%

By contrast, BPL is used in about 5,000 homes. Clearly fiber optics has succeeded in the competitive market where BPL has not. 

Fiber can be used as the backhaul network for BPL. In that case, fiber is brought to a location near each electrical transformer, which blocks BPL signals. If the fiber is close enough, a single device can be used to bridge directly to the customer's electrical service. This potentially makes gigabit speeds available at every AC outlet in the home (or office) using the soon to be available G.hn.

G.hn is the next generation standard for legacy-wire home networking. It achieves gigabit per second sppeds and operates over existing wires for telephone, cable TV and electrical power. This new technology specifies the physical layer for the connection. It contains optimization algorithms that maximize performance when operating over each type of wire. Analysts believe that G.hn-compliant chips will be available during 2010 with equipment available before 2011.

While it will be expensive for utilities to install any type of dedicated line, at least fiber optics poses no bandwidth limitations for the foreseeable future. It is future proof. FTTH will be difficult to cost-justify solely for smart grid applications because most smart grid applications do not currently require high bandwidth. Yet, with utilities accustomed to building infrastructure with 50-year life cycles, fiber fits with their long-range strategic thrust to “build once and build well.” At least in urban areas, you can count on the more farsighted utilities to use fiber as part of their grid overlay.

August 11, 2009

Smart grid and power line communication (PLC)

Power line communication (PLC) provides a way to send data over high voltage transmission lines, over medium voltage distribution lines, and all the way into buildings and homes at lower voltages. PLC can be applied at every stage of the grid. Five years ago, one form of PLC known as broadband power line (BPL) was the “next big thing” in Internet connectivity, especially for rural areas. So why are utilities scrambling to assemble a communications strategy when they already own this built-in path to every customer?

Current data are revealing (courtesy of Pew Internet). As of 2009, US homes connect to the Internet in the following ways:

  • Cable – 41% (46 million households)
  • DSL – 33% (37M households)
  • Sat/fixed wireless – 17% (19M households)
  • BPL is used in about 5,000 households. That's about zero percent.

BPL has failed to achieve meaningful penetration for a number of reasons. First, power lines are inherently noisy. Devices such as switches, relays, transistors, and rectifiers create disturbances on the line. Some devices add harmonics. PLC must be engineered to work around these signaling disruptions. Second, PLC signals cannot readily pass through transformers because they act as line filters, blocking high-frequency signals. Repeaters are needed to bypass every transformer. These often consist of three stages, a filter in series with a protection stage, and a coupler. Third, PLC signals do not propagate long distances necessitating even more repeaters on runs greater than one mile. Fourth, the initial costs for PLC are high and the maintenance costs are uncertain. The cost-benefit is questionable when considering its moderate (mid-band) data transfer speeds. Fourth, PLC can interfere with ham-radio signals and has been confronted with legal challenges from the ham-radio community. Finally, utilities may not have the risk tolerance to compete with telcos. Most operate as regulated monopolies so they tend to become shy when they move outside the regulatory guarantees that insure their profitability.

Even with these obstacles, there is little doubt that PLC/BPL will play a role in the smart grid. It might play a supporting role, however, in combination with other technologies. For example, BPL can be combined with wireless by hanging WiFi (or cellular) access points on utility poles. In Boulder's Smart Grid City, Xcel Energy uses BPL in combination with short-range radio links. BPL carries data from meters, thermostats, and renewable-energy systems. Signals flow along the power lines for about a half-mile before being shunted to a fiber-optic (or cellular) backhaul network.

In the future, BPL will also be used in combination with WiMAX (long-range broadband) networks. So even on the power-line itself, communication is not a simple matter. No one knows for sure which communication technologies will dominate the smart grid. Most utilities will only have one chance to get it right. Stay tuned for more.

August 10, 2009

Smart grid resources

Want to do your own research on the smart grid? Congratulations. When scaled up, the smart grid will be one of the largest and most complex projects ever undertaken. From a sustainability perspective, the smart grid is crucial for boosting energy efficiency, renewable energy, and low-carbon transportation. It is our longest lever for boosting our energy security and mitigating climate change. I am regularly asked where to go for more information. With your research needs in mind, we have compiled a list of favorite resources. It is by no means complete but it should serve as a useful starting point. As you review these resources, you will find 100s more. As time is available, we will extend this list. Please send us your favorites for inclusion in future editions. Updated versions are published at http://carbon-pros.com/resources.html.

Grid Week – Washington D.C., Sep 21-24, 2009

Smart Grid News (SGN)

  • http://www.smartgridnews.com/
  • Industry news, supplier and product evaluation, company background, well-staffed and written. Want product details and benchmarks? SGN has it. Want the latest news? Register with SGN.
  • Noteworthy: SGN's Product Scorecard

Green Tech Media (GTM)

GTM Research

Green Biz

Clean Edge

  • http://www.cleanedge.com/
  • Broad market and company coverage including smart grid, energy efficiency, renewables, and low carbon-transportation. Want to hear the investors perspective? Visit CleanEdge.
  • Noteworthy: Clean Energy Trends 2009 (links to in-depth PDF)

Electric Power Research Institute (EPRI)

National Electrical Manufacturer Association (NEMA)

Federal Energy Regulatory Commission (FERC)

US Department of Energy (DOE)

Energy Information Administration (EIA)

International Energy Agency (IEA)

National Renewable Energy Laboratory (NREL)

National Institute of Standards and Technology (NIST)

Interested in smart grid security and privacy?
Start with these articles and reports.

August 07, 2009

Falling behind on green tech

I don't often post articles from other sources, but this one appearing in the Washington Post, and written by John Doerr (Kleiner Perkins) and Jeff Immelt (GE) is worth repeating. These two business gurus make a compelling case that the US needs to step up its leadership in green technology. Here are their recommendations:

  • Send a long-term signal that low-carbon energy is valuable. We must put a price on carbon and a cap on carbon emissions. No long-term signal means no serious innovation at scale, which means fewer American success stories.
  • Get the rules of the road right for utilities. We must make our utilities a driving force for repowering America, driving efficiency through incentives, a renewable electricity standard and a national unified smart grid.
  • Set energy standards that grow steadily stronger. America should strive to have the most efficient buildings, cars and appliances in the world. The savings will land in the pockets of U.S. consumers and businesses.
  • Get serious about funding research, development and deployment, at scale. The federal government currently spends only $2.5 billion on clean-energy R&D a year -- 0.25 percent of our annual energy bill. Sen. Jeff Bingaman's Clean Energy Deployment Administration is a good idea that would be fast and flexible. But more such programs are needed.
  • Fulfill President Obama's commitment to "become the world's leading exporter of renewable energy." We need a robust trade policy that seeks to open markets abroad -- including the Chinese market -- for U.S. clean-energy products through new trade agreements. Such policies unleash American competitiveness disciplined by market forces. This is widely endorsed by U.S. companies that compete internationally and by the broad-based President's Economic Recovery Advisory Board.

The article can be found at The Washington Post. Highly recommended reading.

p.s. On Monday Aug 10, we will publish a set of "starter resources" for professionals interested in delving deeper into smart grid technologies. Have a great weekend!

Stimulus funding for electric vehicle infrastructure

Since we've spent time on low-carbon transportation, it's worth pointing out the big DOE grants announced yesterday. Of the $2.4 billion in new grants, most is directed at electric vehicles, motors, and batteries (details). The smaller share of funds going towards electric vehicles (EVs) infrastructure is easy to overlook.

eTec as been selected for a grant of nearly $100 million to deploy the charging infrastructure for 1000s of EVs. This will be the largest EV pilot project announced to date. eTech brings its smart charging technology to the project. Nissan USA will match the DOE grant by providing 1000 vehicles. The Nissan Leaf is a 100% electric vehicle, not a hybrid (see post on low-carbon transportation).

Infrastructure testing will take place in five states including Arizona (eTec's HQ) Tennessee (Nissan USA's HQ), California (with its Clean Cars law), Oregon (a dark green state), and Washington (both green and high-tech). All are logical choices, with state governments ready to support this project and boost local business participation. The cities involved are likely to include Phoenix and Tucson (AZ), San Diego (CA), Portland, Eugene, Salem, and Corvallis (OR), Seattle (WA), Nashville, Knoxville and Chattanooga (TN). 

Here are some of the key features that make this project important:

  • Large-scale footprint spread across fives states and 1000s of state-of-the-art EVs.
  • Build-out of 2,500 charging stations in the selected markets.
  • Deployment of 12,500 Level 2 (220V) and 250 Level 3 (fast-charge) charging systems.
  • Field testing EVs in diverse topographic and climatic conditions.
  • Tests the effectiveness of charge infrastructure in the real world.
  • Experiments with revenue systems for commercial and public charge infrastructure.

Let's face it, if EVs are to become mainstream we need to jump start our charging infrastructure. We will track this project with great interest.

August 06, 2009

Xcel Energy drops proposed solar “tax”

My local utility was looking to backslide into old ways of thinking about distributed electricity such as rooftop solar. Xcel had proposed a “capacity tax” on customers with solar panels such that net-metered customers would pay additional charges for generating their own power. The new minimum charges would have been determined by the highest monthly usage during the year.

Once the Colorado solar community spread the word about the proposal, it generated a storm of protest from customers. "We made this proposal in good faith," said Karen Hyde, vice president, rates and regulatory affairs for Xcel Energy in Colorado. "However, we appreciate that the proposed rate mechanism has caused significant customer confusion."

Um, sorry. Solar owners were not the ones confused. Xcel may have been confused by thinking they could get away with this new tax on distributed solar. The proposed charges provided a clear disincentive to invest in solar.

I am a big believer in Xcel Energy. They are among the national leaders in wind and renewables. They are experimenting with grid technologies including two-way digital communication, wind-farm energy storage, grid optimization, demand response, and other energy saving features. Xcel like so many other utilities, operates in a mixed environment of regulation and deregulation. In the regulated part of their operating environment, it is easy to fall back on old ways of thinking. I am pleased that Xcel responded to customer complaints and has withdrawn their proposal.

The lesson for consumers is simple. If you want to see increased use of renewable energy sources in the United States, then keep an eye on your local utility and your state utilities commission. They will listen to you, and in time, they will change. --JCB

August 05, 2009

Low-carbon transportation

Stage four of smart grid, smart home begs a question about the reality of low-carbon transportation. There are more skeptics about electric vehicles (EVs) than about climate change. Despite this, I strongly believe that we entering a decade-long transition towards low-carbon vehicles. EVs in particular will be cleaner, quieter, and fun to drive. The technology-base for EVs will mature rapidly. They will be less expensive to operate and in time they will be less expensive to purchase. As a side-benefit, they will boost energy security and mitigate climate change. Right now, hybrid electric vehicles (HEVs) such as the Prius, Insight, and Focus represent the industry standard. That standard will evolve rapidly over the next 18 months. The next generation of vehicles represents a quantum leap in automotive engineering.

Today's HEVs recycle power from regenerative braking to charge a conventional battery pack. During stop-and-go traffic the batteries are engaged to increase fuel efficiency. The electric motor serves as a booster to the primary drivetrain powered by a conventional gasoline engine. By contrast, PHEVs and EVs will draw power from the grid and enable the vehicle to squeeze more miles out of each gallon of gas, *if* they use any at gas at all. These vehicles will have larger, more powerful battery packs using nickel-metal hydride and lithium-ion technology.

Among the majors, some manufacturers are taking an evolutionary approach, others are taking a revolutionary leap. Future power-train design will be different than today. Only time will tell which designs become dominant. Here are three examples representing a range of thinking about the future of low-carbon transportation:

  • Toyota is taking the evolutionary path. The 2010 Toyota Prius is a plug-in hybrid electric vehicle (PHEV) based on the popular Prius design. Like current model, the plug-in version uses its 1.8 liter internal combustion engine as the primary drive. It has a nickel-metal hydride battery pack to store a few kWh of power from the grid (details). The gasoline engine provides 98HP while the electric motor provides 34HP. The electric motor serves as a booster to the gasoline engine, kicking in during stop-and-go traffic, on up-hills, and in reverse. The electric boost improves the Prius' gas mileage in the city, making it comparable to its highway mileage. This increases gas mileage to 50MPG (from 46MPG for non-plug-in models with 1.5kWh batteries). Due to a design favoring the gasoline engine, the Prius-10 may only have an electric range of 12-18 miles. The 3rd generation Prius is an important step forward but it remains a gasoline-based vehicle. Of the advanced designs, it is a sure bet to hit the market in 2010. Of the three cars discussed, this is the one you can order right now.
  • General Motors is reversing Toyota's logic. The Chevy Volt is a PHEV with much more powerful batteries. The Volt uses the electric motor as its primary drive. Its small internal combustion engine serves as an on-board charging station to extend the driving range of its 16kWh lithium-ion batteries (details). With a battery-electric range of 40 miles most trips will be made on 100% electricity. For longer trips, the gas engine will kick in, adding a few hundred miles to the driving range. The Volt represents a step into the future because it is based on a battery-electric drive train. If successful, it positions GM with a platform that provides extended driving range today and can evolve into a 100% electric car in the future.
  • Nissan is taking the revolutionary road. The Nissan Leaf is not a hybrid. It eliminates the internal combustion engine and gas tank. The Leaf is a 100% EV with an expected range of 100 miles. Its all-electric design makes the car mechanically simpler, 100s of pounds lighter, and less expensive. Nissan betting that its lithium-ion battery technology will provide a market-leading range of 100 miles (details). Just as important, they are developing a smart charging system to recharge the batteries in 15 minutes, about the same time as it takes to fill-up with a tank of gas. The battery packs 24kWh of energy storage with a maximum output of 90kW. That's enough juice to power an average US home all day long. Nissan is betting that battery technology will progress rapidly over the next few years and that mass-production will drive battery prices down. In the Leaf, Nissan is leapfrogging its competitors into the future of low-carbon transportation.

Let's hope that all three of these vehicles (and their competitors) stay on track for release next year. In addition to the three profiled above, Ford, Chrysler, Mercedes Smart, and dozens of small companies will hit the market by 2011. More low-carbon choices for consumers mean more ways to gain energy security and more ways to to mitigate climate change. As automotive history gets rewritten over the next decade, 2010 will go down as a very important year.

Smart grid, smart home (stage 4)

Stage four represents the long-term view. Yesterday we covered stage three, utility-scale power storage systems. Today, we cover two additional advanced components of the smart grid: 1) using electric vehicles (EVs) as part of the grid's storage infrastructure and 2) supporting energy trading markets with real-time pricing.

Globally, every major car manufacturer is developing EVs or plug-in hybrid electric vehicles (PHEVs). Next year Nissan, will bring to market an EV named "Leaf." Nissan estimates that 10% of all vehicles will be electric by 2020. Germany aims to have a million plug-ins by that time. If automotive analysts are correct, we will put tens of millions of PHEVs and EVs on the road in the next two decades. This makes the batteries in these vehicles potentially available for buffering peak electrical demand. Most EVs will be charged at night and will store enough power to let the utilities draw on battery power during peak demand.

A challenge will be the development of smart charging stations that balance the customer's need for driving range with the utility's desire to borrow power during peak periods. It may seem futuristic but in less than 18 months, Nissan's Leaf will have many of the components needed for connection to the smart grid. The car includes network connectivity so that drivers can use their smart phones to modify charging preferences, reset the air conditioning temperature, or ask Nissan to run remote diagnostics. Ideally, EVs will be topped off with power during the day, say by plugging them into solar panels in a parking lot. Theoretically, these cars can charge themselves in the morning and then sell some of the power to the utility during its afternoon peak. If you are wondering what difference a car battery can make, you may not realize the power packed into electric cars. We're not talking about today's car batteries. By 2020, EV battery packs could store 100kWh. That's enough juice to power the electrical needs of several of your neighbors' homes for 24 hours. Since the utilities will draw only to cover peak demand, the power stored in one EV can go a long ways.

The final elements in smart grid stage four are real-time pricing and energy trading. With pervasive high-speed digital communications in place and real-time pricing available, localized energy supply and demand imbalances will become more transparent. Real-time pricing includes an advanced form of demand response where consumers can "program" their electrical loads to take advantage of such things as the low cost electricity available during a wind storm. In initial testing, consumers see real-time pricing as too complicated. They more readily adapt to time-of-day pricing with the general understanding that power is cheaper at night than during the day. Energy trading markets would allow all participants, including the consumer, who may own distributed generating assets, to sell power to the highest bidder. Such markets are admittedly far off. They are impossible in our current regulatory scheme. But consider that market forces will push electricity towards a much more efficient system. Open source supply and demand will reveal many inefficiencies. The opportunity to profit will lure capital towards whatever means and methods cost effectively eliminate these inefficiencies.

Stage four is almost two decades into the future, i.e. the 2025-2030 timeframe. At this point the grid may appear to be growing into a “big brother” phenomena with tentacles reaching deep into our personal lives. Keep in mind that none of the demand-side efficiency programs will be forced on consumers. Consumers will opt-in or opt-out of these programs based on their relative merits. Utilities who effectively market the smart grid's energy-saving features will find many customers willing to accept the incentives offered and become a partner with their utility.

My own household is already in the early stages of this transition. We generate about 90% of the electricity we consume. We fully expect to become a net-producer of electricity by 2010. We will achieve that without giving up our modern lifestyle and its many conveniences. As many pioneers have done before us, we have educated ourselves and become smart electrical consumers. The smart grid will make us even more so. More important, it will enable the mass market of 100M households to do the same while requiring very little of their time or attention.

August 04, 2009

Smart grid, smart home (stage 3)

Stage one was built on a foundation of smart meters and two-way communications (AMI-advanced metering infrastructure). On top of AMI we added a limited amount of demand-response (DR) capability. We called this “DR-lite” and it allowed your utility to control a small but important part of your electrical demand. In stage two, we added many more options for DR (e.g. appliances and other grid-aware devices). Demand response is so important it has been called the “killer app” for the smart grid. Stage two also introduced grid optimization (GO) and supported better integration of distributed renewable energy sources. Stage three and represents a  fully developed view of smart grid. Stage three includes integrating utility-scale power storage systems, while stage four includes using large-scale electric vehicles (EVs) as part of the grid's storage infrastructure and supporting energy trading markets. Let's take a look at grid-attached energy storage.

The amount of storage in the legacy grid is very close to zero. This is because it is very expensive to store energy. You may have experienced this if you recently bought a new battery for your laptop. In some cases the costs approach the value of the entire computer. Because storage is one of those “silver bullets” that solves many problems, a lot of money has gone into R&D. Energy storage can simultaneously 1) reduce peak demand, 2) smooth out production from wind and solar, and 3) power a low-carbon transportation system. Today, long-term research programs are finally starting to show promise. The idea behind grid storage systems is to use the low cost energy available at night for charging and then draw on that stored power during the day to cover peak demand. Twenty years out, storage systems will eventually replace peaking power plants.

Sodium Sulfur BatteryRight now, pumped hydro is our most cost-effective system. Coming up fast are compressed air energy storage (CAES) and massive batteries (flow and sodium sulfur). In CAES, night-time power is used to spin a turbine that pumps compressed air into underground caverns and porous rock strata. When power is needed, the system is reversed and compressed air is used to spin the same turbine to generate electricity. Large-scale batteries store power as chemical energy similar to the way your car battery works but on a massive scale (see picture on right). Flow batteries, for example, are the size of a small building and can release megawatt-level power with the flick of a switch. When attached to the grid, these storage systems will act like power plants to cover peak demand for a few hours per day.

Storage systems also compensate for the intermittent nature of renewables. They can absorb the energy whenever it is generated and store it until needed. On the North American plains, the wind most often blows at night when there is minimal demand for energy. If this energy can be stored until the next afternoon, it has far higher value. All utilities pay a premium for power that can be dispatched on demand, i.e. throttled up or down as needed. Thus storage systems will raise the investment value of wind and solar. Smoothing out electrical peaks and valleys may not require massive storage capacity because the highest costs are at the peaks. These peaks can be short duration. Whatever its form, there is no doubt that energy storage will be a critical component of the smart grid.

We will continue this discussion in the next post.

August 03, 2009

What is a microgrid?

A microgrid is a small version of the electrical grid. It is usually privately owned and operated for the benefit of a large commercial or industrial customer (or group of customers). You can think of “the grid” as a collection of generation, transmission, and distribution assets. The generation assets are power plants converting coal, nuclear, natural gas, hydro, or wind into electricity. The transmission assets are high voltage, high power lines that carry electricity from a power plant to a substation near the population (or demand) center. The distribution assets are power lines that carry lower voltage electricity from substations to neighborhoods and homes. These are the local lines running on what some folks call “telephone poles.”

A microgrid is a much smaller version of the grid containing generation, distribution, and various load centers. The generation assets are essentially small-scale power plants known as “distributed generation.” These could be anything from diesel generators to solar PV or wind turbines. Smart microgrids employ many of the same technologies as the smart grid. They have a digital network overlay complete with monitors and a control center for operations. They include both grid optimization and demand response functions.

The microgrid is connected to the “grid” in a way that presents its electrical load to the utility as though it is one controllable load. Monitors and switches at the grid-interconnect allow it to be quickly disconnected and run as a self-sufficient electrical “island.” The microgrid operator may have an agreement to supply electricity to the utility during peak periods or whenever it has excess capacity. The surplus power can be stored if storage assets are attached. Some microgrids are designed to produce cheap power (e.g. for an industrial complex), some are designed to produce high quality power (e.g. for a computer chip fabricator), and some are designed for secure power (e.g. a military base).

The Department of Defense has signed GE for its $2M smart microgrid project at its Twentynine Palms Marine Corps base in California. Like most military bases, Twentynine Palms generates enough power to cover critical needs. It has a solar plant as well as a fuel cell installation. It will be connected to the regional grid through a GE microgrid controller. The GE product will support grid optimization and connection to the base's grid control center. The Twentynine Palms base is huge, almost the size of Rhode Island. This will be the largest microgrid project to date. Click on the image for details on GE's website.