Wednesday 6 May 2009

US smart meter projects on track: Itron

The company continues to work on its deployments for major utilities in the US.

Itron Inc has said that the economic recession has not affected deployment of the company’s $1.4 billion in smart meter contracts with four major U.S. utilities.

According to a report filed by Reuters, Itron chief executive Malcolm Unsworth said projects with Sempra Energy’s San Diego Gas & Electric, CenterPoint Energy Inc and Edison International’s Southern California Edison “are all on plan according to what they originally proposed”.

Itron has a fourth contract with DTE Energy unit Detroit Edison which is expected to begin in 2010.

The company also continues to improve its offerings in this sector. Recently, Itron signed a joint marketing agreement with
Verizon Wireless for development of secure, two-way communications that support utilities’ access to energy usage data and advance their smart grid projects.

Operating on Verizon Wireless’ network, the Itron OpenWay Cell Relay now allows utilities to more quickly collect, measure and manage energy data, while providing a supply of power without having to build and operate proprietary communications networks.

EnergyAustralia signs a deal with IBM

EnergyAustralia says the project, a part of its initial investment of $170 million in its smart network roll-out, will help it stay at the forefront of the global intelligent network transformation.

EnergyAustralia has signed an agreement with IBM for the implementation of an energy network monitoring and control solution.

A key project within EnergyAustralia’s overall intelligent network programme, the Distribution Monitoring and Control (DM&C) project involves the roll-out of 12,000 sensing devices throughout the electricity distribution network, creating a smart grid.

As per the agreement, IBM will design and build the system IT architecture to support the project, in which sensing devices will connect with EnergyAustralia’s operational systems using a combination of fourth generation and existing technologies.

According to IBM, this network will carry the necessary data for EnergyAustralia to reduce outages through faster fault location and preventative maintenance and, to work towards managing distributed energy sources such as solar and storage devices.

Ember secures $8 million in funding

The company now has raised $89 million in total.

Ember Corporation has closed an additional $8 million in funding from its primary venture capital investors and strategic partners.

Polaris Venture Partners, GrandBanks Capital, RRE Ventures, Vulcan Capital, DFJ ePlanet Ventures, New Atlantic Ventures, WestLB Mellon Asset Management and strategic partners such as Chevron Technology Ventures and Stata Venture Partners participated in the latest round of funding.

Smart meters now being equipped with ZigBee-standard Ember radio chips and protocol software are serving as energy management gateways between utilities and consumers, said Ember chairman and Polaris Partner Bob Metcalfe.

The company, referring to projections from research firm, In-Stat, mentioned that the market for 802.15.4/ZigBee devices is expected to reach as high as 292 million units in 2012, up from about seven million units in 2007.

The company also announced the expansion of its sales channels with the addition of new distributors in Australia, New Zealand, India and Hong Kong, People's Republic of China which are emerging as key markets for ZigBee-enabled smart meters.

EnergyHub closes Series A financing


The company is now focusing on its product development as well as the implementation of pilot programmes in the US.

EnergyHub, a home energy management solutions provider, has closed a Series A round co-led by .406 Ventures and Physic Ventures. Terms of the investment were not disclosed.

The company will use the proceeds from this financing to support continued product development and to implement pilot programmes with utilities across the US.

According to .406 Ventures, EnergyHub is providing “a much needed two-pronged approach to decreasing per capita consumption”. The company offers consumers control of their energy use while enabling utilities to better manage their territories.

EnergyHub’s solution, which integrates in-home devices, stand-alone displays, and web-based software, gives consumers real-time information and control over their energy usage. Consumers can access data and control their home from the Internet or a mobile device.

Landis+Gyr on track to complete its 280,000-meter project

The company began deploying its Gridstream two-way smart grid communications network at electric utility Austin Energy last year.

Landis+Gyr is on schedule to complete the 280,000-meter project, currently undergoing at Austin Energy, in August this year.

More than 165,000 two-way meters have been installed so far, and integration with the utility’s meter data management system is underway. The two companies are testing access to interval usage and metering data, and will soon begin testing other advanced features, such as remote disconnect and load management.

Landis+Gyr is providing support services for the deployment of advanced meters and turn-key network hardware upgrade as part of its managed services agreement with Austin Energy, a utility which serves nearly 400,000 electricity customers in and around Austin, Texas.

The company began deploying the Gridstream two-way RF mesh network as part of an expanded management contract with Austin Energy that was signed last year. The deployment will enable the utility to leverage its network for smart grid and demand response applications, including in-home networking, and distributed generation and automation.

Gridstream focuses on maximising the effectiveness of energy management assets through the seamless integration and flow of technology and information.

FERC steps up smart grid development

The Federal Energy Regulatory Commission (FERC) has come with a proposed policy statement and action plan that would help set the “rules of the road” of a modern grid.

The proposed policy statement seeks public comment on standards for four priority issues critical to the smooth functioning and operation of the Smart Grid.

After weighing public comments, FERC plans to adopt a final policy statement providing guidance to the electric power industry on standards for:
· Cyber security;
· Communications among regional market operators, utilities, service providers and consumers;
· Ensuring that the bulk power system operators have “wide-area situational awareness” with equipment that allows them to monitor and operate their systems; and
· Coordinating operation of the bulk power system with new and emerging technologies for renewable resources, demand resources, electricity storage and electric transportation systems.

Prioritising the development of key standards will speed up the process of achieving an interoperable smart grid, said Commissioner Suedeen Kelly. Kelly said the proposed policy will require the sharing of information associated with smart grid deployments with the Smart Grid Clearinghouse being developed by the Department of Energy. “This will help to demonstrate the real benefits that investing in a smart grid can bring to the public,” said Kelly.

As per the plan, smart grid advancements will apply digital technologies to the grid, and enable real-time coordination of information from both generating plants and demand-side resources.

Related links: FERC

Smart grid industry should adopt Security Development Lifecycle: study


A study has highlighted that smart grid technology is susceptible to common security vulnerabilities such as protocol tampering, buffer overflows, persistent, and non-persistent rootkits, and code propagation.

These vulnerabilities, according to
IOActive, a provider of application and smart grid security services, could result in attacks to the smart grid platform, causing utilities to lose momentary system control of their advanced metering infrastructure (AMI) smart meter devices to unauthorised third parties. This would expose utility companies to possible fraud, extortion attempts, lawsuits or wide spread system interruption.

Joshua Pennell, president and CEO, IOActive, recommended that the smart grid industry should follow a proven formal Security Development Lifecycle, as exemplified by Microsoft’s Trustworthy Computing initiative of 2001, to guide and govern the future development of smart grid technologies.

IOActive, which verified significant security issues within multiple smart grid platforms, emphasised that if security is not addressed in the design and implementation of these emerging technologies, it may prove cost prohibitive to address them once the devices are fully deployed in the field.

In terms of deployments, it shared that over two million smart meters are being used currently in the US and it is estimated that the more than 73 participating utilities have ordered 17 million additional smart meter devices.

Related links:
Security, Utilities, Advanced Metering Infrastructure, Smart Meters

Accenture to forge connection between utilities and city authorities

Accenture has taken an initiative to accelerate the introduction of smart grids by connecting utilities and city authorities that are committed to deploying the same.

Called The Accenture Intelligent City Network, the initiative connects utility executives and metropolitan leaders to exchange knowledge and practical experience related to planning, challenges and advantages of smart-grid technology.

The focus will be on creation of blueprints for the deployment of smart grids, including the integration of smart grids with broader investments in intelligent infrastructures, such as smart buildings and transportation, as well as new technologies and emerging standards.

Accenture believes that city authorities are in the best position to coordinate with the public- and private-sector stakeholders to transform the energy consumption habits of local communities.

Initial members of the Accenture Intelligent City Network include Xcel Energy, East China Grid Co., a Chinese transmission company; Russian Interregional Distribution Grid Company of Centre (MRSK of Centre), which will be creating an “intelligent” city in Belgorod in collaboration with the regional government; Dutch utility Alliander N.V. and the City of Amsterdam.

Mike Carlson, Xcel Energy’s vice president & chief information officer, said that energy management, customer service and environmental management strategies can all be enhanced with smart-grid technologies and through a partnership between utilities and city and state regulatory leaders.

Related links:
Accenture, Utilities, Intelligent infrastructure, Xcel Energy, energy management

Pepco Holdings opts for GE’s smart meters


Electric utility Pepco Holdings, Inc., (PHI) has chosen GE’s smart meters for use in the deployment of its advanced metering infrastructure (AMI) in the state of Delaware.

Installation of the GE meters is expected to begin in the fourth quarter of 2009 in Delaware.

PHI has chosen to work with GE at a stage when the utility is working on its vision of changing the relationship with its customers.

Joseph M. Rigby, president and chief executive officer of PHI, said with new digital smart meters and the smart grid, PHI’s utilities will be able to provide up-to-date energy information and tools that will help its customers manage their energy use and costs.

Communications technologies within GE’s smart meters will also help PHI detect and better respond to power outages, further improving the energy experience for PHI consumers.

Related links:
Utilities, Advanced Metering Infrastructure, Smart Meters

Getting a quick response during utility infrastructure outages

SkyBitz has worked on a solution for disaster recovery teams to get a quick response during utility infrastructure outages.

The solution, based on SkyBitz’s Smart Sensor Tracking management solution, allows utility companies to leverage real-time information about the location, status and environmental conditions of their assets. This includes the deployment of teams to remote locations during network outages, as well as efficient selection, retrieval and redirection of assets.

The disaster recovery solution provides an active communication channel between critical mission command and control systems and teams and assets in the field through bi-directional messaging capabilities. The SkyBitz satellite-based solution has a ubiquitous coverage and operates in remote areas that lack terrestrial coverage.

The solution can be used to comply with FEMA cost recovery requirements.

According to the company, the SkyBitz solution is available and compliant with the objectives of the recently signed American Recovery and Reinvestment Act Title XIII funding for smart grid and improvements for reliability and recovery from disruptions and integration of renewable generation.

The company believes that initiatives like smart grid, automated metering infrastructure and demand response can all benefit substantially from investments in remote asset management, condition monitoring and metering.

Related links:
Utilities, Advanced Metering Infrastructure, Smart Meters

“Demand response currently accounts for over 20 gigawatts”

Comverge Inc.’s chairman, president and CEO Robert Chiste has highlighted that demand response and energy efficiency provide the “fastest, cleanest and most economic” megawatts.
Chiste also pointed out that regulators and legislators at the Federal and State level are encouraging and approving funding for increased investment in energy efficiency and demand management.


According to Chiste, who made these observations during the company’s fourth quarter earnings call, the demand response and energy efficiency opportunity has the potential of far greater impact on energy independence than other alternatives such as solar and wind.

“In fact, wind and solar projects have slowed considerably because the financial and transmission constraints in the current install base of solar power in the United States is about 2 gigawatts,” said Chiste. “By comparison, demand response currently accounts for over 20 gigawatts or ten times the size of the entire solar installed base in the United States.”

In the recent past, the US industry witnessed the signing into law of the American Recovery and Reinvestment Act and provisions to modernise the U.S. electricity grid.

The American Recovery and Reinvestment Act contains specific provisions for the establishment of a $4.2 billion grant programme that will support the rollout of smart grid and smart metering projects across the country. Smart metering solutions provide utilities with a two-way flow of data required to manage energy use, efficiency, demand response and network protection. Consumers benefit from improved usage information and with it, the ability to reduce overall energy costs and carbon footprints.

Consert opts for Marlabs as its technology partner

Consert, Inc. has chosen Marlabs to build a smart grid energy management solution, which will allow a utility to better manage overall energy usage.

Marlabs stated that such an integrated smart grid solution - benefiting both the utility and its consumers – “will be a first for the industry”.

According to Consert, a specialist in designing and implementation of intelligent energy distribution and management solutions, the solution from Marlabs will not only provide savings of up to 15 percent to families and small businesses, but actually allow distributing utilities to lower demand peaks.

Marlabs provides solutions that enable utilities to make the transition to the smart grid and implement demand management technologies.

Other than Marlabs’ systems integration experience and software engineering expertise, Joseph W. Forbes, Jr., COO, Consert also referred to the fact that Marlabs, as an IBM Regional Systems Integrator, could help the company to effectively leverage IBM technologies was also a reason behind going ahead with the pact.

Jeff Holden, VP, Marlabs, said, “Based on real-time two-way response techniques, the system will create a virtual power plant, promote green renewable energy, and improve efficiency of the grid.”

£4.7 billion needed for power grid

A study has indicated that Britain needs to invest up to 4.7 billion pounds to upgrade its electricity grid by 2020 to accommodate new power generation, including renewables and nuclear plants. Among the extensions needed to the grid will be high-voltage subsea cable links between Scotland and England, according to the report by the Electricity Networks Strategy Group.

Mike O'Brien, the energy and climate change minister, said it was vital to build a grid that was "fit for purpose" so that Britain could cut carbon emissions and make supply more secure. "This is a massive long-term investment opportunity and this upgrade work will help support jobs across the low-carbon economy," he added.

In Scotland, the report suggests between 8GW and 11GW of new transmission capacity could be opened up, with one of the key projects being the Beauly-Denny line rebuild, which has been subject to a long-running public inquiry. As per the information available, plans for a £780million series of major investments designed to carry green wind, wave and tidal power from the north of Scotland south to England were outlined.

The UK Government’s Electricity Networks Strategy Group wants an upgrade to the Dounreay to Beauly to Kintore line costing £180million and a strengthened east coast line costing £150million to follow the completion of the controversial proposed Beauly to Denny line. A second wave would include a Caithness to Moray reinforcement costing £450million.

Chris Stubbs, director at environment consultancy WSP, said the £4.7bn bill highlighted the “worryingly high cost” of embracing new energy generation and that the consumer or taxpayer would end up paying.

Ofgem has announced it intends to approve the funds for the pre-construction work on specific transmission projects. It is also developing proposals to make the regulatory regime capable of meeting the renewable challenges.

A call for spending $4.5 billion on smart grid in a rational way

Sen. Lisa Murkowski (R-Alaska) has reportedly said it could be wasteful for the Energy Department to spend $4.5 billion in matching funds provided in the economic stimulus bill to create a digitised, conversant “smart grid” if the investment is made in technology that becomes obsolete or if the public rejects or underutilises the technology.

“Is it possible to expect that this programme can spend $4.5 billion in two years in a rational way?” Murkowski said recently. “We first need to develop standards for the smart grid programme before we start just throwing money at it.”

A report filed by nytimes.com highlighted that smart grid operation standards have not been designated yet despite a provision in the 2007 energy bill calling for the Commerce Department's National Institute of Standards and Technology to come up with standards with the help of the Federal Energy Regulatory Commission and other organizations so that the technology can easily communicate on the same platform -- a concept known as interoperability.

That lapse combined with the general lack of public knowledge about the smart grid and how to manage energy in real-time could be a recipe for failure, said Murkowski, who has already stated that for the most part, the amounts of money allocated to programmes specified in the bill are completely unprecedented.

Murkowski acknowledged there is money in the legislation that would benefit Alaska, but she said a short term cash infusion doesn’t outweigh the long term financial burden the legislation places on future generations and state and local governments.

Utilities in the US recommended to focus on consumer education

Even as Americans are concerned about energy costs and show interest in new energy options, yet this interest is not yet translating to action - and utilities can improve communication with customers, according to the findings of a research report released by Oracle.

Oracle, which had surveyed 604 U.S. consumers and 200 U.S. utility managers for its `Turning Information into Power’ research report, found that 94 percent are concerned with the energy costs of their primary residence and 95 percent are interested in receiving detailed information on their energy use. But only six percent of respondents have installed some type of renewable energy source in the last 12 months.

For their part, utilities believe the smart grid is critical to meeting impending energy needs and are taking first steps.

· 91 percent of utility managers believe it is critical that the U.S. adopts smart grid technologies. They selected “improving power flow management” and “supplying customers with the tools to monitor and reduce energy use at home” as the top two benefits.
· 41 percent of utilities have assessed the opportunity for smart grid technologies and 16 percent have begun implementation.
· Utility managers believe “upfront consumer expenses” (42 percent) and a “lack of consistent industry technology standards” (30 percent) will be the biggest roadblocks to maximising benefits of the smart grid.