Tag: smart meter

Utilities should open up API’s to their smart meter data


Smart meter

The world of utilities is changing with the roll out of smart meters. One of the biggest changes will be the wealth of data that utility companies will suddenly be flooded with.

As we noted in a previous post on GreenMonk, Centrica has:

18 million residential accounts and one million business accounts. Right now they are billing residential accounts every three months and they are managing 75 million meter reads per annum.

With the move to smart meters, Centrica will take electricity reads every 30 minutes and gas reads once per day. This means a shift from 75 million meter reads per annum to 120 billion meter reads a year. 120 billion – that’s billion with a b. That’s a phenomenal amount of data to have to deal with.

What will utilities do with this sudden influx of data?

Apart from the traditional billing function, many utilities have no idea what, if anything, they will do with the data. And this is hardly surprising, this is a new level of energy consumption information that we have not had access to previously. And furthermore, utilities have not traditionally been in the data business.

So, what should they do with all this new data? Obviously, I have a couple of ideas (more on that later), but likely you do too, and possibly so too do some utilities.

However, to really maximise their chances of coming up with a good use of the data, it’s best to expose it to as many people as possible. Crowdsource the ideas.

Utility companies should now give serious consideration to exposing their data, anonymised, through the use of openly documented API‘s and allow developers have at it. They should then run hackathons and competitions to see who can come up with the best applications making use of the data. Why not?

A couple of ideas – how about an application to highlight exceptional energy use. For example, would customers pay an extra €1 a month to receive an alert if their elderly relative’s lights didn’t go out at 11pm, or come on again at 8am? Or for people with holiday homes, would they pay €1 a month to be alerted if the lights went on when they’re not there? Or if the electricity went off (and there was food in the freezer, or worse beer in the fridge!), for example?

If utilities were to open the data to developers, who knows what amazing ideas would emerge – developers are after all, as we are fond of saying, the New Kingmakers.

(Cross-posted @ GreenMonk: the blog)

SAP’s Sustainability announcements at Sapphire Now


SAP co-CEO Jim Hagemann Snabe at Sapphire Now 2012

SAP co-CEO Jim Hagemann Snabe at Sapphire Now 2012

Technology innovation plays a major part in creating a sustainable world tomorrow

So said SAP co-CEO Jim Hagemann Snabe at this year’s SAP Sapphire Now conference in Orlando. He then went on to predict three major trends in computing for the coming years – according to Jim, in the next five years everything will move to Cloud, everything will be in main memory and everything will be mobile.

This wasn’t just some off-the-cuff remark – these three developments are core to SAP’s product roadmap – even in the Sustainability space.

In the mobile space for example, at Sapphire Now SAP announced a new version of a mobile app for incident management. With this app, workers can now log issues from their mobile device with a photo or video, as well as an audio recording, and send it directly to an incident or safety manager for corrective action. This crowd-sourcing of safety information also has built-in tracking of the reported incident which is hugely empowering for workers who may previously have felt their voice wasn’t heard. And for the companies deploying this solution it leads to a safer work environment and a happier workforce.

This puts me in mind of an initiative IBM rolled out with the Los Angeles Unified School District (LAUSD) where they enabled students, teachers and staff to report issues like water leaks, broken aircon/heating, exposed cables and so on, by sending text messages and photos through their mobile phones. More please.

Also in the mobile sustainability space, SAP have their Electronic Medical Record app [SilverLight warning] – an app which gives doctors instant access to a patient’s electronic medical records.

In the Cloud space, SAP have made two major recent acquisitions – Successfactors and more recently Ariba at a cost of roughly $7.7bn. This is a clear indicator that while SAP maybe late to the party, it is serious about catching up…

Centrica’s Smart Meter Analytics application could make energy management compelling

As I have mentioned here previously, Smart Meters are going to bring a flood of data to utility companies which will need to be properly managed and which can be a source of intelligence for the utility, if they mine it well.

At the recent SAP Sapphire Now conference, UK Energy retailer Centrica showcased their Smart Meter Analytics application running on SAP’s HANA. HANA is SAP’s in-memory computing solution (In-memory computing moves data off traditional storage on servers and into RAM, providing a performance boost over having to read the data off disks).

Centrica are the largest single instance utility on an SAP system with 18 million residential accounts for and one million business accounts. Right now they are billing residential accounts every three months and they are managing 75 million meter reads per annum.

With the move to smart meters, Centrica will take electricity reads every 30 minutes and gas reads once per day. This means a shift from 75 million meter reads per annum to 120 billion meter reads a year. 120 billion – that’s billion with a b. That’s a phenomenal amount of data to have to deal with. Doing any kind of traditional analytics on a data set that large would very quickly get totally bogged down. One of the interesting things about HANA however is that the performance scales linearly with the hardware. If it’s starting to slow a bit with 120 billion meter reads, throw a couple of extra terabytes of ram and servers at it and hey presto you are back in business, or so the theory goes!

In the demo above, Centrica are using the analytics to examine their customer segmentation. They can look at the energy profile of similar businesses in a specific area and where there are anomalies, they can work with those businesses to help them cut their energy consumption until it is more in line with their peers. Increasing pressures to be energy-efficient and to reduce carbon footprints are being looked on by Centrica as an opportunity to open an energy services business, going to customers to help them to become more energy-efficient. The Smart Meter Analytics application is going to be crucial for this new practice within Centrica…

Smart Grid Technology conference

Trust
Photo credit TerryJohnston

I attended the Smart Grid Technology conference in London last week and there were a number of interesting themes which became apparent.

The main theme to emerge was the question of how utilities could engage the residential customer. This is good news – the first step on the road to recovery is acknowledging that you have a problem!

The other two discussion points which came to the fore were 1) that energy is too cheap for small price shifts to incentivise behavioural change and 2) what to do with all the data arising from smart meter roll-outs (the prevailing opinion was that data from smart meters should be used for billing purposes only because that there was far too much data to be of any practical use!). I’ll talk about these in other posts…

Can Arqiva provide the Smart Grid communications infrastructure for Britain?

Communications Mast
Photo credit Lee Jordan

We had a really interesting Smart Grid related conversation with a company called Arqiva the other day.

I hadn’t heard of Arqiva before but they are quite a significant player in communications infrastructure. They own or have exclusive marketing rights for 16,000 communication masts in UK – what they call vertical real-estate! They also own, operate and maintain all of the UK’s terrestrial television network as a regulated monopoly. And they are responsible for rolling out the switch-over from analog to digital broadcasting for the country.

If that weren’t enough Arqiva are Europe’s largest provider of satellite linkage services!

All very well I hear you say, but what does this have to do with Smart Grids?

Well, Arqiva have a fascinating proposition. They are expecting Ofgem (the regulator for the electricity and gas markets in Great Britain) to announce some kind of central procurement for a Great Britain-wide network and if that occurs, Arqiva would be in a very strong position to bid for it.

They have dedicated longwave spectrum (412 MHz) and a nationwide mast footprint already capable of reaching 100% of the homes in the country. A significant advantage of the dedicated longwave spectrum (apart from the lack of contention) is that longwave will have no problem reaching into houses where meters can be located under stairs or in basements, for example. Cellular networks don’t have the same luxury and are more plagued with health concerns around the transmissions from their masts…

Are utility companies ready for full smart grids?

Power management display

In the Smart Grid Heavy Hitters video interview series I have been publishing here on GreenMonk, one of the questions I ask all interviewees is, “What is a Smart Grid?” Almost all the interviewees talk about an infrastructure capable of full end-to-end, two-way communications. That is, communication from utilities down to the appliance level in-home, and from appliances back up to utilities.

Great. But what does this mean in practice and is this something utility companies have given enough thought to?

Utility companies currently typically take one meter reading per month. With the roll out of smart meters and smart grids that will change drastically. If a utility goes to 15 minute meter reads, we are talking about a shift from one meter read a month to around 2,880 meter reads a month (4 x 24 x 30 = 2,880).

This has huge implications for a utility company’s IT infrastructure. They will need to capture and store orders of magnitude more information than they have ever needed to previously.

On top of that, the information coming from smart meters is vastly more complex than the simple output of analog meters, as well. Particularly if the consumer is also a producer, selling energy back to the grid (via generation or from storage), getting rebates for lowering consumption in times of peak demand and/or getting roaming bills for charging up electric vehicles at public charging facilities, for example.

What will utility companies do with this new data?

Well, the primary use of this data will be for billing. Do utility companies have billing systems in place which are able to take in these vast quantities of data and output sensible bills?

Today’s bills are generated off that single monthly meter read, however bills generated from 2,880 meters reads a month (or even 720 – one meter read per hour) will be very different. They should be easy to understand, reflect the intelligence gained from the extra information and offer customers ways to reduce their next bill based on this.

Crucially too, utility companies will need to be pro-active in contacting people who go out of their normal pattern of usage/billing, otherwise we’ll see even more consumer backlash against smart grid roll-outs.

Obviously, transitioning away from paper bills to electronic ones will vastly enrich the possibilities utilities have with data presentation for customers as well as offering utilities ways to monetise their billing delivery (Google Adwords for bills anyone?).

On the consumer side, consumers will need to be able to see their energy consumption in real-time. Not only that, but to ensure that they act appropriately on the information, the user interface will be critical. A poor user experience will see a deluge of calls swamping customer care as people struggle to understand their consumption patterns. Or worse, mis-understand and send their bills soaring!

Consumers will need to be given ubiquitous, secure access to their energy consumption information. But more than that, consumers will also need to be given the tools to help them reduce their bills, without necessarily reducing their consumption (i.e. load shifting).

This will also necessitate a move to smart appliances by the consumer (appliances which can listen for price signals from the smart grid and modify behaviour according to a configurable set of rules). The Smart Appliances market is expected to reach $15bn by 2015 so the move to smart appliances can represent a new revenue stream for utility companies. Especially if they, with consumers consent, utilise energy-profile information from consumers smart meters to make more appropriate energy saving suggestions.

All of these changes require seismic shifts by utility companies both in terms of IT investments, but also in terms of their approach to customer care and communications.

Are they up for the challenges ahead? With the increasing liberalisation of energy markets and growth in consumer choices, they better be!

by-sa

When will we have full Smart Grid deployments?

electric cables
Photo credit mckaysavage

Despite a lot of talk and some high profile trials the day we have ubiquitous full Smart Grids is still a long way off.

I attended the Smart Grids Europe conference in Amsterdam this week.

It was a great conference, I met a ton of interesting people and had some fascinating conversations.

I can’t help feeling a little deflated though.

I’m a huge advocate of Smart Grids. I gave my first international talk about Smart Grids and demand side management (Demand Response) at the Reboot conference in Copenhagen back in early 2007. We are now a full three years later and many utility companies have yet to roll out smart meter pilot programs.

Others are rolling out smart meters more because of pending of legislative requirements than because of any desire help reduce people’s energy footprints.

In fact, after talking to more utility companies, I suspect that smart grids may not proceed beyond smart meter deployments in some regions. The recent Oracle survey of Utility CxO’s confirms this view

utilities executives put improving service reliability (45 percent) and implementing smart metering (41 percent) at the top of the list [of Smart Grid priorities]

So why the apparent passive aggressive response from the utility companies?

Well, they have to keep the lights on. To paraphrase the old saw, they do not want to ‘fix’ their grid, if it ain’t broke! And, let’s be fair, the idea of investing large sums of money to help their customers use less of their product isn’t one which sits comfortably with them. That’s understandable.

And no utility wants to have the kind of customer blowback that PG&E saw with their botched smart meter rollout in Bakersfield.

But there is a huge global imperative for Smart Grids – the Smart 2020 report said:

Smart grid technologies were the largest opportunity found in the study and could globally reduce 2.03 GtCO2e , worth €79 billion ($124.6 billion).

How then do we square that circle?

We could legislate for them but a better approach would be to change the landscape in which the utility companies operate such that there is a business case for full smart grid deployments.

I suspect the best approach would be the introduction of a carbon tax. This is something we need to do anyway (and the mechanisms for doing so are a topic for a separate post) but if there were a tax on CO2 production, it would be in utility companies (and their customers) interests to cut back on energy consumption.

Even if there were a strong business case for smart grids, given the glacial speeds at which utility companies move, I suspect it is going to be many years before we see full smart grid implementations.

by-sa

The day that we see all devices which consume water having networked flow meters is still a ways off

atr
Photo credit Hypergurl – Tanya Ann

I wrote a post a couple of days ago asking the question How long until all devices which consume water have networked flow meters? after talking to Oracle VP Industry Strategy, Guerry Waters about Oracle’s recently released “Testing the Water: Smart Metering for Water Utilities” study.

Having put the question out there, I’m now going to discuss some of the factors which will influence the answer!

The first thing to realise from the Oracle data is that 76% of homeowners in the US are concerned with the need to conserve water in their community and 71% believe that having access to detailed consumption data would encourage them to take steps to lower their water use. So barring and big PR disasters like the PG&E Smart electricity Meter fiasco in Bakersfield, it would seem that the vast majority of consumers are bought into the idea of having smart meters to help lower water consumption.

How about the utilities? It looks like if they do decide to rollout smart water meters, they’ll very much be pushing an open door.

Funnily enough this is where it starts to get a bit nuanced!

First off, 83% of utilities who have conducted a cost-benefit analysis (n=86) support the adoption of smart meter technology, so that’s a good start, right?

Well, yes, but what are the motivations of the utilities?

It turns out that they are far more interested in using smart meters to enable early leak detection than in supplying customers with tools to monitor/reduce their consumption!

Right away this is problematic, if the aims of the utilities and their customers are not aligned, then this will greatly complicate any rollouts. Also, if the utilities are not strongly focussed on providing consumers with tools to reduce their consumption, any such tools which are provided to homeowners would most likely be sub-optimal (an after-thought).

Then, when asked what they perceived as roadblocks, the water utilities cited the lack of cost recovery or measurable ROI as well as the up-front utility expenses required – in fact, 64% of utilities are not even currently considering a smart meter program!

So, until the water utilities are as enthusiastic to roll out smart meters as their counterparts in the electrical utilities are, then the day that we see all devices which consume water having networked flow meters is still a ways off.

Of course, in the case of the electric utilities, their enthusiasm is certainly not hurt by the amount of recovery act monies being pored into smart grids!

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