Smart Electric Newsletter #2

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Featured articles this week:

PG & E Funds $270,000 Peak Demand Energy System to Reduce Power Usage During Periods of Peak Demand

Powerit Solutions, based in Seattle, Washington has emerged as a leading U.S. provider of intelligent demand control / demand response technologies for industry. Their systems provide an innovative solution for managing energy usage during periods of peak demand saving utilities and their industrial customers millions of dollars annually.

Recently, Guadalupe Cooling Company- a large, industrial consumer of electricity - received $270,000 from PG&E to install an Energy Director Intellekt system to reduce electricity usage by the company during periods of peak demand.

Commenting on the system, Danny Vincent, Plant Manager of Guadalupe Cooling Company, noted: "This is a green project that makes sense for both the company and the State of California. The Powerit system does not affect production, that's the key. It allows us to manipulate specific areas of our choosing at specific times. We'll use it for Demand Response when the state of California has problems and needs our help, but we'll use it everyday to cut our electrical costs."

Industry is the largest consumer of power in the U.S.

According to the 2005 EIA Annual Energy Review, U.S. industry used 29% of U.S. electricity and 37% of U.S. natural gas, consuming more energy than the entire economy of any other G8 nation.

Given a choice, a utility would rather support conservation and intelligent, reliable management of demand than build additional power plants. U.S. utilities remain concerned about their ability to meet instantaneous demand requirements of energy users. This relates to both the distribution capacity (and hence infrastructure investment) required to serve the peak demand of any given customer, and also the capacity to serve communities of customers during peak usage periods - such as the middle of the day and during seasonal periods.

Utilities have limited and expensive options available to them as they try to meet these additional demand requirements. Either they must build new power plants, build temporary stand-by (peak) power plants, or buy incremental capacity in the wholesale market - all expensive propositions.

Or, they can find mechanisms to cut-back on demand during times of peak usage such as financial assistance programs designed to help customers install technology solutions that make efficiency happen. In some cases, the end user is able to implement systems that take a substantial amount of kW off the grid and the cost of the technology is paid for by the utility. It's a win-win situation.

According to Bob Zak, President and General Manager of Powerit Solutions, "There is only so much you can do by manually shutting loads down; you really don't have any idea of exactly how much you're shaving. Our Energy Director system intelligently monitors all energy loads in real time within the plant and strategically changes their run status. This allows our customers to save hundreds of thousands of dollars in peak demand charges and, more importantly, it allows them to participate in their utility's Demand Response programs. These savings offset most or all of the costs of installing our system. In short, it's good for the utilities, makes good business sense for the end user and helps us to use these important energy resources more efficiently."

Powerit's Energy Director creates ongoing reductions of 10-40% (20% on average) in peak demand charges, corresponding to a 7-15% reduction in overall electricity savings. The peak energy savings alone create a typical ROI (return on investment) period of only 6-24 months. Remarkably, existing incentives from utilities for these programs can often pay for Powerit's solution outright (literally an immediate ROI). This is especially true if the Energy Director's intelligent demand response capability is utilized to enable the user to participate in coordinated curtailment.

As energy demand and costs continue to rise, there is a clear need to assist energy consumers in lowering the grid's peak demand charges by providing them the ability to participate in Demand Response programs. Powerit now provides industries a tool to do just that, managing their participation in curtailment events and ensuring that no unexpected actions or consequences result. The system provides the desired financial and social benefits of better energy efficiency.

Source: Powerit

EDP to work on InovGrid poject

EDP Distribution (EDPD), as many other utilities, is facing new challenges regarding the liberalization of the European and Iberian electricity markets and regarding the need to introduce more intelligence to manage and control distribution networks with large scale integration of micro-generation and responsive loads.

With this in mind the InovGrid project addresses the technical architecture that is being developed for the implementation of a fully active distribution network. It is based on a multi-level hierarchical architecture, capable of dealing both separately and in an integrated way with commercial and technical information, where the infrastructure includes several components from Central and SCADA system to Energy Boxes (EB).

Besides being a large technical challenge, this project is an excellent opportunity to progress towards the smart grid paradigm, giving support to all new smart metering and commercial processes recently defined by Iberian energy regulators and allowing, at the same time, increases in operation flexibility and efficiency, grid reinforcement cost reduction, improvement of quality of service, and others, while keeping costs down.

The solution will apply to more than 6 million customers, bringing benefits for all stakeholders and also contribute to changes in energy consumption behaviors in order to successfully address the energy efficiency European requirements, as stated in the European Service Directive and subsequent local countries initiatives.

Luis vale de Cunha is the technical coordinator of the recently started InovGrid Project, an innovative initiative that aims to implement an "intelligent grid" during the next few years, trough a new systems, communications and technological infrastructure that will integrate commercial and metering processes, network automation and management, and also control of distributed energy resources and micro-generation.

Source: Smart Electric News

IBERDROLA launches an open and non-proprietary telecommunications architecture for future-proof Smart Metering and Smart Grid evolution

IBERDROLA has been working extensively in the definition and testing of a new open, public and non-proprietary telecom architecture to support not only smart metering functionality but also to progress towards the Electricity Networks of the Future. IBERDROLA thus leverages its extensive experience in the use of low and medium voltage networks as a telecommunication media.

New smart meters must be able to communicate securely and reliably to a central location, as well as to execute the commands and controls received. And all this becomes a daunting task, when the number of meters escalates to millions of units, and when functionality associated with smart grids require real-time communications. In this new context, the critical issue is telecommunications.

This is why IBERDROLA has gathered the relevant national and international industry players in the areas of metering, telecommunications, and silicon manufacturing to define, test and develop an open, public and standard AMI (Automatic Meter Infrastructure), into what is called PRIME project (Powerline Related Intelligent Metering Evolution). Current industrial PRIME partners are Advanced Digital Design, CURRENT Group, Landis+Gyr, STMicroelectronics, Usyscom and ZIV. A large number of European utilities have already expressed their interest in joining the project.
Fully compliant with EN CENELEC 50065 and in band A, whose use is restricted to distribution network operators, in 2007 IBERDROLA performed several tests in different locations of its electricity network, with outstanding results. The success of using OFDM (Orthogonal Frequency Division Multiplexing), a technology widely used in virtually any modern telecom infrastructure, such as xDSL, Wi-Fi, WiMAX, etc., has already been demonstrated in the field: a new high speed, low cost, PLC generation has become a reality. A large field deployment will soon be carried out based on this new architecture.

The final objective of the project is the establishment of a comprehensive set of international standards that will allow for interoperability between different manufacturers, thus boosting competition in the metering market for the benefit of all stakeholders, particularly the end-user. Contrary to other commercially available alternatives, no Intellectual Property Rights will be held on protocols, modulation techniques, data formats, etc.

In this light, the written specifications to be delivered will be detailed enough for third parties to proceed with the manufacture of interoperable meters and associated equipment, based on the defined infrastructure. The first building block of this infrastructure is the Physical layer specification, known as PHY spec, that is publicly available at AMI.info@iberdrola.es. A White Paper on the PHY spec is also publicly available and can be downloaded from www.iberdrola.com/suppliers/SmartMetering

Source: Iberdrola via TargetWire

Smart Electric News announces Smart Grid initiatives

Smart Electric News a new Business Intelligence Unit for the Smart Grid industry has announced the first Smart Electric Power Distribution summit. The summit, focussing exclusively on critical success factors for delivering the smart grid of the future take place in Amsterdam (April 21 - 22) and brings together leading figures driving forwards the Smart Grid revolution.

The pan-European speaker line-up include the likes of EU SmartGrids, Elia, Endesa, ABB, Iberdrola, Areva, EDP, Electricity Authority, Energie-Control, Sintef, Tractebel, RLtec, Enel and Ecofys.

A well thought out agenda includes must have smart grid knowledge that addresses the factors involved in deplying and implementing a Smart Grid network rather than theorising what could be done with such a project. Technology updates, case study results, reducing time to market and securing project wins early will all be addressed over 2 days of insightful discussion and networking.

Michael Setters, Director of Smart Electric News stated "we're really excited by this event. We (Eye for Energy) already deliver a series of conferences in renewables (Tidal, CSP, Wave, CPV...) and the concept of delivering the Smart Grid to fruition is the glue that will hold these energy markets together in the future. We're delighted to be part of the event and even more excited by the level of interest seen so far."

Mr Setters went onto say " we only launched our new free e-newsletter service last week and already have over 1200 subscribers indicating the importance of the rapidly emerging market. We look forward to seeing many of our customers in Amsterdam"

More information on the conference and newsletter service can be found at www.smartelectricnews.com/smart08 and sponsor and media opportunities are still available.

Enersource Selects SmartGrid Solution from Intergraph and Siemens

Integration of utility's data into command-and-control environment to increase efficiency and provide more reliable power.

Enersource Hydro Mississauga, one of the largest distributors of electricity in Ontario, Canada, has signed with Intergraph to integrate and automate the various assets and functions of its power grid. The new SmartGrid implementation will result in greater efficiency and safety, as well as more reliable power to Enersource customers.

"Traditionally, we have been forced to work across multiple sources of information, including paper maps, to obtain a complete view of our distribution system," said Raymond Rauber, VP Engineering & Operations at Enersource Hydro Mississauga. "By working with Intergraph and Siemens to develop an Integrated Operating Model (IOM) for our power grid, we will be able to work more efficiently under both normal and storm conditions, as well as ensure that we are utilizing the most up-to-date, accurate information. The IOM implementation will allow us to meet the growing energy demands of tomorrow without sacrificing the exclusive service and safety we've been providing for the past 90 years."

Enersource's IOM solution will combine Intergraph's utilities applications with Siemens' Distribution System Power Flow (DSPF) application to create an integrated command-and-control system. Intergraph will fuse its InService outage management systems with geospatial and other data it provides on Enersource's infrastructure and 865,000 assets including transformers, utility poles, meters, conductors and others, as well as network devices, meters and other sensor data. In addition, Intergraph will combine information from Enersource's applications including its SCADA and customer information systems for use with the Siemens DSPF engine. Intergraph will then integrate all the data into a unified command-and-control system that will provide easily-visualized, actionable intelligence manifested in the form of alarms, events, work orders and other understandable activities, allowing for quick detection and remediation of outages and other potential issues.

Siemens' Distribution System Power Flow application provides utilities with real-time analysis to make operations decisions on-the-fly, thus allowing more efficient management of electricity across a dynamic grid. With the DSPF technology, utilities have increased knowledge of load and voltage conditions to help them more safely, quickly and reliably reconfigure their networks and restore power.

"Joining with Enersource marks a significant milestone in Intergraph's leadership of the SmartGrid movement," said Jay Stinson, vice president of Intergraph Utilities & Communications. "We first joined with Siemens in May 2007 to build a SmartGrid system for Oncor Electric Delivery. Since then, we have observed growing interest among leading utilities like Enersource in modernizing their systems with 'smart' or 'intelligent' power grid technologies. Moving forward, Intergraph and Siemens plan to work together to empower additional utilities with commercial off-the-shelf solutions for creating intelligent grids to meet emerging market needs."

"Siemens is pleased to further our efforts in SmartGrid technology through a continued relationship with Intergraph and a new agreement with Enersource," said Kevin Sullivan, vice president and general manager of Siemens Power Transmission & Distribution, Inc.'s Energy Management & Automation division. "The SmartGrid brings tremendous benefits to utilities, beginning with the reduction of and more efficient response to potentially-devastating outages, but also extending into many other key focus areas including cost savings, safety, environmental impact and the identification of potential security threats. In the future, the SmartGrid will play an invaluable role in helping utilities monitor the health of their networks and make better, faster, more informed decisions. "

Enersource also utilizes an Intergraph application for plant engineering document management and for the issuance of device numbers. Intergraph ensures an open, independent data storage system to protect plant information for the life of a plant. Through a combination of geospatial technologies, Intergraph will provide Enersource with a comprehensive set of applications for managing and acting on critical data - from plant design to distribution operations.

For decades, Intergraph has been leveraging its geospatial technology and deep industry expertise to help utilities companies visually organize and manage assets and resources. Intelligent grid technology from SmartGrid is the latest evolution of Intergraph's years of service to the utilities industry.

Source: Intergraph

Energy Expert to Regulators and Utilities: “Just Do It”

To meet future power demand and provide quality, reliable electricity to American homes and businesses, policymakers and state regulators need to change the way electric power utilities do business now, Kurt Yeager, executive director of the Galvin Electricity Initiative, said Wednesday.

Speaking before an audience of federal and state regulators, utilities and other industry players as part of a keynote panel during the National Electricity Delivery Forum in Washington, D.C., Yeager said that the future of the U.S. electric power system rests upon our ability to take advantage of the technology available today and prioritizing the modernization of our unreliable, inefficient and insecure grid infrastructure.

"Our electric power system has been in a sub-prime mortgage-like era for decades," Yeager said. "There are no technological or economical obstacles to modernizing the U.S. electric grid, only policy and regulatory barriers that must be eliminated," said Yeager. "If states open up the electricity market and offer utilities incentives for integrating smart grid technology and giving consumers control of their own energy use, everyone will win. Consumers gain better service and a smaller carbon footprint while utilities gain much-needed upgrades and a system that is less vulnerable to cyber-attack."

During the panel discussion, Yeager shared some of the Initiative's key proposals that will pave the way for a more intelligent electricity grid:

The technology exists today to transform the 1950s-era grid into a smarter, reliable and efficient power system. To secure this future, state leadership is needed to remove the regulatory policy obstacles to smart grid development and implementation.

Utilities need incentives to drive grid modernization efforts. Utilities are compensated for selling more electricity, not for providing quality service or efficiency programs. States need to support "decoupling," or separating utilities' profits from their energy sales. Only then will utilities become motivated to offer consumers tools such as time-of-use pricing and smart meters that can reduce the escalating demand that is taxing our aging grid infrastructure, increasing emissions of dangerous pollutants. Consumers should be treated as individuals with individual needs. As with other industries that have been opened to competition and choice, given the option, most consumers will take control and reduce their energy use.

Renewable resources are an important part of our electricity generation mix, but they will not eliminate coal-generated or nuclear power. States should examine their available renewable resources for electricity generation - solar, wind, geothermal, biomass, etc. - and add them to their electricity generation portfolio. While the industry is addressing their greenhouse gas, waste and security issues, in order to meet our huge demand for electricity economically, coal and nuclear sources of electricity will remain the primary part of the generation mix. Carbon capture and sequestration has promise for yielding cleaner electricity from coal, but as a long-term goal, not a short-term solution. Since the volume of CO2 emitted by coal-fired plants that could be captured equals the amount of oil that is consumed in the United States yearly, finding a practical way to transport and store it is a complicated undertaking which is not receiving enough attention.

New transmission lines should be the last option. Technology currently exists to increase the capacity of the wires we have today. With the addition of "smart" electronic controls, transmission lines can run closer to their limits without risking overload. This will also minimize the major security and vulnerability risks that these extensive transmission networks pose to the nation today.

The National Electricity Delivery Forum is the preeminent national forum that examines and addresses the inherent infrastructure challenges and issues that impact electricity delivery. Sponsored annually by the National Association of Regulatory Utilities Commission (NARUC) and the U.S. Department of Energy Office of Electricity Delivery and Energy Reliability (DOE), this forum addressed the role of U.S. electric power delivery in addressing the challenges of climate change, demand growth and energy security.

For more information about Perfect Power and the work of the Galvin Electricity Initiative, visit www.galvinpower.org.

The Galvin Electricity Initiative, launched by former Motorola chief Robert W. Galvin, is leading a campaign to transform the nation's obsolete electric power system into one that can truly meet consumers' needs in this new century. Galvin's vision - a Perfect Power System that cannot fail the end-user - includes a major technological update as well as the development of smart microgrids that benefit consumers and suppliers alike. The first Perfect Power System is being built on the Illinois Institute of Technology campus. Learn more at www.galvinpower.org.

Source: Galvinpower.org

Current Expands Smart Grid Solution With Acquisition Of Kreiss Johnson Technologies

Delivers Real-Time, Actionable Intelligence to Utility Engineer's Desktop

CURRENT announced an expansion of its Smart Grid solution with the acquisition of Kreiss Johnson Technologies (KJT), a leading developer of analytic software for electric utilities. KJT's enterprise software solution uses artificial intelligence and advanced analytic techniques to transform the millions of fault, event, disturbance and other operational data points that utilities have historically been unable to collect or process into actionable intelligence the utility can use to improve the efficiency and reliability of the electric distribution grid.

"A Smart Grid provides significant benefits to the utility, its consumers and the environment" said Tom Casey, Chief Executive Officer of CURRENT. "We continue to invest significant resources to develop and acquire technology like KJT that can further bolster CURRENT's robust Smart Grid solution." A Smart Grid can improve reliability by creating a self-healing distribution network capable of matching supply with demand, efficiently manage peak loads, minimize power disruptions, secure critical infrastructure assets, and ensure high-quality power. The Electric Power Research Institute projects that Smart Grid-enabled distribution systems in the U. S. could reduce electricity consumption by 5% to 10%, carbon dioxide emissions by up to 25%, and the costs of power-related disturbances to business by 87%.

CURRENT is integrating KJT's Enterprise Analyst product, which will now be called CURRENT Analyst™, with its network monitoring and CURRENT LOOK ® software solutions to provide the utility with unprecedented power. "Combining KJT's and CURRENT's solutions allows a utility for the first time to analyze the millions of devices on the electric distribution grid and to automatically receive actionable intelligence about areas of concern based on user-defined criteria at the engineer's desktop," said David Kreiss, KJT's former Chief Executive Officer, who along with his staff has joined CURRENT. "This means that an engineer is automatically sent a detailed analysis of any potential problem by email or cell phone and can use our solution to see exactly what is happening both upstream and downstream on the grid without even leaving his or her desk." This capability should facilitate the sharing of critical data across the utility, improve the productivity of the utility engineering staff, and maximize the use of replacement capital while improving the efficiency and reliability of electric service. Existing KJT customers will be able to continue to receive full support with their installed solutions, as well as access to new modules developed by CURRENT.

Source: CURRENT

OFGEM fines National Grid £41.6m

Energy regulator Ofgem has fined National Grid £41.6 million for a breach of competition law that restricted the development of competition in the domestic gas meter market.

The decision demonstrates Ofgem's commitment to taking action where there is evidence that a company has acted in a way that restricts competition and harms customers.

Ofgem's Chairman, Sir John Mogg, said: "Ofgem has imposed a substantial fine on National Grid for a serious breach of competition law. National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers.

"The abuse has prevented suppliers from contracting with other companies for cheaper metering deals and could discourage suppliers from installing smart meters."

When the metering market was opened to competition, National Grid struck long-term contracts with five of the six major energy suppliers to supply and maintain gas meters. These contracts include financial penalties that apply if suppliers replaced more than the small number of meters allowed under the contract by National Grid. They have severely restricted the rate at which suppliers can replace even National Grid's older meters with cheaper or more advanced meters from rival meter operators. By restricting competition, National Grid has deprived gas suppliers and customers of access to lower prices and improved service. Furthermore, it has curbed innovation in the provision and maintenance of domestic-sized metering.

Source: OFGEM