DR and AMI could yield billions... Phased approach to MDM... The business case for a Smart Grid

DR and AMI could yield $35B over 20 Years.  One way to lower electricity costs is to avoid the construction of expensive peaking power plants. Analysis undertaken by The Brattle Group shows that demand response (DR) programs based on advanced metering and dynamic pricing could reduce peak load in the United States by at least 5% over the next few years. Such a reduction could save approximately $3B per year, Brattle estimates. The discounted present value of those savings would be $35B over the next 20 years.

   QuickTake: DR and AMI in combination may constitute the “fifth-fuel” if loads can be reduced enough to avoid new plants.

   The Brattle Group press release

   The Brattle Group DR report (PDF)  

Phased MDM implementation is the smart approach. A growing debate exists concerning the preferred timing for meter data management (MDM) implementation. This article argues that utilities should take a phased approach. It briefly describes the recommended phases. It also points out that MDM should remain a relatively minor cost component of an overall AMI implementation.

   QuickTake: A valuable primer on how to make the business case for meter data management.

   Metering.com article

A better business case for the Smart Grid.  A discussion of what utilities can expect from investments in Smart Grid systems. The business case must take into account the cost-effectiveness, operational improvements and return on investment for initiatives. It should also consider community-wide benefits. The paper also covers the business advantages of AMI, distribution and outage management, simulation and optimization, and enterprise business intelligence. It concludes that utilities must employ a ‘no regrets,’ business-driven approach, tailored to their individual needs and to the needs of their communities.

   QuickTake: Utilities and transmission operators may want to review the method used to arrive at a business-oriented investment decision in support of AMI.

   McDonnell Group white paper (PDF)

BPL and PoE: Two alternatives to power data transfer.  This article discusses two approaches to data transfer: Broadband over Powerlines (BPL) and Power-over-Ethernet (PoE). One uses power lines to push data; the other uses data lines to push power. Each seeks to capitalize on an existing network infrastructure not originally designed for the new use. Not surprisingly, technical issues are still being hammered out. PoE seems to be making the most headway, according to the authors. BPL faces more difficult hurdles.

   QuickTake: We suspect BPL advocates may have different opinions than the authors. A well-done comparison, and particularly useful since PoE gets little press.

   Power Pulse.net article

Storage key to solar power. This article argues that storage is the key to making solar power significant. Energy storage would give utilities, power marketers and large commercial or industrial customers the flexibility to respond to power shortages, price spikes or brownouts. The market potential, according to the U.S. Department of Energy, is $3B to $5B a year. Besides utilities, businesses might also benefit. They could hook up the batteries at night and use them during the day when demand on utilities is highest.

   QuickTake: Intuitive and forward looking, a practical look at realities of grid-scale solar power.

   Energy Central article

AMI’s success driven by DR efforts.  A smart article on how advanced metering infrastructure (AMI) will drive demand response. For example, utilities will want the ability to determine if the customer is reducing load during demand response events. The trend is toward AMI that supports any kind of demand response utilities may consider over the coming decade, including load limiting, in-home networks, verification of response, and of course, time-based rates. Utilities are also putting the pressure on AMI vendors to provide the daily meter read data earlier in the day to allow utilities to perform validation, estimation and editing (VEE) and post the data for customers to review.

   QuickTake: Fresh perspective on what’s driving AMI: you cannot maximize and optimize DR without it.

    EnergyPulse.net article

Power over Power: The basics of the Smart Grid’s future.  A summary, in clear, non-technical language of the Smart Grid and its advantages. One thing it promises is to permit utilities to to direct the flow of electrons in a way more conducive to their needs (rather than just following the path of least resistance). Such changes would increase the capacity of the system and avoid or postpone new transmission lines.

   QuickTake: In the growing Smart Grid hoopla, we sometimes overlook the benefits possible with more precise control over when, how and power flows.

    EnergyCentral article

A Smart Grid will require industry-wide coordination.  This article speaks in general terms about the grid, but makes points supportive of a "smart" approach. A Smart Grid will require coordination and standards shared by generators, utilities and customers. It will be tantamount to the linkage of computers to the Internet. The article discusses the eastern interconnection phasor project.

   QuickTake: At SGN, we take the position that the time for talking about coordination and cooperation has passed. Now is the time to take that action, with most of the benefits (and most of the influence) flowing to those that take the lead and shape the standards to suit their own needs.

    PowerMarketers.com article

MDM market continues to heat up.  UtiliPoint has prepared a report based on information collected through a ‘webinar’ series on the smart grid. Though the report is for sale, certain findings were released. Twenty-two (22) utilities have installed or piloted a vendor-provided meter data management (MDM) system. Eighty-eight (88) other utilities are expected to implement MDM sometime over the next four years. Utilities have typically implemented MDM in phases, starting with installing the interface to their various meter data collection systems and developing the interface to CIS.

   UtiliPoint International report

Complexity in utility management argues for integrated solutions.  This article argues that Oracle's recent acquisition of Loadstar is a sign of utilities' preference for one-stop shopping. It claims that the market for solutions to integrate the various divisions and databases of a utility is already in a growth mode with annual ales of more than $500M million. Others say the acquisition is also a strong indication that the utility sector is getting a lot healthier. Utilities are ready to upgrade the software they use to manage all their activities.

   QuickTake: SGN predicted this development nearly two years ago. Now the evidence is beginning to appear. Where Oracle treads, can SAP and Microsoft be far behind?

    EnergyBiz Magazine article