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Federal Smart Grid legislation... New transmission financing... IBM grid coalition By Jesse Berst May 9, 2007 - 3:00:00 PM
Cantwell sponsors U.S. Smart Grid bill. Senator Maria Cantwell (D-WA) has introduced federal legislation to create national standards for a smart grid, and to treat Smart Grid technology as computer equipment, with similar depreciation values for tax purposes. Furthermore, it attempts to reduce the potential for the improper release of private data, establishes peak demand reduction goals and encourages goals for a national renewables portfolio. The bill provides financial incentives for investment in Smart Grid technologies, including an enhanced rate of return for utilities that invest in these technologies. QuickTake: This is a major legislative effort to set nation-wide standards sorely needed to bring order to a sometimes confusing new world for utilities. Even more important, the bill provides financial incentives for investment in Smart Grid technologies, including an enhanced rate of return for utilities that invest in these technologies. Senator Cantwell’s Press Release Senator Cantwell’s White Paper (PDF)
FERC okays finance model to help connect renewables. The Federal Energy Regulatory Commission (FERC) approved a new financing method to help renewable energy providers finance their links to the grid in California. When a new renewable energy facility such as a wind power plant connects to the new transmission line, the facility will start paying its share of the cost based on how much of the transmission line's capacity it is using. Other transmission system users will continue to pay the cost of any unused capacity on the line until the line is fully subscribed, that is, until new facilities have signed up to use the full capacity of the line.
IBM launches grid coalition. IBM has begun a new coalition to accelerate the adoption of IBM's Intelligent Utility Network (IUN) software and services. The alliance will be a consortium of IBM customers and partners who will share lessons learned. Initial membership includes IBM along with CenterPoint Energy of Houston and Pepco Holdings of Washington, D.C. Centerpoint is currently working with IBM to implement IUN services such as remote connection and disconnection of service and automated meter reads for customers in the Greater Houston area. QuickTake: Three or more years ago, we warned you that a major new market opportunity was arising, the remaking of the power infrastructure all around the world. Now the day is at hand, and IBM has moved in strongly to claim a share. Other giants – Oracle, Cisco, Accenture, Microsoft – are beginning to stake out turf. Anyone who wants to be a major player has the next 12 months to carve out mind share. After that, the "short list" will already be in buyers' minds. Vendors who want to be seen in that light will first have to knock someone off the list, a much harder and more expensive prospect.
NextGrid Now Alliance targets municipal and co-op utilities. NextGrid Now is an alliance of grid consultancies, recently formed to target municipally-owned utilities and rural co-ops. NextGrid Now will help these utilities plan, develop, implement and manage modernization efforts. Those efforts include smart metering, broadband over powerline and integration of renewables. The alliance currently includes these Arcadian Networks, EnerNex Corporation, GridAgents, Horizon Energy Group LLC and UTInnovation LLC. QuickTake: This alliance of small consulting firms is targeting a market niche that is largely ignored by the larger vendors. It is a clever way to do joint marketing while also being able to offer a wider range of services under a single umbrella. As the Smart Grid sector moves into its rapid growth phase, small vendors must look for strong partnerships or risk being overrun by the "big boys" as they stampede into the sector. NextGrid Now Alliance press release
Echelon Gets Initial Access to Big Aussie Market. The Australian State Government of Victoria plans to test out Echelon’s Advanced Metering System (AMS) as the first phase toward replacing 2.4 million meters in that State. The state government has initiated a program to deliver smart meters to all Victorian electricity consumers by 2008. QuickTake: Echelon had to beat out Australia's Bayard Group (among others) to win this pilot, but that does not mean it will win the full order. It also suggests that the Australian smart meter market may heat up quickly, and that U.S.-based vendors stand a real chance there.
BGE gets approval to pilot AMI. Baltimore Gas and Electric Company (BGE) has gotten regulatory approval to proceed with a smart metering pilot. The effort was compelled by deregulation that spiked consumer prices as much as 70% over previous rates. If successful, the pilot could lead to a transformational upheaval in operations. Possible improvements include using the AMI network for: a) sending price signals and/or load control signals; b) distribution automation and distributed generation control; and c) integrating demand response for smart thermostats and load control devices. QuickTake: A Smart Grid can improve efficiency and get more life out of existing assets. As regulators begin to see the Smart Grid as a way to reduce rates (or, at least, to slow the increase) they will shift from being Smart Grid skeptics to Smart Grid advocates. BGE/Constellation Energy press release
muNet and Corinex partner to deliver AMI over BPL. muNet and Corinex are partnering on an integrated AMI platform for plug-and-play Broadband over Powerline (BPL) networks. muNet will integrate Corinex 200Mbps Powerline communication modules with its existing WebGate IP Interface technology. Together, they will deliver what they claim will be the first commercially available BPL AMI platform. Utilities will have access to meters with Powerline technology “under-the-glass” that will become individual nodes on the BPL network. This will enable advanced metering applications such as remote disconnect/reconnect, on-demand reads and the ability to control devices inside the home for demand side management.
Oracle Buys Lodestar. Oracle announced its agreement to acquire Peabody, MA-based Lodestar Corporation, a provider of software for meter data management and competitive energy operation. Lodestar offerings include meter data management, commercial and industrial (C&I) billing, load research, load forecasting and pricing, and load profiling. Those solutions will be combined with Oracle's industry leading database, middleware, and enterprise applications. Subscribe to our FREE eMail News Alert!
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