Critical News Updates from the Smart Grid

Duke & GridPoint accelerate PHEV use. Duke recently tested GridPoint’s smart charging capability by plugging a plug-in hybrid electric vehicle (PHEV) into a garage wall outlet controlled by the GridPoint SmartGrid Platform in the late afternoon. Duke began charging the vehicle at 10 p.m. and completed charging prior to the morning peak, leaving the car fully charged for the driver’s morning commute. GridPoint’s platform successfully controlled, measured and verified the charging of an electric vehicle parked in a residential garage. GridPoint’s smart charging capability enables utilities to control charging regardless of when consumers plug in their PHEVs, which is anticipated to be in the early evening when peak demand is high. Utilities can limit peak load growth as well as offer customers significantly reduced charging costs by billing lower rates for off-peak charging. Additionally, utilities gain complete control over when and how fast PHEVs are charged, allowing utilities to optimize generating assets. Separately, GridPoint announced on the same day (March 27, 2008) that it has raised $15 million from Quercus Trust and has expanded its advisory board with prominent energy experts, including Robert Danziger, an energy entrepreneur with several successful companies to his name; Paul Feldman, chairman of the Midwest ISO; T.J. Glauthier, former deputy secretary of energy; R. James Woolsey, former CIA director; and Daniel Yergin, Pulitzer Prize winner and chairman of CERA.

   QuickTake: PHEV adoption face a number of issues, from car manufacturers allowing access to batteries to integrating charging and discharging of electricity with the grid. The prospect of significantly reducing green house gas emissions and moving the trillions of dollars in auto gas revenue to utilities’ top line are powerful motivators for driving ahead with PHEVs.  GridPoint and Duke seem intent on winning this race. Readers should read the article inserted below that lays out a lot of information about PHEV opportunities.

GridPoint press releases

Previous SGN Article: Does your utility have the vision to become the next Google?

3 A.M. Phone Call for Utility Execs. After surveying nearly 100 executives within the electric and natural gas industries in the U.S. and Canada, the 2008 Platts/Capgemini Utilities Executive study revealed that the five most critical issues facing the energy industry include:

·         Addressing environmental concerns such as emissions, carbon
                 dioxide and greenhouse gases

·         Addressing industry regulations

·         Coping with aging workforce and workforce management issues

·         Building new, while maintaining or replacing aging and overburdened
                 infrastructure

·         Increasing adaptation of new technologies that can enhance 
                 energy consumption management

More than half of the executives surveyed (52%) said that in the last year, the industry’s focus on technology has increased due to enhanced focus on sustainability.  Examples include incorporating clean coal technology and monitoring electricity consumption via smart meters and automated metering infrastructure (AMI).

   QuickTake: The industry focus on technology is also warranted given the need to integrate renewables. Smart Grid technologies are getting more attention at executive levels, where the initiative and continuous support is no longer debatable -- it is mandatory for staying in business.

   Capgemini press release

   To request a copy of study

EnerNOC Awarded Second DR patent – Utilities, DR and DG Vendors “Wake-up”. The U.S. Patent and Trademark Office issued Patent No. 7,333,880, entitled “Aggregation of Distributed Energy Resources” to EnerNOC. The patent focuses on the remote management and control of distributed energy resources including monitoring, alarming, aggregation, cost allocation, data management and reporting. This is the company's second patent. From the summary of the invention:

“A representative embodiment of the present invention includes a method and system associated with controlling electric power (which may include reducing demand of electric power from an electric power distribution grid, either through distributed generation or actual demand reduction systems or capabilities (collectively distributed energy resources). Power demand data and power supply data may be monitored over time and analyzed to coordinate control of at least one distributed energy resource. In accordance with one embodiment, notification of an upcoming regional power distribution event is received and a distributed energy resource affected by the upcoming event is determined or identified. A first notification message is sent to an affected distributed energy resource asset owner or other administrator to notify the distributed energy resource asset of the event. An event data process is initiated to monitor and collect data associated with the event and an event control process is initiated to control one or more affected distributed energy resource asset during the event. The event control process and the event data process are terminated at the end of the event.”

   QuickTake: The editors at SGN saw the same “land-grab” occur during the Internet boom. This may be novel and worthy of a patent, but utilities and Smart Grid vendors offering solutions in demand response or distributed generation – to include commercial and industrial suppliers – need to pay attention to this filing.

   Input Patent Number 7,333,880 into PTO search query to get copy of patent

Smart Grid Investors Eyeing $1T to be Spent on Electric Infrastructure. Greentech Media reported approximately $130M in Smart Grid venture capital investments for Q1, spread out over 13 deals. In total, the quarter saw about $998M in 73 solar, biofuel and Smart Grid deals. At the Energy Information Administration (EIA) conference held in Washington, D.C. on April 7 and 8, Edison Electric Institute Executive Vice President of Business Operations, David Owens, stated his opinion that the utility industry will be spending about $1T on infrastructure improvements.

   QuickTake: As mentioned at the EIA conference, the industry is still fighting old battles, such as the efficacy of deregulation, while at the same time taking on new issues such as climate change and aging infrastructure.

   Greentech Media article

Are Top Utilities Investing in the Smart Grid? Two electric utilities ranked in Business Week’s top 50 best corporate performers. Exelon ranked 22^nd (not ranked in 2007) and Constellation Energy ranked 39^th (37^th in 2007).  These rankings were based on financial metrics over a three-year period.  Exelon uses nuclear more than any other electric utility in the nation and has the second largest landfill gas station. Constellation Energy, one of the country’s largest investor owned utilities, also relies heavily on nuclear (61% of its electrical generation). Both have extensive transmission and distribution.

   QuickTake: An oft-asked question at Smart Grid News is whether investments in the Smart Grid will deliver a return for utility investors. We are actively researching this issue and plan to publish several articles and reports about this.

   Business Week article

   Exelon environment fact sheet

   Constellation Energy web site

AWEA Highlights Wind Forecasting/NYISO Wants Wind Farms to Pay. In several posts to a March 26, 2008 SGN article, the American Wind Energy Association (AWEA) highlighted the need for accurate forecasting of wind in order to make it a reliable power source. In this regard, the New York Independent System Operator (NYISO) has contracted to improve its wind forecasting as of the summer of 2008. NYISO is also asking the Federal Energy Regulatory Commission to require wind generators to deliver metrological data to NYISO and to fund centralized wind forecasting data.

   QuickTake: Improved wind forecasting is key to overcoming the challenges of wind intermittency, energy storage, and integration of wind as a renewable resource.

   NYISO press release (PDF)

   Previous SGN article on wind generation