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Feature Article Why the Smart Grid Industry Can’t Talk the Talk (and What to Do About It) Mar 5, 2009
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As an industry, we’ve gotten good at the technologies of the Smart Grid. Too bad we haven’t gotten any better at talking about it. At the National Governors Association last month, the CEO of a major utility started his speech with the confession that he didn’t really know what “Smart Grid” meant.
Pretty sad when a utility CEO isn’t knowledgeable enough about the Smart Grid to explain it, especially when he’s standing in front of 43 governors and a bunch of television cameras. What a wasted opportunity to help influential people understand and to recruit them to the cause.
Can you imagine if an automobile CEO began his bailout plea with “I don’t really know what an automobile is, but can I have $20 billion please?” Or if the CEO of CitiGroup began a speech with: “I don’t really know what a bank is, but…”
The Value of Simplicity
As an industry, we must take the advice of NARUC Chairman Fred Butler, who told SGN recently that “Consumers have a right to know how the Smart Grid will benefit them and why it justifies an increase in rates.” (See link to full interview below.) As he put it: “We'll know we're there where consumers start asking for it.”
But consumers will never ask for it until they understand it. To make the case to consumers, we must simplify. In those situations, I’ve found the best approach is to describe the Smart Grid as three pieces:
· Smart devices
· Two-way communications
· Advanced control systems
Some engineers shy away from this definition because it isn’t comprehensive and detailed. Like the character Sheldon on the sitcom The Big Bang Theory, they would rather be precise than be understood. In reality, the pinnacle of intelligence is the ability to express complex ideas in simple terms – a lesson preached for at least the last 2,400 years by notables ranging from Aristotle to Abraham Lincoln to Albert Einstein.
It’s not the world’s job to figure out the Smart Grid. It’s our job to explain it to them in language they understand.
I hope you’ll use the “Leave a Comment” button at the bottom of this article to suggest better ways to describe the Smart Grid and its benefits. I promise to plagiarize the best ideas. And I invite you to plagiarize any of my descriptions that resonate with you.
The Value of Analogies
Another powerful communications technique is analogy – drawing a comparison to something the listeners already understand. I typically compare the transformation of the Smart Grid to the “digitalization” of the telephone network. And when talking about the importance of this transformation to our economic future, I often compare it to previous infrastructure build outs such as the transcontinental railroad, the interstate highway system, and the Internet.
To some extent, our success in taking Smart Grid mainstream will depend on our ability to create easy-to-understand analogies. They are the bridges that allow an audience to cross over from their world to ours.
The Value of Complexity
When we talk to each other, however, I’d argue that we may need additional complexity. I’ve often been struck by how many vendors don’t understand the market and how different subsectors relate to each other.
Our firm often provides market entry consulting. In that role, we often find ourselves explaining how the Smart Grid sector works to executives who are unfamiliar with electric power but very familiar with business structures and value chains.
To bring them up to speed, it’s often helpful to use a “taxonomy” or sector chart. For example, in the Capgemini article on the big picture of the Smart Grid, Meir Shargal and Doug Houseman present a chart to show how the Smart Grid is constructed and managed, and to address some IT issues.
Metaphors like this will differ to suit various purposes. In the past, I focused my chart on solution areas. I always struggled with how to represent underlying technologies, which tend to appear over and over again in different solution sets.
In the last few weeks, I’ve taken to drawing the sector as shown in the drawing below. You'll notice that I've clumped core technologies at the top as a group. I did that because I think the Smart Grid starts with those core technologies and because we need to give them more visibility in our own discussions and thinking.
You may or may not agree with this representation, but I think it serves at least one important purpose. It helps us realize the value and role of core technologies. Most high-tech industries have understood this for decades. They treat core technologies as foundations or “platforms.” Once the platform is in place, they amortize its cost by building as many applications on top of it as possible.
Many electric power utilities and vendors, however, still think in terms of point solutions. They build or buy all the technology for that solution, often in isolation from other departments. As a result, each solution has to bear the full cost of the technology platform. And consequently, we see many utilities with redundant or overlapping technologies.
Clearly, we can’t afford build out siloed applications going forward. We must learn the lessons of installing core technologies and then leveraging them over and over again to create additional solutions. I’ve found that utilities begin to think very differently about what and when to buy when they make this shift in their thinking. And that vendors think very differently about their value proposition and about where to put their attention (namely, more on leveraging standard platforms and less on proprietary technology).
I’ll be interested to hear from you with your improvements to the taxonomy we use at GlobalSmartEnergy (the publishers of Smart Grid News). And to hear if you agree that it is time the industry started thinking and talking in terms of core technologies and platforms.
Email Jesse Berst directly
SGN interview with Fred Butler
SGN article about the National Governor’s Association meeting (and Jesse’s presentation)
Capgemini article on The Big Picture of Your Coming Smart Grid
| Too much of a good thing |
| I don't disagree; maybe I totally agree; but you can hype "Smart Grid" too hard. Madison Avenue blather. I would say, one, the power industry needs to be able to talk to its equipment -- communications. However, two, don't hide the individual technologies under a bushel. Give the public a small number of bite-size, shiny nuggets that are the coolest things about Smart Grid. To the people who are running it, it's a system, but let the public get excited about the highest points. |
| Pete Cann - 03/09/2009 - 16:10 |
| Value positioning |
| A fully functioning theoretical smart grid is a revolutionary step and as such becomes an inaccessible concept for those that have not studied its potential. A simple cost benefit analysis with a spotlight on adaptability over time might prove more digestible. Positioning of the potential benefits for the different groups involved across the value chain and the larger collective system benefits that are created when you sum these should form a critical leg of the definition. Although these benefits are not clearly known or defined at present a base understanding of this has the power to drive opinion, whilst remembering that unfounded speculation could prove counter productive. The confusion that exists with people thinking a smart grid will simply allow a utility to turn down their toaster when it runs low on power should be replaced by a long-term cost and carbon saving matched by increased diversity of options in our current dynamic and expanding power demand scenario. |
| tom plinston - 03/10/2009 - 04:23 |
| Smart Grid |
| A Smart Grid thinks and responds to demands of business and consumers. Fast frequency regulation will play a big part in making the power grid smooth and balanced at all times. Beacon Power is a true clean tech niche in this field. |
| G Sly - 03/10/2009 - 04:32 |
| Coal is Coal |
| You may be talking 'Smart Grid' but the electric being generated is 'old school'. It is still the dirty coal burning plants emitting the pollution. I never hear about 'Smart Grid' and solar or wind power - only 'clean' coal. Who are they trying to fool with the 'clean' part of coal? Just because you install scrubbers at the generation level doesn't mean it 'clean'. And if this grid is so smart how come there is a need for more transmission lines? |
| T Ulmer - 03/10/2009 - 05:15 |
| Talking Smart Grid |
| Jesse- Thanks for the posting this. I believe your thesis is correct that the general public does not have a firm grasp on what the Smart Grid is - and how can they when we don't even know how to articulate it? Given that the lion's share of the audience doesn't know a transformer from a sensor and the modern attention span is ever decreasing, I think your tactics of simplification and analogy are dead on. You can argue the exact words, but if I wanted my mother to understand Smart Grid, I would use similar words. I will be rolling what you have written into my Smart Grid lexicon. |
| Jeff Gwynne - 03/10/2009 - 05:27 |
| Overall System Cost Saving |
| Need to clearly and simply state how the "complete" smart grid system will save the customer money - take the overall system savings approach. Non-techs only care about the bucks. |
| David A. "Dave" Stein - 03/10/2009 - 05:37 |
| Smart Grid Knowledge Creators Needed |
| Knowledge creators must work on developing metrics and models that can be applied by market participants to identify, leverage and profit from Smart Grid opportunities. My blog centers on encouraging the industry to become knowledge creators that develop metrics to help market participants create breakthroughs by saving a kWh. I aggregate Green Market Intelligence to help third parties move forward on their paths to develop green goods and services. A gap in most information pieces is that they do not offer metrics or content that market participants can apply to their projects. Smart Grid knowledge creators need to address this problem. Applying common sense through a process of developing basic research projects creates knowledge that can be applied to achieve meaningful breakthroughs. Knowledge creator projects that help market participants think through and develop actionable projects to save a kWh need to be developed. Jeff Wacker, authored “SmartGrids – Planning the Intelligent Utilities of the Future”. His article identified drivers that are worth noting. • 1. For most utilities, the average cost of generating a new kilowatt hour of electricity is 10 cents, while the cost of saving a kWh is just 1.7 cents. • 2. Shaping the electricity demand curve, without overly impacting the Western lifestyle, will require utilities to employ more intelligent equipment, operations, transmission and utilization solutions. That in turn will force utilities to migrate from the electromechanical to the digital age and encourage them to consider megabytes as well as megawatts and to distribute information bits as well as atoms • 3. By combining the power of information technology with the emerging science of environmental technology, utilities can create a more intelligent and sustainable business model.” Wacker’s article also presented a concept for creating “Smart Grid Collaboratories”. Developing a plan to actualize the Smart Grid collaboratories model is one way to generate knowledge creator initiatives that will help address concerns voiced in your article. Smart Grid knowledge creators must develop a strategy and plan to produce useful information that can be applied by market participants to save a kWh. Developing and executing a sustained knowledge creation plan with a unique mission to help companies work on projects to offer or develop goods and services that save a kWh or use it more efficiently is the best way to explain the Smart Gird’s features and benefits. Brad Smith SME Capital Markets Austin, Texas |
| Brad Smith - 03/10/2009 - 05:59 |
| Smart Grid explained |
| Imagine, for a moment, you ask all of of your children to turn off the lights when they leave a room......now imagine, they actually do it! The Smart Grid! I agree with the poster who said most peole don't know a transformer from a sensor. I am remnded orf a cartoon I saw years ago depicting a bunch ofelectrical cords with plugs on the ends extending to the heavens.... People don't know or care much, so long as the lights are on. Tell them the Smart Grid will conserve energy automatically (without being told over and over and over)...this (any parent) will understand and appreciate. |
| Walter J. Relling - 03/10/2009 - 06:13 |
| Benefits not Features |
| Unfortunately, the "smart grid" like the "intelligent network" in telecommunications, if it is successful, will be completely invisible to the end user. The consumer will benefit from advanced features and functionality. And, in the long run they will save money as the grid is optimized. But, no one understood what a signaling system was, only that their phone system could do cool stuff. If you focus on the technology, you will lose the interest of the consumers, and thus the politicians. You need to speak of it in terms of the benefits to the end user. |
| Chris Dorando - 03/10/2009 - 06:35 |
| Understanding the Smart Grid |
| Three suggestions: 1. Focus on what it does rather than what it is. 2. Put less emphasis on how it will control the demand side and more on how it will coordinate an deliver distributed renewable generation. 3. Take it to the people. Get the mass market involved thru teriffs that encourage them to become aware. |
| Mike Mellos - 03/10/2009 - 06:42 |
| So much is already there |
| I have become very interested in the diversity in attempts to "explain" the Smart Grid. What seems short in sight to me is how much is ALREADY there! If you look at the Cooperative Utilities, many of them already are utilizing Smart Grid Technologies. The initial investment was not cheap, and the vendors have been wonderful at working side by side to develop Multispeak applications that cross the boundaries between systems. There is so much already out there in rural America, but I cannot seem to find much stated in news articles. I agree that the media needs to stop pushing the ambiguity of "Smart Grid" and focus on the potential for long term savings. Meantime, the media needs to understand that renewable energy cannot sustain baseload needs at current levels, and never will be able to. Thus, the need for "clean coal" technologies must move forward. We cannot simply "shut down" the current coal plants unless the general populous doesn't mind kerosene stoves and "ice boxes". We must be realistic but with a strong developmental approach. |
| Cindy Hamilton - 03/10/2009 - 07:28 |
| SG Def |
| Smart Grid: two-way communication, sensing, and control of electricity resources from the point of central generation to the end-use level, to include all forms of demand response, distributed generation and energy storage. |
| TomSecrest - 03/10/2009 - 07:44 |
| Do not mention avoided cost of Smart Grid at the trial |
| Jesse, I aggree with your division of the Smart Grid technologies in 3 parts, smart applicance, two-way communications and advanced controls. It seems that 2 of the 3 could are asset that will no longer belong to the utility, reducing its rate base and in consequence, its revenues. You mentionned : “Consumers have a right to know how the Smart Grid will benefit them and why it justifies an increase in rates.” Here a comment on implementation costs of Smart Grid : Is Smart grid will always lead to rates increases ? Is the avoided costs could be higher than the implementing costs ? My experience in economic analysis of projects in distribution show me that reducing the peak load is very profitable, especially to differ investment. After spending time at both the utility and the regulatory side, I realised that a cost-regulated utility is attracted not to mentioned avoided costs or the O&M reduction cost associated with new technology. It is especially true for equipements that would not contribute to the company book value, for example, one owned by a telecommunication company or the client. The question about share cost is as important as the question of share benefits, if such benefits are higher. Thank you, David Beauvais, eng. Montreal, Canada |
| David Beauvais - 03/10/2009 - 07:50 |
| "Cool" Won't Work |
| As a specialist in information systems, working in the electric industry, I can understand the "cool" factor involved with gadgetry (drawing from Pete's comments, above.) But "cool" certainly isn't going to cut it when discussing Smart Grid with utility directors and city managers. Nor is simplicity the answer. One of the things I noticed in your article is that although you simplified the concepts to a few bullets; Devices, Communications, Control, you left out the key component of "Why?". You're dead-on when you say that when electric industry execs don't understand it, it becomes a tough sell. Well, our organization has rooms-full of utility execs who don't know exactly what "Smart Grid" is, despite their understandings of the components that make it up. Nothing I've seen above would hasten closure of that gap. To begin with, the discussion should be Purpose-driven first, with clear, succint definition. Next, is the simplification of the concepts with examples, as you stated. Finally, a clarification of the value proposition. If our execs intend to move forward, cost-benefit is critical if they are to pass on charges (increasing rates) to an already cash-strapped public. They have to be able to show that despite rate increases, their citizens will be able to lower their costs through behavior modification or with incentives. Believe me, I will be the first person lining up to get a clear understanding of "what Smart Grid is" that goes beyond the hyperbole and "coolness." |
| Jeff Bridgland - 03/10/2009 - 08:04 |
| Builders vs Consumers |
| Jesse, your post and most of the comments, to me, are a big help to that clueless CEO and others in the industry who need to get up to speed. But not so good for electric consumers. I'd pitch smart grid as "choice" and "control" Consumers will like that and they will say "give it to me" (I might even pay for it.) For 100 years the electric company has been a monolith gorilla. You pay what they demand -- and like it. Sure your could adjust your thermostate and freeze or swelter but basically were helpless. With smart grid each counsumer will have some (and increasing) control over their usage and costs. Plus the more people who adopt the tech in their homes (and the more automatic devices are installed) the better things will be for all and the unit price of electricity should fall or at least be stable, even taking into account costs of buildout (through smoothing of peak demand and storage or distributed sources like electric car batteries). Consumers don't care about core technologies and market settlement or any of the other boxes in your chart. You got to sell them will be easy and fundamentally helpful (not just the ability to adjust your thermostat from the office). |
| Bill Harmon - 03/10/2009 - 08:12 |
| Marketing the smart grid |
| I take to heart your admonition to simplify, so at the risk of "dumbing down" the discussion, I try to look at this from my kids' point of view. If I can't explain it to my teens, then I probably can't explain it well to adults. And this one is a doozy to explain. No matter how succinct our words, talking heads and editorials (as necessary as they are) aren't going to move the needle far enough here. If public demand is the key, this needs the creativity of Madison Avenue or Hollywood. This needs Redi Kilowatt on steroids. (If you don't remember this public service animated character, Google him). Some will sneer at this no doubt, but to compete in today's information-saturated world, you need to combine images, words and maybe even music into a publicity campaign that gets people's attention and sticks in their heads. For instance, all the talk about how our various appliances will be better managed will only take us so far. Instead (or rather, in addition), make the appliances into characters and have them talk to the public. If you saw the movies "Toy Story", "Robots" and "Brave Little Toaster", these somehow produced clever and memorable characters that were appliances (or toys). I'll even go so far as to suggest a scene as an example, although this is certainly not my strong suit. Imagine an animated smart grid character taming a group of appliances on leashes (like pets), and show him/her next to the "dumb" grid character trying to control an unruly group of appliances on leashes (pulling him/her every which way, all askew and looking hopelessly overwhelmed) and you have a visual image of the smart grid as a problem solver, a provider of "smart" grid service. I'm sure the creative types can come up with much better images, and more reflective of the larger spectrum of smart grid uses, but you get the idea. Yes, it may be expensive, but the Feds may be able to somehow leverage public service type announcements promoting the smart grid with matching industry funds. In any case, words and charts may work for policy makers and other decision makers, but it won't reach the broad public without more creative efforts from outside the policy wonks, engineers and business development folks that are the primary drivers of the smart grid concept to date. |
| Kevin Rackstraw - 03/10/2009 - 08:38 |
| Ambigious Smart Grid vocab |
| Jesse, I suspect the utility exec who told the Governors that he didn't know what a Smart Grid was, was trying to say something like "Smart Grid is a term that means different things to different people." Which is honest, if not the best way to open a speech to high-end policymakers. I tend to agree with the previous post that SG will be successful when consumers start asking for it. Tom Friedman, one of the world's best phrasemakers, has written an entire book on this issue, and he's at least identified the alternative to SG: a world that's Hot, Flat, & Crowded. I've loaned my copy so I can't instantly recall what he uses to describe his vision of a connected, smart electricity . . but it's based on "Clean Electrons" and that's the level of language needed to sell SG concepts to consumers, so they want to get on the phone and call their local utiltiies to find out when they can get smart meters installed. |
| Bart Preecs - 03/10/2009 - 08:53 |
| What's in it for me? |
| Let's face it: virtually no one knows what a Smart Grid is - and people won't care, either, unless they are told, in simple, easy-to-grasp terms, what it will mean TO THEM. A few examples: "A smarter electric grid will help you save money by allowing you to see how the cost of electricity fluctuates in real-time. For example, you'll be able to program your dishwasher to run at 3:00 a.m. when electricity is cheaper than it is at 6:00 p.m. during 'peak' usage." "The smart grid literally will connect every point along system that delivers electricity - from the power plant to the electrical outlet in your home. It does this by establishing two-way communications over the Internet - telling utilities when and where there are problems, so they can respond quickly, avoiding blackouts. And, it will allow you to monitor the PRICE of electricity, so you can choose to use less power when the price is high." "The smart grid also will make it a lot easier to integrate wind power and other forms of renewable energy into the system, which will help curtail global warming and reduce harmful pollutants." Obviously, this will require a coordinated effort to raise public awareness. Public Utility Commissions can and should play a big role, since research consistently shows consumers trust them to provide neutral information in an unbiased manner. But utilities, transmission owners, consumer and environmental groups, think tanks and others all will have work in an integrated manner, with a focused message, if we are going to penetrate the public consciousness in a meaningful way. Gary Rasp / Rasp INK gary_rasp@hotmail.com |
| Gary Rasp - 03/10/2009 - 09:46 |
| Smart Grid Elevator Speech |
| The public assumes that technology is applied uniformly everywhere, and that because they have computers on their desktops that utilities, governments and public services must be at least as sophisticated as they are. TV doesn’t help, and the power system is not alone in that. Ask a policeman what they think of the detective work on “CSI” or a doctor how often they get to use the advanced techniques on “ER” or “Grey’s Anatomy”. You can’t really get a DNA analysis in 15 minutes (more like 15 days), and you can’t get an MRI just whenever you want one. Similarly, we need the public to understand the state of the power industry RIGHT NOW so they can understand what needs to be done. My speech is: “The Smart Grid simply means automating the whole power network using computers and communications. Although there are some notable, localized exceptions, a lot of the technology in the power system RIGHT NOW is the same as it was fifty or even a hundred years ago. When the Smart Grid is a reality, the following things will be possible: 1. Your utility will be able to offer you a lower rate for electricity if you use it at off-peak times. RIGHT NOW, they don’t know when you use your power. 2. Your lights will go out less often and it will not last as long. RIGHT NOW, your power utility often doesn’t know when your lights go out, and relies on YOU to call THEM. 3. Your utility will be able to prevent truly large blackouts like the one in the northeast in 2003. That one happened too quickly and over too wide an area for humans to react. RIGHT NOW, utilities don’t share enough information quickly enough to create “firebreaks” when catastrophic events like this happen. 4. Your utility will be able to easily support those who generate green power at home and those who use electric cars. RIGHT NOW, most utilities do these things as “one-offs” and don’t have the ability to support green power or vehicles on a large scale. 5. Your electrical power will be safer from attacks by terrorists or hackers. RIGHT NOW, the power system is ten years behind most businesses and thirty years behind the banking industry in protecting its infrastructure. 6. Your cost of electricity will not increase as quickly over the next decade as it otherwise might. RIGHT NOW, the guts of the power system are aging. Its core costs, fuel and labor, are increasing. Electrical rates ARE going up soon. Automation now will help prevent them from continuing to rise afterward. |
| Grant Gilchrist - 03/10/2009 - 09:49 |
| SmartGrid |
| I´ve been confortable to understand SmartGrid as a Telecommunications Network Services; where we have per example an eTOM (management model) that divide several process to attend external customers, operation, maintenance, etc; using several systems to obtain equipment status, applications; it seems that smartgrid concepts drives through infra, services and applications to final consumers. congratulations for article Nelson Mincov - Campinas, SP - Brazil |
| Nelson Mincov - 03/10/2009 - 10:17 |
| Smart Grid Elevator speech |
| Excellent...and set it to Sammy Hagar...... So far we have the GE cross between the scarcrow and the tin man bouncing around a substation singing "If I Only had a Brain"...not particularly informative....catchy maybe....but no substance... Could be the ice breaker for more detailed explanation to come though. |
| Walter J. Relling - 03/10/2009 - 10:28 |
| Smart Grid |
| Dear Jesse: I appreciate your article acknowledging that Smart Grid has some marketing challenges. The real challenge is illustrated by your list of three components of Smart Grid: It is all technology-based, and does not include the customer interface. Let's face it: Smart Grid is currently an engineer's technical paradise. It has no thought of the customer interface element to it; at all. Until you answer the question: "What will we actually ask of the consumer in Smart Grid, and will they actually do that?", Smart Grid should be confined to engineers talking to engineers about how to apply their technical wonders to utility transmission and distribution applications internal to their business. Unless you answer this question, you will continue to have otherwise knowledgeable (and honest) utility CEOs wondering aloud what to do with Smart Grid--at least as far as their customers are concerned. And thanks to Walter J. Relling for mentioning GE's scarecrow ads. Seeing the scarecrow happily dance among presumably energized substation components and between transmission phases really shows that he (and his sponsor's marketing staff) do not have a brain about understanding the business utilities do. This is "Smart" Grid? The marketers are running the asylum, and the real applications need to catch up. Thanks for listening, |
| Bob Schulte - 03/10/2009 - 10:50 |
| Price for Smart Grid |
| A number of the comments suggest that customers will save money on their bills through Smart Grid. Does anyone have any evidence or proof of this? Everything I have read leads to the conclusion that implemnting Smart Grid will require extensive capital outlays for a number of years before any cost reductions in bills, if ever, are realized. |
| J P Meissner - 03/10/2009 - 11:07 |
| Cost Savings |
| In my understanding, and from my work in the utility industry, I see the savings as more of a measure for responsible consumption. There are already Time of Day accounts in some utilities (ours is one), but not everyone is eligible as things stand at this moment. Time of Day regulates on peak and off peak rates, and customers are able to set timers to run their expensive electric items at off peak hours. This is only available to consumers who have storage heaters, then they can also run their electric water heaters, dish-washers, heaters for water tanks, plug-ins for their tractors and trucks, and heat during those hours, then the storage heat releases heat through the peak hours. This is also only available in winter, as there is no need in our area for this rate during the summer (most don't need A/C here). All of our meters are two-way communication over the Internet now, and we can monitor outages to pinpoint where the outage really is before the truck rolls. We read meters hourly, so the customer can see when their peak usage is and adjust accordingly. This is just part of what is already available in many rural markets. I cannot speak for the urban areas. That's my two more cents worth |
| Cindy Hamilton - 03/10/2009 - 12:18 |
| Smart Grid (stimulus) |
| Is there any money in the stimulus for time of use metering. Now that would be money put to good use. Forget the Smart Grid (not really but as it pertains to everyday consumers), just put in smart meters and educate the people about when power is cheapest. In fact, in areas with ISO's anyone can access price information and trends if the are connected to the internet. If you teach people they can save X% on their utility bill with a smart meter and a common sense household energy use plan the savings could be enormous. Hey we are gonna need something to offset the carbon cap and trade expenses about to be piled on the ratepayer! |
| Walter J.Relling - 03/10/2009 - 13:01 |
| Scarcrow Needs Some Friends |
| The GE Scarcrow symbolizes the utility, those that can walk in and about the substations and wires. He leaves the station at the end of the ad in search of a brain. When in fact, as we all know, he already has one. I expect a Dorothy will fly in out of the blue and replace an existing regulatory body, and begin helping guide the utilities looking for a brain as well as those who seek a heart and/or courage. They will look towards the all powerful wizard in DC to help them. The bad regulatory pressures will attack the utilities. But those evil ones will past from their own fundemental flaws. The Wizard will be exposed as the nothing that he in fact is, he will tell everyone everything is fine. Dorothy will go back home and the utilities will find themselves once again to be the hired hands with brains, a heart, and courage. Right now that poor scarcrow needs someone looking for a heart, someone who is looking for courage, as well as some nice naive leader who has the good sense and pluck to put everything back together again in Kansas or where ever we call home. |
| Fred Fletcher - 03/10/2009 - 13:09 |
| The future..now |
| I like your simplified 3-part explaination focusing in smart devices, two way communications and advanced control systems. I would only change that to be "consumer focused smart devices", as I believe energy management in the home and business will represent about half of the economic impact of smart grid and should be highlighted. I like your core technologies diagram and your arguement about leveraging core technologies. It is a handy diagram and a good arguement for not building silos. I also think this needs to be translated to direct tangible benefit to the consumer. Cheap electrical energy continues to be a bargain in this country. Most consumers probably spend as much combined on cell phones, home internet and satellite dish as they now spend on electric power. The convenience of electrical power is already assumed and few will probably deal with the regular fuss of managing their energy use to save 10-15%. Over the long term, convenience will matter most. For the consumer, the smart grid will be "behind the scenes" enabling the charging of their plug-in hybrid electric vehicles at home and more convenience and life style changes with smart appliances and environmental management systems becoming commonplace in the home of the future. The Jetson's family might be the analogy you are looking for. |
| Tony DiMarco - 03/10/2009 - 13:20 |
| Smart Grid is not Smart |
| Clearly most of the comments in this forum are motivated by agendas other than helping the consumer. The fact is Smart meters aren't smart and are just communications devices for utilities. Lets look at a few big issues: - Utility will reduce headcount by reading the meters remotely, costing jobs. - They will limit or shut off low income folks remotely for no or slow payment, possibly causing increased risk for consumers, including wrongly charged bills.... - The Utility will pass along real time energy costs to consumers when they can associate actual usage, increasing their own profits. - The consumer pays for the devices and the Utility benefits. Consumers have no clear way of seeing real time usage or rates with the current planning. - There are no standards that the 6000+ utilities will apply and many will have vastly different meters that don't talk to each other. - The utility controls the information about the consumers actual usage and may sell it to others for profits. Government agencies could also data mine your pattern of activity. - During localized power outages, the smart meters rely on cell phone communications, which are not currently required to have power backup. Therefore, the utility is blind to the network. This is only a partial list of important issues that have not been addressed by the industry or government. Lack of standards and policy will lead to a patchwork network and poor results. How about a plan that sidesteps the whole utility itself? How about a subsidy to provide homeowners with low cost energy meters that tell them how much they are using and how much it costs? Simple stuff that could be a free market solution that actually works. |
| John Heaton - 03/10/2009 - 15:31 |
| Smart Grid Definition |
| You have done a good job of describing it in technical terms. And I see that excellent suggestions have been made to include end-user and systemic benefits that will accrue. In your definition, you may want to articulate the two-way flow of electricty that would become possible with the Smart Grid. In your diagram, a clear omission is the supply side (ie power generation piece) which will be geographically distributed. The diversity in energy generation ability (from coal, wind, geo-thermal etc.) also needs to be reflected. |
| Sunil Chawla - 03/10/2009 - 16:28 |
| Simplicity |
| EnerNet. |
| Matt Spaur - 03/10/2009 - 17:43 |
| Make it Personal |
| Thank you Jesse for spurring on the conversation. Very much needed. Recognizing your guidance of Simple and Analogy. Let's look at the SmartGrid "personally" - not your kids turning off the lights, not your favorite movie come to life in your industry. How about examine the operation of that wondrous machine that has optical sensors absorbing light and a data system translating the signals into actionable information as you read through this article and entertaining responses. Look to the the human body. I suggest the Central Nervous System as an analogy to the SmartGrid to try to bring some clarity to the throngs of interested onlookers. (By the way all of this data is being transmitted over your personal SmartGrid now to your own "MDM".) As you look into some of just the simple activity within the body, I hope you will find the depth of the analogies continue to grow. I think you will find power quality, fault location, supply/demand balancing and more with parallels to some of the simplest human operating systems. Think of the body without an optimal Central Nervous System - you are visioning the utility system today. Note, I did not say No Central Nervous System - only less optimal. The Electric Grid today is an amazing machine in itself, but like many of us, there probably is a little optimization that we could do to make us each more efficient, more healthy, and have less impact on our environment. Look at the facts, both the American people and the US Electric Grid are out of shape. Again, thanks for stirring the synapses. I have quite enjoyed the dialog. |
| Chris Prince - 03/10/2009 - 19:57 |
| It's not about the technology. It's about the benefit! |
| Some previous posts have hit on it and if you read Pip Coburn's book, The Change Function, it will come together. You don't explain television by how the electronics work. It's about the entertainment. You explain the mobile phone system by the communications and the mobile applications, not the technology that provides it. For the user, the Internet is about the content. The "coolnest" comes from benefits, not "neat technology". The user doesn't really care about the underlying technology. Coburn's book is about why some technologies take off and others crash and burn. I think he would say that the development of the smart grid needs to be about creating value for the various users throughout the system, all the way to the end user of electricity, and reducing the perceived pain of adopting the technologies needed to achieve that value. |
| Jack Greenhalgh - 03/10/2009 - 20:25 |
| Talking about the Smart Grid |
| One thing we should not overlook is the fact that “the public” is not a homogeneous entity. Here in California we have a lot of folk concerned with our carbon footprint – perhaps they would support the renewable energy aspects of the Smart Grid. But we also have people concerned over the environment – these good people may oppose the construction of transmission lines to connect a wind farm to the rest of the system. It is entirely possible, it seems to me, that there are even some individuals in both camps. Nor is the level of understanding that “the public” has about the existing power system a uniform thing. I work at JPL, where we have an educated staff that, for the most part, has no background in electric power. However smart and however educated, it is clear from my discussions with many of the engineers and scientists here that the way power moves in a transmission network is something not in the least understood. In fact, there is a quite widespread impression that the power system is not presently interconnected! What this means as we attempt to communicate our views on the Smart Grid is that we should recognize that the knowledge and understanding of our audience is as varied as our own views of what the Smart Grid is. We may view the Smart Grid as including wide area phasor measurements – surely of interest to those who want to bring hydro power from the Pacific North-West down here to southern California. Our audience may not know that that is already going on – or they may be opposed to the transmission lines needed to accomplish it. By and large there seems to be a ground swell of support for the Smart Grid. We specialists would do well to recognize this and take advantage of it where we can. Someone is opposed to new transmission circuits – explain the benefits of distributed energy resources installed in the distribution system. Someone doesn’t like coal – mention the benefits of a large wind farm. Need high reliability – point out that the total storage in electric vehicles could be used to back up the grid without adding a new power station. Above all, though, treat the public with respect and try to advance understanding of Smart Grid benefits as far as appropriate. |
| Harold Kirkham - 03/11/2009 - 08:57 |
| Explaining the Smart Grid |
| A new product or service, and the Smart Grid can be perceived that way by the consumer, or business it serves as that can do the following: 1) Bring costs down for some sets of products and services. Fewer blackouts, brownouts? More efficient use of existing or upgraded appliances, and require less generating capacity by better utilization of existing resources. 2) Enhance the feature set, e.g., better integration of Plug-In-Hybrids to again reduce costs, but also mitigate climate change by KU emissions reduction relative to a standard automobile, and reduction of Spinning Reserves by latent battery non-spinning reserves. 3) More efficient usage of renewable energy resources such as solar, wind, etc., to again fight local pollution but also climate change mitigation directly. 4) Integration of new products and services not properly comprehendable today such as from the development of the Internet from its original formulation to today with the World Wide Web, etc. |
| S. Tariq Mahmood - 03/11/2009 - 14:52 |
| Tell a story |
| How about narrating 24 hours in the life of a Smart Grid customer? |
| Pete Cann - 03/12/2009 - 07:59 |
| Less is Best |
| Story telling and creating vision for others stems from letting people create their own reality from what you tell them. If we tell them too much it turns into teaching and preaching. We may do our best by talking about the promise of smart grid. "Isn't it time that utilities get caught up with the 21st Century and actually use technology available today to better provide us with electricity?" Or "This customer, you see, comes in and says 'I would like my bill on the 10th of every month, please' and we like all laugh. 'You can't have your bill on the 10th unless we tell you you can have your bill on the 10th, SIR' and then that new guy from the Smart Grid group say 'Excuse me Sir would you like that bill on the 10th presented via email, on your cellphone, or by US Mail.' We all just looked at each other wondering why everyone else had their month open" |
| Fred Fletcher - 03/12/2009 - 17:07 |
| Maybe a simpler, more consumer friendly definition |
| An advanced, telecommunication/electric grid with sensors and smart devices linking all aspects of the grid, from generator to consumer, and delivering enhanced operational capabilities that : 1)Provide CONSUMERS with the information and tools necessary to be responsive to electricity grid conditions (including price and reliability) through the use of electric devices and new services (from smart thermostats to PHEV) 2) Ensure EFFICENT use of the electric grid (optimizing current assets while integrating emerging technologies such as renewables and storage devices) 3)Enhance RELIABILITY (protecting the grid from cyber and natural attacks, increasing power quality and promoting early detection and self correcting grid "self-healing") |
| Mike Oldak - 03/13/2009 - 10:59 |
| smart grid aka the sky is falling |
| this is taken from a blog that i came across: Smart Grid will allow the government to collect information about you, your habits, and possessions. All they need are a few sensors to know what is in your refrigerator; how long you spend in the bathroom; if you smoke in your home; if you drink alcohol in your home; and how many people are in your home or business at any one time. Science fiction? Don’t bet on it. Here’s the scenario: you buy a pair of socks, using your credit or debit card (cash is already being discouraged). Because of Smart Grid, your house will be able to read the bar code on those socks as you bring them through the door and add them to a list it keeps of your clothes; size, price, origin, when worn, etc. The computer that controls your home’s thermostat and lights also controls your wardrobe, budget, social habits, and even your eating habits. The refrigerator reads the bar codes on your food. Someone with access to that information knows when you eat, what you eat, what you paid for it, and how long something has been in the fridge. my initial thought was, It can’t read a bar code if there isn’t one. Hmmm. What if your home’s computer believed that based on how many people live in the home there’s not enough food being purchased? How long do you think it would take the electronic nanny to notify child protective services or other authorities? Now that President Obama’s spending package has been pushed down our windpipes, effectively choking off any opposition, look for development of an electronic super nanny by Big Brother. This is change we can believe in? It’s change alright rural America, and it’s coming for you. I had the pleasure of interviewing Dr.Alan Keyes in the summer of 2008. He told me then that rural people should understand that there is a concerted effort to remove all control from rural areas and concentrate it in Washington D.C. I’d say he hit the nail on the head. We are the targets; the lonely little home on GE’s website might as well have a bull’s eye on the roof. One of the largest components of Smart Grid is already being implemented by the USDA; it’s called the National Animal Identification System (NAIS)Coupled with Smart Grid, the NAIS strengthens the ability of Government officials to control rural Americans as completely as they control people in the cities. |
| Natalie Woodhouse - 03/15/2009 - 06:30 |
| Reassurances against potential negatives of a SG |
| In order to convince me that we need a smart grid and that a smart grid would be good for me, you will have to give me 100% assurance that this will not lead to more government intervention in my life. The smart grid must never be used to turn my thermostat up in the summer or down in the winter, if I want to set it at whatever level. The smart grid must never turn lights off that I want on. These items are personal choices that I must be allowed the freedom to choose and pay for myself. I am going to set my air conditioner at whatever level I want, and I won't need a bailout to pay the bill. The good things about a smart grid is that it will allow the utilities to see where power is being used. They will be able to use that information to create a more efficient system that will allow us to use energy more efficiently. The smart grid should be used to make controlling decision on the grid itself and never used to make controlling decisions on how much power I can receive at my home. |
| Adam Maddox - 03/21/2009 - 08:28 |
| Plain and Simple |
| I agree with Jeff Gwynne. The general population doesn't have a clue what the grid is let alone 'smart grid.' I am married to an electrical engineer and after 20 years of marriage am only now learning and understanding because I am studying to be an energy auditor, conservation specialist, and eco consultant. Plain and Simple - Way to Go! |
| Angela Headlee - 04/07/2009 - 11:05 |
| Smart grid - stupid grid |
| The discription of the smart grid by Jesse is quite right, thank you for the effort. In addition you can also make an analysis of the reality of the existing grid, let us say in Germany. This "country of high technology" is, at this time, needing 1.674.700 kilometers (that is equivalent to 1.000. 000 miles) of electricity grid network between 0,4 kV to 380 kV. And this in a small country like Germany. To maintain this system to get eletctricity from the (mostly coal) power plants to the power sockets in households, commerce and industry, there are 566.200 substations/transformers working day to day in Germany. The losses created in this electricity grid are not communicated, they are expected to be between 5 - 10 pc. To my estimate, they are much higher, there is an immense volume of unused heat created. This example is based on real figures from Germany. I am sure, someone has also comparable figures for the US? Here you see the Information Graphic: http://www.fair-pr.com/background/images/german-high-voltage-network.pdf We have to stick to the realiy to get the message(s) over to end-user, politicians and the media. That is a hard job, but is has to be done. |
| Arno A. Evers FAIR-PR - 09/04/2009 - 01:27 |
| Smart Grid Era |
| The introduction of Smart Grid will augur well for the System( eco-system ), it is envisaged. But we will have to carry out a comprehensive cost-benefit analysis as implementation of this technology across the whole infrastructure is going to involve huge cost which will be later passed on to the consumers.So it becomes although more important to explain the potential benefits of this technology to the consumers rather than the description of the same. As a consumer, one is more interested in how much he/she saves at the end of the day rather than how it is saved. |
| Vivekanand Pandey - 09/16/2009 - 00:28 |
| Where are the savings? |
| Hi, I see a few posters have touched the issue about savings. I'm currently writing a report about Smart Grid / Smart Meter etc for Europe. And through my research I've found that there is some savings for the end consumer if they take the time to utilise the possibilities of timing their consumption to the low cost periods, which is normally at night. However research suggests that even with this possibility very few will actually take the time to program their devices. And the savings that they will get is highly dependent on the difference between peak and off-peak prices for electricity. In Norway these prices differences is very low. And a quick calculation of programming you tumbledrier, washingmachine and dishwasher, to run at the cheapest time of the day compared to the most expensive. WOuld save a normal family about 45 NOK or about $ 7.5 a year in total. I mean taking into account the time and effort most untechnical people would have to put aside to program their machines to take advantage of this small saving. Would render out most of the population from taking advatange of the possible savings. I believe the largest saving lies in the delay of investment in peak generation. In Europe today research suggests that the top 5-8% of generation capacity is only used 1% of the time (around 87 hours a year). Being able to remote controll some of the end-user consumption in a way that do not affect their day-to-day life. Might lower the need for peak generation. Which would lower investment cost, and pollution. As they last power plants to be turned on to meet peak consumption is normally old, expensive and polluting plants. Please comment! or send me an email christian.simonsen [ a t ] adapt.no |
| Christian Simonsen - 11/09/2009 - 06:43 |
| Answer to Christian |
| Most demand response schemes don't foresee consumers monitoring their devices manually to turn them on or off at off-peak times. Rather, they expect future systems to be set and forget. You tell the system your preferences, and it goes on cruise control from there unless you decide to manually override. Thus, you would turn on the dishwasher but it wouldn't start until the off-peak hours... unless you had a big party that night and decided to hit the manual override to have the dishes done right away. |
| Jesse Berst - 11/09/2009 - 07:45 |
| Did some calculations on savings in Norway |
| First I'd like to mention that I know Norway is a unique case. However this is what I found. (quick calculations) The dometic sector accounts for about 32% of total net domestic electricity consumption in 2007 in Norway. The government reasearch entity "Sintef" have estimated that about 15 % of total consumption in a household in Norway built in 1997 is accounted by all appliances excluding room heating and water boilers etc. If you then account for the consumption at stand-by time which is estimated in the UK to be 8%, France 7%, USA 5% in 1998 and 10% in 2000. You can assume that about 7.5% of total consumption in private households is as a result of stand-by equipment. Deducting this fromt he total 15%, you are left with 7.5% of consumption that can be controlled in the household. If you then take into account the amount possible to control. Research suggest from tests in the USA that if all consumers have appliances that can be controlled remotely by the utility providers you can reduce the consumption by as much as 42%. Another factor that should be considered is that when controlling the end users appliances you can only do this for a short period of time. Meaning you need to cycle on/off between users. So no user have appliances turned off for a longer period than eg. 15 minutes. Which makes in possible to turn off all appliances only have the time so 50% (every 15 minutes at 15 minutes intervals = 30 min an hour = 50%) Taking all of the above into account. 32% x (15%-7,5%) x 42% x 50%= 0,5% Which means that utility providers should be able to move total consumption about 0,5 % at any given time by controlling all appliances in private households. Which would not be possible in practice, as you would not let your utility provider turn off your TV etc Which argues the case that fexibility as a result of only controlling household appliances is minimal, and that you would get a much better respons by being able to control only water boilers and room heating (only heating solutions that does not affect the consumers comfort level if turn off for a short period of time, like floor heating) Which by a similar calculation would give utility providers the possibility to turn off about (32% x 72% (share of total consumption going to heating and weater boiling) x 42%(how much you can cut enduser consumption) x 50%(cycling users) = 5,7% of total domestic consumption. PS!! Have possibly included the cycling of users issue twice! Please commen |
| Christian Simonsen - 11/10/2009 - 06:50 |
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