Advanced Metering at the "Boiling Point"... Best Practices in Smart Grid Incentives... Demand Side Technology Set for Growth
By SGN Staff
May 11, 2005 - 4:00:00 PM
The advanced metering market is at the boiling point claims a study by Utilipoint. For the last two quarters, vendors have received a “blizzard of RFPs from large investor-owned and municipal utilities.” The study cites Ontario as the single biggest short-term opportunity and AMR data management as the fastest growing sub-sector, forecasting it will grow from today’s $25M to $200M within ten years. QuickTake: For the past year, we’ve been predicting an acceleration of Smart Grid technology in general and advanced metering in particular. Now evidence is beginning to appear in support of that view.
AMR study overview
GFE Energy 2005 Outlook finds optimism about growth but concern over regulatory uncertainty. Each year, the GF Energy consulting firm surveys several dozen CEOs from large North American utilities to get their views on emerging trends. A summary of this year’s survey is now available for free download. Those tracking the market will be pleased to know that nearly two thirds of the executives believe the industry’s overall financial performance will improve in 2005 and most agree that spending on the grid is needed and will increase compared to the past two decade. Regulatory uncertainty has jumped to the top of the list of concerns.
QuickTake: Overall, a positive climate in which to grow the Smart Grid market.
2005 GF Energy Electricity Outlook
Removing disincentives: best practices in promoting Smart Grid technologies. There is little incentive for investor-owned utilities to invest in energy efficient technologies. If a utility’s revenues are calculated by sales, it has a disincentive to save energy (and thereby sell less) through measures such as a Smart Grid. Attorney Kenneth Gish of Preston, Gates & Ellis has compiled a short white paper detailing programs in several states that create incentives for utilities. It focuses primarily on demand-side programs in Rhode Island, with mention of programs in Massachusetts, New Hampshire, and Kentucky.
QuickTake: The Smart Grid will have a ceiling on its growth until regulatory agencies remove the disincentives. We predict this is much more likely on a state-by-state basis that through sweeping national legislation.
Removing Disincentives White Paper
Demand side technology is a leading growth prospect, says survey. The Distributed Energy Financial Group has released its second annual survey on the distributed energy market. Respondents indicated the Northeast and Pacific regions were most receptive to DE. They believe demand management and communication and control (including advanced metering) will be the most profitable sectors in the mid term with demand management also listed as a top growth area. They cite high fuel costs and regulatory barriers as the leading barriers.
QuickTake: Although not scientifically valid, the survey does reflect the opinions of the sector’s entrepreneurs and investors, which can often lead to self-fulfilling prophecies. A “top-line” executive summary is available free by email at the link below.
Distributed Energy Financial Group
Request a free copy of the executive summary
The Smart Grid shows great promise, at least according to John McGowan in his article “Smart Grid Passes First Tests” in a recent issue of
Energy User News. McGowan, a member of the GridWise Architecture Council, outlines the role of the GWAC and of the Intelligrid effort underway at EPRI.
The Smart Grid Passes First Tests
Intelligent Buildings will relate to the Intelligent Grid. McGowan was also the author of the article “Integrated Information Technology is the New IT” for AutomatedBuildings.com in which he comments on the rapid evolution of the Intelligent Building and, in passing, on its relationship to the Intelligent Grid of the future.
Integrated Information Technology is the New IT
Building the business case for broadband over powerlines. A recent article in
Utility Automation & Engineering T&D Magazine claims that the technology for broadband over powerlines (BPL) has been largely proven. Now the issue is integrating BPL into utilities’ financial strategies and making the business. The article documents several successful case histories and cites several recent research studies pointing to a big jump in BPL users and revenue. One key point: Utilities are focusing first on BPL for their own automation, and only second on opportunities to resell broadband to customers.
QuickTake: This article illustrates an important transition for the Smart Grid movement – the move from gee-whiz technology discussions to hard-nosed ROI analysis.
Can Utilities Build the Business Case for Broadband over Power Lines?
AEE issues new editions of T&D books. The Association of Energy Engineers has released the sixth edition of the
Guide to Electrical Power Distribution Systems by Anthony Pansini. The comprehensive, 265-page manual covers both current and future scenarios, including a new chapter on co-generation and distributed generation. Also from AEE and Pansini is the second edition of
Power Transmission & Distribution, a 392-page book that looks at the current T&D landscape and discusses how loop circuits can improve reliability. It also covers how to hook up small distributed generation in the same manner as larger cogen units.
AEE Bookstore
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