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Energy bill could hit utilities hard... NIST accelerates standards efforts... Consumers could block demand response... Ember’s cash cup runneth over... By SGN Staff Apr 7, 2009 - 2:02:38 PM
New energy bill could hit utilities hard. House Energy and Commerce Committee Chairman Henry Waxman and House Energy and Environment Subcommittee Chairman Edward J. Markey have released the text of a new bill, the American Clean Energy and Security Act of 2009. In its current form, the bill would reduce carbon emissions; require a cap-and-trade program for utilities, large oil companies, and others; and impose energy efficiency standards and a 25% reliance on renewable energy sources by 2020. The global warming portions closely follow recommendations by the U.S. Climate Action Partnership (USCAP), a coalition of electric utilities, oil companies, chemical companies, automobile manufacturers, energy companies, and environmental organizations. The Nixon Peabody law firm expects the bill to be controversial for its lack of clarity on tradable emission allowances and possible conflicts with state programs. A Business Week story points out that the bill also includes rebates and retailer incentives to promote appliances with energy-management features. Quick Take: Just as Smart Grid, demand response and energy efficiency hit, utilities could be saddled with an entirely new set of complex regulations with complicated reporting requirements. Necessary, perhaps, but sure to be painful and, ultimately, expensive to ratepayers.
Earth2Tech report on energy bill Nixon Peabody analysis and summary of the bill Business Week story on interactive energy appliances
NIST accelerates standards efforts. A longtime drag on Smart Grid development has been the lack of standards. NIST, tasked by the 2007 Energy Independence and Security Act with addressing that problem, now says it’s moving Smart Grid standards to the front burner. “Unless there is a driving need, standards take time,” George Arnold, NIST deputy director of technical services, told Government Computer News (GCN). For some, NIST was taking too much time. “They were supposed to have a final report to Congress in December,” Dick DeBlasio, program manager at DOE’s National Renewable Energy Lab told EE Times. “But the draft of it just calls for writing seven white papers on the Smart Grid.” But the GCN story cites evidence of change. In March, NIST established a full-time position on Smart Grid issues and plans a workshop in May for stakeholders to identify and prioritize needs. Says Arnold: “We’re doing this on a very fast track. This is doable.” Quick Take: This is the same NIST whose deputy director recently expressed concern to Congress that the private sector was moving too fast in the absence of standards. Arnold is virtually confessing that the organization dragged its feet until the stimulus package sent money its way. We hope this signals a real change on the standards front. It’s high time NIST got its brass in gear.
GCN report on NIST’s Smart Grid standards effort EE Times article on Smart Grid and NIST slowness SGN report on standards slowness
Could consumers block demand response? Not everyone is positive about the prospects of a Smart Grid. According to a recent article in Business Week, consumer groups across the country are opposed to regulatory changes that would permit variable pricing, a key means for utilities to save money with smart technology. The ability to lower rates when demand is low and raise them during high demand can encourage consumer conservation and prevent outages. But consumer groups dislike utilities having the power to raise rates on a community at their discretion. Consumers also raise questions about changing pricing policies during the current recession. Quick Take: In an SGN interview earlier this year, NARUC Chairman Fred Butler warned SGN readers about the importance of selling Smart Grid and demand response to consumers.
Business Week story on consumer backlash SGN interview with Fred Butler
Ember’s cash cup runneth over. Boston-based ZigBee chip maker Ember raised $8 million this week, bringing its coffers to $89 million since 2001. Several venture capital groups contributed to the new round of funding. Ember’s chips are used in wireless mesh-networking that can serve a variety of purposes but are of exceptional interest these days thanks to the Smart Grid. The chips are expected to help smart meters communicate wirelessly with utility control centers and residential thermostats. According to CEO Robert LeFort, the recent interest in the company can be directly tied to the role of the Smart Grid in the recent enacted massive stimulus bill. The company also sees the investment as part of the momentum for the open-source communications protocol known as ZigBee. Quick Take: The chips it makes are “rapidly becoming commodity chips” says Greentech’s Michael Kanellos. If everyone is soon to be making the same product, is it reasonable to expect a big ROI from Ember? Greentech blog on the cash question
Report notes importance of Smart Grid in energy reform. The Reform Institute, a nonpartisan, nonprofit educational organization, has released a report noting the benefits and limitations of various U.S. energy sectors and providing recommendations for each. Titled “Reforming American Energy: Overcoming Reliance and Ensuring Reliability,” the report cites building a Smart Grid as one of many solutions to reducing dependence on foreign energy. Indeed, the report finds that a Smart Grid is one of three critical components (along with transportation reform and wise use of domestic resources) to enhancing America’s energy resilience. The report will form the basis of an April 21 symposium to be held in Washington DC and featuring, among others, Senate Energy Committee leaders Senators John McCain and Lisa Murkowski as speakers. Reform Institute press release on the energy report
Spokane hosts Smart Grid Conference. A wide range of topics — generation, transmission, environment, and more — were on the table at the Smart Grid Conference, held April 6 and 7 in Spokane, WA. Speakers included Senator Maria Cantwell (D-WA), who observed that grid modernization is the “largest economic opportunity in the twenty-first century,” and FERC Commissioner Phil Moeller, who discussed intersystem communication standards and cybersecurity. SGN’s own Jesse Berst was the luncheon keynote speaker and chaired the working committee on making the business case for Smart Grid. Northwest Progressive Institute’s blog account Oregon Public Broadcasting’s summary
Smart Grid companies eye rural markets. The Smart Grid isn’t just for big cities and companies. Washington DC-based Great American broadband is hoping to get $3 million from unnamed investors to develop its Web-based tool that lets utilities monitor data from smart meters and other grid devices. Among other things, Great American Broadband wants to buy the assets of rural ISPs and allow rural electric cooperatives to become “virtual Internet service providers,” giving utilities complete control over their networks. Quick Take: The market for rural electric customers (some 40 million strong) is a good target for the right company. But as Earth2Tech points out, $3 million won’t go very far in buying hardware, and other companies like Arcadian Networks of Vahalla, NY, are interested in the same market and have a much bigger budget. It will be interesting to watch the contest for the biggest slice of the rural pie. Earth2Tech story on Great American Broadband Great American Broadband home page
Italy is ahead in Smart Grid race, claims vendor. In an interview with Greentech Media, Echelon’s CTO Bob Dolin says that Italy had a Smart Grid system before the term was coined, having installed smart meters in 30 million homes since 2001. Although customers only save about $1.5 Euros a month, the Italian utility Enel has paid back its 2.2 billion Euro investment in just four years. Echelon installed the power-line networking equipment for the system. The article discusses the pros and cons of power-line networking and other aspects of the Italian system. Quick Take: Italy paid a bit of a penalty for being early to the party, since their system doesn’t have the capabilities and doesn’t provide the returns of today’s system. Even so, they paid for themselves in four years and can now become a platform for future applications. Greentech article on Italian Smart Grid
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