Juan Hindo, Program Manager, Citizenship & Corporate Affairs, IBM

By Juan Hindo

Today, World Community Grid celebrates eight years of bringing together volunteers from around the world to support humanitarian research. World Community Grid taps the spare computational power of computers volunteered by the general public and provides it – free of charge – to scientists who might not otherwise have access to the intensive computing power they require for timely, humanitarian research.

 In eight years, our volunteers have provided research scientists with the equivalent of more than 600,000 years of computing power to seek cures and new treatments for many diseases, identify clean sources of energy and seek to improve water quality. These projects have yielded more than 30 peer-reviewed scientific papers – industry recognition of scientific research being advanced by World Community Grid.

Continue reading at Citizen IBM.

Technorati Tags: Corporate Citizenship, humanitarian, humanitarian research, IBM Smarter Planet, Smarter Planet, world community grid

Ron Ambrosio, Global Research Executive, Energy & Utilities, IBM

By Ron Ambrosio

Over the last few years, an interesting transformation has been taking shape in the Pacific Northwest.

Research laboratories, product developers, testing companies, utility engineering departments, and universities have been working together to design and implement a new and smarter approach to managing electricity delivery.

This approach, being developed by the Pacific Northwest Smart Grid Project (PNW-SGDP), called for devising ways to move electricity from generation plants through customer equipment, such as smart meters, heating and cooling systems, and just about everything in between.

One of the largest regional smart grid demonstrations in North America, the PNW-SGDP, is led by Battelle and involves a host of partners, including the Bonneville Power Administration (BPA), IBM’s Thomas J. Watson Research Center, 11 regional utilities, the University of Washington, Washington State University, and Central Washington University. Technology partners including Alstom Grid, Quality Logic, and 3TIER, Inc., and others are also involved. (A complete list: www.pnwsmartgrid.org)

The PNW-SGDP includes many different types of smart grid functions in test sites across five states in the U.S. Pacific Northwest. In addition to 60,000 participating customers, 11 distribution utilities and their sub teams, the project has a regional team leading the overall design, development and integration of a Transactive Energy Management system.

Click here to view the embedded video.

On Wednesday October 24, after more than two years of preparation, the PNW-SGDP went live and the Transactive Energy Management system went into effect. Attendees at a launch event at the University of Washington witnessed how the new system will allow project managers to accumulate and manage energy usage information from all energy assets in the project, including data from electric vehicle charging and battery storage systems. They will also be able to monitor the grid in real-time through a single management system that spans the entire delivery chain – a capability that was once impossible.

Electricity Infrastructure Operations Center (EIOC) located at the Pacific Northwest National Laboratory, which Battelle operates for the Department of Energy. The data from the project will be analyzed at the EIOC.

Now, the Transactive Energy Management system is able to communicate, make decisions and take action every five minutes through signals that reflect the changing electrical demand and costs of energy delivery throughout the grid. This system takes into consideration ordinary household appliances, such as heating and cooling systems, clothes dryers and water heaters, electric vehicle charging systems, and many other energy assets, including future large-scale battery banks.

U.S. Senator Maria Cantwell of Washington State interacts with University of Washington students who will use energy management devices to monitor and study energy use as part of the Pacific Northwest Smart Grid Demonstration Project. (Photo courtesy of the University of Washington)

With this new platform, IBM along with other project participants are testing smart grid functions to manage the variability of renewables such as wind, improve response time, and reduce outages – with the goal to build a more resilient, automated and smarter grid.

Both system operators and local utilities will benefit from the increased visibility by allowing them to manage, automate and balance grid load. For example, the Transactive system will help reduce electrical load by calling on batteries and other distributed energy resources if there is an unexpected failure, such as a downed power line or a blown transformer. Such automated responses can help the grid survive situations that in the past have caused localized or wide-area outages.

At the same time, more than 60,000 metered residential, commercial and industrial customers involved in the demonstration will also benefit, indirectly through the improved reliability and operational efficiency offered by their utility. They’ll benefit directly through the ability to manage their energy in a more informed environment while also becoming an active part of the solution. By providing consumers with real-time access to their electrical use, they’ll be able to make informed decisions that will help reduce consumption, as well as their overall energy bill.

With the project up and running, the industry will now have a platform to export lessons and best practices to the rest of the nation, and the world. Now we watch, listen and learn.

Technorati Tags: energy, IBM, predicitve analytics, Smart Grids, Smarter Energy, smarter grids, Smarter Planet

Andy Stanford-Clark, Master Inventor and Chief Technology Officer, Smarter Energy, IBM UK & Ireland

By Andy Stanford-Clark

 

Last week you heard all about my personal mission to reduce the energy consumption in my “house that twitters” using home automation and energy monitoring technology.

Today, I’m going to talk about how we have taken the same technology applied in my home and used it to help change the lives of some residents of Chale – a small village on the south coast of the Isle of Wight.

In December 2009, Chale was selected as one of only ten communities in the UKto benefit from funding for a project to become a low-carbon community, and as a result The Chale Community Project was born. The project’s primary objective was to save energy and water in homes, resulting in reduced fuel costs. So how does the project work? Join me for a tour to find out.

Click here to view the embedded video.

The project started by installing energy-saving upgrades into 65 homes, such as loft insulation and double (and in some places triple) glazing. The houses, none of which have gas mains, were then equipped with air-source heat pumps (a heating system that uses heat from the outside air as its energy source) and solar photo-voltaic (PV) panels to provide free electricity generated from the sun.

My involvement with the project was to specify and develop a monitoring kit that could be easily installed into the homes. We provided residents in 40 homes with a monitoring system very similar to the one that I use in my home. This includes:

- Sensor and wireless transmitter to monitor how much electricity is being used across the whole house.

- Individual Appliance Monitors (IAMs) on 6 selected appliances, e.g. washing machine, tumble dryer, TV, heaters, etc.

- Sensor and wireless transmitter on the PV Export meter to measure the electricity being generated by the solar panels throughout the day.

- Energy monitor display to show residents how much electricity they’re using at any time.

- Internet Bridge which connects the energy monitor to the Internet over broadband, and sends the energy usage data, via IBM MQTT technology, to the secure cloud infrastructure where the Chale Project data is stored.

The data is presented to residents so they can take control of their home energy usage by logging in to a web portal to see energy graphs for their house and identifying where they might be able to make savings. Some members of the Chale community have been trained as Green Energy assessors and they help other residents make sense of their energy information and suggest ways to reduce their usage and save money.

The data (in anonymous form) also provides valuable insights to housing associations and academic research partners on how energy is being used by residents. This enables useful energy savings advice to be given that’s based on behavioural changes. Such advice could be geared toward savings or suggesting further energy-saving technology that could be installed.

The feedback so-far from residents participating in the Chale Project has been fantastic. Some residents have reported a dramatic reduction in their energy bills with savings of up to 50 percent. One resident reported that his winter electricity bill has gone from £50 (approx $80) per week down to £25 (approx $40). In today’s tough times with the price of energy relentlessly rising, this is a great result for the residents of Chale!

So how do we ensure that everyone on the island, and even other islands and regions, can make use of this energy-saving technology? Well that’s where the Ecoisland initiative comes in. Next week my video diary blog will reveal more about Ecoisland and the overall initiative to build a Smart Grid that will integrate the Isle of Wight’s future solar, tidal, geothermal, wind power and other carbon-reducing technologies.

I’m also hosting a People for a Smarter Planet Twitter chat on 31^st October at 12:00PM ET. So join me to find out more about Ecoisland http://bit.ly/TEi8sy.

Technorati Tags: Analytics, Ecoisland, energy costs, IBM, MQTT, Smarter Buildings, Smarter Energy, Smarter Planet

Charles Vincent, Chief Architect, IBM Global Center of Competency for Energy and Utilities

By Fabienne Guildhary, IBM Communications, Energy & Utilities/Media & Entertainment

Often, history serves as a tool to teach us valuable lessons and help us avoid repeating the same mistakes. As Chief Architect of the IBM Global Center of Competency for Energy and Utilities, Charles Vincent is leveraging his considerable knowledge of Electric Vehicles (EVs) to better shape the future of transportation.

Charles’ passion for EVs was sparked long before his career in electronic transportation took off. Fascinated by the technology at an early age, Charles devoted a lot of time poring over vintage publications on the subject, such as American Electric Vehicle Association newsletters from the early 1900’s. Then in the 1980’s, Charles got the opportunity to put his knowledge and passion to work.  

An early 20th century advertisement for the Baker Motor Vehicle Co.

Today, as an IBMer for 26 years and counting, Charles is a key contributor in the development of smart grid technology. Originally dubbed “intelligent grids,” Charles recognized early on the potential for these systems to adapt and respond to fluctuating energy needs. Even at the beginning stages, Charles and his team had a clear focus: work towards building a “Smarter Energy” infrastructure, one that could support increasing populations, new technologies and other unpredictable circumstances, such as extreme weather. The more the development evolved, Charles began to realize the crucial role the smart grid could play in creating a more EV-friendly environment.

Since then, Charles has seen the general public’s interest in EVs wax and wane, depending largely on fluctuating fuel prices. However, he believes the industry has a strong future.

“I think it’s obvious that plug-in electric vehicles will have a significant presence over the next 10 to 15 years,” he said. “Customers are becoming more aware of the benefits, utility companies are implementing new business strategies that will help support growing EV adoption, and even cities are taking the necessary steps to become “EV friendly.”

To help spur that future on, Charles and his team have developed IBM’s Intelligent Electric Vehicle Enablement Platform, a cloud-based energy solution that streamlines the charging process for utilities and consumers. The platform allows utilities to collect energy data via the EV charge-posts, and as a result, accurately measure energy needs and keep the power grid balanced. While, for consumers, the platform provides flexible payment options in the form of pre-paid billing and pay-per-use accounts – all key aspects in driving EV adoption.  

Charles says the EV Enablement Platform is the most challenging project he has undertaken thus far and he’s pleased to see it being applied to smarter EV infrastructures across many countries around the world – including Ireland and in the U.S.

What’s next? Charles hopes to increase EV momentum by working closely with all sectors such as consumers, utilities, automakers and stakeholders, to ensure the EV transition is as smooth as possible. With continued advancements, Charles and his team are preparing to harness smarter energy and leave their mark on transportation history.

Technorati Tags: electric cars, electric utilities, electric vehicles, EV, IBM, IBM electric vehicles, IBM Intelligent Electric Vehicle Enablement Platform

With gas once again flirting with $4 per gallon, imagine shopping for a car in a world where vehicles didn’t come with mileage ratings.

Sure, a smart driver would likely a gut feeling that the pint-sized Prius would be cheaper to fuel than the hulking Hummer for sale next to it. But without official data, or at least a Hummer driver willing to share mileage figures, it’d be tough to know for sure what it would cost to operate the two vastly different vehicles for years to come.

It sounds absurd. Yet for most buyers of houses, commercial buildings and other properties, that far-fetched scenario is pretty much the reality today. Buyers have precious little information of how much energy a given property will consume.

Yet while we’d roll our eyes at the owner of a super-sized SUV who seems surprised about high fill-up costs, who hasn’t heard a story of a person who bought a home only to discover later that it’s hugely expensive to heat and cool?

Luckily city planners, engineers and companies are recognizing that the vacuum of information about building performance is a key to boosting building efficiency, and improving real estate market information—better data helps owners and their tenants make smarter decisions.

An intriguing effort to make this sort of building performance data more transparent surfaced recently in New York City. It’s a map of the city’s five boroughs, color-coded to show the energy intensity of practically every building in the Big Apple’s dense mix of commercial, residential, and mixed-use regions.

The map renders energy consumption in a spectrum of colors: dense, energy-hungry midtown glows darkly red; while low-density, residential swaths of Queens are pale yellow. The design is a first, important step towards giving building owners a great sense of how their energy use compares with their neighbors.

Known as the New York City Energy Mapping Project, the map is the fruit of a study produced by the Modi Research Group at Columbia University’s School of Engineering and Applied Science. The work was jointly presented by co-author Vijay Modi, a professor of mechanical engineering, and lead-author Bianaca Howard, a PhD candidate, at the Northeast Clean Heat and Power Initiative conference in January.

“This map will enable New York City building owners to see whether their own building consumes more or less than what an average building with similar function and size would,” said Modi, quoted in The New York Times Green blog.

“Midtown Manhattan has more energy use than the whole country of Kenya, and New York State uses more energy than all of sub-Saharan Africa,” Modi told The Wall Street Journal.  “For the big expenses we pay for energy we don’t have any idea what we are paying for,” he added. “We get a bill from Conn Ed for let’s say $150, we don’t know how much of that is to run the refrigerator, the heating, the shower?”

To be clear, the visualization is not an exact snapshot of actual energy use. Rather, the researchers adapted data from the New York City Mayor’s Office of Long-Term Planning and Sustainability to build a statistical model that estimates yearly energy consumption for every “tax lot” in New York—a close approximation of each structure in the city, according to CNET.

The map shows energy intensity—energy consumed per square meter of each tax lot—in terms of both heat and electricity. Passing a mouse across the map, a user can interact with the map to reveal total annual building energy consumption.

Still, the New York City energy intensity map is a great start towards clearing the fog that obscures how and where energy is used by buildings.

Click here to view the embedded video.

As many commenters noted, the map’s next iteration should take the data one step further, revealing not just energy use by lot, but by square footage. This would add an important nuance, making it easier to distinguish energy users by efficiency.

For example, consider the Empire State Building. The 102-story tower would show up on the current map as a dark red block given its large total energy demand. But that obscures its superior efficiency. Having recently completed a $550-million retrofit, the building has cut its energy appetite by over a third. So today, King Kong’s tower runs using less energy and at lower costs than most buildings of its size.

The good news is that more detailed energy use data is becoming available. New York City has enacted groundbreaking new rules for buildings to benchmark their energy use.  Starting last year, the rules require private buildings of over 50,000 square feet to file their use of energy (and in some cases water) with the city where it will be posted in a public database.

As building performance data becomes more transparent, building owners are more likely to respond to price signals. Studies show that even with the incomplete information now available, more efficient buildings such as the Empire State Building, are attracting higher-paying tenants, and commanding higher occupancy rates and superior prices at resale. Strong market signals like these are likely to spur owners of less efficient buildings to invest in upgrades; banks are more likely to finance those upgrades if there’s solid data to support the return on the investment..

There are likely to be second-order economic benefits that flow from efforts to map and compare building performance. Energy data analysis is a hotspot in software development, with big established software companies and small startups all spying the emerging pools of building performance data as an opportunity to build user-friendly applications.

In New York City in January, the Cleanweb Hackathon—a Silicon Valley-style weekend-long marathon of pizza-powered coding and venture capital courting—points to the potential. Many of the proposed business models and one of the winners (nycbldgs.com), Martin LaMonica notes at CNET, made use of public domain data to visualize energy consumption and spur competition between households, or buildings, to lower energy use.

New York is learning that the information really is power—in this case, the power to lower energy use. The city offers a great example of how, step-by-step, tools to understand energy use, and rules to encourage more transparent building energy information have the power to spur efficiency investment.

And, luckily, the lessons are catching on. The Institute for Market Analysis, a Washington (D.C.)-based advocate for green building policy, has been tracking the spread of these rules: a fast growing pack of other cities and states are developing and deploying unprecedented levels of performance disclosure.

Technorati Tags: Big Data, buildings, data, IBM, map, new york city

By Martina Koederitz, IBM Germany Country General Manager

At the United Nations’ climate summit in Rio, the German minister of environmental development, Peter Altmaier, created a new word for the English speaking world: Energy-Wende.

Energy-Wende is the shift away from nuclear power toward alternative energy sources like solar energy, wind power and other renewable energies. After the nuclear disaster in Fukushima in March 2011, the German government under Chancellor Angela Merkel decided to phase out nuclear power, which is being followed with great interest by the whole world. “If we succeed in converting the energy revolution, and still remain competitive, then we become a model for the world,” Altmaier added.

Click here to view the embedded video.

Large power networks are required for the nuclear phase-out and conversion to renewable energy. Wind is currently the most important source among renewable energy. Unfortunately, wind power is generated not where the need is greatest, but where the wind blows most – in front of the North and Baltic Sea coast.

This electricity has to be transported from the north to the south. That was different in the past, when conventional power plants were built near large cities and industrial centers. In addition, the supply varies with wind and solar power, depending on the weather. The electricity networks must be able to efficiently absorb it and move it to the point of consumption. The network expansion is therefore a fundamental part of energy policy, just as Smart Grids should be.  Smart Grids use IT to gather and act on information in an automated way to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity.

IBM Germany calls for the extension of intelligent networks to support the “Energy-Wende” in Germany
Smart Grids: Nervous system of the energy transition

By 2020, renewable energy sources should supply at least 35 percent of the required electricity in Germany. This conversion will cost about 200 billion Euros, though reliable estimates are difficult. Apart from investments in new power plants, transmission lines and energy storage, power grids must be equipped with additional intelligence. Without “smart grids” the green rebuilding of the energy supply is inefficient and the stability of the networks is at risk. Therefore the technology industry and leaders like IBM must partner with energy suppliers and governments to help accelerate smart grid activity.

Economist and policy advisor Jeremy Rifkin noted that it will be the computer scientists who will develop the nervous system for this new infrastructure, but there is no finalized plan for the necessary funding of the reconstruction yet. With the German chancellor’s announcement to manage the expansion by law by the end of the year, an essential step was taken.

When considering the safety and sustainability of the energy supply of tomorrow, not only should building new power plants be in the foreground and the major electricity suppliers should not be the only ones being consulted. The IT industry and smart grids should also play a role.

Without a comprehensive plan, Germany will miss a unique opportunity to become the European pioneer regarding the needs of power supplies in the 21^st century. Which challenges do we face, actually? The energy supply will become more diverse; variable energy will play a bigger role, large power plants will lose importance and will be replaced by innovative and decentralized structures. Politicians must recognize this and combine resources in order to manage the challenge. It will be necessary to not only invest in copper – the physical network expansion – but also in the modernization of required intelligent network equipment. Intelligent networks are one of the keys to reliably meeting peak loads.

For this, one needs an integrated approach. It has to include all areas, not only centralized power generation, but also distributed generation, possibly energy storage and the intelligent involvement of the consumer. The IT industry is ready to implement the vision of intelligent networks into practice. From a technical perspective, this is already feasible today, but the costs for innovations will be in the billions of Euros. In return, intelligent networks can reduce power consumption dramatically and make the supply more efficient.

Currently, our industry is still investing – researching, testing and developing these intelligent network solutions, together with the energy industry or public utilities. However, our breath is limited and our resources are too. The politicians should be in close consultation with the industries affected to agree on a framework so that the necessary investments can be made.

However, there is a current government requirement that the costs of smart grid expansion may not be recovered. This is counterproductive and prevents much-needed investments in a safe and sustainable energy infrastructure. In addition, uncertain and partially paralyzed anti-competitive conditions as well as unconcluded discussions of the Federal Office for Information Security (BSI) regarding protection profiles for smart meters, reduce the willingness to invest. Much is tested, but no comprehensive transformation has taken place.

One has to act quickly: Only if this revolution can be supported by a viable business model, companies will be willing to make the appropriate investments.

We now need an intermediate sprint and then a long breath to get closer to the goal: To make Germany a leader of intelligent power supply “made in Germany.”

Technorati Tags: Angela Merkel, environment, Germany, green, IBM, nuclear power, smart grid, solar, wind

Michael Assante is a founder of NBISE

By Andy Bochman, Energy Security Lead

Read the headlines and you will see that Cybersecurity threats to critical infrastructures continue to evolve.  While it’s important for utility companies to stay abreast of the latest attack types, they must also look beyond external factors and turn their efforts to re-establishing and strengthening their organizational structure. The first step must start from within if they are to succeed in maintaining the stability, safety and security of the Smart Grid. It starts with re-defining the term “leadership.”

Recently IBM met with Michael Assante, President and CEO of the National Board of Information Security Examiners to get his perspective on the evolving security landscape within the Energy & Utilities industry. In his current role and also once serving as the Chief Security Officer for North Electric Reliability Corporation (NERC) and American Electric Power (AEP), Michael shares his thoughts on why significant change is necessary if we are to create an intelligent Smart Grid infrastructure.

Q1. How has the energy and utilities industry changed in terms of security measures? Did the Stuxnet virus and its successors drive this? 

M.A.: Interestingly enough, I don’t believe the Stuxnet worm or any other notorious threat spurred the need for change. Instead, I see the shift being associated with the acceleration of connected digital technology.  Computer and communication technology, smart meters, for example, is becoming an integral part of generating, transmitting, and delivering power, and as a result, we’re seeing a significant need not just for improved cybersecurity measures, but a new, more sophisticated approach to business management. Our current defense and protection models are not sufficient against highly structured and resourced cyber adversaries, so utilities should act quickly to develop and apply their greatest resource in this contest: the professionals who work to defend, operate, and protect our critical systems and infrastructure.

Q2: We’ve seen Cybersecurity come to dominate the headlines over the last few years and many industries such as banking and telecommunications have made significant changes to their security governance and business operations. What can the energy & utilities industry learn and leverage from these other critical infrastructure industries? 

M.A.: It is more the norm than the exception to find executive-level cybersecurity leadership in banking and telecommunications today.  Years ago, both industries realized that protecting their networks, systems and data from attackers was a strategic imperative. And some industries have even gone so far as to police themselves with their own security standards.  Now it’s time for electric utilities and other energy companies to elevate cyber resilience in their business planning and investment decisions. Today there are very few cybersecurity leaders at an executive management team level at energy companies. When we see more CSOs and VPs of Security working closely with frontline business units to responsibly manage the risks, we will know that the industry continues to move in the right direction.

Q3: Are you aware of any energy companies or other industries that have successfully appointed Chief Cybersecurity Officers?

M.A.:  As an industry, E&U is still a long way from the financial services industry where cybersecurity is fully integrated with its core business processes. That said there are a few progressive leaders in the electricity sector including Tennessee Valley Authority (TVA) and Pacific Gas & Electric (PG&E) in California. With the right leadership in place, one of the most important changes these organizations made was introducing security metrics that allowed them to measure and report on the effectiveness of their efforts.  Recognizing the power of metrics, the Department of Energy, alongside utility and industry experts, just released its new Cybersecurity Self-Evaluation Survey Tool for utilities. This is another step towards helping senior utility leaders better understand their organizations’ current cybersecurity preparedness and prioritize improvements over time.

Q4: What message do you have to the CEOs and Boards of Directors of utility companies? 

 Michael Assante is a founder of NBISE, whose mission is to increase the security of information networks, computing systems, and industrial and military technology by improving the potential and performance of the cyber security workforce.

Technorati Tags: AEP, cybersecurity, energy, IBM, security

In January 2008 the European Commission announced the “20-20-20” plan, a pledge to cut energy consumption by 20 percent by 2020. To help drive this initiative, they also set a mandate for all participating countries to upgrade 100 percent of electric meters to smart meters by 2022 (80% by 2020).

Yes, this plan sparked excitement and many European countries saw this as an opportunity to finally reduce energy demand and drive economic growth. Now that the initial excitement has died down slightly, we can clearly see the hurdles and are now realizing that there are many factors for success.

Click here to view the embedded video.

Talking to many of our clients, colleagues and competitors, and looking back to the plans and enthusiasm we saw back in 2008 and 2009 regarding the Smart Grid…… the reality is that the pace has been generally slower than originally envisaged.

Why? Is this pervasive? Is it a trend? Is it going to change?

There is no debate around the hard facts and overall aspiration of creating a smarter energy infrastructure: the future role and challenges of electricity grids and the reality of Smart Grid technologies will undoubtedly change how consumers and the industry views energy consumption. But when it comes to the next phase, there are a number of questions that continue to loom:

• What is the real business case?
• Is a full roll-out of smart meters, countrywide, the logical way forward?
• How much should we consider electric vehicles in our planning scenarios when penetration forecasts are still so vague?

The answers to these questions are very dependant on the financial and political situation of the individual European countries. The decision of certain European Governments to phase-out Nuclear Power is going to require exceptional financial resources that were not foreseen four years ago. And the severe impact of austerity measures in several European economics makes it almost politically and socially impossible to increase energy prices as needed.

What we have learned during the “stand by period” of the last two years is that the industry needs to become even smarter. We know that the business case for smart metering in Israel is totally different than the one in Norway. For example, in Germany there are millions of prosumers, these are basically consumers that not only consume but also produce their own power, mostly via rooftop solar panels – energy that is fed back into the power grid. This in-of-itself poses a different challenge and opportunity to the Smart Grid. Therefore, not every case can be treated the same.

So, in order to create a more intelligent energy landscape in Europe, and accelerate the transformation, we have to create a strategy that has a stronger focus on shorter-term results. We will have to seriously address smart meter roll-outs at city level, or at customer segment level.

Looking at successful smart grids examples, Ausgrid (the former EnergyAustralia) embarked on 10-year journey to become the world’s first utility to build and operate a two-way communication network.  They kicked off the program by addressing the fundamental issues first – they improved power supply and grid performance with one of the goals to reduce the “minutes of power loss” for consumers during outages. For Ausgrid, this was the first action item before they could even consider a residential smart meter roll-out.  While in Malta, Enemalta Corporation (EMC) and Water Services Corporation (WSC) implemented electricity and water smart meters together and today share all the back-office processes, as an innovative way to optimize the business case. This project approach has allowed both utilities to implement a complete end-to-end Meter to Cash transformation at a cost of less than 100€ per meter.

Based on IBM’s experience across 150 Smart Grid projects, it is recommended that countries address smart meter roll-outs based on a “benefits harvesting timetable”. Basically, they must focus on customer segments and geographies that will promise a return on investment in less than 5 years. Additionally, they must keep an overall technology vision and principles while also accepting that technologies will change during and after any smart grid transformation. By having a flexible Smart Grid strategy in place, utilities can better adapt to new circumstances such as increasing populations, geographical and economic changes as well as infrastructure requirements.

I think we will come out of the “slow pace” or stand-by mode we have seen in the last 2-3 years. “Stand-by” doesn’t mean that European Utilities haven’t been active. I am not aware of any utility who has not been involved in pilots, or even small scale projects (beyond countries that already led the way in 2003 – 2008). In the last months we have seen the UK and France making clear movements towards a full countrywide roll-out of digital electric and gas meters. We have seen smaller countries such as Israel, Serbia or Cyprus embarking on smart metering pilots while countries like Denmark, Belgium, Italy or Finland continue to address the optimization of the Distribution Network through the use of innovative Smart Grid technologies.

Right now the gears are in motion and we will see significant advancements in the years to come. What is the saying? Slow and steady wins the race.

Technorati Tags: energy, EU, IBM, smart grid

Some transformations can affect a person, a team, clients, and sometimes even reach a continent.  Global Energy & Utilities Industry Leader, Michael Valocchi’s journey as a consultant has taken him through all of this and more.

Last year, Michael joined a group to revitalize IBM’s strategy in Africa which included examining how dozens of African countries can be transformed – infusing intelligence into government, bank, communications, energy processes.  The team was steeped into African cultures, speaking and listening to African leaders about their critical challenges.

“Visiting an orphanage in Kenya and in the regional planning offices in Nigeria, I was a first-hand witness to the consequences of a basic lack of infrastructure,” said Michael.  “I worked on a team that helped identify and map out technology solutions that could modernize essential aspects of African society — from introducing new broadband, banking and healthcare services, to increasing access to clean water, energy and congestion-free roads.”

The outcome of this experience was three-fold: African leaders obtained a new view of the future; IBM created global leaders that understood a major growth region for the company like Africa; and Michael experienced a personal transformation that has changed how he works with clients and his practice.

“It is unbelievably rewarding to be involved in a larger effort that improves the quality of life and promotes the long-term sustainability of a rising continent,” said Michael.

This experience resonated stateside, as well. Under Michael’s leadership, his team is helping transform a Northeastern energy company from strategy to technology implementation.  The transformation gives the company the flexibility to handle incidents such as a catastrophic ice storm that rendered the region without power for days.

Michael and his team have also been critical in advancing the Smart Grid transformation globally, by helping utility companies transition their electric grid, gas and water infrastructures to a dynamic, automated and reliable network. As a result of this transformation, utilities companies are moving to a smarter digital system and consumers are being empowered to manage their energy usage through detailed real-time data. In addition to recent smart grid projects such as the nation-wide implementation in Malta, Michael remains heavily involved in helping utilities identify barriers, discover opportunities and better engage with their consumers.

“Energy is essential” said Michael. “I believe in the criticality of this issue. It affects everybody in the world.”

Last night, Michael was recognized by Consulting Magazine as one of the Top 25 Consultants, for excelling in the Energy field. He was one of just 25 consultants chosen from 476 submitted names. It is no surprise that Michael was chosen for this distinction given his talent, dedication and skills.

Technorati Tags: africa, energy, grid, Kenya, Malta, Michael Valocchi, Nigeria, smart grid, utilities

By Clay Luthy, Global Distributed Energy Resource Leader, Energy & Utilities Industry, IBM

With gas prices hovering at $4.15 per gallon where I live, the talk of electric vehicles (EVs) has increased with vigor. More of my neighbors and friends are toying with the idea of making the switch – much of their reluctance though stems from the fear of inconvenience – will I find a charging station as easily as a gas pump, how will this impact my energy bill, how far can I go on a single charge? These consumer concerns are driving new innovations – uniting forward thinking players to perfect and deploy a smarter EV driving experience.

Click here to view the embedded video.

As a resident of Washington DC, I don’t have to look very far without noticing the well-established bike sharing program that is currently in place.  Locals are biking to and from the subway station and to work while tourists are cruising along to increase the number of monuments and museums they can see in a day.

This approach to urban commuting is now applied to electric vehicles. For example, in Paris, Autolib launched an EV sharing program with great success. According to initial reports, 250 vehicles hit the road on the first day, 2000 are expected this summer and 3,000 are planned within the next two years. Like bike sharing, I can see why this mode has taken off in a city with over two million citizens and highly dense roads – a strategy that I believe, should be replicated in cities around the world.

New business models are being deployed to support privately owned electric vehicles as well. In Israel, Better Place is set to go live on a deployment of networked charging stations. Their innovative business model helps reduce the cost as users pay for electric vehicles much like they do a cell phone – they receive a discounted price on the vehicle and battery in exchange for subscribing to a service to recharge. Innovative business models are often what is needed to bring new technology to the mainstream.

Innovation is also driving the way we create fuel for electric vehicles. Already we are seeing renewable energy becoming cost competitive with traditional energy sources due to improved manufacturing processes and technological breakthrough. Within the next 5 years, we can expect to see the levelized cost (a common cost metric) of electricity generated from roof mounted solar to be the same as, or potentially even less than, your retail electricity price. This, to me, is exciting news for both our environment as well as for our transportation system.

It’s a known fact that electric vehicles can help increase the use of renewable energy. If EVs can communicate with the grid, they can charge based on the availability of renewable energy resources, such as sun and wind. This will help overcome the variability and relative unpredictability of renewable energy (the sun doesn’t always shine when it’s supposed to!) —a challenge that needs to be addressed if renewable energy will scale.

It’s also why the recently announced project with Honda and PG&E is so important – it allows vehicles and the grid to directly communicate with each other. Layer in IBM’s cloud based optimization and automatically, the vehicles become intelligent —now with the ability to charge in accordance with grid conditions.

IBM, Honda, and PG&E Enable Smarter Charging for Electric Vehicles

However, innovative business models and electricity from renewable sources will be less impactful if we are not successful at making the experience of recharging your electric vehicle as easy as pumping gas. This means that we must ensure open access to charge posts for all users regardless of who owns or operates them. Innovation is likewise occurring on this front — Data standards are under development to ensure charge posts communicate in a common way Think of it this way, what happens when you go from one city or state to another and need to recharge your vehicle?

You may be the realm of another service provider and much like cell phones in the old days, if proper systems aren’t place, you may not be able to recharge outside of your network.

In Europe, IBM and a consortium of partners are building a demonstration system that allows for seamless interoperability. As an example, a participant could drive from Barcelona to Rome, charge their vehicle and be accurately billed for the electricity even though the network of charge posts in the two cities are owned and operated by two separate entities.

Similarly, the IBM team in Slovakia is working with ZSE on a project that is designed to make charging across territories more convenient for consumer. Using e-mobility technology, this study will help interconnect the Slovakian capital city, Bratislava and Vienna with a “green highway” of public charging stations.

IBM and ZSE Create Virtual Green Highway for Electric Vehicles

It’s innovations like these that keep me both optimistic and fascinated by the future of the electric vehicle. With fuel prices rising higher and higher, the decision to switch to EVs is getting more attention but is till by no means an easy one, especially considering that Americans on average purchase a new car every five years. So, we all want to ensure we’re making the right decision.

The industry, local and national governments, auto-manufactures and utilities are making significant in-roads – the rest is up to us.

Today marks the last day of #EVweek. Thank you for participating in all of the various online activities. If have more opinions, we’d like to hear them. Continue the conversation today on IBM’s People for A Smarter Planet (P4SP) for #SmarterFriday, a daylong chat about EVs.

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