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For businesses and consumers, the smart grid is our existing electricity grid that has been transformed into a two-way, communicating, energy network. The smart grid includes smart meters that can read electricity consumption remotely, detect outages, identify electricity theft, remotely connect and disconnect service, and deliver prepaid electricity to those who require it. Unlike the existing electricity grid, the smart grid also extends into the homes, buildings, factories and cities, and everything in them, beyond the meter.
Smart meters connected to a smart grid give utilities immediate access to data so that they can better project demand from the grid. When electricity demand is high, typically on hot or humid days, the grid becomes constrained, forcing utilities to make difficult decisions, such as increasing production in a coal-fired plant or simply reducing electricity consumption among its customers. A popular solution to this problem involves shifting demand from peak periods to off-peak periods through energy awareness.
Two stages of energy awareness are likely to emerge. The first stage involves the adoption of in-home displays to monitor electricity price and consumption information. As more and more meters are installed worldwide, utilities will turn to new pricing schemes that adjust the price of electricity based on consumption patterns. Utilities will shift consumption during peak periods, when electricity is most expensive, to those times when it is less expensive. Consumers participating in these programs will rely on in-home displays so that they pay attention to their energy use in order to effect change in their consumption behavior. The problem with this strategy is that it relies on consumers proactively monitoring energy through their in-home display. Depending upon the location and effectiveness of the display, consumers may or may not adopt an energy aware lifestyle. This automatic shifting of demand, "demand response" is becoming increasingly common in the commercial building industry -- serviced by energy management companies and building automation providers, and fueled by cost incentives from utilities.
Energy-aware products are expected to measure electricity consumption and provide feedback on what it actually costs to operate certain products such as air conditioners, heaters, boilers, televisions and lighting. Furthermore, they can adopt energy profiles to support their particular comfort zone. Consumers selecting an economy setting, for example, might choose an aggressive energy-saving strategy that involves turning off certain energy consuming devices during peak periods. Smart electrical outlets and power strips will allow consumers to selectively control loads of certain computer equipment and consumer electronics to eliminate electricity leakage while in their standby setting. This provides the flexibility of leaving important devices like digital video recorders on, while turning off the power to those devices that are in a sleep state like flat screen televisions, DVD players, receivers, etc.
Home Automation for the Masses
The installation of smart meters will result in a tidal wave of smart products that communicate and share information in a Home Area Network (HAN). A HAN is different from a Local Area Network (LAN) in that they are used to connect consumer products like thermostats, appliances, light switches, electrical outlets, solar panels and other energy consuming devices together. Devices in the HAN may connect to a LAN or computer network to allow consumers to manage schedules, monitor electricity consumption and access the home remotely, but the computer typically does not control all of the devices in the network.
Like the grid itself, the HAN will typically utilize a backbone of high electricity-consuming devices such as washers, dryers, refrigerators, and electric furnaces. The most effective method for connecting and communicating with devices in a HAN is with by using the existing power wiring found in every home. Any device plugged into an outlet can be connected and managed as part of the HAN. Since every meter delivers electricity, it becomes the ideal location for collecting essential data from the utility. Additionally, since power line-based communications are far more reliable RF based communications (think cell phone signals from one room in your house to another), the devices on the power line network will by default become the 'backbone' of the HAN.
The key feature for HAN products is that they need to be easily mixed and matched to suit the homeowner's unique tastes and needs. Therefore, it is vitally important to the fledgling HAN industry that product compatibility amongst different vendors is assured. This is accomplished by suppliers of HAN products support open industry standards. The most popular HAN standard for power line based communications, ISO/IEC 14908.1 and 2, comes from the commercial building sector. The ISO/IEC 14908 standard family is supported by nearly all the major control network companies and is a globally accepted standard. It is also backed by many national and region standards including those for building and home control in the US (ANSI/CEA709.1 & 3) and building controls in the EU (EN14908.1 and 2). These standards include a robust protocol that is incorporated in nearly 100 million intelligent devices today, including more than 28 million smart meters in Austria, Australia, Denmark, France, Germany, Italy, Netherlands, Sweden and the United States.
Industry Alliance Developing Consumer Solutions
Successful adoption of HANs in the consumer mass market will depend on product availability and ease of use. An industry initiative called Digital Home Alliance (DHA) was formed in 2006, bringing together leading manufacturers, service providers, and installers committed to delivering open, interoperable solutions to the digital home. DHA members share a common vision whereby consumers can purchase cost-effective, reliable, off-the-shelf products delivering a positive user experience.
The DHA is expanding the ANSI/CEA 709.1 and EN 14908 standards to include provisions for self-installation of intelligent devices in the HAN and automatic discovery by in-home displays and consumer products. CECED, the European Committee of Manufacturers of Domestic Appliances, created a standard for networking consumer appliances together in a home. The result of this work appears in the innovative Interoperable Self Installation (ISI) library used by DHA members. It allows manufacturers to create products that install by themselves and recognize products consumers add and automatically incorporate them into the network -- even those from other manufacturers. Simple items, such as appliances, can be set up to install themselves with other intelligent devices. More interactive environments can use a self-installation process to logically connect and create scenes with other networked devices. Finally, in a complex environment with professional installers, a software tool could be used to create larger networks installed by professionals. Installers can even upgrade the ad-hoc networks put together by homeowners using DHA products to more sophisticated managed HANs -- a key factor in eliminating longevity fears for consumers.
Another innovation supported by the DHA involves innovative software Application Programmers Interface, or API, that can be incorporated into multiple hardware and software platforms to enable a new generation of intuitive users interfaces. Since the home does not require a central computer or controller, consumers can benefit from a myriad of user interfaces depending upon their preference. User interface platforms could include computers, televisions, gateways, digital video recorders, telephones, mobile phones, thermostats and in-home displays. This versatile user interface architecture will offer consumers a choice of products to help them manage and interact with their energy-aware products.
Conclusion
While home automation has been available for many years, it is not a mainstream solution. The high cost and complexity of such solutions is limited to large, expensive homes. The rapid proliferation of smart grids will finally drive the adoption of smart consumer products. This new generation of products will allow consumers to better manage their energy, while simultaneously helping the environment. Utilities will rely on smart grids to help avoid the high cost of constructing new power plants. Economic incentives offered by utilities and the government will create a "pull through" effect for smart products.
Members of the Digital Home Alliance are working hard to deliver a new generation of products capable of reacting automatically to the smart grid. Before long the first wave of energy-aware products will hit the market giving consumers ultimate control over their energy bills, while helping out the plant.



