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Many utilities are exploring, planning, or already deploying "Smart Grid" and Smart Meters. With tens of thousands to millions of additional sensors and metering devices on the power grid and at customer premises, millions of measurements will be collected at hourly or 15-minute intervals, and thousands of event notification messages transmitted back to utility operation centers in near real-time. Utility commands and controls will be available down to the customer-premise level. Would all this data and all the monitoring and control capabilities make the utility smarter? Smart Grid/Smart Meters alone, they won't. What would it take? Let's look at a few business areas of the utility.
System Planning and Engineering
Would utility planning engineers be smarter with all this data, so they can engineer more efficient energy delivery systems? The effect could be contrary to expectations, perhaps with the exception of transformer load management. Distribution system planning should not really use load data on individual customer premises directly. Instead, it should use load data aggregated to circuit sections that can be switched or sectionalized. Planning engineers do what-if studies.
Trying to deal with data from every meter may very well consume so much of the engineers' time that there would be less time for what-if planning and engineering, resulting in even less efficient power delivery systems. In fact, what-if scenario planning is becoming more essential to optimize the distribution system for emerging technologies, including both Smart Grid technologies (e.g., Automatic Sectionalizing & Reclosing, Volt/Var Optimization) and energy demand technologies (e.g., plug-in electric vehicles).
S
mart Meter data does have tremendous potential benefits. Planning engineers can use hourly load and voltage data at endpoints, if readily accessible and easily manageable by them, to calibrate and improve the quality of the distribution system model (connectivity and impedance) and load modeling (load type such as constant-power and constant-impedance, load diversity, etc.).
Just as important, Smart Meter deployments provide larger and more flexible sampling for load research, providing timely and up-to-date data on the impact of emerging demand-enabling technologies, such as Dynamic Pricing, distributed energy resources, energy storage, plug-in electric vehicles, etc. The improved system and load models will lead to greater capacity utilizations, improved reliability, and lower-loss power delivery systems -- if planning engineers have the time and the applications and methodology to utilize the models.
The key is "readily accessible" and "easily manageable", which leads to the need for Enterprise Integration of the Smart Grid/Smart Meter data.
Distribution Operations
Would Smart Meter data automatically increase operation efficiency, service reliability, and customer response, as most Smart Meter business cases infer? Some utilities have actually experienced the opposite effect. Distribution system operators may suffer from information overload to the point that their efficiency is compromised. In addition to events from Smart Grid sensors (device status, voltage, current, alarms), the operators would also get outage notification signals from meters, at a much higher volume and rate than customer trouble calls; and some meters also provide low-voltage alerts. Furthermore, due to potential data errors in customer-to-transformer connectivity data, some of the meter outage events may require manual handling even when using advanced Outage Management Systems.
Another concern that system operations and dispatch often have is crew safety. With automatic switching decided and executed locally with Advanced Distribution Automation (ADA) systems such as Automated Sectionalizing and Reclosing, the operators, and hence field crews, may not always be aware of the actual energized states of the distribution network and devices.
Surely, the timely and accurate data in conjunction with decentralized intelligence and controls of ADA, system operators can be proactive to problems and improve their response to system events. What is needed is a very user friendly and integrated operator user environment with integrated and intelligent event and alarm management.
Customer Service and Energy Management
Would Smart Meter automatically make consumers smart? Surely, Smart Meters can provide daily, and some technologies even more near-real-time, updates of their energy usage information on in-home displays and/or the Internet. But what percentage of consumers knows what kWh means and comprehend the effect of dynamic pricing and other energy management programs on their bills?
What consumers need is an "advanced energy portal" that provides analytics to translate kWh usage to bill-to-date, to analyze energy usage data to automatically provide proactive high-bill and energy efficiency alerts, and to estimate the effects of changing energy usage patterns and/or different pricing programs on their bills.
Furthermore, to support utility customers in applying the advanced energy demand management capabilities and in navigating through the number of options available to them, the utility's Customer Service Representatives (CSR) will need to have the same, if not greater, capabilities at their disposal.
As well, because the typical CSR and consumer may not be so tech savvy, the energy portal must be "user affectionate." Smart Grid needs an AOL, Google, or Yahoo!
Enterprise Integration
In summary, Smart Grid, particularly with full deployment of smart meters, more extensive applications of ADA, and increased market penetrations of energy demand enabling devices such as in-premise programmable/controllable devices and plug-in electric vehicles, will add a massive volume of data that must be managed effectively. Enterprise integration -- integration of information systems and applications, and alignment of business processes -- becomes a must. Otherwise, utilities may appear to be dumber and dumber instead of smarter in the face of advanced "Smart Grid" technologies.
For information on purchasing reprints of this article, contact Tim Tobeck ttobeck@energycentral.com. Copyright 2010 CyberTech, Inc.
A very thoughful article. Most of the customer-related benefits of various Smart Grid proposals rely on two things: putting the needs of customers at the center of product and information design, and ensuring that customers are Grid Smart before embarking on deployment of customer premises portals, home area networks and other similar ideas. As you point out, customers and customer service representatives need to understand what they're looking at and what the information means before they can act on that information in a meaningful way.
Bob Amorosi 4.3.09
Jack and Hahn,
There are some true real-time displays that have been on the market for a while, and they already translate instantaneous demand in watts to the rate of spending on one's utility bill in cents per hour, plus cumulative energy consumed in kwhrs translated into one's cumulative energy bill since the start of a customer’s billing period.
BlueLineInnovations.com in Canada has such a product called the PowerCost Monitor that uses a wireless remote IR sensor either on the rotating eddy wheel of an older mechanical service meter (to count watt-hours and time the rotation speed to determine demand in watts), or they have newer models that detect IR watt-hour output pulses that are standard on every smart electronic meter through a plastic widow (analogous to the old eddy wheels).
Energy Inc. has one called The Energy Detective that uses a remote current clamp sensor and voltage sensor that attach to a home's main service panel, and they communicate with a remote display using the home's power-line wiring. There are others on the market too or under development, and have had limited market success.
Real-time in-home displays have been researched to death in Ontario by Hydro One and other utilities in pilot study after study. Besides EDUCATING consumers what kwhrs and watts mean, they promote sustained conservation with most consumers. Across a study group of several hundred homes they have proven a total reduced consumption of nearly 10% on average mainly because the numbers are in the consumers' faces all the time, and not presented at the end of a 2- or 3-month billing period.
Their underlying weaknesses have been twofold. One is that most do not communicate directly using software with the utility company or with their smart meter. As such they rely on the user to manually key in utility billing rates and set their clocks - inviting potential display errors if these parameters are entered in error, or the clock is not synchronized with the smart meter's internal clock or utility clock, particularly so when Time-Of-Use billing is implemented. Also without active communications, they cannot be used as communication portals into the home for real-time price changes or demand response requests from the utility.
The other big problem with displays is that utility companies are regulated and must typically provide uniform billing to every customer. They can only pay for customer in-home equipment if they impose unpalatable across the board rate increases to all their customers, and hence must provide them to all their customers or none at all. This a daunting cost since most display products are currently priced higher than a smart meter itself.
Utility companies could easily sell in-home displays to interested consumers since many are prepared to purchase one for the sake of simply tracking their energy usage more actively, or if they realize they can potentially save money on their energy bills by learning more about their habits and what appliance loads actually cost to run. But most utility companies I have talked to in Ontario are not interested in becoming the Best Buy retailer for consumer in-home products. But utilities must be involved and support such products somehow if they are to communicate with their meters or systems, much like CATV and telephone companies do already with consumer in-home equipment for optional services they provide.
As you know some AMI providers do make available the option of installing optional communications radios (like Zigbee) in their smart meters at the factory to serve as a gateway portal into the customer premises. But again most utility companies will not fork out the extra cost per meter when they buy the meters unless they have a business case to provide it, or money given to them by government handouts. And once the meters are deployed in the field orphaned without such optional radios, it costs even more to go back out and upgrade the meters.
Dr. Daniel Meneley 4.7.09
My concern is simple: What does the average customer (not the "ideal citizen") do with all the data with which he or she is bombarded daily? Is it better to feed the kids --and with what, given the constant advice for and against different healthy options -- or is it more important to turn the stove off now, to save kilowatt-hours?
I'm concerned that all of this stuff does not recognize the fact that humans still operate at the same decision frequency as we did 10,000 years ago. We are adaptable, but you are pushing us beyond the limit of endurance. Get Smart!
Jose Antonio Vanderhorst-Silverio 4.7.09
To make the emergent power industry smarter, there is a need to restructure the power industry to enable Second Generation Retailers integrate the require demand side innovations to power system planning, operation and control.
Forget Demand Side management (DSM); Think Demand Side Innovation (DSI)
By José Antonio Vanderhorst-Silverio, Ph.D. Systemic Consultant: Electricity
EWPC Systems’ ArchitectFirst posted in the GMH Blog, on April 7th, 2009.
In the EnergyPulse article Does Smart Grid Make Utilities Smarter?, by Hahn Tram, VP Enterprise Solutions, Quanta Technology, the case for reform of the power industry is set, as Mr. Tram writes that:
…to support utility customers in applying the advanced energy demand management capabilities and in navigating through the number of options available to them, the utility's Customer Service Representatives (CSR) will need to have the same, if not greater, capabilities at their disposal … As well, because the typical CSR and consumer may not be so tech savvy, the energy portal must be "user affectionate." Smart Grid needs an AOL, Google, or Yahoo!”
The readers should have no doubt that Mr. Tram is actually calling for market innovations to make the power industry smarter on the demand side. The way to do it is to restructure the power industry away from the investor owned utilities (IOUs) paradigm and into the technology neutral electricity without price control (EWPC) paradigm.
Under EWPC, competitive Second Generation Retailers - 2GRs aim to develop such “user affectionate” business model innovations in a market environment similar to that of the computer and information technologies industry. That is the way to make the power industry smarter. Business model innovations and the necessary market environment are described in the EWPC article The Sixth Disruptive Technology. 2GRs will enable demand integration to power system planning, operation and control.
Customer service representatives belong to competitive 2GRs that aim to develop business model innovations. That way humans could "operate at the same decision frequency as we did 10,000 years ago," as Daniel claims.
Continues in next post...
Jose Antonio Vanderhorst-Silverio 4.7.09
I propose that that EWPC paradigm shift involves also a shift from demand side management (DSM) to demand side innovation (DSI). Today I came up with the idea of DSI as a replacement of DSM, while twittering during the PowerUp Canada. This was the tweet “gmh_upsa: Thanks @NaomiDevine DSM is utility oriented. Please ask McArthur about the new customer oriented term "Demand Side Innovation" #powerup.”
Then I looked to see if there was a formal definition of DSI and I could not find one. Wikipedia does not has even an accepted one for DSM. A good definition of DSM is given by the Energy Information Administration in the EIA Energy Glossary:
The planning, implementation, and monitoring of utility activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. It refers to only energy and load-shape modifying activities that are undertaken in response to utility-administered programs. It does not refer to energy and load-shaped changes arising from the normal operation of the marketplace or from government-mandated energy-efficiency standards. Demand-Side Management covers the complete range of load-shape objectives, including strategic conservation and load management, as well as strategic load growth.
There is no doubt that it is utility or supply oriented definition. What is needed then is to reform the power industry to enable DSI to be able to develop needed business model innovations.
Finally, there is one of many examples of the informal use of DSI that I found in the filing “In Re: Rule Development proceedings re Proposed Renewable Portfolio Standard Rules 25-17.400; 17-410 and, 17-420 F.A.C, Docket No. 080503-EI Dated: September 3, 2008.” The introduction of FIPUG COMMENTS WITH RESPECT TO PROPOSED RPS RULES says:
The Florida Industrial Power Users Group through its undersigned attorney has attended and participated in the concurrent workshops on Energy Efficiency and Renewable Energy that the Commission has conducted over the past twenty months. The FIPUG representative makes the following general comments with respect to the proposed rules. The rules are well thought out and well drafted, but they preserve an existing utility supply model that discourages demand side innovation.
