Navigant Research Blog

Busy Start to 2015 for Smart Grid Companies

— January 22, 2015

Smart grid companies must have gotten their wishes granted during the holidays, because they are in a sharing mood to kick off the new year.  A burst of merger and acquisition and partnership activity shows that the ecosystem is growing and there’s enough room for everyone to get a piece of the bigger pie.

Trilliant and Innovari announced the completion of interoperability testing of the Innovari Interactive Energy Platform (IEP) and the Trilliant Smart Grid Communications Platform (SCP).  This combination enables utilities to improve operations and benefit customers with a shared communications infrastructure for smart grids.  The Innovari IEP provides automated demand response (DR) for commercial and industrial customers.  The Trilliant SCP complements the IEP with a two-way communications network to deliver grid situational awareness that enables real-time demand side management and the integration of distributed renewable energy resources.

Analytics and Engagement

Silver Spring Networks acquired longtime partner Detectent, which provides software to improve advanced metering infrastructure and utility grid operations, ensure revenue protection, and deliver enhanced customer engagement programs.  Detectent’s utility analytics solutions will be offered both as a standalone solution or powered by Silver Spring’s smart grid big data platform, the SilverLink Sensor Network.

Schneider Electric, meanwhile, announced two recent partnerships.  The first is a partnership with PlanetEcosystems to provide utility service providers with Efficiency Advisor, an integrated suite of software-as-a-service customer management offerings.  Combining Schneider’s Wiser Home Management system with PlanetEcosystems’ P-ECOSYS customer engagement platform, Efficiency Advisor will offer features like behavioral usage efficiency, home usage reporting, personalized recommendations, and an energy marketplace for customers to find contractors and financing options for energy efficiency programs.

Schneider’s second announcement involves a partnership between its European DR division, Energy Pool, and Hyosung, a South Korean industrial conglomerate, to offer DR in the newly opened South Korean marketplace.  Energy Pool will provide its DR expertise and manage operations, while Hyosung will tap into its network of industrial partners and provide IT support.

Just Couldn’t Wait

Often, companies will wait for the DistribuTECH conference to make big announcements about partnerships and new technologies, but these deals apparently couldn’t wait.  They’ll be discussed at this year’s DistribuTECH in San Diego, running February 3 to 5.  Last year, the theme at the conference seemed to be data analytics, as vendors showed how they can extract usable information from the plethora of data now available from meters and devices.  Based on these early announcements, it appears that the one-word summary for this year’s conference will be “interoperability.”

Now that the analytics are available, vendors are realizing that they likely can’t offer all possible analytical tools for utilities on their own, so collaboration will be necessary.  Whether that is through mergers and acquisitions or partnerships, I expect this trend to continue and am sure there will be more announcements at DistribuTECH from those who held back their surprises.

 

What It Will Take To Transform Buildings in Large Cities

— January 22, 2015

From New York to Los Angeles, a growing number of the largest U.S. cities are recognizing that tackling building efficiency translates into progress toward climate resilience.  The underlying assumption is that better information leads to action.  As these cities compile baselines on commercial building energy use and educate the public on the cost-effective opportunities for energy reductions, the next question that arises is whether building owners will take action.

New York State of Mind

New York City was the first to launch a comprehensive strategy to tackle energy waste in commercial buildings through four local laws under the Greener, Greater Buildings Plan.  The complementary laws not only mandate energy benchmarking but require performance upgrades to meet local energy codes for citywide renovations, major retrofits in buildings over 50,000 SF to meet lighting efficiency standards, and the installation of submeters by 2025.  Mayor Bill de Blasio has continued the commitment to improving the city’s climate readiness and, in September, announced a new goal for a citywide 80% reduction in greenhouse gas emissions by 2050.   According to a recent article in The New York Times, the mayor’s office estimates that the energy efficiency advances in buildings deliver tremendous economic benefits.  According to the director of the Mayor’s Office of Recovery and Resiliency, the city spends $800 million a year to run its facilities, and energy efficiency retrofits could generate $180 million in annual savings by 2025.

Best Practices

The City Energy Project (CEP), a national initiative directed by the Institute for Market Transformation (IMT) and the Natural Resources Defense Council (NRDC), aims to help 10 cities design energy efficiency plans and share best practices for promoting change in their largest commercial buildings.   Atlanta, Boston, Chicago, Denver, Houston, Kansas City (Missouri), Los Angeles, Orlando, Philadelphia, and Salt Lake City have each joined the project, according to the CEP fact sheet. As outlined on the CEP website, in 3 to 5 years, the initiative will create transparency on building energy use and create financial vehicles for investment in energy efficiency.

New financing channels are a critical element in the mission to tackle commercial building energy efficiency.  While many of the most attainable energy efficiency improvements can be low-cost or no-cost improvements through scheduling and procedures, transformational changes require capital investment.  The challenge is how to engage building owners with financing mechanisms that enable those investments.

Opening the Purse

At the 2014 World Energy Engineering Conference, held in October in Washington, D.C., several sessions honed in on the challenge of financing energy efficiency.  The market recognizes the opportunity and benefits associated with energy efficiency, but the reality is that capital budgets are tight.  Former President Bill Clinton, the keynote speaker, declared, “Financing is holding back the energy revolution.”

In Navigant Research’s view, the challenge is two-fold.  On one hand, there is the opportunity to adjust perspectives on energy efficiency investment.  Advocacy efforts, such as the CEP, could help building owners broaden their views from a focus on payback to a longer-term view of how energy efficiency and intelligent building investments enhance the value of their facilities.  On the other hand, our research suggests that a change is underway in the performance contracting and shared savings models that have helped fuel investment in energy efficiency historically.   Watch for a new report on energy service companies and the transformation of intelligent buildings financing in 2015 as a part of our Building Innovations Service.

 

International Innovation Thrives in the Bay Area

— December 8, 2014

Just over 69 years ago, the United Nations (UN) Charter was signed in San Francisco.  That Charter, bringing the UN into creation, has many social, cultural, and humanitarian directives, as well as articles aimed at “international co-operation in solving international problems of an economic character.”  That spirit of cooperation is alive in San Francisco, as evidenced by many international innovation showcases that aim to spur collaboration between the United States and other countries, spread some of the startup magic found across the Bay Area, and simply showcase innovation around the globe.

For example, the German government helps sponsor the German Accelerator in both Silicon Valley and New York.  Its upcoming Captivate event is a startup pitch fest that brings German and German-American funders and entrepreneurs together with brief company pitch sessions.  The Japan Society of Northern California is sponsoring its annual Innovation Showcase in early 2015 to highlight Japanese startups and award the title of “Emerging Leader” to one Japanese and one American entrepreneur whose companies are relevant to both U.S. and Japanese innovation.  The City of San Francisco itself helps spur economic connections with China through its ChinaSF program.  ChinaSF leaders say the program has recruited over 50 companies from the Bay Area to China and created more than 300 jobs since 2008.

The Intelligent Factory

The most recent of these events was the California France Forum on Energy Efficiency Technologies, held in late November in San Francisco.  Focused on manufacturing and the smart factory concept, where IT is deeply integrated into the energy performance of industrial facilities, the forum was sponsored by Prime, a Paris-based high tech incubator, and French energy major EDF.  I spoke on a panel that examined the challenges and potential role of industrial energy management (see Navigant Research’s report, Industrial Energy Management Systems), along with Ethan Rogers of the American Council for an Energy-Efficient Economy (ACEEE), who discussed the potential energy savings in the industrial sector.

Specifically, Rogers identified ACEEE’s scenario-based modeling that determined that the U.S. industrial sector could save between $7 billion and $25 billion in annual energy costs by 2035 through energy efficiency gains.  Also on the panel was Arnaud Legrand, CEO of Energiency, a spinoff from Orange/France Telecom that aims to use big data analysis to improve industrial energy use through a software as a service-based solution, and Michel Morvan, co-founder of CoSMo Company.

CoSMo’s approach, based in the study of complex systems, is to use simulation to understand the regimes of behavior of industrial systems, accounting for supply chain, energy uses, workforce, and other inputs.  Morvan views the factory as a system of systems, and his company has developed approaches to simulate the core elements as well as the interconnections between the systems.  In this model, the goal is full energy optimization.  CoSMo is set to fully launch in mid-2015.

 

Itron Utility Week: Beyond Smart Meters

— December 1, 2014

Nearly 1,000 executives from the water, gas, and electric utility industries gathered in San Antonio between October 17 and 24 to discuss “resourcefulness” – Itron’s term for smarter grid, water, and gas utility technology and solutions – and share best practices.  The conference featured a Knowledge Center showcasing the solutions offered by both Itron and its partners, and dozens of panel sessions covering five tracks: Energy Efficiency and Conservation, Data Management & IT, Advanced Measurement & Communications, Smart Grid, and Analytics & Applications.

The opening general session featured a fascinating keynote address by Scott Klososky, principal at Future Point of View, on “Achieving Humalogy” (“digital Darwinism” and how organizations must evolve to stay relevant), and a killer poetry slam by David Bowden entitled
“Dead Leader Walking” – providing a millennial’s take on management (you can watch the keynote here, skip to 1:23:00 to view the slam).

In the Fog

Itron showcased its new grid edge intelligence solution, Itron Riva, at the meeting.  Itron Riva leverages open standards and Cisco’s IOx Fog computing platform to support Internet of Things functionality, including distributed computing power and control and analytics for automated decision-making at the network edge.  Itron Riva also delivers an integrated, hybrid radio frequency/power line communications (RF/PLC) network, which dynamically selects the best network path for the environment.  Itron Riva has been tested and debugged in a Hong Kong deployment with CKP Power.

Itron notes that the hybrid architecture means the system can flexibly switch from the RF solution (in the winter, for example, when foliage isn’t blocking the path) to PLC (in the summer).  The solution is also good for utilities with both rural and urban environments to cover.

At its Alliance Briefing, the president of Itron’s electricity group, Mark de Vere White, shared his insight on how the smart grid market is shaping up.  De Vere White noted that, while the North American market had slowdowns post-American Recovery and Reinvestment Act (ARRA) funding, the company sees that turning around now, and added that managing solar is a high priority.  Globally, Itron is “very optimistic” about 2015 and anticipates smart grid market acceleration in 2016 and 2017.  Itron’s ERDF Linky deployment in France will begin in the second half of 2015.

Spanning the Globe

In the Asia Pacific region, Itron is seeing activity in Australia, New Zealand, Singapore, Thailand, Japan, and Tonga.  De Vere White also noted growing Latin American interest in Brazil, Mexico, Columbia, Ecuador, and Chile.

Other topics emphasized at Itron Utility Week included smart city technology and how smart grids and smart cities intersect (including a presentation by Amy Aussieker of Envision Charlotte), as well as Itron’s new managed services offering, Itron Total Services.

 

Blog Articles

Most Recent

By Date

Tags

Clean Transportation, Electric Vehicles, Policy & Regulation, Renewable Energy, Smart Energy Practice, Smart Energy Program, Smart Grid Practice, Smart Transportation Practice, Smart Transportation Program, Utility Innovations

By Author


{"userID":"","pageName":"Conferences & Events","path":"\/tag\/conferences-events","date":"1\/26\/2015"}