I’ve had it with technology.  I’m through!  Why can’t things just work?  Isn’t it easier to make something work all the time than to dream up hundreds of cases where it won’t work?

Today my HP printer refuses to talk to my laptop.  This is the same printer I’ve used for four years, and the same laptop that has been sending print to it for over a year (but only after HP saw fit to release a Windows 7 driver for a printer already on sale globally).  I have not changed anything recently on either laptop or printer.

But today, nothing.  Nada.  Zilch.  And why?  “The document cannot be printed at this time because of a problem with the printer configuration.”  Of course.  I change the printer configuration every week because it’s so much fun and so easy to do.  Especially a 345MB driver that cannot seem to be patched, only downloaded and re-installed.  I’m down with that.

This vignette captures in microcosm how traditional IT must change to successfully support smart grids.  Can you imagine discovering that you can’t have a cup of coffee tomorrow morning because your coffee maker cannot interact with the power grid?  Multiply coffee maker by kidney dialysis, and things get serious in a hurry.  But IT seems to have no such worries.

Before I’d even finished fuming at my printer, I came upon an excellent article by Christine Hertzog, of the Smart Grid Library.  After reading a recent study from MIT on the future of the Electric Grid, she comments that the study is missing several key concepts.  First and foremost:  resiliency.  I agree completely: resiliency is the keyword for smart grids.

Systems must be designed so that they find a way to keep working even when things aren’t working perfectly  – not bail at the first sign of trouble.  Utility Operations have understood this for over a century.  IT service level agreements (SLAs) just aren’t good enough for smart grids.  The power has to stay on no matter what.  Who could imagine that, 130 years after the first large scale electrification of a city, we may be voluntarily signing up for an arrangement that no longer guarantees resilience?

Last week a vendor disputed my analysis of their product with a note that read in part, “I don’t think you’ve seen our current messaging on smart grids.”  That’s the problem we face:  bullet-proof reliability has been moved out of the engineering department and into the marketing department.  But crisp market messages won’t keep the lights on and the dialysis machines running.  I’m all for strong established vendors entering the smart grid market, as anyone could tell from my Pike Pulse reports.  But please give us stronger products, not just stronger web pages.

And finally… thank your lucky stars that I am a cleantech energy researcher.  That way you don’t have to endure a rant about my obstinate swimming pool pump.

While communications technology was used in the electrical grid long before we started labeling it as “smart,” integration of these communications networks into a common fabric is an essential characteristic of the smart grid.  This integration requires adapting existing standards or creating new ones to meet the specific needs of the grid applications.  That process is well underway – as documented in Pike Research’s new report, Smart Grid Networking and Communications.

There are two particular areas of progress to note: the evolution of a standards-based radio frequency (RF) mesh network for field area networks, and broader mainstream adoption of cellular communications.

The RF mesh network used for AMI networks and some distribution automation applications has historically been one of the most proprietary domains of grid communications.  Silver Spring Networks carved out a leadership position in the wave of AMI deployments starting in 2008-2009 by offering an IPv6-based system.  However, due to a lack of available standards, the radio and mesh protocols underneath the IP-layers remained proprietary.  The IEEE and IETF, with the participation of many of AMI vendors, embarked on development of the appropriate standards embodied in IEEE 802.15.4g , 6loWPAN , and RPL specifications.  Even as these were jelling, Cisco and Itron partnered (leveraging the Arch Rock technology acquired by Cisco) to develop a fully standard AMI network implementation, which was finally unveiled at the beginning of this year.  Virtually every other AMI vendor has released IP-based roadmaps and meters promising the flexibility to be “IEEE 802.15.4g ready.”

Itron’s deal to acquire cellular-networking company SmartSynch is a smart move by the big meter maker, helping bring an increasingly important communication technology in-house.  Besides helping to validate cellular as a supplement to various RF mesh technologies, it also reflects market reality.  Cellular technology is now an efficient and cost-effective alternative to RF mesh in some cases, and utility operators now recognize this.

Moreover, Itron is not alone in seeing the value and future of cellular solutions.  Recently, Silver Spring Networks launched its latest version of smart grid network technology, Gen4, which allows a utility to mix in cellular if it wants.  And Cisco recently unveiled its latest network architecture that encompasses cellular, RF mesh and WiMAX.

The major communication suppliers in this space – including Itron with its OpenWay RF mesh technology – naturally want to promote their own RF solutions.  But cellular got a big lift last year when Consumers Energy (an electricity and natural gas provider in Michigan) chose SmartSynch’s cellular-based AMI system for 1.8 million electric customers.  That got people’s attention.

Now with SmartSynch under its wing, Itron can tell its utility customers, “We’ve got you covered.  If you need to build a private RF network, fine, we’ve got that.  But if you also need a cellular solution, we’ve got that, too.”

The purchase doesn’t come as a big surprise.  The two have been partners for more than a decade, and have contemplated a tie-up in the past, but could never agree on terms.  This deal, valued at $100 million, finally worked for both sides.  Over the years, privately held and venture-backed SmartSynch had raised an estimated $91 million.  But its prospects for an IPO were dim, and barring an acquisition, it was likely faced with having to go back to VCs for more funding.  The choice was fairly clear: take the Itron deal and play with the big boys, or shuffle along.

The deal also highlights the following:

• The growing importance of cellular for AMI, supplementing its traditional strength in commercial and industrial market and “hard to reach” meters
• Industry consolidation in the face of a shrinking North American AMI market
• The potential to leverage SmartSynch’s technology outside the U.S. with Itron’s global reach
• An interesting overlap between SmartSynch GridRouter and the Cisco router developed in partnership with Itron (and used at BC Hydro)

Itron CEO LeRoy Nosbaum, who came out of retirement last September to get Itron’s house in order, has put another arrow in his quiver as he moves the company forward.  And, quite clearly, this deal moves cellular up the food chain. 

Proponents of smart grid technology agreed that progress has been made to improve energy efficiency, but much more work is needed to reap the promised benefits. That was the upshot of the three-day GridWise Global Forum held recently in Washington, D.C.

There is “some outstanding technology being deployed,” said Bob Shapard, chairman of GridWise Alliance (the forum sponsor) and CEO of Texas utility Oncor Electric Delivery, noting that beyond smart meters, advanced switches and dynamic line measuring help improve a utility’s operational efficiency. Combined with smart meters, these technologies will help dramatically over the next 5 to 10 years, he added.

More Effort Needed

But clearly more effort is needed to advance the grid, as Claudio Zito, head of international business development for Enel Distribuzione – Italy’s largest power company – told the audience of some 200 people. His company was the first utility in the world to install smart meters, but noted that there remains “lots of work to do.”

Joe Kelliher, former FERC chairman and now executive vice president of regulatory affairs for NextEra Energy, perhaps summed it up best when he said what’s needed is both a muscular and an intelligent grid when describing the pathway ahead. But Kelliher, said there is still too much uncertainty keeping dollars on the sideline, and that if he were ‘king for a day,’ he would make quicker decisions to get things moving and remove the chaos.

Lousy at Communicating

One of the other themes that emerged was how poorly utilities communicate the benefits of the smart grid to consumers. Southern Company CEO Susan Story admitted, “We are doing a lousy job of communicating.” She said what utilities need to do is take the “so what” and turn it into a “this is what it means to you” message, showing people the benefits of a smart grid.

Story also pointed to a need for deeper understanding of customer segments. For instance, among Southern Company’s customers, 30% to 35% still pay their monthly bills by walking into the utility’s subsidiary offices, and 18% of Southern customers do not have bank accounts.

By contrast, San Diego Gas & Electric’s COO Michael Niggli described how his company has found success engaging customers during its smart meter rollout. SDG&E made a point of having seven touchpoints with customers to explain the deployment process and the benefits of the new technology; and he emphasized the importance of not over-selling the product.

Similar Challenges Globally

Industry leaders from outside the United States, expressed similar challenges in getting consumers engaged with smart grid technologies as utilities test and deploy equipment and services. Representatives from South Korea, Australia, and Japan described various levels of engagement. In particular, Hiroshi Watanabe, executive director of Japan’s New Energy and Industrial Technology Development Organization (NEDO), said consumer attitudes differ by country and region-by-region, so the challenge is, “How to cultivate those customer needs?”

Marathon of Sprints

Some of the effort needed to invigorate smart grids must be focused internally by utilities, according to two GridWise panelists. Jennifer Lin, senior director of product marketing for Cisco’s connected energy group, said everyone within the organization needs to align with the smart grid vision, likening the effort to a marathon and not a sprint. Sander van ’t Noordende, group chief executive for management consulting at Accenture, echoed this view, saying it’s a “marathon of sprints” for utilities trying to harness the smart grid concept.

Takeaways

The big takeaways for me: They early hype-phase for smart grids is over. The technology is available and being deployed (albeit slower than some would like). And now the months and years of heavy lifting are needed to deliver on the promised benefits. Time for the muscles and smarts to come together.