Navigant Research Blog

Emerging Broadband Technology Offers New Connectivity for Utilities

— July 15, 2014

In the battle for smart grid communications standards, yet another contender is now on the horizon, promising ultra fast data speeds over existing copper wires.  And while telephone companies (telcos) are the primary target market for the G.Fast standard, chipset developer Sckipio believes that the standard will be attractive to utilities for smart grid applications, in addition to broadband connectivity and over-the-top applications like video.

Designed to help telcos cost-effectively compete with cable broadband and very expensive fiber-to-the-home (FTTH) connectivity, G.Fast employs vectoring technology to eliminate interference (cross-talk) between multiple wire pairs in a single copper cable.  The International Telecommunication Union (ITU) instituted the standard in 2010, and recent field trials have shown promising results.

Belgacom has trialed the standard with 3,000 customers and reported a nearly four-fold increase in access speeds over copper.  This makes the technology a reasonable alternative to FTTH, particularly in urban areas with extensive copper infrastructure already in place.  In multi-dwelling units with extensive in-wall phone lines, the use of existing copper lines represents enormous cost-saving, as well as a speed-to-market advantage over running new fiber.

Coming Soon

G.fast is designed for use in the last-mile – in practice, over distances of less than 250 meters.  This allows fiber to reach as far as the basement of an apartment block, for example, eliminating the need to rewire the whole building and still allowing a notable acceleration in access speeds.  G.fast requires a short loop (less than 250 meters) and operates at higher frequencies than digital subscriber line transmissions, which also run over existing copper wires, increasing the risk of cross-talk unless the new vectoring technology is employed.

Sckipio says it has seen interest in Europe, North America, and Asia Pacific, and expects to see telco deployment begin in earnest in 2015.

Tel Aviv, Israel-based Sckipio was founded in 2012, and in December 2013 announced a $10 million venture capital round with Gemini Israel Ventures, Genesis Partners, Amiti Capital, and Aviv Ventures.  The company  is building ultra high-speed G.fast broadband modem semiconductors.

The G.fast standard is still working its way through ITU approval, and a few technical hurdles remain:  Powering the equipment and the unbundling of sub-loops is something that different countries are treating differently.

G.fast represents a great leap forward for telcos struggling with legacy copper networks.  As a viable alternative for utilities seeking connectivity for smart grid applications, it is likely still a couple of years out.  Given its very high data transfer speeds, however, it may well present a new alternative for utilities needing visibility and control at the grid edge — while also providing telephone companies with an opportunity to ramp up their business in the utility/smart grid vertical.

 

Coming to the Motor City: A Smarter Grid

— July 13, 2014

The smart grid in Detroit is about to get smarter – and so are utility industry executives exploring options for real-time grid data and analytics.  Distribution grid sensor developer Tollgrade Communications recently announced a $300,000 project to deploy its LightHouse sensors and predictive grid analytics solution across DTE Energy’s Detroit network.  The companies aim to demonstrate how outages can be prevented.

The 3-year program was selected as a Commitment to Action project by the Clinton Global Initiative (CGI) at the recent CGI event in Denver, where Tollgrade CEO Ed Kennedy took to the stage with former president Bill Clinton to discuss the project.  Tollgrade, Kennedy said, will make public quarterly reports on the project, beginning in 1Q 2015, identifying best practices and sharing detailed performance statistics.

Cheaper Than Building a Substation

With 2.1 million customers and 2,600 feeder circuits, DTE Energy has already begun piloting the system around Detroit, and Tollgrade says that it hopes to prevent 500,000 outage minutes over the next 3 years.  Because of the heavy concentration of auto manufacturing in the Detroit area, those saved minutes should translate into substantial economic benefits.  The system will leverage several communications protocols, including DTE’s advanced metering infrastructure communications network, reducing the startup cost and improving the return on investment.

The sensors will be placed along troublesome feeders as well as outside substations where older infrastructure increases the likelihood of outages.  Combined with the predictive analytics solution, the sensors cost just a few thousand dollars per location and could help DTE Energy avoid or defer replacing a million-dollar substation.  Both investors and regulators are sure to like those stats.

Predicting Change

Predictive grid analytics has been a hot topic in the industry for the last few years, but only recently have the prices of solutions and sensors fallen to a level where utilities can justify the cost to deploy them widely throughout the distribution network.  Navigant Research expects the market for distribution grid sensor equipment to grow from less than $400 million worldwide today to 4 times that amount by 2023.  (Detailed analysis of distribution grid sensors can be found in Navigant Research’s report, Asset Management and Condition Monitoring.)

Since its first meeting in 2011, CGI America participants have made more than 400 commitments valued at nearly $16 billion when fully funded and implemented.  The Modern Grid was one of 10 working groups this year; others include efforts in Sustainable Buildings and Infrastructure for Cities and States.

Another CGI Commitment to Action grant announced last week will fund a market-based, fixed-price funding program for solar and renewable technologies.  The Feed-Out Program from Demeter Power will support solar-powered carports with electric vehicle charging stations at a net-negative cost to the customer.  In other words, eligible businesses pay a fixed monthly fee to Demeter Power (lower than their previous monthly electricity bill) and their employees and customers enjoy free car charging while parked there.  Demeter will own and maintain the infrastructure.

The program will initially make financing available to commercial properties located in Northern California communities participating in the California FIRST property assessed clean energy (PACE) Program, which is offered through the California Statewide Community Development Authority.  Interested participants must register with Demeter Power Group to participate in the program, which is expected to launch in the first quarter of 2015.

 

Blackout-Plagued India Moves toward a Smarter Grid

— July 10, 2014

Utilities in India continue to take concrete steps toward upgrading to a smarter power grid that in the last few years has suffered massive blackouts.  Though the steps are not yet widespread, they show progress toward a more modern and stable grid.

Within a 2-week span, two utilities announced contract awards for new meters.  The largest announcement came when Bangalore Electricity Supply Company ordered 1.7 million digital smart meters from Landis+Gyr.  The meters are to be delivered over the next 12 months to Bangalore Electric, which provides power to the city of Bangalore and eight districts in the state of Karnataka, population 64 million.  The second recent announcement came when West Bengal State Electricity Distribution Company Limited ordered more than 1 million digital smart meters from Landis+Gyr.  Headquartered in Kolkata, the utility manages electricity distribution for 96% of the state of West Bengal, population 90.3 million.  West Bengal has been at the forefront of smart metering in India, having begun upgrading devices in 2009.  This deal follows an order for 1.5 million meters from Landis+Gyr, which were deployed last year.

Progress, Perhaps

In a separate deal, Essel Utilities will deploy an unusual retrofit meter solution.  The utility will install a module, made by local metering company Aquameas, that contains a radio unit from Cyan Holdings called the CyLec 865 MHz RF device.  A total of 5,000 of these units will be attached to existing meters.  The retrofit installations are to take place in the city of Muzaffarpur, in the state of Bihar, starting late in the fourth quarter of 2014.

Earlier moves made by Indian utilities and smart grid vendors indicate that the market is progressing.  Tata Power Delhi was the first utility in India to launch an automated demand response project with smart meters.  The project in the nation’s capital is for commercial and industrial customers that can take advantage of the latest technology.  Approximately 250 customers are involved, with the potential of helping shed loads totaling 20 MW.  Project partners include IBM, Honeywell, and Landis+Gyr.  Washington state-based meter provider Itron has made India a priority for its smart metering efforts, opening a lab last year to highlight its solutions for the Indian market, where it has also been active in supplying advanced water meters.

India still has a long way to go to reach its goals of a more modern electric grid that could eventually involve some 130 million meters.  But utilities are moving ahead with projects and pilots that could bring the country’s power grid closer to the 21st century.

 

With Developer Program, Nest Raises Questions

— June 30, 2014

This week Nest Labs introduced its Nest Developer Program, which integrates smart devices for both home and lifestyle uses.  The results suggest that energy efficiency is going mainstream without most people even knowing it.  This program, which has already enrolled partners such as Mercedes-Benz, Whirlpool, Jawbone (UP24 maker), LIFX, and Logitech, allows communications between smart devices in order to influence and optimize their overall functionality.  For example, the Nest thermostat could receive better information on a homeowner’s sleep/wake cycle, whereabouts, and habits from data transmitted through the UP24 bracelet.  It can then incorporate this information into its intelligent algorithm for determining household heating and cooling patterns.

But that’s only a small part of it.  Nest has already taken a stab at utility-scale demand response (DR) through its Rush Hour Rewards program for climate control, but the program can now enroll other energy-heavy appliances, such as washers and dryers, in the same DR events.  Following device trends in electric vehicle charging, where smart communications are increasingly integrated and relied upon, it’s fair to speculate that this type of developer program has the potential to solve a lot of the problems utilities are currently facing as growing renewables penetration causes instability along the distribution grid.

Privacy Pushback

The potential to optimize energy usage will grow significantly as cloud-based home energy management advances technologically and adds functionality.  But the market is likely to experience setbacks as privacy issues are raised.  Nest and Apple have both created privacy guidelines for data as it is communicated between devices, but protection and control over this information will still be an issue for customers.  As public utilities incorporate software platforms for managing connected devices, it’s unlikely they will be able to avoid the type of pushback (seen here, here, and here) that has hindered the deployment of smart meters.

Another question inherent in this move to a connected life is how the interaction between devices and software will take shape.  Nest and its associated partners have built value propositions off the premium quality of their networked thermostats and the software that controls them.  But competitors like EcoFactor and EnergyHub build value off the ability be flexible in the devices they connect to – asking if premium devices are really all that necessary to realize the same gains.  When you involve multiple customer demographics (with different levels of income and values) and budget-conscious public organizations, different needs and limitations will require different solutions.  There’s no denying that people become emotionally connected to well-made, well-designed hardware – and they will pay a premium for it.  But, as the cellphone industry has shown, there are limitations in terms of hardware development.  So how long will the novelty last for thermostats?

 

Blog Articles

Most Recent

By Date

Tags

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

By Author


{"userID":"","pageName":"Smart Utilities Program","path":"\/tag\/smart-utilities-program","date":"7\/23\/2014"}