CIO Master & Smart Grid Master

New Epiphany: Smart Grids Require Real-Time all-IP Networks

noreply@blogger.com (Andres Carvallo) — Sun, 28 Feb 2010 03:18:00 +0000

It is clear to me now that Smart Grids require real-time all-IP networks and management tools.

We started our journey with the use case that customers would need meter data 24 hours delayed and that we would collect it every hour or so (with the most aggressive case being every 15 minutes). We also had the use case for a few amount (many hundreds) of sensors for Distribution Automation.

As the last 24 months have shown, the market has been accelerating and it is now demanding possible capabilities around Time-of-Use pricing, and Real-time pricing plus the addition of advanced demand response and advanced load management under the same network (i.e. more sensors for Distribution Automation, smart appliances, electric vehicles, solar PV panels, and energy storage devices).

So, if you are thinking about building for the minimum use case, like we did five years ago, please stop and re-assess. Typical Smart Grid / AMI networks using unlicensed spectrum and limited spectrum can only move data from 20 kbps to 150 kbps at the very most (note: 2G and 3G public networks with licensed spectrum have the same problems). Would narrowband speeds be enough for collecting meter data every 15 minutes and real-time data from a limited number of sensors? Sure. We are managing fine our 410,000 meters and 1,000 Distribution Automation sensors. But we have very tiny growth room to add more Distribution Automation sensors, smart appliances, electric vehicles, solar PV panels, and energy storage devices..

So what would you do if the meter data needs to be collected every 5 minutes, or every minute, or real-time? And what would you do if you realize that adding more Distribution Automation sensors is one of the most powerful Smart Grid benefits and need to now read thousands of sensors real-time? And what would you do when you have to deal with thousands, or tens of thousands, of solar PV panels, electric vehicles, smart appliances, and energy storage devices on the customer side of the meter to support advanced demand response and load management programs?

And have you considered the additional data bandwidth requirements to have the adequate cyber-security, the adequate network management performance tools to maintain the desired service level agreements, and the needed quality of service guarantees?

An RF-Mesh with limited IP support, unlicensed frequency, limited spectrum, limited cyber-security, and no guarantees in quality of service is not the right answer for the new use cases. And 2G and 3G public networks with limited spectrum, limited cyber-security, and no guarantees of quality of service are also not the right answer either.

On the other hand, Fiber, 4G wireless (Wimax and LTE), and Broadband Over PowerLine technologies are the better answer. 3G with HSPA 7.2 and 3G with EVDO Rev A might be adequate for small Smart Grid networks. Any current and new investment should be as future proof as possible!

If we were collecting real-time data from the 500,000 devices on our network, we would be generating about 40 petabytes of data per year from 100 terabytes today. Of course, we would have moved away from the relational data base model to run operations and moved to the time-series data base paradigm by then. Even with that improvement move to time-series databases, the amount of data that we would need to collect and keep might be close to 10 petabytes annually vs. 40 petabytes. That amount of real-time collection, analysis, and decision making can only be achieved with a real-time all-IP network.

If you are in the middle of deployment, you will need to find an upgrade strategy sooner rather than later. If you decided but not yet deployed your Smart Grid / AMI choice, you still have time to switch to the right technology and partners. If you have already made your decision and deployment, your partner(s) needs to give you an upgrade path at a very reasonable price.

I want an upgrade path to a real-time all-IP network with the adequate cyber security, the needed quality of service guarantees, and sophisticated network management performance tools to ensure my required service level agreements.

Andres Carvallo Keynotes Gaining Consumer Buy-in for the Smart Grid Conference

noreply@blogger.com (Andres Carvallo) — Fri, 26 Feb 2010 05:09:00 +0000

The promise of a smarter grid is no doubt a primary focus within the utility industry. On the flip side, for most customers, the technology is far from a "buzz" and is in fact little more than a murmur. For those that have heard the term, it's at most an obscure idea - and one they don't know much about. The challenge is that without consumer buy-in, the full potential of the smart grid can never be realized. And that means utilities must work to communicate what this new technology is, and its benefits and value across each market segment.

http://www.euci.com/conferences/0310-consumer-sg/

http://www.euci.com/conferences/0310-consumer-sg/agenda.php?ci=942

Andres Carvallo Named to Cisco's Smart Grid Technology Advisory Board

noreply@blogger.com (Andres Carvallo) — Thu, 25 Feb 2010 05:54:00 +0000

Andres Carvallo has been named to the Cisco Smart Grid Technology Advisory Board

Cisco delivers an end-to-end, IP-based secure communications infrastructure for the smart grid from generation to businesses and homes.

Cisco Smart Grid solutions help utilities:

· Optimize grid efficiency through better correlation of power supply and demand

· Reduce energy network outages and disruptions

· Increase the resiliency and security of the power system

· Increase environmental sustainability

To help utilities and other organizations in the energy industry efficiently meet the demands of energy generation, distribution, storage, and consumption Cisco Smart Grid solutions bridge multiple technologies:

Grid Security

· Network Security Products
Smart grids require layered defense mechanisms to detect and mitigate threats.

· Physical Security Products
Physical security solutions include video surveillance cameras, electronic access control, and emergency response.

· Professional Services
Cisco and partners deliver grid security solutions, help define requirements, develop grid architecture, coordinate deployment and integration, and deliver ongoing services.

Business Energy Management: Cisco uses EnergyWise, Network Building Mediator technologies, and Professional Services to help businesses lower their energy costs and carbon footprint.

Transmission and Distribution Automation: Cisco 3200 Series Rugged Integrated Services Routers and Cisco Industrial Ethernet 3000 (IE 3000) Series Switches provide rugged, easy-to-use, secure infrastructure for the harsh environments of the smart grid.

Data Center
The Cisco data center portfolio helps utilities use sophisticated data collection techniques and storage solutions for power grid analysis and optimization.

Andres Carvallo Keynotes Smart Grid Revolution

noreply@blogger.com (Andres Carvallo) — Thu, 18 Feb 2010 02:47:00 +0000

Utilities are faced with growing pressures that overlay all their strategic decisions regarding the future: continually growing demand for electricity, reduction in emissions including carbon, an old infrastructure, rate volatility, load demand, aging workforce, and security issues. Faced with these issues there is an urgent need to implement and update the latest smart grid technology within utility companies to improve operations, reliability, customer retention, and optimize asset utilization. The 2nd Annual Smart Grid Revolution conference, February 18-19, 2010 will explore the requirements of creating a comprehensive business case and long term planning for Smart Grid Implementation. Understanding that the industry is beyond metering implementation, the program will also focus on how to achieve two-way communications, the communications infrastructure required and the management of HAN to fully maximize the potential of Smart Grid applications. It is more crucial than ever to update and implement smart grid initiatives within your utility’s infrastructure. This conference will help attendees understand the challenges faced before implementing the smart grid, and the process they took to get there. Join us February 18-19, 2010, in Austin, Texas for a gathering of utility professionals, regulators, commissioners, engineers and financial executives. This two-day strategic business forum will take in depth look at the challenges being faced by utilities concerning the implementation of the smart grid, the case studies, and the benefits that the smart grid brings to the utility, customer, and economy. Learn from utility companies that have been successful in implementing smart grid initiatives. In order to understand the lessons learned from Smart Grid implementation across the industry and have a clear vision of the future role of Smart Grid this is a conference you cannot afford to miss!

http://acius.net/wiki.aspx/Conferences/Upcoming?view=overview&id=146

Andres Carvallo Named to the Networked Grid 100

noreply@blogger.com (Andres Carvallo) — Tue, 02 Feb 2010 02:50:00 +0000

Published by GreenTech Media
Written By David J. Leeds and Rick Thompson

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Andres Carvallo, CIO, Austin Energy

When you coin the term that spawns an entire industry, as Andres did with “smart grid,” guess what? You automatically make GTM's Top 100 list. When not thinking up catchy new nomenclature, Andres serves as Chief Information Officer at Austin Energy, where he is responsible for the technology vision, planning, development and operations for one of the most advanced grids in the nation.

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http://www.greentechmedia.com/articles/read/the-networked-grid-100/

Andres Carvallo Speaks at The University of Kansas

noreply@blogger.com (Andres Carvallo) — Sun, 31 Jan 2010 03:28:00 +0000

The KU Environmental Engineering Conference provides the latest information on relevant topics and projects in environmental engineering. Concurrent sessions will consist of technical presentations on water supply and wastewater treatment, water quality, and air and waste management.

http://www.continuinged.ku.edu/programs/environmental/index.php

Andres Carvallo Keynotes Smart Energy Summit

noreply@blogger.com (Andres Carvallo) — Sat, 23 Jan 2010 06:11:00 +0000

Smart Energy Summit: Engaging the Consumer, hosted by Parks Associates in association with Austin Energy, is the premier conference studying the market for residential energy management and Smart Grid technologies.

The event features a unique combination of market research, featuring results from Parks Associates' landmark Residential Energy Management service, and real-world expertise derived from Austin Energy's Smart Grid, the largest working Smart Grid in the U.S.

The agenda for Smart Energy Summit: Engaging the Consumer focuses on the roadmap for the emerging in-home energy management technology market, offering consumer and industry research and strategic insight:

· Current status of REM and Smart Grid technologies

· Consumer interest in REM solutions

· Engaging the consumer: Strategies and tactics to communicate benefits successfully

· Leveraging applications: Think energy ….and more

· Impact of government stimulus and green initiatives

· Technical and business requirements for succeeding in REM

· Business strategies for utilities, manufacturers, installers, and service providers

· Unit and revenue forecasts for Smart Meters and REM residential solutions

http://www.parksassociates.com/events/energysummit/index.html

NIST Issues First Release of Framework for Smart Grid Interoperability

noreply@blogger.com (Andres Carvallo) — Wed, 20 Jan 2010 05:05:00 +0000

January 19, 2010

GAITHERSBURG, Md.—The Commerce Department’s National Institute of Standards and Technology (NIST) issued today an initial list of standards, a preliminary cyber security strategy, and other elements of a framework to support transforming the nation’s aging electric power system into an interoperable Smart Grid, a key component of the Obama administration’s energy plan and its strategy for American innovation.

NIST Director Patrick Gallagher announced the publication of the NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0, to the some 700 engineers, scientists, and business and government executives attending the IEEE Innovative Smart Technologies Conference, which NIST is hosting.

The Energy Independence and Security Act of 2007 (EISA) set development of the Smart Grid as a national policy goal, and it assigned NIST the “primary responsibility to coordinate development of a framework that includes protocols and model standards for information management to achieve interoperability of Smart Grid devices and systems …”

“This is an important milestone for NIST, for the entire community of Smart Grid stakeholders, and for the nation,” Gallagher said. “This first installment of the Smart Grid interoperability framework will pay dividends to our nation for decades to come. Just as Congress intended, we are building a foundation for sustainable growth and future prosperity.”

By integrating digital computing and communication technologies and services with the power-delivery infrastructure, the Smart Grid will enable bidirectional flows of energy and two-way communication and control capabilities. A range of new applications and capabilities will result. Anticipated benefits range from real-time consumer control over energy usage to significantly increased reliance on solar and other sources of clean renewable energy to greatly improve reliability, flexibility and efficiency of the entire grid.

The new report presents the first release of a Smart Grid interoperability framework and roadmap for its further development. It contains:

· a conceptual reference model to facilitate design of an architecture for the Smart Grid overall and for its networked domains;

· an initial set of 75 standards identified as applicable to the Smart Grid;

· priorities for additional standards—revised or new—to resolve important gaps;

· action plans under which designated standards-setting organizations will address these priorities; and

· an initial Smart Grid cyber security strategy and associated requirements.

A draft of today’s report was issued on Sept. 24, 2009, for public review and comments. More than 80 individuals and organizations submitted comments. A companion draft document, NISTIR 7628, Smart Grid Cyber Security Strategy and Requirements, also underwent public review. A subsequent draft of the cyber security strategy, which will include responses to comments received and will incorporate new information prepared by the almost 300-member cyber security working group, will be issued in February. NIST intends to finalize the Smart Grid cyber security in late spring.

Under EISA, the Federal Energy Regulatory Commission (FERC) is charged with instituting rulemaking proceedings, and once sufficient consensus is achieved, adopting the standards and protocols necessary to ensure Smart Grid functionality and interoperability in interstate transmission of electric power and in regional and wholesale electricity markets. However, some of the standards listed in the NIST report are still under development and some others, such as those already used voluntarily by industry, may not warrant adoption by FERC or other regulators.

“NIST is working closely with FERC and state utility regulators so that we can coordinate development of additional technical information on individual standards to support their evaluation and potential use for regulatory purposes,” said George Arnold, NIST’s national coordinator for Smart Grid interoperability.

In November 2009, NIST launched a Smart Grid Interoperability Panel (SGIP) to assist NIST in carrying out its EISA-assigned responsibility, including working with regulatory bodies on evaluating and implementing standards in this and subsequent releases of the NIST interoperability framework.

A public-private partnership, the SGIP is designed to provide “a more permanent process” to support the evolution of the interoperability framework and further development of standards, according to the report. With NIST, the report explains, the panel will “identify and address additional gaps, assess changes in technology and associated requirements for standards, and provide ongoing coordination” of standards organizations’ efforts to support timely availability of needed Smart Grid standards.

Over the past two months, almost 500 organizations have joined the SGIP. A total of 1,350 individuals from membership organizations have signed up to participate in the panel’s technical activities.

A copy of the NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0, can be downloaded here: http://www.nist.gov/public_affairs/releases/smartgrid_interoperability_final.pdf

Comments on the draft report can be found here: http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/IKBFramework

To learn more about the SGIP, go to: http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid.SGIP

http://www.nist.gov/public_affairs/releases/smartgrid_011910.html

Andres Carvallo Speaks at World Future Energy Summit

noreply@blogger.com (Andres Carvallo) — Sun, 17 Jan 2010 19:32:00 +0000

The World Future Energy Summit has gained the support of some of the world’s leading businesses, who are joining Masdar and Abu Dhabi in demonstrating their commitment to developing a sustainable future energy supply, as Abu Dhabi’s position as a global hub for renewable energy grows.

Hosted by Masdar, Abu Dhabi’s multi-billion dollar cooperative future energy initiative, the Summit has attracted sponsorship from Deutsche Bank Climate Change Advisors, the principal sponsor for the 2010 event. Emirates Aluminium is Associate sponsor and additional sponsors include BP Alternative Energy, Standard Chartered, Siemens, Schneider Electric, Exxon Mobil, ABB, Abu Dhabi Water and Electricity Authority, Oxy, Abu Dhabi Department of Municipality Affairs and Terna.

The World Future Energy Summit has rapidly become one of the globe’s foremost meetings in the world of renewable energy. The event represents a platform for the global alternative energy industry to further new initiatives, technologies and policies, and reinforces Abu Dhabi’s contribution to the global renewable energy industry.

For the third year running, Standard Chartered Bank will host the Standard Chartered Future Theatre showcase, bringing together worldwide renewable energy experts to discuss the most recent and significant innovations of the sector. Discussions linked to the energy economy, cross-border M&A or solar in the Middle East will be a part of the program.

BP will host the Carbon Theatre which will be led by Katrina Landis, Group Vice President of BP Alternative Energy. Theatre audiences will hear leading experts from BP and high level speakers from around the world discussing the critical issues of carbon capture and storage and how it can reduce global carbon emissions. Speakers at the Carbon Theatre include Paul Bryant, Director of HPAD, Ernie Moniz, Director of MIT Energy Initiative, Graeme Sweeney Executive Vice President of Shell for future fuels and CO2 and Jeff Chapman, Chief Executive of the Carbon Capture and Storage Association.

http://www.worldfutureenergysummit.com/home.aspx

Governing Board of Smart Grid Standards Panel Announces Officers

noreply@blogger.com (Andres Carvallo) — Sat, 16 Jan 2010 05:08:00 +0000

January 15, 2010

GAITHERSBURG, Md.—The Commerce Department’s National Institute of Standards and Technology (NIST) announced today that John D. McDonald, general manager of marketing for GE Energy’s transmission and distribution business and an IEEE Fellow, will serve as chair of the governing board of the Smart Grid Interoperability Panel, the organization launched by NIST in November to sustain and coordinate development of interoperability standards for a modernized electric power grid.

The unanimous choice of governing board members, McDonald will serve as the board’s chief spokesperson and will have primary responsibility for organizing its meetings and activities. As required by the SGIP bylaws, McDonald’s selection to lead the board was confirmed by George Arnold, NIST’s national coordinator for Smart Grid interoperability.

The board also chose John F. Caskey, senior director of the Power Equipment Division at the National Electrical Manufacturers Association, to be vice chair and George Bjelovuk, managing director for marketing, research, and program development at American Electric Power, to serve as secretary. All three officers will serve one-year terms.

NIST established the SGIP, which now has more than 450 participating and observing member organizations, to help it fulfill its Smart Grid responsibilities under the 2007 Energy Independence and Security Act. The governing board manages and coordinates the technical efforts of the SGIP. In turn, the SGIP is both a forum for discussing Smart Grid technical issues and a vehicle for inter-organizational collaboration to respond to these issues and to address emerging requirements for Smart Grid standards.

On Jan. 19, NIST intends to issue its Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0. Incorporating responses to comments during public review of a draft document released on Sept. 24, 2009, this report identifies a group of standards applicable to the ongoing development of the Smart Grid, specifies an initial set of high-priority gaps requiring updated or entirely new standards, and describes progress in developing a cyber security strategy for the Smart Grid.

Under the guidance of the governing board, the SGIP will help NIST to extend this initial set of interoperability and cyber security standards. This set will make up a fraction of the total number of standards ultimately needed to build an advanced power grid that will integrate many varieties of digital computing and communication technologies and services with the power-delivery infrastructure.

“NIST is delighted that that these high-caliber individuals have volunteered to fill the leadership positions on the SGIP Governing Board,” Arnold said. “We are grateful to John McDonald and his fellow officers for investing their talent, time and energy to guide the SGIP in helping the nation transform its electricity infrastructure."

“I’m invigorated by the challenge of helping so many committed energy industry leaders work together to frame the infrastructure that will power our planet for generations to come,” McDonald said. “Defining our standards will hasten the development of ever-improving solutions and help American innovation set the worldwide standard for Smart Grid efficiency, reliability and performance.”

Now numbering 23 members, the SGIP Governing Board will grow to 27 members after an election to fill four open slots is held later this month. The governing board is elected by representatives of the SGIP’s more than 400 participating-member organizations, which are divided among 22 categories of Smart Grid stakeholders.

At its first meeting in December 2009, the board appointed Steve Widergren, a principal engineer at Pacific Northwest National Laboratory, as the SGIP’s plenary chair. In this capacity, Widergren will preside over meetings of the entire SGIP.

More information about the NIST Smart Grid program is available at www.nist.gov/smartgrid. For more information on the SGIP, go to http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid.SGIP.

http://www.nist.gov/public_affairs/releases/smartgrid_011510.html

Austin Energy Selected Top Smart Grid Company

noreply@blogger.com (Andres Carvallo) — Tue, 12 Jan 2010 04:33:00 +0000

GREEN STREET JOURNAL

Top Ten Select Smart Grid Firms

January 3, 2010
Written by Editor, in Green Business, Green News, Smart Grid

Smart Grid is on the rise, especially with governments and corporations trying to be more efficient and cut down on costs and create jobs.

1. Silver Spring Networks

2. Itron

3. Echelon

4. Tendril

5. General Electric

6. eMeter

7. EnerNOC

8. Austin Energy

9. IBM

10. NKG Insulators

http://www.gsjournal.com/2010/01/top-ten-select-smart-grid-firms/

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It is always a pleasant surprise to be listed as a top leader in our industry. As the first smart grid deployed in the US, it makes sense to be even listed with leading smart grid vendors. Our work on this industry has been pushing the innovation edge for many years.

Indiana Chosen for Electric Car Plant

noreply@blogger.com (Andres Carvallo) — Mon, 11 Jan 2010 05:08:00 +0000

Todd Woody

New York Times

January 5, 2010

PR Newswire An Indiana facility may become the American manufacturing hub for the Think City electric car.

Think, the Norwegian electric carmaker, said on Tuesday that it will open its first American assembly plant in Elkhart, Ind.

The Think City, a battery-powered, two-seat hatchback, is set to begin rolling off the Indiana assembly line in early 2011, ramping up to a potential annual production of 20,000 cars by 2013. Think said it will spend more than $43 million to upgrade the Elkhart factory, which is expected to eventually employ more than 400 workers.

About 1,500 of the plastic-bodied cars are already on the street in Europe, and Think will begin selling the City in the United States later this year. The car will be imported from a Finland assembly plant until the Indiana factory opens in a former recreational vehicle factory.

Think’s investment in the Indiana facility depends in part on securing a United States Department of Energy loan guarantee to finance the project, according to Richard Canny, Think’s chief executive.

“Our plan is based around the D.O.E. loan,” Mr. Canny said in a telephone interview on Tuesday. “If that didn’t happen we would be looking at a slower and shallower investment plan.”

Think has not disclosed the amount of the loan it is seeking.

Indiana was one of several states vying for the Think assembly plant. Tax incentives offered by Indiana and Elkhart’s proximity to automotive suppliers in neighboring Michigan helped clinch the deal, according Mr. Canny.

“We thought they had a great vision for developing an industrial base around electric transport, of creating the Silicon Valley of electric transportation,” he said. It also helped that Ener1, Think’s biggest shareholder and battery supplier, is headquartered in Indiana.

“The battery is the most significant cost of the car and you don’t want to have to ship it around the country,” said Mr. Canny.

Think, which also counts General Electric and the Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers as investors, plans to sell the City in the United States for about $30,000 after incentives. The car has a range of about 112 miles and the American version of the City will have a top speed of at least 70 miles an hour, according to Think.

Mr. Canny said Think will initially target about five markets in the United States, including the San Francisco Bay Area.

The selection of the Indiana site comes as Think resumes production of the City in Europe after emerging from bankruptcy protection last August. The company subsequently shuttered its Norwegian assembly plant and contracted with Finland’s Valmet Automotive to produce the City.

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It is awesome to see the mid-west remake with clean tech at the center. The American Renaissance is in the making. Smart Grid, Electric Cars, Energy Storage, and Smart Devices everywhere. The electrification of our economy goes from 75% to 100% in the next 20 years. In that journey the US reinvents work and life paradigms while dominating the 21st century. May you live in exciting times.

How IT is Set Up to Fail

noreply@blogger.com (Andres Carvallo) — Tue, 05 Jan 2010 19:20:00 +0000

It's time to recognize the inherent CIO paradox and start fighting back.

By Martha Heller
December 23, 2009

Ten years ago, I started asking CIOs a question: When you walked into your job, what did you find? The answer, roughly 90 percent of the time: "I inherited a mess. The IT organization had major delivery problems and no credibility with the business." A decade later, I am getting the same answer. How can this be? Is every CIO I have ever spoken to an idiot? Or, more plausibly, is there something so inherently problematic about the CIO role that even the most talented and experienced leaders have trouble making it work?

Few would argue that your role suffers from inherent contradictions: business acumen versus technology skills, operational fixation versus strategic ambitions, innovation versus cost containment, enterprise responsibility versus siloed demands, and ultimately, accountability versus disempowerment. These contradiction form a "CIO paradox" that is deeply embedded in governance, staffing models, executive expectations, budgeting, even the titles that IT leaders hold.

The CIO paradox can be as profound as this: Bad technology can bring a company to its knees, yet corporate boards rarely employ CIOs as directors. It can be as pragmatic as the perennial conflict between risk mitigation and product innovation. Certainly it will take more than one column to tease out these elements and tap CIOs on how to attack, reverse or neutralize them. Watch this space over the coming year as I join forces with the CIO Executive Council and broader leadership community to help fight back against the CIO paradox and level the playing field for IT success and the positive evolution of the CIO role.

For now, I offer one element of the CIO paradox and an intriguing way to overcome it.

Move beyond enablement

Scott McKay, CIO of Genworth Financial, describes the paradox this way: "Many CIOs see their role as an enabler to their business peers," he says. "But precisely because they are enabling business results, rather than driving them, they are not perceived as highly strategic to the management team."

In fact, many CIOs regularly proclaim with great pride that they have no "IT" projects at all, only "business" projects. "The traditional CIO education includes a number of IT governance practices that instruct the CIO not to champion any initiatives and to always have a business sponsor," says McKay. "But unless CIOs get comfortable stepping beyond those traditional IT governance paradigms and take leadership of business initiatives, they will never have as much impact as a sales leader with accountability for a new product."

Specifically, McKay says CIOs should step out of the enablement shadows and become the competitive capabilities expert. "Generally, a business needs only a few differentiating capabilities to be competitive," says McKay. "With his or her access to processes and data, the CIO has the unique ability to baseline business capabilities and to identify which of these need to outperform the competition." If CIOs can harness this powerful data and process perspective to become their company's competitive capabilities expert, they will be better positioned to drive strategy. "This is an incredible opportunity for CIOs," says McKay. "Some will take it and some won’t."

Over the years, we've called it many things: demonstrating IT value, business and IT alignment, and we've probably used a few phrases not appropriate for print. This year, let's call it the CIO paradox. But whatever we call it, it's hurting our enterprises, holding back our teams and threatening the Future-State CIO. If we are ever going to move past it, we need to get started.

http://www.cio.com/article/511568/How_IT_is_Set_Up_to_Fail

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My friend Martha Heller makes some great points in this article. And Scott McKay makes a good case for another CIO value label toward becoming a strategic partner in the company. “The Competitive Capabilities Expert”. I like it.

The key to all this is the fact that CIOs are operational experts that manage innovation via a creation, transition, operation, and optimization framework that requires a balance between affordability, convenience, speed and security. The CIO should never report to the CFO, CAO, nor to any-cost centric or shared services c-level. The CIO should only report to the CEO or in the very worst case to the COO. The CIO should drive the top-line while maintaining the bottom line from growing. The CIO manages data and processes around it. Data and the Processes around it are the ultimate competitive weapons in any business. That is the key.

Furthermore, you can only reduce your costs to zero from your starting point – a limited domain. On the other hand, you can increase revenues to infinity while containing costs; hence, increasing the bottom line as well consistently. That is the real issue, in my opinion and after 23 years of experience. So, is your CIO focus on growing the top line or just reducing costs? Or both?

Utility IT staffing likely to become increasingly competitive issue

noreply@blogger.com (Andres Carvallo) — Mon, 04 Jan 2010 19:09:00 +0000

By Warren Causey

It's somewhat counterintuitive in the midst of a recession and with 10 percent unemployment and 17 percent underemployment to mention that utility IT executives are beginning to become concerned about having enough qualified staff to do everything they're being asked to do in the current business environment. Despite the logical disconnect, that is, nonetheless, the case.

In the first place, utilities have been hurt by the recession in a number of ways, including declining electrical usage and the increased cost of credit. This has forced them to reduce budgets, and IT at many utilities still is viewed as a cost center rather than a strategic asset, as it should be. Thus many utility IT departments already are operating short-handed. At the same time, they are under great pressure to upgrade systems to deal with the ubiquitous smart grid pressure from the federal government and elsewhere.

There also is the problem that U.S. colleges and universities still aren't turning out as many engineers and IT professionals as are needed. They haven't been for a number of years.

"That is a serious problem," said Lynne Ellyn, senior vice president and CIO of DTE Energy, in a recent interview. "It was probably four or five years ago I read 'Workforce 2020' which was a study by the Hudson Institute on just exactly this issue -- that projecting out to 2020 what the workforce is going to look like," Ellyn continued. "And there's going to be critical shortages of medical personnel. They're already starting to see that; critical shortages of engineering and deep technical sorts of disciplines all across the board."

Becky Blalock, senior vice president and CIO at Southern Company added during the same interview: "We're definitely going to be challenged. We're challenged even in this economy on specialized skills. I mean Lynne knows, I've called her and asked for help, and she's pointed me where I could get people that have particular kinds of skills. Security skills are going to be in very hot demand. Just to give you all an idea, we hired a kid out of Georgia Tech, he worked for us for two years -- which means that we trained him -- and Homeland Security offered him a job making $250,000 a year. It's a contract, it's not a permanent job, but if you're 25 years old and right out of college what are you going to do? You're going to go take the job. Well, I can't afford to pay somebody that kind of money."

The issue is so serious -- or tempting -- depending on your viewpoint, that new companies are likely to spring up to help deal with it; one person's problem is another's opportunity. For example, Chris Hackett, former vice president at Sprint, has formed what he calls a "global staffing company" to help utilities and other businesses that are short of IT staff.

"When we see what's happening in the changing environment, the workforce is aging in a lot of areas," Hackett noted. "There are lots of different pieces of the puzzle. For one, some of the stimulus funding for healthcare was around electronic medical records. A typical doctor may have 8,000 pages of records that have to be digitized. A lot of people are going to have to get systems set up to deal with that."

Hackett also sees opportunities in utilities. "With smart grid, a lot of utilities are not going to have enough IT staff. Where utilities can identify needs within their own IT shops, we can participate with them in terms of a partnership and help them ultimately drive down the cost."

Of course, organizations like Hackett's, as well as larger groups like Capgemini and IBM, also are going to be looking for IT staff they can place at utilities on a contract basis.

Going forward, two things seem to be apparent. First, utilities are going to have to become increasingly creative in how they get IT work done. And, secondly, if you have a child about to enter college, now would be a good time to try to interest them in information technology/computer sciences. It's only going to get worse as all we old-timers (aka baby boomers) begin to retire -- assuming we have something left to retire on.

It's somewhat counterintuitive in the midst of a recession and with 10 percent unemployment and 17 percent underemployment to mention that utility IT executives are beginning to become concerned about having enough qualified staff to do everything they're being asked to do in the current business environment. Despite the logical disconnect, that is, nonetheless, the case.

http://www.intelligentutility.com/article/10/01/utility-it-staffing-likely-become-increasingly-competitive-issue

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I agree with this article published in Intelligent Utility and written by my friend Warren Causey. Warren is right on the money on the issue. Outsourcing needs or not, there is another bigger issue.

Utilities that do not understand the skill demand issues on their IT shops will suffer greatly.

But it is even worse for utilities that refuse to pay for the complexity of the new skills needed (e.g. SOA, Web Services Integration, Mobile Applications, Advanced Messaging Services, User Interface Design, Systems and Enterprise Architecture, Business Intelligence, Data Warehousing, Process Business Analytics, Large Network Management, Cyber Security Auditing, NERC CIP Compliance, Project Management, Vendor Management, Computer Storage Management, Virtualization Management, etc, etc.). Many utilities' old titles and old pay structures will get in the way of their IT shops having an opportunity to succeed.

And the very last issue against utilities succeeding is the pervasive lack of pay for performance in the industry. That one might be the hardest challenge for utilities to fix, yet the most important to attract and maintain the right talent.

The answers are not hard: Right titles, right base pay, right performance bonus structure, right benefits, and the right culture, which should include the flexibility and appetite for change (more new titles, different org chart structures, new pay levels, creative performance bonus plans). The utility IT shop is today the logical center of expertise for change and innovation at the utility. However, I am not sure that utility executives across the nation believe that. Those that do and act on it will win big!

Top 10 Hot Technologies for 2010

noreply@blogger.com (Andres Carvallo) — Fri, 25 Dec 2009 01:59:00 +0000

As we finished the first decade of this century, we are positioned to see emerge and adopt great new technologies and finally push through some that have been evolving nicely. 2010 will be a breakthrough year. Acceleration and innovation will work together in a unique way and the market will jump in with both feet to adopt them aggressively. Here are my hot technologies for 2010 that will change everything about how we work, live, and play.

1 – Virtualization (Server, Storage, Desktop, Mobile)
2 – Mobile Computing (iPhone, Android, others)
3 – Smart Grid
4 – Energy Storage
5 – Electric Vehicles
6 – Cyber Security
7 – Videoconferencing
8 – VOIP plus Unified Messaging
9 – SOA plus Business Intelligence
10 – Cloud Computing (Public, Private, Hybrid)

Get ready to virtualize every piece of your infrastructure unlike never before to achieve higher productivity and reduce costs, to embrace the new mobile platforms and their applications while re-defining your business processes at work and how you live, to be blown away by a new smart grid that delivers electricity with the efficiency and effectiveness that Edison and Tesla intended from the very beginning, to learn to use and manage energy storage while becoming energy producers for the very first time, to enjoy electric vehicles with their low carbon foot print and help re-shape our energy ecosystem, to get super serious about protecting your cyber assets as threads increase and spread at an alarming pace, to empower videoconferencing and change our workforce habits and location selections, to finally enjoy a 100% IP unified communications network and applications, to unleash the power of your investments in Service-Oriented Architecture and Business Intelligence to take hard on the competition and ensure the ultimate customer experience, and to scale to infinity all key capabilities that will benefit from the transformational impacts of cloud computing.

Enjoy the holidays and rest, because 2010 will be the most transformational year ever.

Andres Carvallo Named to GE Energy's Smart Grid Advisory Board

noreply@blogger.com (Andres Carvallo) — Mon, 14 Dec 2009 20:22:00 +0000

Andres Carvallo has been named to GE Energy’s Advisory Board for a third year.

From the beginning, GE research and development efforts have focused on products and services with the customer in mind. GE continues to focus on customer solutions, and Thomas Edison's words have remained a part of GE's tradition of constant innovation:

"I never perfected an invention that I did not think about in terms of the service it would give others."
- Thomas Alva Edison, GE Founder

GE Energy is one of the world's leading suppliers of power generation and energy delivery technologies - providing a broad array of solutions for traditionally fueled plants as well as those driven by renewable resources such as wind, solar and biogas. As part of GE Infrastructure - which also includes the Water, Rail, Aviation and Oil & Gas businesses - GE has the worldwide resources and experience to help customers meet their needs for cleaner, more reliable and efficient energy.

More people around the world turn to GE for advanced power systems and around-the-clock energy services than any other company. Since GE installed its first steam turbine in 1901, its installed base of steam and heavy-duty gas turbines has grown to over 10,000 units, representing over a million Megawatts (MW) of installed capacity in more than 120 countries. With over 5,500 wind and 3,600 hydro turbines, the installed capacity of renewable energy exceeds 160,000 MW.

http://www.gepower.com/home/index.htm

ERCOT Launches Financial Settlement Process for Smart Meters

noreply@blogger.com (Andres Carvallo) — Sun, 13 Dec 2009 23:12:00 +0000

AUSTIN, Dec. 10, 2009 – The Electric Reliability Council of Texas (ERCOT) began a major step toward implementation of the “smart grid” this month by launching a new system of wholesale settlement for advanced metered customers based on their 15-minute electricity usage.

“Wholesale settlement using 15-minute interval data for retail customers is a major step in connecting the retail electric market with the wholesale market,” said Betty Day, ERCOT director of markets. “This is an important piece of the smart grid of the future. By creating a platform for the interaction of electricity supply and demand at the retail level, this helps to realize the full potential of advanced metering.”

ERCOT performed the first wholesale settlements using actual advanced metering data on Monday, Dec. 7. As of Wednesday’s settlements processes, more than 26,000 accounts had been successfully settled using advanced meter data. The total is expected to surpass 50,000 by next week.

ERCOT, grid operator for most of the state of Texas and administrator of the wholesale and retail power markets, was charged by the Public Utility Commission of Texas with developing a system of wholesale settlement for customers who are receiving new meters under the PUC-approved advanced metering infrastructure deployment.

Advanced metering deployments are underway in the service territories of Texas’s three largest investor-owned transmission and distribution utilities: Oncor, CenterPoint and American Electric Power. A fourth utility Texas-New Mexico Power is developing its deployment strategy now. By 2014, nearly 7 million retail customers in Texas will have advanced meters installed that will record their energy usage every 15 minutes around the clock.

“Making 15-minute data available to customers is a powerful tool for understanding how we use electricity,” said Day. “But actually settling the customer on that usage at the wholesale level is the catalyst for retailers to provide incentives and tools for those customers to use their energy more efficiently and lower their electric bills.”

Wholesale energy settlement is the process of matching financial debits for retailers’ purchases of wholesale power to credits for the generators who sell that power through the ERCOT energy market. Since the ERCOT market opened in 2002, all residential and small commercial customers have been settled on statistical estimates of their usage – called load profiles.

Over time as the meters are deployed, 15-minute settlement will replace the use of load profiles in the ERCOT retail market — effectively taking the estimation out of the equation. This will allow both customers and retailers to benefit financially from lowering energy usage during high-price periods. Retail products that take advantage of this new technology may include time-of-use, critical peak, or real-time price options, and load-control devices that allow customers to reduce energy consumption remotely or automatically based on price signals.

http://www.ercot.com/

Andres Carvallo Named to AT&T's Utilities and Field Services Advisory Board

noreply@blogger.com (Andres Carvallo) — Wed, 09 Dec 2009 03:23:00 +0000

Andres Carvallo has been chosen by AT&T to join its Utilities and Field Services Advisory Board.

Over one hundred years ago, Alexander Graham Bell's historic phone call to Watson launched a rapidly growing voice communications era. The Bell Systems' founders understood that for technology to truly succeed, they needed to develop a sustained research and development organization dedicated to fostering continued innovation. Thus, AT&T Bell Labs s (first known as Bell Telephone Laboratories) was created in 1925.

Throughout the next seven decades, AT&T Bell Labs was responsible for some of the world's major inventions across a broad spectrum of technologies, including the transistor, cellular communications, the field of Information Theory, the solar cell and the communications satellite.

In 1996, AT&T incorporated the divisions of AT&T Bell Labs that focused on computing, information, and communication science, and renamed the merged group AT&T Labs. Since that time, AT&T Labs has grown, adding engineers and scientists from SBC Labs, Bell South, and Cingular Wireless. While the name may have changed, AT&T Labs' commitment remains: to create the innovations that drive the AT&T global network and the cutting edge and technologies that will transform AT&T and the industry.

In order to help accelerate the adoption and shape the innovation from AT&T Labs, the company has created a Utilities and Field Service Advisory Board.

Charter: Using the voice of the customer, AT&T’s Utilities and Field Services Advisory Board serve as it’s “headlights” into the future trends and business needs of its Fortune 500 enterprise clients.

Mission: To better meet the needs of the Utilities and Field Services community, by providing AT&T with professional insight and guidance to develop innovative solutions to meeting the information and telecommunication needs for this sector.

http://www.att.com/gen/press-room?pid=14209

Andres Carvallo Named to the Industry Advisory Board of KU's ITTC

noreply@blogger.com (Andres Carvallo) — Tue, 08 Dec 2009 04:01:00 +0000

Andres Carvallo named to the Industry Advisory Board of the University of Kansas' Information and Telecommunication Technology Center.

The ITTC Vision
To be a global leader and strategic partner in the creation and commercialization of innovative technologies in telecommunications, information systems, bioinformatics, and radar.

ITTC Mission Statement
· To advance knowledge and create innovative technologies in telecommunications, information systems, bioinformatics, and radar;
· To educate and train students for technology leadership;
· To transfer knowledge and innovative technologies to Kansas companies and national industries—by providing an excellent interdisciplinary research and development environment.

The Information and Telecommunication Technology Center (ITTC) advances knowledge and creates innovative technologies in telecommunications, information systems, bioinformatics, and radar. We are one of the largest research centers at the University of Kansas, with our resources and state-of-the-art facilities supporting various multidisciplinary inquiries. ITTC-affiliated faculty members have served as federal program directors at NSF, DARPA, and NASA.

ITTC researchers are helping shape not only national policy but also the technology leaders of tomorrow. ITTC, the only KTEC Center of Excellence focused on the core technologies below, is committed to the continued growth and diversity of the State's economy. Under faculty guidance, our students conduct fundamental research and develop strategic solutions for Kansas companies and national industries.

The Information and Telecommunication Technology Center contains six laboratories on the University of Kansas campus. Five laboratories are located in Nichols Hall on West Campus, with the sixth, the e-Learning Design Laboratory, housed in the Dole Human Development Center. The e-Learning Design Lab is a joint creation between ITTC and KU's Center for Research on Learning, which is also in Dole. ITTC has more than 45 faculty and staff researchers and 135 students who develop technologies and advance knowledge in the areas of bioinformatics, information technology, telecommunications, radar systems and remote sensing.

http://ittc.ku.edu/

LIGHTS ON: Austin Energy Delivers First Smart Grid in the US

noreply@blogger.com (Andres Carvallo) — Sat, 05 Dec 2009 17:48:00 +0000

Many utilities around the country have announced plans to deploy smart meters (or will at least add some level of intelligence to their wires over the next few years) with many of those projects scheduled for completion between 2012 and 2015. Xcel Energy’s Smart Grid City project in Boulder, Colorado is well under way and will be completed next year. But in Austin – where things are routinely done in that uniquely Texas way – their initial smart grid project has already been completed – now, in 2009 – while a lot of other utilities are just getting started.

Moreover, a newer and even more aggressive phase of Austin Energy’s smart grid plan (designated Smart Grid 2.0) was already getting started as early as December 2008. Now, as AE rolls out its pilots for its The Pecan Street Project – a unique and exceedingly innovative vision for what can legitimately be called the Smart Grid of the Future – the enabling technology for even more advanced stages of their Smart Grid blueprint is already in place. Here’s the rest of the story from Austin Energy’s dynamic, forward-thinking CIO, Andres Carvallo.

Smart Grid 1.0
By the end of this year, Austin Energy will have deployed 500,000 devices (86,000 smart thermostats; 410,000 smart meters from Elster, GE and AMI partner Landis + Gyr, covering all of our service footprint; 2,500 sensors; and 3,000 computers, servers and network gear), gathering 100 terabytes of data and servicing a million consumers and 43,000 businesses throughout the Austin metro area.

Our initial Smart Grid 1.0 deployment was completed in October 2009 - the first fully operational Smart Grid deployment in the U.S. This landmark project comprises the seamless integration of our electric grid; a communications network; and the hardware and software needed to monitor, control and manage the creation, delivery and consumption of energy by every one of our customers. Smart Grid 1.0 goes from the central power plant, through the transmission and distribution wires, to the meter and back. It took us five years to deploy the full solution set at a cost of approximately $150 million. Smart Grid 2.0 will carry our Smart Grid plans even farther, providing the enabling technology for the advanced Smart Grid initiatives envisioned by our Pecan Street Project.

We began deploying our first 127,000 smart meters in January 2003. Today, five years later, the 410,000 smart meters we now have installed can deliver consumption data every 15 minutes. Austin Energy is testing the meters for the next phase of deployments now and plans to introduce some innovative new programs early next year that will allow customers to start seeing tangible benefits from those substantial investments in our future. The benefits will come primarily in the form of more efficient and less costly data acquisition and faster and more accurate information about how energy is being consumed.

The Pecan Street Project defines Austin Energy’s smart grid initiative – a collaboration like no other. It all began in December 2008 when Austin Energy, the City of Austin, its Chamber of Commerce and the University of Texas teamed up to create Austin’s next-generation smart grid implementation. But this ambitious project involves several other important organizations as well; these include: Applied Materials, Cisco, Dell, Freescale Semiconductor, GE, GridPoint, IBM, Intel, Microsoft, Oracle, the SEMATECH consortium and the Environmental Defense Fund, all of which have a role in our smart grid vision.

Why “The Pecan Street Project”?
The city picked the historic name “Pecan Street Project1” to advertise its ideas and concepts around energy efficiency, conservation, renewables and smart grid initiatives to the public – and indeed, the world – to allow all interested parties follow, evaluate and better understand our intentions.

Sixth Street in Austin is our New Orleans Bourbon Street, and as such, it is a major artery of Austin’s famous live music culture. But you’re no doubt wondering, why Pecan Street instead of Sixth Street? Well first, the original name of Sixth Street was Pecan Street. But more importantly, the team that came up with the Pecan Street Project name chose it because we are aspiring to achieve in clean tech that same kind of leadership position that is associated with the live music Austin represents to people of all geographical regions and walks of life the world over.

Next: Smart Grid 2.0
Austin Energy started working on this second phase of the project – Smart Grid 2.0 – in December of 2008. Since then, the team has been laser-focused on finding the answers to one vitally important question: What happens to the smart grid beyond the meter and into the premises, the homes, factories and businesses?

Smart Grid 2.0 is being driven by a growing vision of how homes and businesses will be different when they have access to some form of distributed generation – perhaps a solar rooftop, for example – connected to electric storage and smart appliances with an electric vehicle or two. And perhaps more important: How could those consumer assets be integrated into the grid in a way that you would preserve balance on the grid? That is, once distributed generation is feasible, not only will those consumers be using energy, but they will also be putting energy back into the grid.

Let’s imagine for a moment that in 2015, 80,000 automobiles come from all over the continent to enjoy South by Southwest – our famous music and film festival – filled with people from the North, South, East and West. And let’s imagine that those 80,000 vehicles are either plug-in hybrid electric vehicles (PHEVs) or some other type of electric cars, trucks or SUVs.

As those drivers ease into their seats they will set their in-vehicle navigation systems for South by Southwest in Austin, Texas. The cars themselves will communicate with the Austin Energy smart grid, identify the characteristics of the vehicles (and also their batteries) and initiate a whole new kind of “charge accounts” for their drivers. With these new accounts – and their corresponding charging station networks – up and running, our smart grid will provide the vehicles with information about where drivers can charge their vehicles, including a choice of high-speed or regular charging mechanisms at restaurants, hotels homes or other convenient locations in and around the city.

Meanwhile, the grid will negotiate directly with the vehicles – wirelessly – and communicate price options for variable charging locations, which feature charging points that could take up to 10 hours to charge – or as little as two hours – depending on cost, urgency and other factors.

The “back-end” of the system Austin Energy creates will be able to handle that scenario and more. Yet what’s really missing is the car having the ability to interact with us as human drivers. To address and solve that challenge, we’re already working with Mercedes, Ford, GM, Chrysler and Toyota to create as seamless and transparent an experience as possible for driver and vehicle alike.

More Than Just Another Smart Grid Project
The main goal of the Pecan Street Project is to transform Austin Energy into the urban power system of the future while making the City of Austin and its local partners a model clean energy laboratory and hub for the world’s emerging clean tech sector. In doing so, we seek to prove that it is possible to transform the way we traditionally produce, use, store and trade energy into a new behavior that is simultaneously consistent with our economical, environmental, social and security objectives and responsibilities.

Implementing this vision will likely include the following types of innovations:

· Connected homes that incorporate smart end points such as meters, appliances, and local generation, integrated with smart markets and distributed smart grids to enable two-way electricity flow
· Smart home energy control systems/portals that provide consumers with more information, alternatives, and decision support
· Smart appliances and devices that can turn off during times of peak demand or high energy prices, driven either by the energy services provider’s policies or by consumer preferences
· Smart markets that feature pricing built on supply and demand models and that vary according to the time of day, day of year, etc. when the enegrgy is actualy consumed
· Smart policies and government stimulus approaches that foster the innovation and implementation of these technologies and markets
· A “green economy” workforce that can build, design, test, install, maintain, operate and continually improve and invent sustainable energy resources and innovative demand response capabilities
· Smart business plans that enable Austin Energy to continue to lead in this reinvention of the energy system without compromising its sound financial foundation
· Smart political leadership and popular will that shares the vision to make this project – and future projects – a reality
· Innovative laboratory environments supported by public, educational, private and NGO (Non-governmental Organization) partnerships
· Energy communities and networked information platforms that enable social network community development, community energy markets and sustainable economic improvements
· Smart transportation systems that incorporate two-way distributed approaches to information flows, energy flows, and unified information and energy storage
· Smart working alternatives that provide more green options to citizens, from smart working centers with virtual life size video alternatives, to alternative mass transportation, alternative routes, and stay-at-home options
· Connected and sustainable buildings for management of commercial and personal real estate; whether by tenants, owners, or energy services providers
· At least, 300MW of alternative, distributed generation through distributed wind and solar

The Pecan Street Project comprises three distinct phases along with several parallel efforts. Although only the first two phases are described here in any detail, the third phase involves a potentially new research consortium and is even more creative and ambitious than the prior phases.

As previously mentioned, Smart Grid 1.0 was completed in October (2009) and focused on developing an action plan for Austin Energy and identifying key barriers that had to be overcome for long-term success. At the outset of Smart Grid 2.0, these barriers were organized into the following categories: Technology, Workforce, Markets & Business Models, and Policies.

The Technology section will then be divided into three sub-categories; namely: 1) Projects ready for implementation (for example, motion sensors for hallway lights); 2) projects that need to be tested and verified when integrated into the grid; and 3) projects that need to be developed. Some projects will be further categorized as generation, storage, efficiency, and low-tech options.

As technologies are verified over the first few years, they will be moved into implementation phase. And, as technologies emerge from the initial research process, they will be re-categorized as ready for testing and verification.

Policies will also be organized into several additional categories that accelerate adoption with incentives for consumers, energy services providers, the City, and also the private sector. Various economic stimulus approaches will also be examined and deployed, ranging from investments, bonds and tax incentives to R&D partnerships – just a few of the methods we will carefully explore, evaluate and select to build out the desired impact of green economy and Clean Tech Economy jobs.

Some policies can be readily identified for implementation. For example, removing the ability of homeowner’s associations or others to prohibit the installation of solar panels, while others will be identified, developed and worked through the appropriate regulatory, policy, and consumer acceptance models.

Conclusion
It is recognized that in order to change behaviors toward these positive opportunities, the Pecan Street project must strive for an unprecedented level of collaboration among city, state, and federal authorities will be required to ensure higher levels of consumer acceptance, satisfaction and a commitment to contribute to a sustainable economy in Austin.

Just as it took a century to invent today’s energy system, the Pecan Street Project will require many years to reinvent it. Consequently, the cycle of technological innovation and implementation is expected to take place continuously. The inflection point of these two aspects will cause a disruption and accelerate the transformation cycles from what would ordinarily have been decades, to a decade or less.

http://www.electricenergyonline.com/?page=show_article&mag=60&article=451

Austin Energy Smart Grid Program: First Smart Grid Built in the US

noreply@blogger.com (Andres Carvallo) — Fri, 04 Dec 2009 17:44:00 +0000

It is official now. Austin Energy has built the very first Smart Grid in the US. Covering 1 million consumers and 43,000 businesses. Managing 500,000 devices and 100 terabytes of data. 22% of residential thermostats under management. And much more……

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Austin Energy Smart Grid Program

What is a Smart Grid?
A Smart Grid is the seamless integration of many parts: an electric grid; a communications network; and hardware and software to monitor, control, and manage the creation, distribution, storage, and consumption of energy. The Smart Grid of the future will be distributed, interactive, self-healing, and capable of reaching every device.

A Smart Grid uses the latest technologies to increase energy dependability and customer service by:
· Managing supply and demand
· Controlling use
· Monitoring outages

It helps operators “see the system” in its entirety. It allows them to avert trouble spots and re-route power as necessary. If sections of the electric system approach overloading, the Smart Grid automatically redirects load to restore balance.

Austin Energy’s "Smart Grid 1.0"
Austin Energy has been preparing our "Smart Grid 1.0" for several years. In addition to existing power sources and transmission lines, its building blocks include:
· A telecommunications network—combining fiber and wireless.
· Hardware—meters, sensors, network gear, computers, servers, and storage
· Software—applications, databases, and integration and management tools

Now Austin Energy’s Smart Grid is ready for primetime. It runs from power plant, through transmission and distribution systems, to the meter, and back. It:
· Encompasses 1 million consumers and 43,000 businesses
· Covers 440 square miles
· Includes 500,000 devices
· Involves 100 terabytes of data

A fully integrated Smart Grid is about helping us serve you better. It focuses on:
· Systems integration
· Communication
· Safety and reliability
· Improved customer service

The future—Smart Grid 2.0
Austin Energy’s Smart Grid 2.0 is already in the works. We already manage 86,000 smart thermostats in homes and businesses, which at peak times can aggregate to about 90 MW of load. It will be interactive and “self-healing,” and will:
· Manage distributed generation—for example, solar photovoltaic and micro wind
· Build and manage energy storage
· Power and communicate with smart consumer appliances
· Charge plug-in hybrid and electric vehicles

Smart Grid 2.0 will offer improved customer services, including:
· By phone or online real-time meter reads
· Web-based management of smart consumer appliances
· Remote service turn-on and shut-off

For our customers, it will mean:
· Quicker outage restoration
· Greater convenience—no more unlocking gates and tying up dogs for meter reads
· Better control over how much energy you use and when you use it
· Timelier, clearer, and more accurate and easily managed bills
· Easier participation in energy efficiency programs

For Austin Energy and the City of Austin, Smart Grid 2.0 will mean:
· Improved operations and procurement—lower costs
· Less energy theft
· Better planning and management of load distribution
· Reduced need for extra generation and transmission capacity

The way forward
Austin Energy partners in the Pecan Street Project to help plan Smart Grid 2.0. The Project helps us define, test, and implement strategies to keep Austin at the forefront of clean technology innovation and job creation.

Learn about the Pecan Street Project.

http://www.austinenergy.com/About%20Us/Company%20Profile/smartGrid/index.htm

Andres Carvallo Trades his Blackberry for an iPhone 3GS

noreply@blogger.com (Andres Carvallo) — Fri, 27 Nov 2009 17:38:00 +0000

Ok………So I finally traded my Blackberry for an iPhone 3GS with 32 gigabytes. There is very little that I can say that the press and reviews have not said already. But let me add that for me the iPhone 3GS rocks!

And I did try the Blackberry Storm 2 a few times before my final decision. Verizon is faster in my city.

http://www.apple.com/iphone/business/

The majority of the key enterprise issues that I had highlighted over and over since the iPhone came to market can be now resolved with third party software ala BES. Still BES is the better product.

1 - Security encryption on the device
2 - Remote access for data locking or data wipe out
3 - Deliver native push email support for POP3 and MS Exchange
4 - Deliver over-the-air sync

The last two issues still remain, but I have to say that they are not as big of a deal. BTW, I cannot imagine the market cap of apple if the iPhone sold on any carrier worldwide.

5 - Removable battery
6 - Make available to all carriers

The third party solutions that I suggest are:

Sybase is committed to offering device-agnostic solutions that support a broad range of operating systems, including iPhone. By providing a mobile platform that offers capabilities for device management, security, applications, messaging and development, Sybase enables enterprises to further adopt the iPhone. This platform approach provides a solid foundation to mobilize your business and provides the tools for a long term strategy that helps to protect your valuable IT budget. http://www.sybase.com/products/mobileenterprise/iphone

Good for Enterprise is a powerful, secure and easy-to-use enterprise mobility suite that provides IT with the mobile security and control it needs and users with a great experience for mobile collaboration and connectivity on devices they want like iPhone and Android. Good for Enterprise combines Good Mobile Control, Good Mobile Messaging, and Good Mobile Access to provide IT and users with a secure and flexible enterprise mobility solution that will evolve to meet your needs for years to come. http://www.good.com/enterprise

Of these two, Good for Enterpise is faster, more matured, and better integrated with the iPhone native features and capabilities.

The iPhone is finally ready for the Enterprise. Enjoy!

Secretary Chu Announces $620 Million for Smart Grid Demonstration and Energy Storage Projects

noreply@blogger.com (Andres Carvallo) — Wed, 25 Nov 2009 18:50:00 +0000

Recovery Act funding will upgrade the electrical grid, save energy and create jobs

COLUMBUS, OHIO – At an event in Columbus, Ohio this afternoon, Secretary Chu announced that the Department of Energy is awarding $620 million for projects around the country to demonstrate advanced Smart Grid technologies and integrated systems that will help build a smarter, more efficient, more resilient electrical grid. These 32 demonstration projects, which include large-scale energy storage, smart meters, distribution and transmission system monitoring devices, and a range of other smart technologies, will act as models for deploying integrated Smart Grid systems on a broader scale. This funding from the American Recovery and Reinvestment Act will be leveraged with $1 billion in funds from the private sector to support more than $1.6 billion in total Smart Grid projects nationally.

Secretary Chu also released a video today on YouTube, which explains what investments in the Smart Grid can mean for American consumers. View the video below.

http://www.youtube.com/v/9RJiElIhBz4&color1=0xb1b1b1&color2=0xcfcfcf&hl=en_US&feature=player_embedded&fs=1

“These demonstration projects will further our knowledge and understanding of what works best and delivers the best results for the Smart Grid, setting the course for a modern grid that is critical to achieving our energy goals,” said Secretary Chu. “This funding will be used to show how Smart Grid technologies can be applied to whole systems to promote energy savings for consumers, increase energy efficiency, and foster the growth of renewable energy sources like wind and solar power.”

These efforts will provide invaluable data on the benefits and cost-effectiveness of the Smart Grid, including energy and cost savings. An analysis by the Electric Power Research Institute estimates that implementing Smart Grid technologies could reduce electricity use by more than 4 percent by 2030. That would mean a savings of $20.4 billion for businesses and consumers around the country, and $700 million for Ohio alone -- or $61 in utility savings for every man, woman and child in Ohio.

The demonstration projects announced today will also help verify the technological and business viability of new smart technologies and show how fully integrated Smart Grid systems can be readily adapted and copied around the country. Applicants say this investment will create thousands of new job opportunities that will include manufacturing workers, engineers, electricians, equipment installers, IT system designers, cyber security specialists, and business and power system analysts.

The funding awards are divided into two topic areas. In the first group, 16 awards totaling $435 million will support fully integrated, regional Smart Grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers. The projects include streamlined communication technologies that will allow different parts of the grid to “talk” to each other in real time; sensing and control devices that help grid operators monitor and control the flow of electricity to avoid disruptions and outages; smart meters and in-home systems that empower consumers to reduce their energy use and save money; energy storage options; and on-site and renewable energy sources that can be integrated onto the electrical grid.

In the second group, an additional 16 awards for a total of $185 million will help fund utility-scale energy storage projects that will enhance the reliability and efficiency of the grid, while reducing the need for new electricity plants. Improved energy storage technologies will allow for expanded integration of renewable energy resources like wind and photovoltaic systems and will improve frequency regulation and peak energy management. The selected projects include advanced battery systems (including flow batteries), flywheels, and compressed air energy systems.

http://www.energy.gov/news2009/8305.htm

Andres Carvallo Speaks at GreenBeat 2009

noreply@blogger.com (Andres Carvallo) — Mon, 16 Nov 2009 22:02:00 +0000

GreenBeat 2009 will bring together leading entrepreneurs, investors, utilities, technology executives, and policymakers to accelerate the development of a leaner, more efficient electrical grid. With a laser focus on new technology offerings, GreenBeat 2009 is the must-attend event in the space for discussion, debate and power networking on November 18 and 19 in San Mateo, CA.

Energy used to be a one-way street. Today, it’s becoming a bi-directional superhighway with utility customers finally taking charge of their power use and how much they pay for it. Instead of drilling into short-term IT issues and arcane arm-chair politicking involved in this shift, GreenBeat 2009 will map out the hottest business and technology opportunities the Smart Grid has to offer.

Join me and my two co-panelists Paul De Martini from Southern California Edison and Josh Gerber from San Diego Gas and Electric. The Panel moderator will be Jesse Berst of Smart Grid News and the format of the panel is that each of us will give a 5-7 minute presentation and then Jesse will follow up with discussion. Some of the topics that we plan to cover include:

Bringing the Customers Along. Early pilots have largely imposed themselves upon customers. As mass deployments roll out, utilities are starting to get a) passive disinterest or b) active opposition from customers. What does this mean for existing suppliers (will customer disinterest slow things such as demand response) and for new companies (are there gaps in the market in this space)?

Standards: Should we start now or wait for them to mature?

Managing the Data Explosion. Smart metering deployments can easily generate more than 2,000 times (yes -- 2,000) the data utilities currently manage. Most utilities don't have the experience to validate, normalize and archive this much data, much less to mine it, analyze it and share it with other applications. Will they hire to bring these skills in-house, use consulting firms or out-source it altogether?

As a reader of my blog, you get a special discount code for $175 off the ticket price. http://greenbeat2009.eventbrite.com/?discount=SPEAKERVIP.

http://events.venturebeat.com/greenbeat2009/

Freescale's Smart Meter on a Chip

noreply@blogger.com (Andres Carvallo) — Sun, 15 Nov 2009 02:20:00 +0000

Freescale Semiconductor has a new chipset that incorporates all the primary functions of a smart meter. Similar ‘systems-on-a-chip’ have seen mixed success to date.

Freescale Semiconductor has a proposition for smart meter makers – take its new "smart meter on a chip" as a template, and have smart meters rolling off the manufacturing line within months.

That's one promise of Freescale's new "system-on-a-chip" metering reference design announced Tuesday, which integrates many smart meter functions now performed by discrete components, as well as a few features hard to find in today's meters.

That's according to Jeff Bock, global marketing manager for Freescale's industrial microcontroller division. With pretty much every smart meter function integrated except for the choice of communications - wireless mesh, powerline carrier, cellular, etc. - the new system is "functionally a productized meter [with] all the software and hardware necessary for someone to go build a state of the art system," he said.

The chipset will sell for $3.60 to $4.22 apiece for orders of 10,000 or more, depending mainly on how much flash memory and SRAM the customer wants and whether they're meant for single-phase residential and small commercial meters or heavier three-phase industrial meters, the company said.

Smart meters represent a small but growing market for chipmakers like Freescale, Texas Instruments, NEC and Analog Devices as they look for growth amidst an economic downturn that's hurt sales in their traditional markets. Smart meters could be a $2 billion opportunity for semiconductor companies through 2012, according to a report from Gartner.

But for the most part, that business has been in sales of discrete products that meter makers integrate themselves. Which companies might be customers for an integrated meter-on-a-chip system?

Well, the big established North American and European meter makers – that's General Electric, Landis+Gyr, Itron, Sensus and Elster, for the most part – "may choose to use pieces, or in some cases, large portions of the design in their own designs," Bock said (see 8.3M Smart Meters and Counting in U.S.).

But in emerging markets like India, China and Latin America, "Their first intent may be to do as little to modify it as possible," he said. "They may even consider taking our design" and branding it as their own, he said.

That may be a clarion call to the developing world's more fragmented smart meter industry.

Bock notes that the new chipset is aimed at the medium to high-end meter manufacturer, with features including high-accuracy electricity measurement and a system to keep the meter running while new software is being uploaded.

But Freescale - formerly Motorola Semiconductor - also has incorporated some key features that, while useful for all smart meters, do sound as if they're targeted for problems mainly faced in emerging markets.

For example, the chipset includes an anti-tamper device and real-time clock to fend off attempts to hack into meters to steal electricity, as well as lower power usage in general to allow meters to run off batteries longer on a grid that sees a lot of brownouts and blackouts. Those are all problems that are far more common in markets like India and Latin America than in the United States and Europe.

Another key challenge facing such emerging markets is cost - that is, as low a cost as possible. Freescale has been targeting low-cost solutions for China's smart grid needs, for example (see Cutting the Cost of Smart Grid in China).

"The overwhelming trend is a drive for integration... and a drive for cost," Bock said. Freescale isn't the only one picking up on those trends, of course.

Teridian Semiconductor Corp., for example, makes chips to measure voltage, current, power factor and other features of electricity that are now found in smart meters from about 52 manufacturers, including big ones like General Electric, Landis+Gyr and Elster, said Jerry Fitch, Teridian's CEO and president.

Teridian also incorporates time of use, anti-tampering and display functions, as well as software, into complete systems, said Jerry Fitch, president and CEO. The Irvine, Calif.-based company sells its chips at prices ranging from about $1.25 to about $4, depending on the functionality demanded, Fitch said.

While North America and Europe have been and continue to be Teridian's biggest market, China and India "are becoming much bigger parts of our business than they've historically been," he said.

China could see 30 million to 40 million meters per year deployed under a new government smart grid push, and India is probably deploying about 10 million meters a year, about 3 million of which will contain Teridian chips, he said.

But so far, meter makers haven't taken to systems-on-a-chip as quickly as chip developers would have hoped. At least, that's the experience of Analog Devices, which launched just such an integrated system last year. While it supplies discrete components to at least one of the big five smart meter makers, as well as Siemens and several Chinese smart meter makers, it hasn't seen much uptake of those "SOC's," said Ronn Kliger, Analog Devices' product line director.

"Most of the world still does designs using discrete components," he said. "The reasons are, the flexibility it gives them, the uncertainty of future requirements, and frankly, the ability to get suppliers to compete with each other on price."

India has been an exception to that rule, Kliger said. In India, Texas Instruments has seen more widespread success for its system-on-a-chip that includes a microcontroller and analog-to-digital converter to read electricity and convert it to digital format, but doesn't include software for doing that.

That's cheaper than including the software, and in India, "it just so happens that they have a lot of software expertise" to fill the gap with homemade code, so to speak. That helps drive down cost in a market Kliger sees as "the most cost-sensitive" in the world.

Still, the course of the semiconductor business has favored integration, and smart meters are no exception, he said. It's all a matter of timing.

"There may very well be market niches where customers have kind of standardized on what they need, and are perfectly open to system on chip solutions," Kliger said. "That's just not in the mainstream" today.

Ben Schuman, an analyst with Pacific Crest Securities, agreed that "the industry isn't really standardized enough, or set on one type of architecture, so that those cost savings would outweigh what you'd give up in the way of flexibility."

And, of course, integration is the "bread and butter" of meter makers, a role they might not want to give up, he added.

Perhaps Freescale will break through with its chipset. While Bock wouldn't name which smart meter makers Freescale is working with, or what its market share in the industry might be, he said the company is already working with "significant large alpha customers here and around the world, many of those in the millions of units."

http://www.freescale.com/webapp/sps/site/overview.jsp?code=APLMETERING&fsrch=1