Smart Energy
attention were focused on the issue of climate change. Following the meeting, and on behalf of the international community, Italy and South Korea are taking the lead on the development of a smart grids plan with the aim of establishing a platform to enable cross-country and cross-regional development and coordination of smart grid technology standards. Throughout the two week event, widespread adoption of smart energy techniques such as smart grid and smart metering was acknowledged as an achievable, realisable objective for the global community to strive for. Political pressure means obstacles for the utility will begin to dissipate. Utilities that are slow off the mark will be too late for the party. So what about the business case? The four facets of smart
energy – smart grid, smart metering, smart home and distributed generation – all offer benefits for the utility that cannot be ignored. Firstly, distributed generation is a key technology with important benefits for utilities. On a smart grid with distributed generation, energy can be generated close to the point of use, allowing the grids to harness renewable energy such as solar, wind and thermal. Though renewable energy resources are less predictable than the power generated by traditional means, hybrid systems can utilize both renewable and traditional power. Moreover, on a smart grid, the technology for generating energy from renewable resources can be installed in small increments, and it has extremely low ongoing costs overcoming the financial barriers discussed earlier on. Smart grid represents the merging of multiple technologies
of the entire service area through smart meters enables service providers to determine when a customer is out of power and when power has been restored. It also informs utilities when a customer deviates from their base profile. This information can help identify customer usage patterns that result in unnecessary customer energy costs or instances where users may be diverting power. Reduced operating costs can be achieved for the utility by minimizing the expense related to meter reading, as well as losses due to tampering and theft. Billing can be confusing. Consumers receive electricity bills
... smart energy represents a bright future for the energy industry, particularly the utility
once a month, typically several weeks after they have used the energy. The customer has limited capability to correlate the amount of money spent on electricity with how it was used, leading to frustration and often a lengthy, and costly, call to a utility’s customer services helpline. Furthermore, for those customers who have purchased renewable energy systems, there is limited, if any, ability to directly measure the amount and value of energy produced from renewable resources. The smart home represents the convergence of energy efficient, controllable appliances and real-time access to energy usage data. This
into a system that provides reliable and cost-effective energy. Unlike the local and manual operation of equipment on a traditional grid, the smart grid enables operators to manage and monitor millions of devices and sensors. The smart grid has extensive communications capabilities that enable smart metering, as well as grid automation and sensing devices. Remote monitoring and data collection is useful for customer relationship management and data analysis, making it possible for utilities to assess service levels constantly using information from sensors located throughout the distribution grid. Grid automation and sensing devices collect information about grid activity that can be analyzed and applied to avoid failures, extend equipment life, and lower costs. With smart meters, usage and event-related data from
customer locations are collected by a Meter Data Management System. Regular updates are automatically transmitted from the smart meter, and they support on-demand meter reads for customer service support as well as remote alerts. Monitoring
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integration of smart devices and smart grid enables customers to proactively manage energy production and use in ways that are convenient, cost effective, and good for the environment. Crucially, they also allow enhanced communication with the utility through messages sent via a customer portal. These messages could include energy saving tips and weather warnings, as well as updated information about when power outages will be restored. There’s no question smart energy represents a bright future
for the energy industry, particularly the utility. In spite of regulatory barriers, and cost concerns, it is imperative utilities continue to press ahead with plans to implement smart energy solutions within their organisations. As consumer demand for more flexible and efficient energy options increases, utilities risk severe brand damage if they don’t deliver. In addition, as governments start to regulate carbon emissions, utilities need to ensure they are complying and doing their part to address global sustainability. Now is the time for utilities to act in order to take full advantage of the financial and business opportunities that smart energy represents. ■
James Forrest is Vice President and
UK Smart Meter Grid Lead, with Capgemini, UK.
www.capgemini.com
worldPower 2010
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