Thursday, March 11, 2010

Kevin Fennell: We need Standards and Policies

1. How are low-income consumers best served by home-to-grid technology?

As with all consumer segments, but perhaps even more so for low income consumers, the simple, clear and regular presentment of consumption data, ideally aligned to price or time-of-use information, is a path to consumer responsibility and empowerment for their energy “life”. One of the benefits of the smart meter as the primary hub for consumption data into the home, is that it is a “leveler” in the marketplace – where each metered premise, with standardized technologies (like ZigBee /SEP1.0) can be a vehicle to deliver that data to consumers, rather than relying on either broadband access, IP TV access or expensive in-home energy management systems. The smart metering system can also enable innovations & new business models that would allow low-income consumers to plan and manage their energy budget through prepaid or pay-as-you-go programs.

2. What standard data communications interfaces(s) should be supported by appliances and the smart meter or data gateway so that appliance manufacturers can cost-effectively produce smart appliances that can communicate with the Smart Grid anywhere in the nation?

We have what we need today to deliver energy and pricing data securely & accurately to and from smart appliances and smart gateways – ZigBee and SEP1.0 (smart energy profile). Furthermore, there is a massive base of devices that will support this currently available technology. As of 2009 more than 3 million ZigBee enabled meters were deployed. Further, over 35M smart meters contracted worldwide are projected to include ZigBee . Over 360 companies participate in the ZigBee Alliance, of which over 180 are US companies.

ZigBee is a low power, low energy consumption, low protocol complexity, high data rate, and rich topology communications solution, built specifically for small sensor technology and perfectly adapted to work for in-home energy management. In this regard it surpasses alternative wireless technologies like WiFi because it ensures always on plug and play connectivity to appliances without the need for human intervention after events such as power outages.
Over time, ZigBee will harmonize with other physical solutions, like Homeplug, for hard-to-reach or RF-challenged environments and work is already underway to move the ZigBee Smart Energy Profile protocol into the international IEC standards development process.

In the end, today’s SEP1.0 is positioned to push the market forward – there is no need to wait for new standards, specifications or evolutions. SEP 1.0 is fully provisioned to give real benefits to consumers, allowing for secure in-home connectivity, presentment of consumption data, load management, thermostat setback, duty cycling for in-home products, presentment of time of use pricing and critical peak pricing events.

3. How can communication between smart appliances and the Smart Grid be made ''plug and play'' for consumers who do not have the skills or means to configure data networks?

First, we need to use standard interfaces (e.g.: ZigBee and SEP1.0). Secondly testing and interoperability processes that are simple and easy for manufactures to test connectivity and data transfer will reduce post-sale support issues. Finally, ever evolving and improving “pairing mechanisms” for smart devices to smart meters/gateways. This should include very low tech approaches, as we have today, of calling a “service provider” to enable pairing all the way to smart devices that recognize the smart meter/HAN and “auto-attach”.

4. If gateways or adapters are needed, who should pay for them: The utility or the consumer?

As mentioned, for utility-driven energy management experiences that require measurement & verification, the smart meter is the vehicle to collect and deliver accurate measurement, verification and presentment data. In this case, through either back office connectivity or standard interfaces for home area networking (like ZigBee and SEP1.0) this data can be delivered to 3rd parties as well. Again, however, there will be other business models for information presentment.

In either case, technology evolution, even with the existence of standards, will defacto drive the market to continually innovate as they find new ways to connect, to use the information and will create new business models. Early adopters of these technologies and solutions may indeed find themselves in a position of needing additional hardware in order to take advantage of new innovations – such as bridges, gateways or new equipment. This condition is not unique to the utility industry. Technology is constantly evolving and as it does, new or upgraded hardware and connectors are often required. If the new technology is a software application, the consumer may need to upgrade their computer in order to take advantage of new features. If a cable television or internet service provider offers a new service or feature, there is typically a cost to the consumer to take advantage of it. Many times those costs are in the form of a monthly lease fee that offsets cost of new hardware.

Ultimately, the consumer must perceive a benefit to participation and is likely to perform either a formal or informal cost benefit analysis based on their own situation. If the cost benefit analysis isn’t favorable, a consumer isn’t likely to pay for enabling equipment. In turn, the innovators’ business models may also have cost benefits analysis which would drive the business case for bridges and gateways.

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