Monthly Archives: October 2010

Fitting a Square Peg into a Round Hole

Posted in: Industry View by Blake Young | No Comments Friday, October 29, 2010

Coinciding with the start of the 2010 football season, two new companies have thrown their “hat” into the demand response “ring”. While that’s understandable given the critical role demand response will play as part of the future of our nation’s energy infrastructure, it does seem like a case of trying to fit a square peg into a round hole.

To explain, Silver Spring Networks just announced that it will offer demand response software for use on its existing meters, and Tendril is now offering its residential demand response products in conjunction with Lockheed Martin’s larger system. While Silver Spring and Tendril may have good products to offer, they’re not the ideal energy management package.  It’s a bit like the Cincinnati Bengals: quite capable on offense, but lacking the winning formula because of their defense.  My point is that Silver Spring and Tendril are both missing something in their approach to the demand response market. Experience.

Silver Spring certainly has significant expertise building networks, but as Michael Kanellos of Greentech Media reports, they are a communications company. And, as those of us who have been serving this market for the last 30 years know, successful demand response requires the kind of fine-tuning and innovation that only experience in the field can perfect.

Likewise, Tendril, who are focused on the residential energy domain, have only a few pilots in progress.  When compared to the lessons we’ve learned from large-scale roll-outs, will their limited understanding prove to be enough to manage the mission-critical supply and demand challenges that demand response programs address? Partnering with Lockhead Martin will certainly help, but utilities will have to negotiate the ins and outs of two systems as a result of the integration. In a time where the complexities of managing supply and demand are greater than ever before, I can’t see the practicality of using a system that tries to streamline multiple approaches into one, when existing and proven demand response solutions already allow utilities to manage both residential and commercial and industrial customers.

Like football, demand response is complicated and not for the fainthearted. A successful NFL team relies on coaches with experience and knowledge of the intricacies of the game, and an efficient game plan. From our experience with over 500 utilities across the country, we know that our customers not only want, but demand the same. Utilities need a partner that is entrenched in demand response, who offers enterprise software and next-generation hardware and services that will meet all of the utility’s current and future needs. The new entrants definitely have their work cut out, but in the meantime, we see the news as further validation of the importance of demand response and intelligent energy management.

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Word on the Street…The GridWeek Beat

Posted in: Utility Thoughts by Blake Young | No Comments Wednesday, October 27, 2010

As you probably saw, we were at GridWeek last week and I have to say, it was time well spent. Not only did we have some excellent conversations with customers, partners and colleagues on the potential solutions to our nation’s energy challenges, but we also unveiled our vision for Intelligent Energy Management.

Now that things have calmed down, I can reflect on some of the great reactions to our announcement. Greentech Media’s Michael Kanellos used the news to ask “Who Will Control Energy Consumption?” That’s quite the question Mike and while I don’t think anyone has the answer yet, I do agree with you that “demand response players have a number of advantages.”

Elsewhere, I was quoted in the New York Times talking about the significant market opportunity in front of us and industry experts like Jeff St. John at GigaOM looked at the broader shift from demand response to Intelligent Energy Management. On that note, IDC’s Casey Hogan looked at what Intelligent Energy Management would mean for C+I customers and at the risk of blowing our own horn, there was one passage that I just had to include:

“Comverge clearly understands the pressures are mounting on C&I customers and plans to take advantage of the growing demand for intelligent energy management solutions.  We imagine this market will continue to grow in the coming months and years.”

So now that the initial introduction is over, what’s next?

I see this as the beginning of our efforts rather than an ending point because in order to truly change the way we deliver, manage and consume electricity, it will take a collective effort from all of corners of the energy industry – regardless of who’s picture gets included in an article. And as I said in my first blog post, I hope you will all join us and share your thoughts and ideas on our ever changing industry.

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Still in demand

Posted in: Industry View by Blake Young | 1 Comment Thursday, October 21, 2010

It’s easy to forget that today’s Smart phones evolved from the old brick-sized phones of the 1980s.  Though each version of the cell phone since then has incorporated new features, apps, bells and whistles, they all built upon the same basic principle — people want to communicate with each other.

The energy industry is much the same.  As we move toward Intelligent Energy Management , we are building upon the original premise of demand response.  Just as enhancing communication is at the heart of cell phone development, advancing demand response capabilities remains at the heart of Intelligent Energy Management.

Demand response has evolved in stages, much like the mobile phone.  It began with traditional demand response — call it DR 1.0 or whatever you like — which introduced devices that helped shave peak demand in times of crisis, but did not address everyday energy management concerns.  Enter informed demand response, an enhanced system that let customers see data on their energy use, helped utilities predict available load, and included measures for accountability and verification of results.

We can look at Intelligent Energy Management as the “Smart phone” era of energy management, as it incorporates the newest wave of demand response technology.  With Intelligent Energy Management systems like Comverge’s IntelliSOURCE Platform, utilities can use software to connect instantaneously with end users through automated requests to shed load.  Intelligent Energy Management also allows us to reach more and more commercial and industrial, as well as residential customers, tapping a much larger percentage of the 188 GW of peak energy that demand response methods have the potential to eliminate by 2019.

We know demand response is here to stay, and it is a key player, if not “the” key player in the adoption of the smart grid. FERC Chairman Jon Wellinghoff said recently that demand response is just as important to the nation’s energy management efforts as generating more energy supply.  The Cleantech Group goes even further:

Given its importance, it is entirely possible [that] Demand Response 3.0 may be better known as Smart Grid 2.0 when the market evolution is complete.

We can look at the coming developments in DR like the future of Smart phones, with their increasing ability to streamline communication, aggregate networks, and put more entertainment in the palm of your hand.  Under Intelligent Energy Management, we are moving demand response towards increased automation, more ease in data interpretation, and making reducing energy consumption more feasible and convenient.

It’s no small feat, but one that has the potential to really change the energy supply and demand equation.

** 2010 U.S. Smart Grid Vendor Ecosystem p. 56

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What’s the difference between smart and intelligent?

Posted in: Industry View by Blake Young | No Comments Tuesday, October 19, 2010

You’ve probably seen the Snickers ad campaign that invented a new language: Snacklish. In Snacklish, any word, no matter how unrelated to the candy bar, takes on new Snickers-focused meaning.  For instance, basketball star Patrick Ewing becomes “Patrick Chewing” and, to bring Snacklish a little closer to home, electricity becomes “caramelectriciy.” (Translate anything from English to Snacklish here.)

It doesn’t matter how ridiculous Snacklish gets—nobody is really going to hail a “Snaxi” instead of a taxi—because the words themselves don’t really matter; if you like nougat, caramel, peanuts, and chocolate, you’re always going to like Snickers.

While we haven’t yet invented a new language, the energy industry also tends to play on words.  We talk about “smart” grids and “smart” meters, and at Comverge the marketing team coined our new suite of products “Intelligent” Energy Management.  But don’t worry, “clever” energy consumption and “knowledgeable” kilowatts are not coming your way next.

Just as Mars candy can call Snickers any variation on the name, we could call the new wave of energy management solutions any number of adjectives that allude to their ingenuity. What matters is that they truly solve today’s energy problems and anticipate tomorrow’s energy needs.

So, how do you know if an energy management component or system is really “intelligent?”  How can you be sure it has the flexibility to adapt to sudden changes in supply, to conform to regulations, or to keep costs down as energy demands increase?

Several criteria can help with the evaluation of an Intelligent Energy Management solution.  A truly intelligent energy management system that delivers the best results and returns on investment should offer certain features:

  • Support for open standards. Technology based on open standards supports a wide range of applications and has the flexibility to easily add future service and product upgrades.
  • Ability to measure and verify results. An energy management platform should present clearly measurable insights into energy use and demand. It should enable customers to easily verify and validate measurements to ensure they are receiving the data they need.
  • Insights and analysis. While data is helpful, Intelligent Energy Management technologies should also intuitively format the data to help the customer understand the implications of the information.
  • Accessibility and portability. A system that incorporates a variety of data portals—Web access, in-home display, smart meter, thermostat—better enables control of energy usage and cost management.
  • Control and automation. The data generated by the Intelligent Energy Management technology should drive a variety of easy approaches to reducing energy consumption.
  • An integrated platform. For both utility and C+I customers, an Intelligent Energy Management solution must address the comprehensive needs of the entity, from communication to operational to administrative functions.

With these components in place, an Intelligent Energy Management solution can provide the necessary intelligence to make the smart grid function as it should. Call it intelligent or “intreatigent,” smart or “smartisfaction” (Snacklish doesn’t abide by any clear grammar rules…) but when it lives up to its name, Intelligent Energy Management is the foundation for an efficient, environmentally conscious, cost-effective energy industry.

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