Tag Archives: smart grid

Ensia

Can smarter storage solve our energy woes? | Ensia

Notrees Windpower Project battery storage unit

A new generation of technology focuses on supplying a midsize dollop of power exactly when and where it’s needed most.

Largely out of sight, tucked into building basements and stashed in garages, a new generation of energy storage technology is poised to help our aging grid not only avoid outages, but enable vast new flows of renewable power, all while saving some serious money. Call it the smart storage revolution.

California is ground zero for this trend. Across the Golden State, costs for electric power are high, renewables are multiplying, and key grid links are overloaded. But rather than rely on longstanding industry practice to fix grid problems by building more power plants or transmission lines, California regulators are encouraging customers and utilities to innovate.

At two InterContinental Hotels in the Bay Area, new storage technology is helping to reconcile these many challenges. The hotels’ secret weapon is a pair of fridge-sized boxes loaded with lithium-ion (Li-ion) batteries. Day to day, they’re able to cut the hotels’ electricity costs by up to 15 percent.

They do so by taking advantage of California’s complex power pricing regime. Smart software recharges the batteries when power is cheap, typically at night. When rates head up, the system seamlessly switches part or all of the hotels’ load to the batteries, thereby avoiding the need to purchase power at the costliest times, explains Salim Khan, CEO of Stem, the Millbrae, Calif.–based startup that built the systems.

Stem energy storage units

New storage technology at two InterContinental Hotels in the Bay Area cuts the hotels’ electricity costs. Photo courtesy of Stem.

The technology helps the broader grid, too, by reducing the risk of outages. Grid gurus call it “peak shaving.” It’s a nifty trick in which stored energy displaces active generation during key moments. On the hottest days, even a tiny sliver of this kind of savings can make the difference between a blackout and business as usual.

For now, the InterContinental Hotels’ storage units are an exception, but they’re set to become a rule. In February, California became the first state to order investment in smart grid storage, initially calling for 50 megawatts (MW) in the Los Angeles basin area.

The rule doesn’t detail what kind of storage to deploy. Rather, it aims to spark more market innovations, like Stem’s, that improve grid performance while saving money. “This is a huge signal to the market that storage is ready to play” on par with conventional power plants, says Janice Lin, executive director of the California Energy Storage Alliance.

Goldilocks Storage

To be sure, storing electricity isn’t anything new. Cell phones, e-readers and laptops, all integral to daily life, let us use a little of the grid’s generation on the go.

Storage is well established at the macro scale, too. A little-known backbone of the U.S. grid is more than 20,000 MW — equal to the capacity of some 22 nuclear power plants — of “pumped hydro” storage. Scattered at scores of remote sites around the U.S., these systems comprise some 99 percent of today’s storage capacity.

At night, utilities use low-cost energy to pump water from a lower reservoir uphill to a higher basin. The next day, as demand peaks, the water is sent back downhill to generate power. Think of pumped hydro as the biggest battery we have. It’s capable of delivering city-sized volumes of power for hours in a row. That’s why grid operators are pushing to install thousands more megawatts of capacity.

But, as California is finding, on today’s grid, the sweet spot for smart storage is at scales somewhere between these two extremes. Much bigger than handheld phone batteries, but smaller than gargantuan lakes of hydropower, smarter storage solutions can be an ideal fit for critical niches where a midsize dollop of power, supplied for minutes or hours, is all that’s needed.

Sharing California’s Problems

California’s problems aren’t unique. Similar problems are surfacing across the U.S.

Transmission constraints. L.A.’s biggest problem isn’t inadequate supply of power — most of the time there’s enough juice available from regional generators. The real problem is funneling all that power through aged transmission lines that can’t handle the load.

In most markets installing new transmission cables, or even upgrading existing lines, is a no-go. As populations have grown, the cost of new grid links has skyrocketed; likewise, public patience with big construction projects is scant. New York City and Long Island face similar transmission constraints.

Storage offers a tidy solution. At night, utilities can use existing transmission lines to fill up batteries positioned near demand hot spots. Later, if demand peaks beyond power lines’ ability, batteries can fill in the necessary excess. “Energy storage helps you do more with less infrastructure,” says Bill Acker, executive director of NY-BEST, an energy storage technology consortium based in Albany, N.Y.

Waste and reliability. To meet peak levels of demand, the grid has been massively overbuilt. The Electric Power Research Institute estimates that one-quarter of all high-voltage distribution lines and about one-tenth of all power plants are used, on average, just 5 percent of the time, or 33 hours per month.

That means hundreds of billions of dollars in assets go unused the vast majority of the time. Utilities are recognizing that carefully targeted storage can cost-effectively replace these least-used assets, says Haresh Kamath, program manager for energy storage at EPRI.

“We’re not using most of our assets most of the time,” says Johannes Rittershausen, managing director of Convergent Energy + Power, a developer of energy storage assets. “The challenge is to find ways to address infrastructure needs most efficiently and at the least cost to end users. A well-designed energy storage project can do just that by taking advantage of slack capacity in targeted locations.

“The U.S. grid will require massive investment over the coming decades as infrastructure ages and our society’s peak electricity demand continues to grow,” he adds.

Renewables’ risks. As a rule of thumb, grid experts believe that when intermittent power sources such as wind and solar surpass 20 percent, grid instability soars. And where that threshold once seemed remote, it is routinely being surpassed in many regions.

Storage boosts the value of renewables in two ways: by stepping in to provide power when renewable output drops off, and by mopping up excess output when solar or wind power exceed demand.

In February of this year, wind output set a record in Texas, briefly cranking out more than 28 percent of the power demands of the Electric Reliability Council of Texas, which manages the flow of about 85 percent of the state’s electric power. California’s goals for renewables are the nation’s highest, with a mandate to hit 33 percent by 2020. Roughly 20 more states, home to the majority of the U.S. population, have set goals of 20 percent or more.

Storage boosts the value of renewables in two ways: by stepping in to provide power when renewable output drops off, and by mopping up excess output when solar or wind power exceed demand.

“For the first time, the growth of renewables means we’re facing unpredictable supply,” says Lin. Demand will also grow less predictable as more electric vehicles come on line. “Plus it’s hard to find locations for new plants or transmission lines,” Lin adds. “Storage speaks to all these problems.”

Top Contenders

A menagerie of exotic new storage technologies — including thermal storage, flywheels and compressed air storage — are developing fast, but haven’t yet achieved commercial-scale viability. For now, advanced battery-based storage is the hottest of the grid’s newcomers, thanks to rapid declines in the price of Li-ion batteries.

Serendipitously, a key impetus for this trend started in the auto sector, where rising sales of battery-packed hybrids and electric vehicles are driving carmakers’ appetites for advanced Li-ion batteries. This is spurring new manufacturing capacity, driving prices down globally. Driven largely by rising demand from car companies, industry and utilities, the global Li-ion market is slated to double over the next four years, to around $24 billion, according to a recent Frost & Sullivan report.

As prices fall, Li-ion batteries are finding new niches. For now, at around $2,000 per kilowatt-hour, battery backup remains too costly for most applications. But they do pencil out for deep-pocketed utilities in key situations, where their ability to deliver large pulses of power is highly valued.

In January, for example, Duke Energy completed a 36 MW energy storage system at its Notrees Windpower Project in West Texas. Designed and installed by Austin-based Xtreme Power with funding from the U.S. Department of Energy, the $44-million system is the world’s largest wind-linked storage unit, made up of thousands Li-ion battery cells.

According to financial service company UBS, the cost of storage dropped by 40 percent over the past two years, and analysts expect the slide to continue, or even accelerate. At around $500 per kWh, EPRI estimates more than 40,000 MW of potential demand will enter the market. At that price point, residential-scale battery backup may become a reality. Pilot trials of such household-scale backup appliances are underway near Sacramento, Calif.

Installed in the garages of 15 solar-powered homes, Li-ion battery packs the size of small file cabinets hold enough juice to supply a few hours of power. The systems are designed to let the homes go off grid during periods of peak demand, saving homeowners money while reducing stress on the network.

And at $250 per kWh, consulting firm McKinsey & Co. predictsautomakers will be able to build electric vehicles that would be competitively priced in comparison to conventional cars, but with much lower fuel costs. With an eye on a future where there’s a Chevy Volt, Nissan Leaf or the like in every garage, utilities and carmakers are beginning to test vehicle-to-grid systems where EVs’ big battery packs are enlisted to back up the grid.

Powering Ahead

Innovative startups and companies from outside the utility sector are leading the shift towards smart storage. It’s not that utilities won’t play a big role here, but historically they tend to follow, says GreenTech Media smart grid analyst Zach Pollock. “Utilities’ adoption of nascent technologies is typically constrained by cautious regulators, conservative cultures and long budget cycles.”

And maybe that’s okay. Smart storage offers a rare opportunity, says Rittershausen. “We can do a project that makes a profit, saves the consumer money and reduces inefficiency,” he adds. “If this is done right it makes sense for investors, end users and utilities too.”

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Check out the original story here: http://ensia.com/features/can-smarter-storage-solve-our-energy-woes/?viewAll=1

 

GreenBiz

Making cities sustainability centerpieces | GreenBiz

At the heart of GreenBiz’s VERGE initiative is the thesis that the coming together of economic and technological factors is driving innovation. During a lunch session as part of the VERGE DC event, we focused on how cities are emerging as hothouses where these dynamics are unfolding most quickly.

Increasingly, the 21st century is likely to be dominated by cities, with dense gatherings of capital, technology and skills where public and private players can collaborate at high speeds. In a physical sense, cities are where technologies—energy, information, building, and transportation—are hybridizing most quickly and most productively, driving economic growth, creating jobs, and spurring competitiveness.

To spark this roundtable discussion, we looked to a recent report exploring these trends. Titled “Citystates: How cities are vital to the future of sustainability,” and produced by SustainAbility in partnership with GreenBiz and sponsored by Ford Motor Company, the report lays out seven characteristics, or states, that drive growth-nurturing synergies between cities and business. Click here for a PDF of the report.

As an overview of its analysis, SustainAbility shared a video:

Citystates from SustainAbility on Vimeo.

The Seven States

The report defines seven characteristics that SustainAbility concludes can help cities and business thrive symbiotically. Here’s how co-authors, Chris Guenther and Mohammed Al-Shawaf describe these “citystates” and the opportunities they open to businesses:

1. The Connected City: Growing technological sophistication and traditional social connectivity provide opportunities for greater awareness, trust and collaboration among stakeholders. How can business both bolster and create value from this essential connectivity?
2. The Decisive City: Cities often have the urgency and accountability to act decisively. For example, cities lead state and national efforts in the areas of climate change mitigation and adaptation. How might companies improve their own decisiveness, and/or leverage that of cities, to drive sustainability?
3. The Adaptive City: Cities are among the most adaptable structures in society. How can business grow more adaptive while collaborating with cities on their mutual survival?
4. The Collaborative/Competitive City: The healthy tension between peer-to-peer collaboration and economic and brand competition among cities has potential to drive precompetitive sustainable innovation and rapid diffusion of solutions. How might industries exploit this tension in their own parallel drive for sustainability and competitiveness?
5. The Visceral City: Urban living is shaped by numerous real and potential feedback loops. As urbanization progresses and its impacts become more pressing. How can companies beneficially tap into these feedbacks to drive both value creation and sustainable development?
6. The Personal City. The influence of shared identity and values — in cities and elsewhere — is a particularly powerful driver of individual and collective action. How can businesses connect with citizen-consumers’ values to drive demand for more sustainable products and services?
7. The Experimental City: Cities are inherently creative, experimental social systems. This opens up links between R&D and low barriers to entry for nontraditional actors. How can business embrace the growing democratization of innovation and leverage cities as laboratories to test and scale sustainability solutions?

In the discussion that followed this presentation, it became clear that companies and cities face an increasingly co-dependent future. Businesses are agile, quick to innovate and develop sustainability technologies. Cities meanwhile, face pressing needs to improve urban environments, and to boost the efficiency and sophistication of city services.

Given the right mix of markets, public policy, and economic potential, businesses can help cities tackle problems ranging from transportation congestion to water treatment, and from energy efficiency to building and infrastructure upgrades.

Compelling as this vision is, participants shared many examples of the fundamental limitations that slow down city programs, or that stymie public-private interaction—budget, manpower, politics, and the like.

Here are some key ideas that caught my attention. We covered more in the 90-minute session than I’ve captured below, so I hope participants will weigh in below, via comments, to share other ideas and reactions, as well as expand the discussion.

Racing to beat election cycles. The long-term, multidecadal nature of many city sustainability plans can be stymied by the relatively short-term tenures of elected officials. City leaders face pressure to institutionalize programs before elected leaders move on. The private sector can help by helping to cement successful practices into city operations.

Private-sector’s bully pulpit. City leaders emphasized that private-sector leadership on sustainability and climate issues can help sway politicians and bureaucracies who remain shy or averse to tackling these topics. Indeed, where “environmentalism” can be a politically tainted phrase in some circles, “sustainability” has positive connotations that can catalyze change. “I consider urban sustainability the third wave of the environmental movement,” said a city leader, adding: “Our future is one of Manifest Density.”

Open-source efficiency. Nonprivate, noncopyrighted software projects, such as those pioneered by Code for America, can be more cost-effective laboratories to develop, test and trial software services. By sharing code between cities, services can evolve faster and deliver effective solutions for a tiny fraction of the cost of using conventional contracting methods. The lower cost and quicker deployment, in turn, makes it easier to experiment with a greater variety of ideas, and to explore even small-scale initiatives.

Sensing cities. The falling cost of hardware, especially the growing smarts of sensor networks, promise substantial gains. Lost-cost monitoring of public infrastructure such as storm water systems can help identify problems and lower damage, by sending repair crews to the right place, sooner.

Un-silo information and expertise. It’s a problem within any large organization: siloed expertise and misaligned interests can stymie public-private interactions too. For example, moving a Zip Car a block close to highly-trafficked area might benefit the city, commuters and the company. But getting all the parties involved—company execs, transportation department managers, and property owners—can make otherwise easy fixes hard to execute.

Tour de Sustainability? Just as cities have developed walking tours of historical sites, they should also offer sustainability walks: paths that could take residents, visitors, and students on a journey to see green buildings, storm water features, grid infrastructure, white roofs, and the like. Given that sustainability can be an abstract idea for non-experts, such tours could normalize sustainability, inspire and educate.

Cultivating failure. The private sector has developed a tolerance for failure, some even appreciate the lessons unsuccessful efforts can teach. Yet in the public sector and especially among elected leaders, failure is deeply feared. This can lead to bad projects being pushed past failure, at great cost. Is it possible to cultivate a more experimental, failure-tolerant culture in the public sector?

Image courtesy of RATOCA via Shutterstock.

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Check out the original post here: http://www.greenbiz.com/blog/2012/03/22/why-cities-are-hotbeds-innovation

GreenBiz

How EnerNOC is Evolving Smart Grids and Building Energy Management | GreenBiz

How EnerNOC is Evolving Smart Grids and Building Energy Management

When I first met EnerNOC co-founder Tim Healy back in 2007, he was riding high on the results of a successful IPO. Catching up with Healy just a few weeks ago, I was struck by the dimming of the outlook for cleantech in the intervening years.

Five years ago, EnerNOC’s IPO was a bellwether in all-too-brief moment of exuberance for cleantech that marked that year. Listing in late May 2007 at a price of $26, EnerNOC’s IPO was a hit. The share price surged 20 percent in its first day of trading, and nearly doubled to $50 within six months.

At the time, EnerNOC offered something counterintuitive amidst all the breathless coverage of next-gen solar panels and complex batteries recipes. Rather than generate clean energy, EnerNOC was helping to solve energy shortages by reducing demand.

By taking control of commercial customers’ big equipment — think office building air conditioning systems — and turning them down briefly during periods of peak demand, EnerNOC could cut its customers’ bills by negotiating discounts with utilities. The plan helped utilities too, by giving them a way to cut the risk of costly blackouts.

These days, the atmospherics around cleantech are decidedly less exuberant, damped by partisan bashing, cheap natural gas and especially economic recession. EnerNOC’s stock has settled into a range just above $10 in recent months. Yet its business model has thrived and evolved, establishing demand response (or demand reduction, DR) as a fast-growing business and attracting a raft of competitors.

“We were among a small pack at the beginning competing for a land grab in the demand response market,” said Healy, the company’s CEO and chairman.

By most measures, EnerNOC scored well in that land grab. From a few dozen utility partners in 2007, the company now has contracts with hundreds and has expanded internationally, most recently to the United Kingdom and New Zealand. And its technology has evolved dramatically.

In the early days, said Healy, demand reduction amounted to relatively simple on-or-off decisions. During times of peak demand, equipment would simply be shut off.

“We call that DR with a machete,” he said.

These days it’s more like DR by microscope and tweezers. The combination of EnerNOC’s remote management software and advances in customers’ equipment — from freezers to digital lighting — make it possible to throttle down demand incrementally, following complex priorities. This ultra-fine control minimizes disruptions to operations, while delivering maximum dollar savings and maintaining grid stability.

This evolution toward automatic response technologies has accelerated DR’s business, and opened new opportunities. Where requests for reductions used to arrive a day or hours ahead of anticipated needs, these days contracts call for response times of minutes or seconds.

This is drawing EnerNOC and its peers into the role of automated grid management. The company’s recently-inked 150-megawatt DR project with the Alberta (Canada) Electric System Operator delivers not DR per se, but rapid response to grid variations to help maintain stability in the regional grid.

The fast-growing scale of wind and solar in recent few years has opened up a surprising variant for EnerNOC’s technology that works in reverse to demand reduction. In the Northwest, the Bonneville Power Administration has experienced periods when its dams and windmills spin out too much power, which can overload the grid. So the BPA has been searching for a way to increase demand on short notice.

EnerNOC is helping it to do so. In a pilot project, EnerNOC can push excess power to commercial facilities to heat up ceramic brick room heaters and/or boost the temperature of water heaters. The technology essentially stores excess electricity as heat, which can be drawn down later.

“We’re not just curtailing load. We’re ramping load up too,” said Healy. In addition to making more heat, making more cold also works. Cold storage facilities, for instance, can pull in surplus juice to chill their facilities to lower temperatures or make more ice, essentially storing excess load as cold.

Next Page: EnerNOC’s move into grid management, ‘persistent commissioning’ and more.

In addition to grid management, EnerNOC is also using demand reduction as a stepping stone to enter the broader field of energy management, to run the buildings and campuses of its clients. This gives EnerNOC a broader marketplace, for sure, but also brings it into head-on competition with bigger, deeper-pocketed incumbents such as Johnson Controls, IBM and Siemens.

It’s been a natural extension of EnerNOC’s expertise. As the company has grown, its software engineers have had to master an increasing diversity of software standards, control protocols, and other arcana — the code that runs offices, buildings, and the machines inside them. Expertise in these software layers has opened up a new frontier the EnerNOC: smart building systems.

“We want to drive towards a goal of ‘persistent commissioning,’ ” said Healy, where EnerNOC provides not just demand reduction services but real-time management of building systems.

The approach permits on-the-fly performance optimization, as well as the ability to detect faults. By mapping regular user patterns — escalators are always off from midnight ’til 6 a.m., for example — software can learn to take action if, for instance, an escalator motor energizes at 3 a.m.

“Managers have information systems for their finances, sales, manufacturing, practically every aspect of their operations,” said Healy, “Everything except energy. There needs to be better intelligence for the customer and utilities.”

Meanwhile, the DR market continues to mature.

“We’re seeing sectors coming to us that weren’t on our radar a few years ago,” said Healy. EnerNOC has recently begun to develop DR services for big farms, orchards and vineyards. They’re a natural fit. Big agriculture operations use lots of power to run remote irrigation pumps and other machines. These can be temporarily turned down with little harm to the crops. Installing intelligent sensors and controls on this network of pumps can deliver energy savings and other benefits too, such as reduced labor needs and fault detection.

Another potential growth segment is commercial sites that have until recently been too small to invest in DR: drug stores, convenience shops and gas stations. With all the fridges and display cases, these sites, in aggregate, face sizeable energy bills, yet are often too small to invest individually in smart energy management systems.

“If you could bring a packaged solution to these guys,” said Healy, “bundling up a series of outlets, you could see 10 percent or better savings at each site.”

I asked if the slow growth of power demand poses a drag on EnerNOC’s outlook. After all, during the recession, U.S. electricity consumption actually shrank and has grown only very slowly since. Healy told me overall electric demand growth is secondary to other trends.

First, there’s a coming wave of power plant retirements. With the EPA’s adoption of mercury rules on Dec. 21, utilities across the nation must shutter scores of their oldest, dirtiest plants, and will have to find alternatives. Secondly, the renewable energy standards now in place in most states drive demand for the sorts of grid stabilization services that EnerNOC is expanding into. Next, utilities continue to scale up spending on efficiency programs, an area where EnerNOC is positioned to help meet goals.

Plus, with overall growth flat, companies are working to shave costs: “One of the common refrains we’re hearing from customers is, ‘My top line isn’t growing, what can I do to cut costs to improve my bottom line?’ ”

And lastly, even if some factories have eliminated one of three shifts, for instance, they’re typically running daytime shifts at max, such that peak demand is still high.

“Even though overall usage is down or flat in some areas, we still continue to see peak records being set,” said Healy.

EnerNOC has some $1.3 billion in projects in its pipeline, Healy said. That’s roughly five times last year’s revenue of $280 million. The healthy pipeline has led many analysts to tag EnerNOC’s shares as undervalued. Thinking back to the IPO, Healy couldn’t agree more.

For more on EnerNOC, check out this podcast of Chrissy Coughlin’s conversation with Tim Healy here for GreenBiz.com.

GreenBiz

Building Efficiency, Batteries Drive Johnson Controls’ Record Growth | Global CCS Institute

Green is proving to be a good bet for Johnson Controls, Inc. Despite the anemic condition of its two key markets — automotive and construction — JCI recently announced record sales and profits for 2011. And the record run will continue next year, too, company executives predicted at an analysts meeting in New York this week, with green technologies providing much of the lift.

With overall GDP growth inching along at close to one percent and talk of a double dip recession echoing widely, Johnson’s rapid resurgence and bullish guidance came as a surprise. Based on preliminary figures, JCI’s revenues hit a record $40.7 billion, growing by 19 percent as net income climbed by 24 percent, to $1.7 billion, in its 2011 fiscal year ending Sept. 30.

Looking out to next year CEO Steve Roell predicted revenue would expand by another nine percent to $44 billion, while earnings per share would surge by some 20 percent. Long term, Roell anticipates 10 to 15 percent annual sales growth, a pace that if realized, could double JCI’s size in five years.

How is JCI growing so quickly when the overall economy is stuck in neutral? There’s a hint in the breakdown of where JCI expects growth next year.

Sales will expand by about 10 percent next year in its Building Efficiency unit, spurred by accelerating spending on retrofits and efficiency upgrades. Likely to expand faster still is the Power Solutions unit, where revenues will rise by around 12 percent, stoked in part by rising demand for batteries for hybrids and electric vehicles.

The company’s largest unit, Automotive Experience, will grow by 6 percent, supplying interior components and subsystems to auto makers — think seats, dashboards and doors.

Roell made the case that while broad pessimism was probably overstated — there’s a risk that the market will “talk itself” back into a recession, he said — JCI’s green focus is part of the reason it’s well positioned to grow in emerging markets and to grab share in slower-growth developed markets.

“Our market strength, product technology, and global distribution make us uniquely positioned to take advantage of the global mega-trends of energy efficiency and sustainability, and growth in emerging markets,” said Roell.

The green tint to these rosy results stems from JCI’s growing bets on building efficiency and electric vehicles. While VC-backed start-ups, and exotic new technology tend to attract the spotlight in discussions about the potential of clean tech, JCI’s outlook offers evidence of how methodically developed green offerings, coupled with strong execution, can mine huge growth from both established and emerging markets.

Panoptix and Bending Company Culture to the Cloud

Consider JCI’s last building efficiency initiative. Long a market leader in building control hardware, earlier this month JCI announced plans to push into the software services space. At Greenbuild, on Oct. 4 JCI unveiled Panoptix, a suite of cloud-hosted applications that promise to improve the collection and management of building performance data.

Building management software is complex challenge that has attracted, and spat out, quite a few players, such as Cisco, as I was reminded by Dave Myers, JCI’s president of building efficiency after the meeting. It’s a tricky space for pure IT experts to understand, so while they may “get” the challenge of connecting varied building systems, they often lack a deep fluency in the insular world of building control technology and practices, a world where Johnson Controls is a 125-year veteran.

“We have the presence in the market, the intelligence to operate buildings, and our gap was more of the connectivity,” Myers said.

To fill that gap, Johnson Controls built an in-house software development lab, importing coders from outside the building industry, specifically to cultivate a very open sensibility about standards. Doing so also meant bending corporate culture that the system must be open to communicate with competitors’ offerings. “It’s essential that Panoptix be able to talk with building control systems, including our competitors,” said Myers.

JCI’s entry into this space comes at a time when building owners are pressing harder for verification that investments in green technologies and retrofits deliver a payback. As critics of the USGBC’s LEED green building standard have emphasized, design standards don’t guarantee more efficient performance.

Better building performance data, Myers added, will not only spur programs like LEED, but should make it easier to finance retrofits too, by giving lenders clear data about improved operating costs.

The second green growth area that JCI emphasized was batteries — but not, to my surprise, the lithium-ion type that rule the roost in most advanced electric vehicles (EVs). Rather JCI sees big promise in old-school lead acid batteries, the sort cars have relied on for a century or so to start, for lighting and ongoing ignition.

In an era of space-age EVs packed with thousands of exotic li-ion power packs, where do lead-acid batteries fit in? JCI’s answer: start-stop systems for conventional cars.

While maybe not as sexy as Chevy’s Volt or Nissan’s Leaf, these lower-cost systems can stop a car’s engine when at idle, then fire it back up when the gas is pressed. At a premium that pays for itself in a year or 18 months, car makers can deliver 5 percent to 7 percent fuel savings.

Those mileage gains may be modest, but Alex Molinaroli, JCI’s president of power solutions explains, given its affordability, start-stop systems will have a deeper impact on the industry, and overall mileage, far sooner than advanced EVs. In the coming decade, Molinaroli said, advanced electrified vehicles — from plug-in hybrids to pure battery EVs — will make up only a few percent of sales. In the interim, the true “mass market” approach to EVs will come from start-stop systems added to conventional cars.

“It’s the math. Let’s say EVs mean 5 percent of cars improve their mileage by 100 percent,” said Molinaroli. “You have more impact improving the mileage of 100 percent of cars by 5 or 10 percent.” Already widely adopted in Europe, start-stop systems will make their way into the majority of U.S. models in coming years, Molinaroli added, as automakers begin the push to hit new federal 54.5 mpg standards by 2025.

In parallel, li-ion batteries will grow continue to grow, as well, and JCI rationalized its control of its advanced battery operations. On Sept. 30, JCI completed the $145-million buyout of its joint venture with France’s Saft, gaining ownership of Li-ion battery technology, rights to licenses and a recently completed plant in Holland, Mich.

JCI currently supplies Li-ion batteries to Azure (which makes electric trucks for FedEx and others), BMW, Daimler, Ford, China’s Geely, Jaguar/Land Rover, Odyne (another truck maker) and VW.

Lead acid batteries were recently at the center of a dust-up at JCI’s plant near Shanghai. Built by and acquired from Delco, JCI had to shutter its lead-acid battery plant in Pudong New Area last month when authorities requested the factory halt operations after exceeding its quota of lead emissions.

Molinaroli said the closing came despite the fact, in the past, JCI has been solicited by Chinese authorities to transfer practices to help local plants lower their lead emissions. The Shanghai plant, Molinaroli emphasized, operates at the same standard as JCI’s facilities in Europe and the Americas. JCI has the right to resume operations at the plant on Jan. 1, and is developing four additional facilities elsewhere in China.

GreenBiz

Cisco Quietly Shuts Down Building Energy Management Program | GreenBiz

Another one bites the dust. At the end of June, the names Google PowerMeter and Microsoft Hohm were chiseled on the grave marker of casualties in the race to build smart grid-linked software and gizmos. To this list of famous fallen, Cisco Systems adds its name, with an announcement yesterday that it will exit building management software services while also retreating from the home energy management market.

You could be forgiven if you missed the announcement. The news was tucked into Cisco’s fiscal fourth quarter earnings call. Amidst the perilous rollercoaster-ing of the markets of the past few days, Cisco showed signs of recovering from recent missteps, solidly beating expectations — a performance rewarded by antsy investors with a 17 percent stock price runup.

Almost lost in the din was the news that Cisco is unwinding its investment in the energy management market. Cisco entered this market almost two years ago to the day, with an ambitious announcement of a new product, dubbed Mediator, that would tap into Cisco’s deep networking skills to hook up the many and disparate software networks used to heat, cool, and otherwise operate big commercial buildings.

The precise fate of these business lines remains to be seen, but prospects look dim. At her Cisco blog site, Laura Ipsen, senior vice president of global policy and government affairs, expanded on Cisco’s thinking in a company blog post, although the jargon is tough going. She writes:

“Over the past two years the home and building energy management markets have evolved in such a way that we believe we can provide more value to our customers and the industry by enabling interoperability through our core networking products and solutions (for example, EnergyWise) as part of our integrated architecture within the broader smart grid effort.”

Based on this rationale, it appears that Cisco will likely sell its building management software suite, Mediator. Ipsen writes: “For building energy management, this means we are actively pursuing several strategic options for Cisco’s Network Building Mediator and Mediator Manager product line, with an emphasis on minimizing the impact on current customers, partners and employees.”

The outlook for home energy management systems is less clear — the jargon reaches fever pitch here — but it looks like Cisco is simply going to pull the plug on household offerings, instead focusing on utility and other B2B markets: “For energy management in the home, we will transition our focus from creating premise energy management devices to using the network as the platform for supporting innovative applications and architectures that will improve our customers’ value proposition in the consumer energy management market.”

For close watchers of the smart grid space, the retreat comes as no surprise. At Greentech Media, Michael Kanellos predicted Cisco would retreat last week, pointing out that the company’s earlier success tempted it to overreach into unknown markets, even as its core networking technologies were under intense competitive pressure.

A harbinger of Cisco’s exit was the early-retirement of Ed Richards, an original developer of the software behind Mediator, a system which Cisco acquired in the acquisition of Richards-Zeta back in 2009.

As Google and Microsoft found in their forays into energy management, Cisco’s market expectations went unmet. The market has been slow to develop, utilities have proven hard customers to develop, and consumers have been all but indifferent to the hype around home energy management software, points out Katie Fehrenbacher at GigaOm.

Cisco’s been riding through a winnowing reorganization in recent quarters. In July, the company shed 9 percent — or 6,500 employees — of its staff, part of a plan to lower costs by $1 billion. And in April, the company killed off its consumer business, including the Flip video camera, which it had bought just two years earlier.

Photo CC-licensed by John Brennan.

NRDC OnEarth

Review: Revenge of the Electric Car | OnEarth

Chris Paine’s 2006 documentary Who Killed the Electric Car? arrived with perfect timing, capturing the country’s collective frustration with sky-high energy prices as well as our growing disenchantment with the automotive alternatives on offer. Let’s hope his sequel, Revenge of the Electric Car, previewed last week in New York and set for wide release this October, proves equally as prescient. The film, which captures what may turn out to be the first stages of the auto industry’s evolution away from oil, cruises smoothly over the finish line where its predecessor ultimately stalled short.

For Revenge, Paine scored fly-on-the-wall access to three of the most charismatic leaders in the auto industry. And he did so at a key moment — just as each was in the midst of executing a high-risk, multi-billion-dollar bet on battery-powered cars. Add in the fact that Paine’s crew was filming during the 2008 economic crisis and implosion of GM, and the result is more than just a snapshot of the gamesmanship behind the creation of mass-market vehicles. Revenge offers a look inside the minds of business leaders struggling through one of the most troubled periods of recent economic history.

As the documentary opens, U.S. automakers face an environment that’s radically different from the cheap-oil days that ruled when GM developed its first electric vehicle, EV1. Now oil prices are running at historic highs, and governments around the world have begun to put some real muscle behind the idea of the electric car.

Here’s Bob Lutz, GM’s American-born vice chairman and a veteran of the Big Three (Chrysler, Ford, and GM), becoming the unlikely champion of the Chevy Volt, and opening a door to GM’s salvation after the company’s downfall. Known in Detroit as “Mr. Horsepower,” Lutz personifies the about-face that the industry as a whole went through in the time that passed between the making of the two films. Once a deep skeptic of EVs, he now artfully tilts GM’s monolithic culture toward his goal of developing the Volt.

Facing off against GM is the enigmatic Carlos Gohn, the Brazilian-Lebanese CEO of Nissan/Renault, which is building the all-electric Leaf. Gohn’s orderly execution of the Leaf offers a welcome perspective on EVs from beyond American borders. After all, battery-powered cars are likely to flourish on the roads of Paris, Shanghai, and Tokyo before they do here, for the same reasons that small cars did.

Playing counterpoint to the corporate titans is Paypal-founder Elon Musk, a charismatic South African-Canadian struggling to steer the scrappy Tesla from startup mode to full-scale manufacturing. With confidence bordering on hubris, the then 38-year-old is at once inspiring and pain-inducing, as he underestimates the complexity of manufacturing and struggles to produce a stream of fault-free $100,000-plus electric sportsters. (This while also navigating his way through a painful divorce and playing doting dad to his five sons.) There’s real drama in watching Musk’s brave face flicker as he inspects an armada of faulty cars and in watching him awkwardly deliver the news to early depositors that the price of their vehicles will have to rise yet again.

One of the film’s delightful subplots involves the struggles of Greg “Gadget” Abbott, a goateed indie tinkerer who made a brief appearance in Who Killed and who excels at retrofitting classic cars with batteries and electric motors. With an infectious, mischievous air, Gadget offers a reminder of the gear-head roots of EVs’ most devoted fans.

Unlike with his first film, where Paine came to the topic too late to build a “how-it-happened” tale and leaned instead on activists and half-baked acolytes, Revenge captures rich natural tension as it unfolds. Who Killed, for example, featured a parade of Hollywood A-listers (Tom Hanks) and B-listers (Phyillis Diller), many of them sore about having lost their exotic cars and whining about GM’s decision to kill the EV1. Revenge gives us mercilessly few Hollywood prima dons — though Danny Devito does get downright giddy test-driving the Volt.

It won’t be giving anything away to tell you that the end of Revenge is a happy one. Of course, it’s far from the end of the story. Should Paine opt to complete what seems like a natural triptych, the final installment will no doubt prove more global in scope. Beijing has set national EV goals that dwarf those of Washington, for example, and the Chinese have much deeper capital resources. They also have a strong knack for building things like smart grids, which will be necessary for the wide-scale adaptation of EVs. And the race to build a better battery is heating up elsewhere overseas, with labs in dozens of countries working to build batteries capable of matching the range of your average gas tank.

With the gee-whiz stage of EV creation now complete, GM, Nissan, and Tesla also face the tougher slog of turning these enormous bets into reliable, mass-market machines that can actually make some money. Sales of EVs and hybrids are so far running far below the ambitious targets set by national governments, including our own.

Lurking farther out is the persistent threat of volatile oil prices. Many, myself among them, would argue that the real killer of the electric car was cheap oil. In the late 1990s, prices hit a post-’60s low, in inflation-adjusted terms, at the very moment that GM’s EV1 was being rolled out. That wouldn’t make it easy for any $1.25-million prototype to get off the ground, I don’t care how many starlets tell you it’s a great idea. Sub-$2-a-gallon gasoline may seem unimaginable to us today, but a double-dip recession — a real possibility given the anemic economic growth and sovereign debt woes on both sides of the Atlantic — could send energy demand crashing, rendering the EV once again an intolerably uneconomic prospect.

Revenge closes with a scene featuring the Los Angeles Times reporter Dan Neil. The sole automotive writer ever to win a Pulitzer, Neil is cynical about the industry’s abysmal record on eco-cars. At the same time, reflecting on a lifelong affair with gas-guzzlers, he admits that in recent years even he has begun to “let go” of the idea of the traditional car, and to acknowledge that it may finally be rolling toward the sunset.

Original URL: http://www.onearth.org/article/revenge-of-the-electric-car

GreenBiz

GM Upgrades OnStar to Power First Real-World, Smart Grid EV Pilot | GreenBiz

Hard to believe that OnStar — GM’s in-car mobile data service — celebrates its Sweet 16 this year.

Back in 1995, when the service was launched for GM’s luxury line, pundits griped it was just a superfluous add-on. This was back in the cell phone Stone Age when they were still a luxury, analog and kinda huge. Few predicted then that telematics would mushroom in importance over the next decade. These days six million subscribers pay for OnStar’s emergency assistance, remote diagnostics, mapping, entertainment and more.

To that long list, add one more trick OnStar is helping GM to pull off: offering a short-cut to connect electric vehicles (EVs) to the smart grid. GM yesterday announced the launch of a pilot program that can let utilities and customers skip the need to install physical smart grid points to manage recharging of their EVs. The new OnStar service will act as a remote brain, wirelessly tracking and governing the EV’s charging behavior, coordinating the timing and billing, and potentially dramatically lowering the costs to extend smart-grid management features to EVs.

By skipping the need to install physical smart apparatus, the OnStar system can save utilities some $18 million per 1,000 customers, said Vijay Iyer, GM’s director of communications for OnStar, citing GE estimates. To mesh OnStar’s data services with utilities’ internal information management systems, GM worked with GE, whose IQ Demand Optimization Services unit is used by utilities to monitor demand response systems.

This is important step for utilities which are busily, and expensively, building intelligent power and data devices in customers’ garages, as well as at charging terminals, to referee how and when EVs will re-charge. Utilities don’t want fleets of EVs drawing power on 95 degree summer afternoons when power is in short supply. Customers, likewise, will prefer the option of charging at night when power is much cheaper.

The Detroit automaker is calling the trial the first “real-world pilot of smart grid solutions.” This quarter, staff of regional utilities will become the guinea pigs for this program, driving Chevrolet Volts for everyday use. Ford announced plans to scale up a broad smart-grid integration at the last Detroit auto show. And Toyota has laid out ambitions to collaborate with Microsoft.

GM is betting that this approach will let it leapfrog the smart-grid technology demos being piloted across the U.S. Given that OnStar can pick up recharging activity anywhere — whether at home or on a distant road trip — the approach promises to offer deeper insight into how, where and when EVs are charged. Since it doesn’t matter whether the EV is connected to a smart-grid charge point, OnStar should let utilities more accurately model how to manage peak versus non-peak charging too.

GM’s EV approach may get real traction where others have struggled. It appears to offer utilities a faster, cheaper way to hook up a major new source of electricity consumption to the grid. If utilities don’t see the benefit, it will be DOA. We saw evidence of the importance of this recently when software heavyweights Google and Microsoft suspended efforts to develop software applications for home energy management, in part because of the difficulty of getting access to the all-important data stream from utilities.

There are some intriguing long-term implications to GM’s announcement. With smart-grid enabling technology embedded in the car, GM opens the door to a faster rollout of sophisticated vehicle recharging schemes than would be possible if utilities must first build hardware networks of recharging stations.

There’s big global potential too: GM as a company remains the No. 2 auto producer in the world, even after its recent near death experience. Two of the top 10 selling vehicles in China, the world’s largest auto market, are GMs. And China has the largest goals for EV deployment of any country.

The inevitable next question is whether GM might make this service available to other automakers, so that they could roll out smart grid EV charging on a faster track too? Until 2006, GM licensed OnStar through a variety of other carmakers, but has since stopped. This Sunday, however, GM will release a portable form of OnStar that can be installed in any car, OnStar for My Vehicle (OnStar FMV).

Who knows? In time, maybe even your Toyota could hook up to the smart grid via GM’s OnStar.

GreenBiz

Is the US Losing the Leading Role in Smart Grid? | GreenBiz

Is the US Losing the Leading Role in Smart Grid?

When the World Economic Forum and Accenture launched their latest look at global progress of smart grid technology, the authors selected Tianjian, China, for the debut.

It wasn’t until nearly two months later that the analysis, “Accelerating Successful Smart Grid Pilots (pdf),” was formally unveiled in the U.S. — at a meeting of industry leaders today in Atlanta hosted by General Electric Energy.

The China debut caught my eye. Is it a signal that U.S. leadership in smart grid is giving way? There’s been much worry that the U.S. is losing its edge in clean technologies born here. It’s already happened with solar photo voltaic technology, which is dominated by China. Other sectors — such as e-car, battery and wind technology — are re-centering there, too.

In the smart grid space, the U.S. is a natural leader, given our huge energy appetites and how similar the smart grid is to the Internet.

“As the largest per capita consumers of energy in the world, the United States has both the opportunity and the responsibility to be at the forefront of this revolution,” said Bob Gilligan, GE Energy’s vice president of digital energy, in a statement as part of the WEF event.

Yet as its China debut suggests, the report makes clear that whatever head start the U.S. may have had, it’s being challenged by ambitious programs elsewhere. The report maps out the surprising scope of international efforts. For instance, while Washington committed $4.5 billion into smart grid as part of the stimulus, Beijing committed some $7.3 billion.

The question isn’t so simple as U.S. versus China, of course. China’s key focus isn’t to develop exports, at least not yet. Rather, it’s racing to build out its national grid to keep pace with rapid urbanization and economic growth. And it’s not alone. Newly wealthy India and Brazil, together with Kenya, according to the WEF’s report, are plowing funding into smart grid work to build infrastructure fast, as well.

That said, and unlike China, some other economies are more explicitly focused on developing smart grid technologies for export, the WEF found. These include South Korea, Japan and Singapore. Their plans dovetail nicely with domestic efforts to cultivate green technology industries and lower national energy use.

In Europe, billions are flowing into the sector as part of strong national commitment to build out renewables, roll out e-cars and lower the carbon intensity of the power grid.

To be sure, the sky isn’t falling. According to the WEF’s survey, the U.S. is tied with Europe as leaders in these technologies. Plus in fast-emerging markets like China and India, much of the money being poured into grid technologies is simply to deliver basic services, rather than cutting edge digital systems.

U.S. efforts are gaining speed too. While U.S. public funding in smart grid projects trails that of some other regions, private investment — led by utility spending — is slated to hit $7 billion this year, the WEF estimates. As much as South Korean and Singaporean players may hope to export smart grid gizmos to the U.S., big tech juggernauts here such as GE and IBM are already hustling to sell U.S. expertise into those and other markets too.

This context is worth remembering as the U.S. smart grid rollout goes through some early growing pains. We’ve already seen some barriers to early projects and anxiety is on the rise over the vulnerability of the smart grid to cyber-risks.  These problems aren’t unique to the U.S., of course, and by fixing them, the U.S. smart grid could yet set standards and define the technologies, others will emulate.

A video of the discussion on the report by the WEF and Accenture can be seen here.  The Q&A following the presentation is worth catching, given the caliber of attendees — including Duke Energy CEO Jim Rogers — and the thoughtful the discussion of the challenges facing the U.S. rollout.

The full WEF “Accelerating Successful Smart Grid Pilots” is available at www3.weforum.org/docs/WEF_EN_SmartGrids_Pilots_Report_2010.pdf

The executive summary is available atwww3.weforum.org/docs/WEF_EN_SmartGrids_Pilots_ExecutiveSummary_2010.pdf

Image CC licensed by Flickr users Vince Alongi and Marc_Smith.

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Check out the original article at http://www.greenbiz.com/blog/2010/11/10/could-us-lose-leading-role-smart-grid