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Google, with its billions in annual revenue and its constant noise about open standards and free access to information, is hard to ignore when it crashes into an unsuspecting industry. As cell phone companies, publishers, advertisers and software makers have all seen over the years, when […]

googlesmartmeterlogoGoogle, with its billions in annual revenue and its constant noise about open standards and free access to information, is hard to ignore when it crashes into an unsuspecting industry. As cell phone companies, publishers, advertisers and software makers have all seen over the years, when Google sets its sites on your sector, the industry’s reaction is usually a mixture of fear and excitement. So now that Google’s given us a peeak at the software and online tools it’s developing for smart meters — PowerMeter — how are the companies that are building their own software and hardware to organize the energy information in our homes reacting?

While young startups that have built their businesses around energy management tools are largely applauding the attention, Google’s moves raise a lot of questions for this fledgling industry and could furthermore directly threaten the business models of some of the more entrenched smart meter companies.

On the face of it, the energy management startups appreciate the attention. More awareness of the sector means more smart meter adoption, and more customers. As Adrian Tuck, the CEO of home energy gear maker Tendril, told us, the largest risk for the smart meter industry is moving too slow. “The biggest brand possible just jumped in,” says Tuck, which will only speed up adoption and consumer demand.

Tendril’s reaction partly stems from its close relationship with Google — Google chose the startup to speak at its smart grid event with GE in Washington, D.C., next week, and Tuck describes the relationship between Tendril and Google’s PowerMeter as “dating.” Tendril shares Google’s view that open platforms will help speed adoption and make the consumer experience better — last week the startup said it’s opening up its API for third-party developers, and Google says it plans to release its PowerMeter API in a similar manner.

Other energy management startups that aren’t as closely aligned to Google as Tendril, are, for the most part, excited about the search engine bringing much-needed attention to the space. “It’s great to have Google on the energy-efficiency train,” said Agilewaves CEO Peter Sharer. “Over the past couple of years we’ve been largely swimming upstream.” Greenbox CEO Jonathan Gay expressed the same sentiment, saying he thinks Google will shine a spotlight on the sector and attract interest. Even a spokesperson for meter maker Itron, Sharelynn Moore, said Google “adds enthusiasm and validation” to the industry.

But Google’s entrance into the space does raise a lot of questions for these firms. First off, will Google be a competitor or a partner? Gay said it’s too early to tell if the product will be competitive to Greenbox, but explains the two as follows: Google is building a platform, while Greenbox, which is focused on the software side of home energy management, is an application that can ride on that platform.

Google and the energy management startups also note that Google’s tools are just offering up energy information, and that there’s plenty of room for software that can analyze and better visualize the data as well as control appliances around the home. And hardware makers will be eager partners. Yet I also can’t help but think that the fact that Google will be offering its online tool and software for free will undercut some aspects of the new businesses, all of whom are struggling to figure out revenue drivers in a very nascent industry.

Perhaps a bigger question than whether Google is friend or foe is, who owns the relationship with the customer? Google’s longstanding online presence could mean energy customers turn to it for energy data info, while bypassing utilities and young startups that are also trying to build communities and aggregate eyeballs. Startups will be willing to play second fiddle to Google, but utilities have years of history with their customers and might not be keen on one of the Internet’s perkiest brands moving in. Cell phone companies felt the same way when Google expressed its intentions to work on mobile software.

Beyond the issue of customer loyalty, Google’s entrance into smart meter software brings in a heavy-hitter for companies that are looking for Internet Protocol to be the basis of the next-generation smart grid. While some companies are hoping IP will be the dominant standard, many older companies have built networks and technologies on different standards, and even proprietary standards. Incumbent smart meter companies like Itron, Landis+Gyr, Elster and Aclara (part of ESCO Technologies) have already expressed concern over language in the stimulus bill that emphasizes Internet protocol for the smart grid.

Itron’s Moore says that while it’s easy for a company like Google to say that consumers should be able to access energy data for free through the Internet, the current system is just not architected that way. There are issues with security, utilities controlling their own assets, and keeping costs down — IP is part of the smart grid network, but there are a lot of other factors in the network, she says. Google itself, has admitted to the technical challenges of free, open-standard energy info in its CPUC comments, but said:

While we recognize there are some limitations today on the ability of utilities to provide data to customers in this manner (even with AMI), we believe that advances in Home Area Network technologies will make this entirely possible in the near future.

You can bet that if Google was the sole architect of the smart grid it would build it like the Internet: based on IP. That’s something that the companies that have built a business based on their own protocols don’t want to see, and you can bet they’re thankful that Google is still just dabbling in the energy info space.

  1. [...] biofuel production without killing the environment or water supplies, at Green Inc. Google’s entry into the smart grid field has sparked both excitement and fear as the giant will reshape the nascent industry, at [...]

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  2. [...] in annual revenue and its constant noise about open standards and free access to information, is hard to ignore when it crashes into an unsuspecting industry. As cell phone companies, publishers, advertisers and software makers have all seen over the years, [...]

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  3. I really don’t know what value Google would be providing here. People’s homes need some physical sensing. (That Dryer isn’t going to monitor itself.) Some kind of pricing information needs to be provided by the utility. Many consumers will want and demand a non-computer interface to access and review this information. And finally, there’s not that much grid-wide processing to be done, just lots of local choices that might feedback and alter pricing.

    The fact that google can make a nifty graph on your computer (for FREE!!!) doesn’t really impress me too much. Send me a wireless current monitor for free (make that a dozen or so) and then I will perk up a bit more.

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    1. @Jim. Think of Google PowerMeter as the energy equivalent of Google Analytics. You’re absolutely right that it requires a sensor (versus a snippet of javascript) but I think it’s a fair bet that the current iGoogle widget will grow into a much more robust analytical dashboard in time. I wrote more on this in this Big Ideas for 2010 post:

      http://www.energycircle.com/blog/2009/12/31/10-big-ideas-home-energy-efficiency-2010

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  4. [...] Malik | Wednesday, February 11, 2009 | 6:46 AM PT | 0 comments How Google’s PowerMeter will impact the smart meter business. [...]

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  5. I don’t see how Google is moving into the utilities turf. Are they going to start generating power? No. If anything, this will probably help utilities keep costs down when upgrading to smart meters given Google’s propensity for setting prices low.

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  6. @ Josh, Google won’t be acting as a utility, but they are calling for consumers to have real-time, free access to their energy data in an open-standard, easy to understand approach. Pretty much no utilities in the U.S. currently have an energy info system set up like this and many will resist it if there are significant added costs.

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  7. Great article, Katie. It will be interesting to see how Google’s entrance affects (or upsets) the business models of startups. Will consumers pay more for another service when many will be content with an easy and free tool on their iGoogle page?

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  8. Google is smart to team with Tendril. Tendril’s TREE platform is top notch.

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  9. I am glad the Google has jumped in to ‘disrupt’ the smart energy marketplace. So far, this rodeo has been ‘all hat, no cattle!’

    I wish that they had also teamed to support Natural Gas smart meters

    But I am very disappointed that PG&E in currently NOT scheduled to install smart meters in the heart of Silicon Valley until December 2009 and beyond. There should be a way to allow motivated users to shorten that delay.

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    1. on approximately Feb 10, 2010, PG&E Installed the smart gas meter monitoring at my house in silicon valley.

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      1. Yes, the PG&E sub-contractor arrived at my door step and installed the GE Smart Meter today: 05-FEB-2010. They also tried to install the gas meter smart meter on the face of the old meter, but due to a poorly designed installation back in the 70s, it does not fit. It will be interesting to see how PG&E resolves this.

        The GE meter has a sticker under glass with Silver Springs device address on it.

        Now I need to go back and learn if the Google Power meter / PG&E relationship has unfrozen. It is not clear to me that I will be able to use Power meter any time soon.

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  10. From over here in the UK, this is pretty interesting stuff. The value that Google will add, and what will scare utility suppliers, is the prospect of them having constant face to face contact with the end consumer. That’s something that utilities have failed to achieve, and are consequently extremely poor at improiving the efficiency of consumers homes – or very simply flogging them some energy saving kit. The fact that Google is joining forces with Zigbee says it’s willing to tackle smart metering properly, with the right resources and skills behind it. It’s going to be very interesting indeed!

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  11. good article Katie.

    i think the question is here: will start-ups that before we focused on the heavy lifting of actually pulling out the utility energy data, processing it, and displaying it now re-focus up the value-add stack? it all depends on how open Google is with this data: will it be a platform for other dev’s to build upon?

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  12. Great article, Katie. With PowerMeter, Google is validating the valuable role of energy monitoring in empowering end users with the information they need to take control of their personal energy consumption. I work with Fat Spaniel Technologies (www.fatspaniel.com), and we absolutely support Google’s stated principle that “open protocols and standards should serve as the cornerstone of smart grid projects” (from their blog). Last year we announced the industry’s first open energy monitoring solution – the Fat Spaniel Insight Platform™. We believe that in order to provide users with a complete energy solution, it must be an open platform that can monitor all devices and systems and distill the data into usable information. As such, Fat Spaniel will extend its open, standardized interface to Google’s PowerMeter once it is publicly released. We currently provide the monitoring technology for more than 2,000 renewable energy plants across 17 countries today, and we think that Google’s validation of the energy monitoring market will help spread the technology for adoption across all energy systems universally.

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  13. [...] dreamed of energy diet competitions, and warned that Google might trample smaller innovators in the smart metering industry in its dash to provide free access to consumers. Green Wombat struck [...]

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  14. Great job covering this story, Katie, particularly on how it impacts the Smart Metering companies. In Energy Circle’s writing about it, we’re trying to keep the consumer perspective in mind, particularly those of us who live in decidedly “not smart” parts of the country.

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  15. [...] by Katie Fehrenbacher No Comments Posted February 19th, 2009 at 7:32 am in Energy Despite Google’s talk that energy data should be free and accessible to everyone, at this point it’s mostly owners of commercial and industrial [...]

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  16. Smart Meter Requester Thursday, February 19, 2009

    I’m glad Google is again leading the way. But I echo Jeff Meyer’s point that PG&E are lackluster in upgrading smart meters in silicon valley.

    I live in San Jose, CA and we are not scheduled for upgrades until the date range Aug 2010 – Dec 2011. I just hope that the funding announced in the latest stimulus bill will bring those dates much closer.

    The people I have talked to so far at the PG&E Smart Meter phone number have not even been aware of the additional funding in the stimulus package.

    Come on PG&E, you can do better than that. Get ahead of the curve!!

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  17. [...] by Katie Fehrenbacher No Comments Posted February 19th, 2009 at 8:48 pm in Energy Google shook up the smart meter industry this month by announcing it is developing a web-based energy data tool called PowerMeter. Energy info should [...]

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  18. [...] with questions about whether the company will be a competitor or a partner. For the long run, we have to wonder who would own the relationship with customers in a Google smart grid world — but for now, the looming question is who’s getting the [...]

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  19. [...] Fludder says the companies are discussing how to integrate GE’s smart meter tools and Google’s PowerMeter, the web-based tool that Google has been developing to manage home energy use via smart [...]

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  20. [...] Tenrdil’s energy data. It’s a similar strategy to the one Google is taking with its online energy management tool PowerMeter, and Google plans to offer that API to third parties in the future. Offering an open API can lead [...]

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  21. [...] role in all of this seemed to be promoting open standards as a way to spur innovation (Exhibit A: PowerMeter) — and urging policymakers to have data ownership rules on the books from the get-go. Former [...]

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  22. [...] To be sure, Page plans to use some pretty cool stuff: Recycled materials that have low levels of volatile organic compounds (or none at all), a rooftop garden, solar panels, zinc cladding and pervious pavement, according to the San Francisco Chronicle. And the planned structure will likely take advantage of smart energy tools — IT technology that can help the homeowner better manage and reduce energy consumption — in particular Google’s PowerMeter. [...]

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  23. [...] Google Inc co-founder Larry Page is building an eco-mansion in Palo Alto, the original Silicon Valley powerhouse town, the local weekly said on Friday. Page’s green-certified home should be 6,000 square feet, hardly modest for most folks, but only a bit over half the size that he could build on the lot, according to Palo Alto Online, the website for Palo Alto Weekly, which uncovered the plans. Page plans to use some pretty cool stuff: Recycled materials that have low levels of volatile organic compounds (or none at all), a rooftop garden, solar panels, zinc cladding and pervious pavement, according to the San Francisco Chronicle. And the planned structure will likely take advantage of smart energy tools — IT technology that can help the homeowner better manage and reduce energy consumption — in particular Google’s PowerMeter. [...]

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  24. [...] To be sure, Page plans to use some pretty cool stuff: Recycled materials that have low levels of volatile organic compounds (or none at all), a rooftop garden, solar panels, zinc cladding and pervious pavement, according to the San Francisco Chronicle. And the planned structure will likely take advantage of smart energy tools — IT technology that can help the homeowner better manage and reduce energy consumption — in particular Google’s PowerMeter. [...]

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  25. [...] working to select and sign up smart-meter data partners for the game, Dorsey said. He mentioned Google’s PowerMeter API — and even included a superhero wearing a “G” in its comic — as well as Fat [...]

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  26. [...] has already announced it’s been focusing on the smart grid through its PowerMeter online tool for smart meter data, and has been working with GE on ways to make that commercially available. As [...]

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  27. [...] has already announced it’s been focusing on the smart grid through its PowerMeter online tool for smart meter data, and has been working with GE on ways to make that commercially available. As [...]

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  28. [...] we sat down with Google’s Tom Sly, who has been working on the search engine giant’s energy information tool PowerMeter. We’re trying to make Google PowerMeter available as fast as possible and best case scenario [...]

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  29. [...] sometime this year. Google is working with device makers — we’ve reported on GE and Tendril — and hoping to launch with a direct-to-consumer product as well as a utility product. [...]

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  30. [...] smart meter rollouts in the smart grid funding allocation. Google, which has been working on the online energy data tool PowerMeter and has taken a keen interest in keeping energy data in the hands of the user, writes: Empowering [...]

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  31. [...] utilities have indicated to us that they’ve been uncomfortable with the fact that Google is building software and web tools for energy management and smart meters called PowerMeter. In their eyes Google’s strong brand could dominate their [...]

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  32. ENRON Utilities are uncomfortable with accurate energy measurements, energy sums that total correctly, real time measurements that can be verified? Calif Edison/TVA/DOE Energy Czar, S David Freeman, the Gray Davis and Jimmie Carter appointee that financially fed ENRON to distinction and TVA to desperation?
    Bravo to Google and Good Luck.
    Large utilities, TVA, AEP, Calif Edison will balk.
    The total energy used is many times less than the amount of energy the utility measures and markets.
    Historically and legally, no one except the utility is authorized to police, check, verify, measure, remeasure, calibrate, recalibrate or question the utility records. No local utility ever goes broke or makes marginal profits. Shortcomings and non-payments are redistributed to good, honest, rate paying customers. No one knows. No one questions. No one is authorized. No one is qualified. No one cares.

    Utilities will have lots of long time explaining to do if accurate energy measurements are allowed. Go google go go go “utility police”

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  33. [...] Fehrenbacher No Comments Posted June 24th, 2009 at 7:05 am in Energy While Google has been openly discussing its yet-to-be-released online energy management software PowerMeter since back in February, Microsoft has spent the last two years quietly toiling [...]

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  34. I too echo the comments above about PG&E in Northern Cal. I can’t believe that we’re not even provided an option with as much as they pushed power conservation in their paper billing statements (I’m now on e-statements).

    Solutions like PowerMeter seem like a no brainer particularly for people enthusiastic about the technology.

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  35. OK, I admit that this is marginally related to the topic of this thread, but her goes anyway. I hope to find additional resources that help me learn about:

    -Availability of appliances, including Washer, Dryer and Refrigerator that can “listen/react” to high power usage times and “sleep” until optimal times.

    -Windows/doors that know when they are open/closed/locked and can report that status to both the thermostat and the security system. The system could then avoid heating or cooling the whole outdoors. (I am shopping for replacement windows and am amazed that I cant at least find the integral security option today.)

    -a versatile, whole house heat exchanger that intelligently harvests heat (or cool) from various sources to moderate extreme living space temps before the furnace or A/C is kicked in. This would include turning on ceiling fans to push or pull heated air down into living space.

    -the heat exchanger would also be capable of harvesting heat from drain pipes/plumbing as warm drain water flows to the muni system.

    -Also, I am real interested in learning about the availability of security / privacy for the network traffic (wireless and wired) that could provide evil doers with all sorts of real time information about who is home, status of appliances plus just not wanting to have others know details of the smart meter “chatter.”

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  36. [...] the attention on smart meters as a result of the stimulus package, from fast-moving utilities and even from the likes of Google, don’t expect the market for smart meter technology to grow too quickly in the U.S. According [...]

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  37. [...] maker eMeter, an international conglomerate like GE, and mammoth IT firms like Microsoft and Google. (Read about 10 energy management tools here.) But one New York-based startup called Efficiency [...]

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  38. Google is a go ahead business. They see where there is a market they can get into and because they have the backing they do just that. They get into it, you can bet they have done the research to see the benefits and it is not just an in the wind project. Easy to say when you are not in their target business I know but what are the options to stop big business progression?

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  39. I was at a Redwood City, CA business and saw three gas meters with (PG&E) gas meters retrofit with smart meter addition over the standard face where the little turning dial thinges used to be. Clearly not new meters, but new SmartMeter appendage.

    This answers my question about if only electric meters would be retrofit or it gas meters would too.

    I have not read every word of the PGE.com website but I only saw discussion and a schedule for electric meters.

    Are others across the US seeing smart gas meters being deployed? Any luck with being able to monitor use wireless?

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  40. SEEKING PEOPLE THAT MONITOR THEIR HOME’S ENERGY CONSUMPTION TO PARTICIPATE IN RESEARCH STUDY

    Do you monitor the amount of energy used in your home on a regular basis?
    Do you have any devices, products or web applications that help you track your consumption?

    If so, you may be eligible to participate in a phone research study and earn $75!

    Contact us at: recruiting@sage-research.com to learn more.

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  41. Sage research above is doing an on-line survey of home energy monitoring.

    Participants must have used one of the qualifying home energy monitoring
    devices, includes Google Power Meter, takes about 10 minutes. Open to August 30 2009

    http://www.open4energy.com/forum/home/dev/home_energy_monitoring_device_survey_0907291255

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  42. [...] Google started talking about its energy management web tool PowerMeter earlier this year, a big hurdle quickly became apparent: The search engine giant’s market for the device would [...]

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  43. [...] at a speech tomorrow in Florida. Google has developed its own energy software management tool, PowerMeter, and has been working on a smart grid product with General [...]

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  44. [...] meters: This morning UK energy management startup AlertMe says it has joined up with Google’s energy management tool PowerMeter. AlertMe, which makes the monitoring device and is backed by venture capital firms like Index [...]

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  45. [...] It’s the same sea change that the mobile industry has recently gone through, as Google and Apple have developed their own ecosystems to develop mobile products at the edge of the cellular network. The Internet industry learned this lesson early and Internet companies like Google have been pushing that mentality into other industries like the power industry (Google has developed the energy management software PowerMeter). [...]

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  46. [...] speed up the pace of innovation in the greentech industry — they’ve developed their own energy tools, invested in greentech startups and even engineered their own solar hardware. But at an event at [...]

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  47. [...] smart grid company, IT firm and software startup seems to have the desire to build a home energy management tool these days. [...]

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  48. [...] "true" } When Google started talking about its energy management web tool PowerMeter earlier this year, a big hurdle quickly became apparent: The search engine giant’s market for the device would be [...]

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  49. [...] How Google’s PowerMeter Will Affect the Smart Meter Industry: This was when Google’s energy management tool PowerMeter first emerged, and this post covered our predictions for how the tool would affect the industry. I also like this scoop we did on Google’s first gadget partner: Google’s PowerMeter Bypasses the Smart Meter, Signs Up First Gadget Partner [...]

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  50. [...] How Google’s PowerMeter Will Affect the Smart Meter Industry: This was when Google’s energy management tool PowerMeter first emerged, and this post covered our predictions for how the tool would affect the industry. I also like this scoop we did on Google’s first gadget partner: Google’s PowerMeter Bypasses the Smart Meter, Signs Up First Gadget Partner [...]

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  51. open4energy is tracking a complete list of all energy monitors. One in the US, and one in the UK support Google PowerMeter.

    There are now 27 devices we have listed in the US and 7 in the UK

    http://open4energy.com/technology/list_home_energy_monitor

    Please let us know if you find any we have missed

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  52. [...] experiment in the increasingly hot market of home energy management products. Computing giants like Google, Microsoft and Intel have been developing energy management tools, startups have been building [...]

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  53. [...] still early days for Google’s web-based energy tool PowerMeter. A company spokesperson told us today that Google has “a few thousand users at this [...]

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  54. [...] for Google — one of the IT giants that’s jumped into home energy management with its PowerMeter platform — this CPUC process is “a hugely important proceeding that will determine how the ecosystem in [...]

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  55. The company that serves my area isn’t about to admit any errors although many are occuring. One error no one seems to think about is that some smart meters were installed at the wrong home. SSSooooooo you may be paying for a much larger less energy efficient home. Conversely someone is paying less because they are getting your bill. Great. The meters are also as much as 30% off, does this sound like no problems to you. sure

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