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Podcast: Power to the people — and all their connected devices

Stacey Higginbotham — Thu, 02 May 2013 11:30:56 +0000

The internet of things isn’t just about the connected home, smart cities or even gathering data on the high seas. The economics are moving to a point where utilities are seriously eying the trend of home energy management as something that might affect their bottom line, especially if the adoption of electric vehicles takes off.

Russell Shaver of Austin Energy.

In this week’s podcast I speak with Russell Shaver, a consulting engineer with Austin Energy, about it’s interest in the internet of things, and the changing economics driving the utility to care more about demand response. For example this week in Austin, the price of power on the spot market rose from the average $30 or $40 per watt to a whopping $900 per watt in Texas thanks to the temperature and the loss of some generation capacity. As a consumer I’m insulated against those price fluctuations, but Austin Energy has to pay. And those prices are only going to rise.

That makes connectivity and intelligence in the home around energy consumption worth spending money on. Hence Austin Energy’s new incentive plan that gives residents $85 if they purchase one of three connected thermostats. Listen for the details of that program as what Shaver sees as the future for connected devices and the role utilities will play.

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Show notes:
Host: Stacey Higginbotham
Guest: Russell Shaver of Austin Energy

A bit about how Austin Energy uses demand response today.
The OpenADR protocol and the need for open standards and data sharing even for energy data.
Why electric vehicles change the game for utilities and what Austin Energy wants to see from connected cars
The power of the opt-out. Especially when it’s 110 degrees and you’re hosting a party.

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How energy data will impact the smart grid

Tue, 19 Mar 2013 21:40:19 +0000

The deployment of smart meters combined with the growth of cloud computing infrastructure has created opportunities to build business models around the volume of emerging energy data. Those who use data to solve customer problems and leverage decades of software development and advances in big data will attract investment dollars.

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Big data meets the smart grid

Wed, 14 Mar 2012 19:48:23 +0000

Many have predicted a “big data tsunami” that will transform the energy sector and open an entirely new market for smart-grid data analytics. Stepping into the fray is the next generation of smart-grid companies, which this report profiles. It is a diverse group that includes a cast of characters from relatively mature players like Tendril to very young companies like GridMobility. Many would say they don’t need smart meters to implement their products but rather that a smart meter makes their products much more effective. Smart meter or not, what has changed is that utilities are becoming proactive and are looking at computing and data as an opportunity to improve load balance, better address outages, and shape consumer behavior to save energy.

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Have the patent wars come to cleantech?

Adam Lesser — Tue, 14 Feb 2012 22:00:03 +0000

Cleantech has so far largely avoided the nasty patent wars that plague a space like mobile, but that changed last week when thermostat maker Honeywell filed suit against startup Nest. The appearance of a large company using its patent libraries to fight a new product’s coming to market could have chilling effects on the ability of startups to convince investors that investing in a new idea is worth the risk. It is tough enough right now to raise capital for early-stage cleantech startups. Build in extensive patent survey costs for startups and investor concern about late-stage litigation, and it gets even harder.

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The top 10 trends from the year’s big smart grid show

Katie Fehrenbacher — Thu, 26 Jan 2012 17:35:32 +0000

One of the year’s largest smart grid conferences — DistribuTECH — closes today in San Antonio, Texas. The event is relatively unknown in IT and web circles, but it’s like the CES for utilities, power companies and the vendors that are trying to sell them stuff.

However, I’m interested in what seems to be a growing number of startups and entrepreneurs at the event, and that seems to be a sign that real innovation and new business models are actually starting to happen when it comes to adding digital intelligence to the power grid and managing energy data.

Here are the top 10 trends that I took away from the event:

1. Managing big data. Managing large streams of energy data is fundamental to the future of the grid, as well as for helping consumers reduce their energy consumption. What methods the software companies use will also determine how well they’ll do in the industry. Startups like Opower and Tendril are essentially big-data plays, using cloud computing tools and sophisticated analytics, and both companies released interesting news at the show. Oracle, touting its software and data management, had a huge booth on the floor. I chatted with both the newly acquired Ecologic Analytics (bought by Landis+Gyr) and eMeter (acquired by Siemens), and these companies manage the massive amounts of data that flow off of meters for utilities. Cloud computing is no longer a dirty word for utilities; in fact, it’s likely the future of this business.

Cisco's connected grid router, ruggedized, inside

2. The Internet of Things. Beyond connecting meters and grid devices, the smart grid really extends to create the Internet of Things, connecting cars, home batteries, solar panels, light bulbs, thermostats, and consumer electronics like televisions and cell phones. The term the Internet of Things is oft-used in IT circles, but hasn’t really caught on in the smart grid and utility industries. But it will, and it will also provide new lines of business for the power grid vendors.

3. Prepaid electricity. Prepaid meters and electricity might not catch on in the U.S. all that quickly, but throughout the world it’s becoming a phenomenon — particularly in countries with low rates of credit card holders, and high percentages of populations that don’t have a steady income stream, like farmers. There were a couple of startups at the show selling these meters and software systems, like PayGo, but I’m not sure this is a startup play at this point. I’d expect the big meter companies to create their own solutions.

Prepaid energy and meters via PayGo

4. The year of the smart thermostat. I already did a slide show on this, but it seems like 2012 is the year utilities, consumers and device makers are starting to really pay attention to smart thermostats. As one show attendee explained to me, it’s the low-hanging fruit and the area where utilities can see the most “bang for buck.” Smart thermostats, which can be controlled by utilities, can help utilities shave off consumer power consumption when they need it (called demand response). Other players like Nest (which I didn’t see at the show) are looking to sell a coveted connected thermostat straight to consumers.

5. Energy storage batteries moving into commercial deployments. Battery makers made an appearance at the show, touting batteries that could provide energy storage and frequency regulation for the grid. Some are even selling batteries for homes, to connect with solar panels, and I could see many homes having their own batteries one day. Batteries for energy storage have long been discussed, but the problem has always been that they are one of the most expensive forms of energy storage. However, some power producers and utilities now have commercial battery farm deployments in place, so we’ll see this year how popular batteries for energy storage become.

6. Ditch the hardware; focus on software. After talking with a variety of home energy management startups, it feels like there has been an acknowledgement that focusing on the hardware piece of home energy management hasn’t worked out all that well, and that software is a much better bet for most companies. EnergyHub did a slight pivot to focus more on software to manage smart thermostats, and the company tells me it’s having its best financial year to date. Tendril also doesn’t focus at all on hardware anymore, and is only focusing on creating an open platform for connecting devices. However, Nest is the outlier in this, and is basing its business around its device.

7. The pivot. Constant reinvention is common in Silicon Valley and for startups. I feel like there’s a perception that it’s not that acceptable in the utility and power worlds. However, it’s becoming increasingly O.K. to openly discuss changing strategies and working out various business models. As the smart grid industry matures, the pivot is going to become a more common maneuver. Embrace change!

8. Cellular coming on strong. A few years ago, the cellphone companies were charging utilities way too much to use their networks for the backbone of the smart grid. But today, phone companies like Verizon have changed their pricing strategy and are actively working with utilities on strategies around a per meter basis. As I wrote earlier this week, there’s no longer a big debate about what type of wireless to use, from cellular, to mesh, to Wi-Fi to WiMAX. The network companies are offering them all to be flexible to the utility.

9. M&A still rolling. The smart grid is still one of the best places across the cleantech sector to sell a startup. Since the IPO market is pretty crappy right now, who could buy who was a topic of conversation at the show.

10. Go big or go home. This one comes courtesy of Tendril’s CEO Adrian Tuck who says he sees a lot of potential consolidation in the energy data management space this year, and he sees companies going big or going home. What do you think?

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The latest to target the smart energy home: Time Warner Cable

Katie Fehrenbacher — Mon, 09 Jan 2012 16:32:59 +0000

The 2012 Consumer Electronics Show hasn’t even officially kicked off and already the smart energy home has emerged as a key target for a variety of sectors, including telcos, big box retailers, startups, chip companies and now cable operators. On Monday cable firm Time Warner Cable said it has teamed with startup iControl Networks to offer a smart home management system.

The new service from Time Warner Cable, called IntelligentHome, will provide customers with connected home management services, like security, with remote home-video viewing and window and door sensors, as well as wireless management of home heating, cooling and lighting. The service is already available in upstate New York and Southern California. (I will add pricing details when they send it to me).

IControl has worked with cable companies before: It is the company behind Comcast’s similar smart home service that was launched last summer. Comcast is also an investor in iControl. IControl provides the software layer while the cable companies provide the broadband connection, and third-party hardware providers make the dashboards and security gadgets. IControl has long had the strategy to white label its service and to avoid getting into the hardware market itself.

Cable operators as well as telcos are increasingly beginning to offer home management services as a way to try to avoid becoming a dumb pipe and also as a way to reduce churn and add extra subscription revenues. Verizon launched a similar service about a year ago, which included home security control and monitoring as well as energy reading devices, smart thermostats and smart appliance control devices, among other applications. Verizon worked with Motorola’s 4Home(a startup that it acquired a couple of years ago) as well as Ingersoll-Rand for the security applications.

At CES the big-box retailers Lowe’s and Best Buy are also both looking to have a presence and push new smart home devices and services. Lowe’s is working with UK smart energy company AlertMe, while Best Buy is selling a variety of devices like the smart thermostat Nest.

Connected devices that control home energy consumption can make homes more energy-efficient. The Nest smart thermostat can reduce home energy consumption by 20 to 30 percent.

IControl is backed by Comcast, Kleiner Perkins Caufield & Byers, Charles River Ventures, Intel Capital, Cisco, GE and security firm ADT.

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Why the future of smart meters is data, not hardware

Adam Lesser — Tue, 13 Dec 2011 22:00:40 +0000

It is becoming abundantly apparent that, while there is still focus on install rates of physical smart meters, what will matter in the future is how well the data from these smart meters can be secured by utilities and how well utilities can use that data to manage demand response, address outages and balance load. Beyond these initial steps, however, lies the holy grail of smart meter data: the possibility that it can be used to drive changes in customer behavior.

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Cleantech, meet connectivity: a new era of energy efficiency

Wed, 23 Nov 2011 08:01:02 +0000

The momentum right now in cleantech is as much about connectivity and how it can drive energy efficiency as it is about advancing sources of renewable energy. And as the web and mobile connectivity change our consumer experiences, the opportunities to redefine cleantech are rich, and they are already happening. This research note examines the cleantech space in that context and analyzes the car-sharing, home-energy-management and smart-grid sectors and their relevant companies to see how connectivity will play into their future endeavors. Companies mentioned in this report include RelayRides, Opower, Silver Spring Networks and Nest. For a full list of companies, and to read the full report, sign up for a free trial.

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Connected world: the consumer technology revolution

Thu, 10 Nov 2011 08:01:08 +0000

Connectivity changes everything. That’s the credo driving just about every corner of our day-to-day lives. As human beings, we are now connected to one another through not just our social networks but also our cars, the books we read, the albums we download and even our own health and wellness habits (to name just a few areas). With that in mind, GigaOM Pro has singled out certain areas in the technology industry where we see this shift to constant connectivity taking place most drastically.

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Photos: Best Buy’s quiet home energy stores

Katie Fehrenbacher — Mon, 07 Nov 2011 21:21:04 +0000

SAN CARLOS, Calif. – Retail giant Best Buy announced last week that it’s making a modest bet on selling home energy gear to consumers via a new web portal and new Home Energy sections at just three stores nationwide. The three store sections — in San Carlos, Calif; Chicago; and Willowbrook, Texas — were officially unveiled on Sunday, and I stopped by the San Carlos store to see what the experience was like. The reality is that home energy gear can be, well, kind of boring.

The Home Energy section in the San Carlos, Calif. store is placed waaaay at the back on the left side. It’s pretty much the furthest section from the front. The placement is understandable, because the store will likely sell far more video games, music hardware, and computer gear than tools to help home owners cut energy consumption.

The section’s layout did, however, seem to spark interest from shoppers with its interactive layout. Home Energy control panels are connected to refrigerators, lamps, lights, heating and cooling systems, showing shoppers how the digital energy home could be connected. An interactive booth where customers can turn lights on and off and an employee can talk to potential customers enabled shoppers to learn about the benefits and price points of LEDs vs CFLs. For many Best Buy shoppers, it could be the first time they’ve even thought about using these types of efficiency tools to cut home energy usage. There were a few shoppers in the section asking questions, even on an early Monday afternoon.

The Nest learning thermostat sat front and center of the Home Energy section, as it is hands-down the most well-designed product out there (which is as indicative of the generally poor design in this industry, as it is of the gorgeous design created by the former Apple team). But as I reported last week, the Nest thermostat is sold out until 2012, and the Best Buy store didn’t have a single Nest thermostat for sale on Monday.

Overall, on just a single look, Best Buy’s Home Energy section has a lot of potential to educate consumers and grow the market for home energy products. It’s one of the only large retailers in the country paying attention to this market, though we’ll have to see how much volume goes through the section in the coming months, and whether Best Buy will recreate the section in other stores, keep it as a niche in just three stores, or someday shut them down if they aren’t performing.

Here are my photos from the visit:

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