Re: Your popularity score is in the top 88%
Dave Chase's observations of developments and opportunities in the emerging Smart Energy field.
This report (PDF) is getting great response and press coverage. I was one of a broad group of contributors/reviewers that represented a cross section of utility, venture, government, political and environmental leaders. It's well worth reading and a great example of the work that Climate Solutions (a non-profit economic development organization) is doing.
As a tech industry guy, Jesse Berst (head of the Center for Smart Energy) does a nice job of drawing parallels that I understand between technology adoption in the PC and Internet industries with what’s likely to happen in the Smart Grid arena. As he states, “The Smart Grid is likely to pass through eight phases. Or, to put it another way, eight key Smart Grid sectors are likely to hit their tipping points one after another, in roughly the order shown below.” He goes into detail on the following 8 stages of development in this article:
1. Sensors – detecting the data.
2. Communications – moving the data.
3. First-level integration – collecting the data.
4. Centralized control – using the data for visualization and control.
5. Security – protecting the data.
6. Full integration – integrating the data with the rest of the business.
7. Services and applications – using the data in new ways
8. Full automation and optimization – using the data to let the grid “run itself.”
Steven R. Rivkin is a Washington, DC telecommunications and energy lawyer who has long advocated common initiatives between electric and telecommunications providers. In this article, he lays out the case why these two industries should work together. Here’s an excerpt of the article:
Power and telco, the two legacy infrastructures, can help each other, exchanging services for capital. Though utilities seldom outsource mission-critical facilities or functions, their other connectivity choices are technically and economically inferior. Wireless, satellite, broadband powerline (BPL), etc. are not sufficiently reliable, versatile, cheap, and ubiquitous. And most utilities are clueless about how to cope with the expense and excess bandwidth if they were to try to run fiber to every house themselves.
But telcos could choose to host the Smart Grid for utilities, gaining much needed revenue and even capital investments for making critical telecommunications available in fortuitously adjacent facilities. Moreover, telcos could also benefit politically from allying with another local utility to deliver digital data with huge public benefits, rather than just packages of video entertainment that invite local franchise fees comparable to those on cable television.
Martin Tobias points us towards a simulation that was done by some highly credible people. One of the key take-aways for me is this would further accelerate a shift not only to bio-fuels but a shift towards electricity being a larger part of the energy mix. For an already stressed grid, this means that the grids 20-30% efficiency will no longer be acceptable. The businesses forming around this need (i.e., increasing the grids efficiency) would dramatically benefit -- e.g., MicroPlanet, Itron, etc.
Fall of gross domestic product for two consecutive quarters;
Drop in consumer confidence by 30 percent;
Spike in the consumer price index to 12.6 percent;
Participants aren't people you'd expect to be alarmists so it makes this all the more credible. They included the following people:
Robert M. Gates, former Director of Central Intelligence;
Richard N. Haass, former Director of Policy Planning at the Department of State;
General P.X. Kelley, USMC (Ret.), former Commandant of the Marine Corps, member of the Joint Chiefs of Staff;
Don Nickles, former U.S. Senator;
Carol Browner, former Administrator of the Environmental Protection Agency;
Gene B. Sperling, former National Economic Advisor;
Linda Stuntz, former Deputy Secretary of Energy;
Frank Kramer, former Assistant Secretary of Defense for International Security Affairs;
R. James Woolsey, former Director of Central Intelligence.
The Wall Street Journal reports on California's $3.6B rollout of smart meters to help address California's energy demands.
My friend KC Golden from Climate Solutions has a nice op-ed piece about how bi-partisanship won the day in progress towards a clean-energy based system.
As more renewable energy production is connected to the general power grid, the more we will need smart systems managing the result. While difficult, it will ultimately be for the good. The efficiencies of smart grid management coupled with the sustainability of renewable energy will be a big win for us all.
Interesting to see the range of products from $30 to $4500 for monitoring in-home use of electricity. The high-end items also track how much energy you are sending back into the grid, etc. but I would assume the prices will come down dramatically over time.
I'm starting to see a trend of those historically on opposite ends of the political spectrum finding common ground surrounding clean energy that I highlighted in this article...
Thanks to Jeff Canin of the Center for Smart Energy for pointing this article out to me. That's a LOT of capital to put to work!Global Finance Community Seeks $1 Billion Investment in Clean Energy
Faced with growing evidence of the negative economic consequences of climate change this powerful alliance of institutional investors managing some $3.22 trillion are pressing for capital market regulators to demand more rigorous corporate disclosure of climate risks.
Among other commitments, they are also seeking to unlock $1 billion in capital in the next year for investment in clean technology. The 2005 "Call for Action" was made at the 2005 Institutional Investor Summit on Climate Risk being held at United Nations Headquarters in
Klaus Toepfer, executive director of the United Nations Environment Program (UNEP), told participants at the
Toepfer continued: "If our money markets are to manage climate risk more effectively then we must have greater corporate disclosure of how companies are dealing with the economic threats posed by global warming."
The United Nations' environmental head welcomed the 2005 Summit "Call for Action" -- signed by 20 major investors - saying, "investors backing these practical and pragmatic steps send a strong signal to the markets that climate risk is real and needs to be managed aggressively."
The 2005 "Call for Action" came as more than 400 financiers, government and civil society experts met at U.N. headquarters for a summit to explore risks to the investment world resulting from global warming. The summit, which follows on from the first such gathering in November 2003, has been jointly convened by the United Nations Foundation, the United Nations Fund for International Partnerships, the Boston-based U.S. non-government organization CERES and UNEP.
The four co-conveners are backing three post-summit initiatives to support the call for action by the investors. The initiatives are:
The New York Summit comes shortly after the world's biggest reinsurance companies confirmed that 2004 saw the largest ever insured losses from natural catastrophes.
According to Munich Re, economic losses totaled $145 billion in 2004. This included insured losses of $44 billion from natural catastrophes, the highest ever recorded. Swiss Reinsurance has published statistics that show 2004 was a record year in terms of claims, mainly dues to hurricanes, cyclones and typhoons.
"On the one hand, the negative economic consequences of climate change are clear," said Toepfer. "Yet for the financial and business communities our efforts to adapt to and mitigate climate change and its impacts present emerging opportunities for those with the vision, entrepreneurial flair and commitment to embrace new business challenges," he said.
As well as seeking to understand the economic and financial risks associated with climate change the business world is also awakening to a range of emerging opportunities associated with efforts to tackle global warming.
It is estimated that greenhouse gas emissions trading markets could be worth $2 trillion by 2012 and it is further estimated that the market for clean technologies could be worth $1.9 trillion by 2020.
Well regarded industry pundit Jesse Berst and his colleagues publish a monthly smart grid newsletter. I highly recommend it.
Utility Automation & Engineering T&D magazine has a good overview on the drivers and barriers to a Smart Grid.
We've seen it happen with cellphones -- i.e., where 2nd & 3rd world countries get broadscale adoption before 1st world countries since there aren't legacy "install bases" of earlier technologies. Now the argument is made for this to happen in energy.
This links to the books list of 207 benefits of smaller, distributed electrical resources arguing that their benefits are often under-estimated by a factor of 10. I'll have to talk with some experts to see the defensibility of their arguments. The book was selected as Book of the Year by The Economist which adds a lot of credibility to their arguments.
Nicholas Parker, chairman of Cleantech Venture Network, a group of venture capitalists dedicated to seeking out investments in "clean" technologies is interviewed by CNET's News.com. He discusses the venture opportunities of porting IT-know-how into the Energy arena.