The Grid Edge - Episode 45

Our infrastructure is built on big power generating stations that distribute electricity out to smaller and smaller consumers of energy . But as rooftop solar and behind the meter storage become more popular , that model is changing , becoming far more distributed , and with that distributed model comes both complexity and opportunity .

Today we're going to talk a little bit more about the emerging value propositions that are happening at the point of consumption or in industry . Speak at the grid's edge . How is new technology helping us think about energy use , equipment maintenance and climate change differently ?

8 Minutes it's how long it takes the sun's race to earth , or a little longer than it takes for Aerosmith to belt out their classic living on the edge . See what I did there . Let's get it on .

Utility companies have traditionally thought about their role as being one of generating reliable , low-cost power , in delivering it to their customers , to power houses , buildings , industrial factories .

What happened after that power was delivered was kind of dismissed , but new technologies are popping up at that point of consumption , creating new opportunities for both utility and customer . Let's start with your humble electric meter . Think much about it ? Probably not . They aren't very sexy .

They count how much power you've used so that the utility company can bill you properly . And if you have a really old meter , it's likely a meter reader needs to show up at your house every month or so to collect that data .

A slightly newer model may be able to send the data directly to a central database more frequently , say every hour , or an advanced meter could try to do it every 15 minutes or so . And then there are meters that are equipped to monitor energy usage far more frequently thousands of times per second and that type of fidelity gets really interesting .

Now the meter can see when a coffee maker powers online or when a clothes dryer finishes its load . It can monitor when you're most often using your dishwasher and maybe suggest to delay cleaning until electricity prices are a little bit lower .

This is called disaggregated load , where the high sampling rate of power usage enables the system to get a much more nuanced view as to how the customer is using power in the first place . And while I use the advanced meter as an example . This type of disaggregated load doesn't need to be just a utility function either .

Wifi-enabled systems from companies such as Sense do very similar activities , sampling energy usage as frequently as four million times per second in order to fully map the power using devices that a household is using . Is it creepy to have that type of data being monitored on your activities ?

Maybe , but the industry is betting that the increased value that can be added is substantial . Take maintenance , for instance . The data can spot trends on how your air conditioning system is using power . A rising trend in power usage may mean that the condenser is working a lot harder than it needs to and could represent a potential problem .

An HVAC technician can come out and fix the issue in short order , potentially saving the homeowner from the expense of having to replace a complete AC unit . And with that info , utilities see an added value stream for their business .

Fpl Home , associated with Florida Power Light , provides a home warranty that covers the cost of repair and replacement for major appliances within the house .

Given better data and monitoring , the utility is betting that they can provide a lower cost , more effective way of managing appliances than a traditional insurance firm that has to rely upon actuarial data on appliance failures . Utilities see this grid edge as being a powerful tool to connect with their customers better .

They can offer more nuanced programs , such as residential demand response , where they can adjust internet connected devices to lower power usage during times of really high demand on the grid , or deliver customized recommendations for consumer behavior modifications , such as running that proverbial dishwasher later at night .

Or perhaps they can see when and how you're charging your electric vehicle , so that it can optimize that charging behavior , perhaps even using the car's batteries as a backup energy source and compensating the homeowner for doing so .

Third-party technologies such as SPAN's smart panel can modulate battery usage so efficiently that they can actually grab up to 40% more life out of a behind the meter backup system . And there are even value propositions around , say security , for instance . Say that the system knows you're away for vacation . When light switches suddenly turn on and you're dead .

A quick text to your cell phone to verify that everything's okay . Or should the police be informed that maybe you haven't unwanted visitor .

Grid edge solutions mean that utilities can find themselves providing appliance repair services or security services , or some emerging technologies are even challenging the traditional utility model more , blurring the lines of what a utilities function truly is , because with that data fidelity comes the ability to track and monitor not only energy usage but also power generation ,

as from a rooftop solar array or garage battery or even your EVs batteries . And with that comes the intriguing possibility of one household selling their excess power to their neighbor and bypassing the utility entirely .

That , peer-to-peer networking , is what companies such as Power Ledger are working on , delivering a blockchain-enabled platform to help democratize power through peer-to-peer trading .

There is a lot of potential in these grid edge technologies and value propositions that we haven't even considered yet , which is why advanced meter manufacturers such as Eitron aren't trying to presuppose all the opportunities up front . Instead , they're building a platform in their meters that allow third parties to develop the apps necessary to unlock that new value .

Think of it as an Apple store , but on your electric meter , which also brings up a really interesting dynamic , because that platform doesn't necessarily need to sit at the meter .

It can be privately run Wi-Fi enabled as well , such as through the Sense System that I mentioned earlier or the Spanned Smart Panel that I discussed , internet connected devices such as thermostats or dishwashers or your EV charging equipment .

They can be controlled and optimized through cloud-based technologies too , not necessarily just through the utility meter , which means we have two conflicting standards that are competing for this space utility manage meter platforms or decentralized Wi-Fi enabled platforms .

Going forward , one would hope that the platform that delivers the best customer experience , best handles data privacy and security concerns and delivers on emerging value propositions will win out .

The utility model , though , has one extra hurdle to overcome to compete effectively , and that's regulatory approval for distribution of advanced meters equipped with this high fidelity data system . In the first place , and that's proven to be a really slow process .

Regulators have been reluctant to increase homeowner utility bills to pay for the rollout until the value propositions are fully proven out , which means that , at least today , the decentralized Wi-Fi model has a bit of a head start in testing some of these new propositions . In any regard , the Grid Edge is an emerging opportunity for both utilities and startups .

It gives an opportunity for customers to take more control over their power usage in generation and opens up new ways to save money and power over time . But it's also a very nascent industry requiring a lot of patience and hard work to realize the potential opportunities . I'm Paul Schuster and this has been your 8 Minutes .