Smart Grid, Smart Home for the Smart Society
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1 Smart Grid, Smart Home for the Smart Society Mike Bourton, VP of Bus. Dev. and Co-Founder Grid2Home Inc. Class ID: 0C20B Renesas Electronics America Inc.
2 Michael J Bourton VP of Business Development Co-Founder of Grid2Home Inc. Leveraging more than 30 years of experience in the communications industry, co-founded in 2009 Grid2Home Inc, a VC well funded software development company, providing innovative networking products for the Smart Grid. Prior to founding Grid2Home, he was employed in the US by Texas Instruments, Agilent and Acterna (Now JDSU) and in the UK, by Mitel, Plessey and GEC Mr. Bourton received his bachelor s degree in Communication Engineering from Plymouth University, United kingdom and has recently become a naturalized US citizen 2
3 Renesas Technology & Solution Portfolio 3
4 Agenda Introduction What is the Smart Grid? Residential customers and Home Devices An introduction to SEP 2.0 Market drivers Customer participation in the Smart Grid The technical challenges Summary 4
5 What is the Smart Grid? Two-way data communications system used in conjunction with the electric power grid Save energy Reduce cost Increase reliability and transparency Enable new applications and markets Smart Energy Profile 2.0 (SEP 2.0) is the protocol that enables the Smart Grid HAN for the residential customer SEP 2.0 works in conjunction with multiple communication technologies (physical layers) 5
6 Characteristics of a Smart Grid as described by Title XIII of the Energy Independence and Security Act of 2007: Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid; Dynamic optimization of grid operations and resources, with full cyber-security; Deployment and integration of distributed resources and generation, including renewable resources; Development and incorporation of demand response, demand-side resources, and energy efficiency resources; Deployment of "smart" technologies (real-time, automated, interactive technologies that optimize the physical operation of appliances and consumer devices) for metering, communications concerning grid operations and status, and distribution automation; Integration of "smart" appliances and consumer devices; Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and thermal storage air conditioning; Provision to consumers of timely information and control options; Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid; and Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services. 6
7 The Role of NIST Under the Energy Independence and Security Act (EISA) of 2007, the National Institute of Standards and Technology (NIST) has "primary responsibility to coordinate development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems " 7
8 The Smart Grid Conceptual Model Source: NIST Framework and Roadmap for Smart Grid Interoperability Standards 8
9 The Customer Source: NIST Framework and Roadmap for Smart Grid Interoperability Standards 9
10 The Home The Home Area Network (HAN) allows home owners and their devices to participate in utility programs Lower Bills Earn rewards Go green Smart Energy Profile 2.0 (SEP 2.0) is the protocol that enables the Smart Grid HAN Started under ZigBee Alliance Now partners with WiFi and HomePlug Alliance and others CSEP formed for common interoperability and certification SEP 2.0 works in conjunction with multiple communication technologies (physical layers) 10
11 Smart Energy Profile 2.0 Overview What is SEP 2.0? Networking and application integration platform for messages between customer devices and energy services providers Zero Device Configuration Secure Is small inexpensive embedded downloadable software that resides on consumer devices and appliances Scalable and addressable IPv6 protocol centric and is physical layer Independent What does it do? Peak load shaving By deferring the consumer high energy loads. E.g. Air Con, Pool Pumps Modify consumer behavior By providing real time energy usage with in home displays Real time or time of use pricing Manage Residential Loads/Generation Electric Vehicles/Renewables By Intelligently managing the load and generation, to prevent local distribution issues Supported today by the major Utilities in the US, Korea and Australia Rest of Asia and then Europe expected to follow 11
12 The Home Area Network - Connectivity Water, Gas Meter Energy Storage Thermostats Smart Meter Backhaul: Radio, PLC etc Appliances Loads E.g. Pool Pumps Home Area Network (HAN) ESI/Gateway SE1 to SE2 Application Layer Gateway (if required) Internet DSL/Cable/Fiber Modem Solar, Wind Electric Vehicles EVSE Sub-Meter (EUMD) Portable Display EMS PC Energy Management System Wired Wireless Both 12
13 SE2.0 Physical Layers IEEE (or ZigBee) Low power WPAN Up to kbit/s, Mesh IEEE PLC WiFi physical layer - WLAN Will become popular for consumer driven applications Participated in a public live demonstration Competing standards P and and G.hn SAE/ISO Electric Vehicle Charging HP-GP Other DECT Bluetooth Ethernet SEP 2.0 can support all of these physical layers 13
14 Utility Driven Smart Energy Market Drivers Problem Solution 1. Peak energy issues Rising energy demand Decommissioning old/dirty coal plants Cost of peak generation Return on new generation capacity 2. New requirements on the grid Electric Vehicle Charging Renewable Generation 3. Rising consumer energy bill 4. Customer Support 1. Peak Shaving with Demand Response 2. Intelligent Load Management Price Management Green Energy Usage 3. Information Phone, Tablet, Computer, Display Energy Management Systems 4. Best in class product design Simple, robust, ease of use Non-utility business opportunity 14
15 Broad Market Drivers Industrial Utility Consumer The Internet of Things M2M Industrial Control/Diagnostics Home Appliance Control/Diagnostics Security/Surveillance Health Home Automation Intermittent Renewables growth Peak Demand and Margin Threat of rolling blackouts in several parts of the NA Electric Vehicles Plug in vehicles will tax the grid beyond its current capabilities Economic Cost to utility to serve peaks very large Government stimulus Leverage infrastructure put in place by Utilities Desire to be more Green Economic Consumers desire to save money on energy OEM Revenue opportunity 15
16 Peak Margin Improvements Margin forecast have improved overall 80% recession 20% demand response Specific issues in 2015 in Texas and Canada Near term challenge is old generation is replaced with Intermittent renewables Solution is demand side management Reference: NERC 2008 and 2010 Long Term Reliability Reports 16 backu
17 Peak Margin Issues in Texas and Ontario Texas deregulated market stimulated demand and reduced investment in generation due to a large number of small competitors Ontario economy is predicting a fast recovery Solution is demand side management Reference: NERC 2010 Long Term Reliability Reports 17 backu
18 Demand Side Management NERC 2010 Reliability report highlighted the major issues for the NA Electricity Grid Intermittent Renewables which replace old or environmentally challenged generation is an issue that requires demand side management Addressed by SEP backu
19 Examples of Demand Response: Smart Appliances Many loads can be deferred or reduced during peaks Whirlpool has announced that all electronically controlled appliances sold will be Smart Energy compliant by 2015 Other manufacturers products include refrigerators, ranges, microwaves, dishwashers, washer/dryer, pool equipment, water heater, HVAC, etc Smart Thermostat Air conditioning is the largest load during peak periods Thermostat replacement is inexpensive and easy to install Smart Thermostats can be 20% to 30% more efficient than manual thermostats Consumers that opt-in to an HVAC program will save money 19
20 Plug in Electric Vehicles Problem: Dependency on foreign oil Increasing gasoline costs Electric grid local infrastructure not designed to support wide-scale deployment of electric vehicles Replacing 74% of cars and light trucks with EVs would reduce US oil imports by 52% There is enough generation and transmission capacity to do this today The Smart Grid and SEP 2.0 enables coordination of EV charging Allowing charging during off peak Allowing EV sub metering (subsidies) Allowing charge roaming Allowing public charging stations EV as storage 20 backu
21 Consumer Desire to Lower Energy Costs A bill at the end of the month does not help consumer to identify wasted energy Daily and hourly consumption information has shown to save between 5-15% 21
22 SEP 2.0 Technical Challenges Challenge Cost Sensitivity Keep processor and memory footprint Zero configuration No customer programming Interoperability Zero field issues Security Grid security and privacy Standards International standards i.e. IETF Solution Product was built from ground up Apple Bonjour or xmdns/dns-sd to discover resources Over a year of multivending testing Three layers of security High re-use of existing standards or a subset 22
23 Summary The Smart Grid meets the consumer in the next year We can no longer just built power plants to supply the peak Consumers can participate and be rewarded for saving energy Utilities will become more efficient and pass on the savings Home appliances and devices will become more intelligent and will integrate into the Smart Grid We need Smart Energy and so does our Planet! 23
24 Questions? 24
25 Please Provide Your Feedback Please utilize the Guidebook application to leave feedback or Ask me for the paper feedback form for you to use 25
26 Renesas Electronics America Inc.
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