Itron Sensing Applications

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Itron Sensing Applications Communication, Collaboration, Control Extending Intelligence to Grid Assets Stephen Johnson Product Line Manager, Consumer Energy Management Itron WHITE PAPER

TABLE OF CONTENTS Introduction 3 Disruptive Innovations 4 Collaborative Networks 4 Itron Sensing 6 Measurement and Sensing 7 Itron Sensor Processor 7 Flexible Communications and Control 8 Itron Sensing Applications 8 EV Smart Charging 9 Smart Meter Integration 10 Solar Monitoring 10 Conclusion 10 2

INTRODUCTION The smart grid vision is in many ways a transition from a traditional, top-down approach, in which generators supply power to consumers in a one-way transaction, toward a complex web of two-way energy transactions that fundamentally changes the way utilities operate and interact with their customers. The smart grid also creates a new category of energy consumer: those that can produce, store, and deliver energy back to the grid what some have called prosumers. As the number of utilities that have deployed smart metering and smart grid technologies increases, the focus is shifting toward realizing the benefits of customer participation. The emergence of the prosumer is occurring as this next generation of metering and communications technology matures and is integrated with other systems and devices. This convergence of consumer and utility brings significant opportunities as aging central station generation fleets are overhauled and new energy policies seek to reduce carbon emissions from fossil fuels. The smart grid also creates a new category of energy consumer: those that can produce, store, and deliver energy back to the grid what some have called prosumers. The key to finding and capitalizing on these opportunities is establishing a dialog between utilities and their customers, the end consumers of electricity. This dialog is two-way since utilities must not only educate and engage their customers, but also learn from them in order to effectively develop programs and services to meet both stated and unstated consumer needs. TRADITIONAL GRID Generation Transmission Distribution Customer FUTURE GRID Markets Operations Service Provider Customer Distribution 3

DISRUPTIVE INNOVATIONS To understand the importance of utilities learning from their customers, consider how the behaviors of electricity consumers can change, often without any utility interaction.» The price point, Net Energy Metering policies and business models are expanding the adoption of residential solar panels and changing the electricity consumption behavior of consumers. As this is happening, third parties are displacing traditional utilities as the primary energy provider through residential solar system lease arrangements.» As more auto manufacturers bring electric vehicles (EV) to market, the installation of 240V charging stations will accelerate. This radically changes the load profile of the typical residential electricity customer and could pose challenges to aging and undersized distribution assets.» Home automation and energy management solutions are being added to the product portfolios of companies such as ADT, Ingersoll Rand, Verizon, etc. These large companies are expanding into energy management services offered to broad bases of consumers through their established channels and are independent of utilities.» In Tokyo, Nissan is making vehicle-to-home adapters available to enable car batteries on board Nissan Leafs to discharge stored energy to power a home, presenting an attractive remedy for capacity-driven brown-outs. Each of these trends can be labeled a disruptive innovation since they all challenge the traditional energy delivery paradigm and utility/customer relationship. Given the massive infrastructure investment and long depreciation cycles of electricity generation, transmission and distribution assets, any change to customer behavior may have long-term ramifications that quickly invalidate the assumptions on which those investments were made. Utilities are challenged to respond to changes quickly under the best of circumstances, as regulatory policy, shareholder incentives and investment strategies must all be aligned prior to any course correction. The challenge for utilities is to understand how consumer behaviors are evolving and rationalize those changes with their current investment strategies to provide a clear vision to shareholders, regulators and consumers. This knowledge can only be gained if smart grid initiatives and technologies provide feedback mechanisms that deliver timely access to information about the evolving energy usage habits of consumers. What are Collaborative Networks? Collaborative networks enable connections between people and enterprises for the purposes of value co-creation. When diverse participants can engage each other using networking technology, opportunities for achieving goals held in common by participants can be discovered and quickly realized. While the ad-hoc nature of collaborative networks allows for many different implementations and forms, they do tend to share common features, including:» Consumer-driven content» Virtual enterprise collaborators connected by the network can discover opportunities to create value, and thus self-organize into transactive exchanges» Dashboards and monitoring the effectiveness of programs and initiatives can be monitored by stakeholders, resulting in fast feedback cycles COLLABORATIVE NETWORKS It is clearly understood that changes in utility practices, consumer behavior and energy consumption patterns, and retail business models focused on energy management all impact each other; and yet the prospect of combining these changes holistically in a collaborative fashion seems daunting. However, two current technology trends shed light on how this can be accomplished: social networking and machine-to-machine (M2M) communications. Social networking is not just limited to well-known Internet applications, such as Facebook and Twitter. At its core, social media is a form of collaborative networking. Collaborative networks allow participants to use a virtual forum to advertise their interests and goals in a manner than can be easily indexed and grouped, thus facilitating connections and value creation. These connections are made organically over time, and are achieved as a result of a critical mass of participants. Thus networking, as a platform for connecting individuals and businesses along interest lines is a key enabler of collaboration. When the social networking concept is extended beyond web browsers, smart phones and other devices with which people interact, to communicating sensors and automation systems, the power of collaborative networks increases dramatically. Often billed as the Internet of Things, connecting sensors to networks increases value creation by supplementing qualitative grouping criteria with quantitative criteria, as measured and communicated by sensors. Collaborative networks that combine the power of social media and M2M networks can thus rapidly facilitate transactions and mutual value creation with a diverse set of participants. 4

When applied to the smart grid and energy management opportunities, collaborative networks comprised of people, organizations and sensors become much more powerful than the sum of their parts. Bi-directional energy flows must be measured and understood by both the party delivering energy and the party receiving energy. Market transactions, involving credits and incentives for clean energy generation, behavior modification and carbon emission reductions will rely heavily on measurement and collaboration among multiple stakeholders. The graphic below illustrates how multiple participants can, by strategically connecting devices, build collaborative networks over time to create mutual value. The left hand graphic shows three separate networks, each managed by a stakeholder in energy management (utility = blue, consumer = yellow, energy services provider, such as a solar financier,= red). Itron Corporate Overview Itron is a resource management company from detecting leaks to enabling energy efficiency, Itron s technologies help utilities and their customers conserve resources. If some devices establish connections and exchange data, as shown on the right side of the graphic, then each party gains insight into behavior impacting the use of energy resources. Thus connectivity and data exchange among devices can lead to participation in transactions among organizations and people. The concept of maximizing the value of a network by connecting more users to participate in more transactions has been formalized as Beckstrom s Law. For example, collaborative networks allow a utility to understand which of their customers has installed solar panels, and which customers have home automation capabilities. Consumers become aware of utility incentives that can be realized through strategic use of solar generation and by automating controllable electric loads in the home. An energy services company likewise may control generation in the aggregate to participate in energy markets for grid stability services, and pass those savings on to the consumer in the form of better leasing or financing options. SILO NETWORKS COLLABORATIVE NETWORKS Home Network Home Network Utility Network Utility Network Energy Services Network Energy Services Network 1 Beckstrom s Law, http://www.beckstrom.com/images/law.pdf 5

ITRON SENSING Clearly, there is a need to enable collaborative networking between a diverse and evolving portfolio of energy management assets, and the individuals and organizations that either control or are impacted by those assets. To meet this need, flexible communications and information exchange technologies must be married with transparent and accurate energy measurement and sensing capabilities. Itron has combined our vast experience with energy measurement and communicating energy data to introduce our Itron sensing applications. Itron sensing applications combine metrology and sensing technologies with control software and flexible communications options to enable collaborative energy exchange networks. Itron sensing applications are intended to be embedded directly inside best-ofbreed energy management assets, including electric vehicle charging stations, solar inverters, load control switches and thermostats, and street light monitoring and control systems. Itron has focused on packaging these components in a low-cost, easy-to-integrate, easy-to-deploy manner. The form factor of Itron s sensing applications is designed to be flexible, allowing different sensor and communications technologies to be combined as requirements evolve. By integrating Itron sensing applications into a diverse suite of energy management assets, Itron is enabling organic collaboration between utilities, consumers, solar providers and energy service providers, as the graphic below illustrates. Peter Fox-Penner, The Brattle Group [The smart grid combines] time-based prices with the technologies that can be set by users to automatically control their use and self-production, lowering their power costs and offering other benefits such as increased reliability to the system as a whole. ITRON SENSING APPLICATIONS ENABLE COLLABORATIVE ENERGY EXCHANGE Reliable Grid Clean Generation ITRON SENSING APPLICATIONS Convenience Financial Opportunities Energy Independence ITRON SENSING APPLICATIONS DELIVER VALUE THROUGH COLLABORATION Itron sensing applications transform energy management assets into energy exchange nodes by combining three components into a unified solution:» Measurement and Sensing» Itron Sensor Processor» Flexible Communications 6

MEASUREMENT AND SENSING The key to understanding the impact and potential of energy management, usage and generation is in measurement. Itron is the global leader in solid-state electric meters, and we have leveraged that experience to create multiple metrology options for Itron sensing applications. Assets such as solar inverters and battery/energy storage require bi-directional energy flow measurement and voltage monitoring. Thus, Itron sensing applications deliver highly accurate metrology in a flexible form factor that can be embedded inside equipment in an unobtrusive, low-cost manner. For smaller loads and assets, such as load control switches and thermostats, Itron sensing devices can also be used with sensors that do not require revenue-grade measurement, but rather help collaborators understand the cycling behavior of equipment or provide estimates of energy consumption over time, such as with HVAC systems. The cost of end-consumer products combined with the value of the load managed by those products ultimately determines the level of metering capability and accuracy Itron sensing applications must deliver to support various product configurations. ITRON SENSOR PROCESSOR The Itron sensor processor provides the brains of Itron s sensing applications, exposing various metering and sensing options to multiple communications paths. At the heart of Itron s sensing applications is a Linux operating system that provides the intelligence to power advanced energy applications. Multiple registers of metering data are cached in non-volatile memory, and represented in any number of different data formats to any number of communications interfaces (see sidebar). In addition, protected code space is available to support downloadable apps that extract value from metering data locally, providing intelligence and processing in devices, which can be directed by a consumer, utility or energy services provider. Application processing and data formatting of metering information needs to be exposed to communications interfaces, but in a manner that allows flexibility of presentation formats. For example, standard formats for metering data, such as ANSI C12.19, are understood by utilities, but not consumer devices; likewise, IP-based standards like the ESPI Green Button need to be made available over Wi-Fi, ZigBee, cellular, etc. The Itron sensor processor provides this flexibility and also allows for local processing of data via Itron sensing applications to deliver value both locally and to systems that communicate with Itron sensing-enabled devices. Standards versus Technologies Flexibility of interfaces means more than just supporting multiple radios. Data formatting standards determine what data is available, and how it is represented. Communications technologies, such as Wi-Fi, ZigBee, and cellular networks, connect specific devices to different networks.some data standards can be transmitted over a variety of communications technologies, while others are tailormade for a specific combination. However, to support the Internet of Things, there is a move away from tightly coupling a standard to a particular technology. This decoupling is a step in the right direction, but what is also needed is the ability to support multiple standards on multiple technologies, sometimes simultaneously, and to deploy assets that can change those combinations dynamically over time. That flexibility is necessary to continue to increase collaboration and unleash the value creation potential of connected devices. The Itron sensor processor also provides a protected application sandbox for downloading apps which can unleash the power of Itron sensing. Either Itron or a third party can create custom algorithms for data analytics which reside locally on Itron sensing applications, taking advantage of Itron s metering data as well as data read from local equipment interfaces. For example, solar inverters can provide alarms indicating the status of the inverter, and EV charging stations can provide vehicle information and charging status indicators. Itron sensing applications deliver the most value when knowledge gleaned from these data is extended to all connected parties consumers, utilities and service providers. Itron provides sensing applications, leveraging code from our Itron Enterprise Edition meter data management system. Calculating baseline consumption locally in a device provides consumers and utilities with indications of typical usage, and consequently the opportunity for reducing load during demand response events. Similarly, rate calculation code can estimate the cost of EV charging or energy conservation, and also help consumers select the best choice of tariff given their energy consumption behavior. 7

When is load control collaborative? Utilities have embraced load control for decades as a way to supplement generation portfolios, mitigate capacity shortages and deal with congested or unreliable distribution circuits. Direct load control (DLC) programs typically involve curtailing major consumer loads, such as air conditioning, hot water heaters and pool pumps. Utilities need predictable control, but sometimes this is comes at the expense of consumer convenience. Ideally, utilities need to know what load is available to be called on, and consumers need to be able to make decisions about optimal use of their resources, or whether to opt out. Itron sensing applications help bridge this conceptual gap with measurement and control. Multiple consumer assets can be aggregated and controlled with consumer direction, and utilities retain the benefits of reliability and generation flexibility. Itron sensing applicatiaons put the consumer in the middle of the conversation, rather than out of the loop. FLEXIBLE COMMUNICATIONS AND CONTROL Once metering and sensor data have been captured and formatted appropriately, they need to be communicated to multiple parties. Since collaborators in an energy exchange will utilize different technologies, Itron sensing applications have been designed to support multiple communications technologies simultaneously, including ZigBee, Wi-Fi, Cisco RF Mesh and 3G cellular. Itron provides a USB hub capable of supporting up to seven simultaneous connections, representing any desired combination of the above radio interfaces. The Itron sensor processor manages data and control messages over all of these radios. Itron sensing applications not only communicate energy consumption and generation, but also allow multiple collaborators to interact with system assets. Web services managed by the Itron sensor processor expose control interfaces to IP-based communications paths, and energy price updates and control signals can be received from utility smart metering systems. Itron sensing applications do not control loads directly, but rather relay control inputs from collaborators to energy management assets. Since many energy assets need to manage electric loads in a safe and carefully controlled manner, Itron sensing applications do not attempt to circumvent those mechanisms, but rather work with equipment to ensure that collaborators can control and override signals as appropriate. Itron sensing applications extend Itron s industry-leading communications platforms. ZigBee Smart Energy is used to communicate with more than 40 million smart meters installed in North America. Wi-Fi is available as well, to connect Itron sensing applications to networks in consumer homes. Other options include 3G modules from Itron Cellular Solutions, as well as the Cisco IPv6 RF Mesh. Itron sensing applications combine these communications options in a single device to deliver on the promise of collaborative networks. ITRON SENSING APPLICATIONS Itron sensing applications are intended for integration into best-of-breed assets for generating, managing and conserving energy. The flexibility of the solution, as well as the various communications modules available, means that a diverse spectrum of devices can be transformed into collaborative grid assets. The graphic below shows how the three components of Itron sensing applications described above might be configured to provide collaborative solutions for different markets. ITRON SENSING APPLICATIONS CONFIGURATION FOR VARIOUS MARKETS ZIGBEE, WI-FI, RF MESH RF MESH OR ZIGBEE CELLULAR, ZIGBEE, WI-FI ITRON SENSING APPLICATIONS PROCESSOR ITRON SENSING APPLICATIONS PROCESSOR ITRON SENSING APPLICATIONS PROCESSOR METER SENSOR METER EV STREETLIGHT MONITORING, LOAD CONTROL SOLAR MONITORING 8

Among these are electric vehicle smart charging stations, residential solar inverters, street light monitoring and control systems, load control and energy management systems with measurement and verification, sub-metering solutions, etc. Initially, Itron is focusing on electric vehicle and solar applications, to be followed in 2014 by street light monitoring and load control applications. Below are descriptions of the initial product offerings with Itron sensing applications. EV SMART CHARGING Itron s Smart Charging Station is the product of our partnership with ClipperCreek. We ve leveraged their industry-leading CS-Series charging stations to deliver the industry s first utility-integrated smart charging solution. With Itron sensing applications, Itron equips each 240V charging station with revenue-grade metrology, ZigBee Smart Energy communications, and a full-featured Wi-Fi access point. Itron sensing applications also integrate charging stations into Itron s OpenWay network, allowing utilities to extend smart grid intelligence to electric vehicle charging infrastructure. The flexibility of Itron sensing applications, as well as the various communications modules available, means that a diverse spectrum of devices can be transformed into collaborative grid assets. Itron sensing applications facilitate collaboration between residential EV owners, local utilities and public charging station service providers. By connecting electric usage and vehicle usage patterns to both consumers and smart meters, opportunities to incent offpeak charging and apply vehicle-specific tariffs are enabled. Smart charging also brings EV owners into full participation in utility demand response events. The diagram below shows how a consumer-owned charging station with Itron sensing applications allows the consumer to receive financial incentives from a local utility, while the utility benefits from insight into charging patterns that impact the electrical grid, as well as the impact of programs targeted at the consumer to shift charging to off-peak periods, or reduce the charging rate during certain times. This scenario illustrates the collaborative networking potential of Itron sensing applications. When energy usage patterns are clearly understood by both utilities and consumers, financial opportunities can be created for mutual benefit. EV SMART CHARGING SOLUTION METER DATA & DEMAND RESPONSE CONTROL & PRESENTMENT UTILITY NETWORK CONSUMER NETWORK 9

Smart Meter Integration All OpenWay meter form factors and communications technologies (RF Mesh or cellular) support a ZigBee Smart Energy interface for demand response and sub-metering. With embedded ZigBee technology, the Itron Smart Charging Station has the same capabilities, such that utilities can offer dynamic pricing, consumer engagement and demand response programs to electric vehicles. The same OpenWay sub-metering interface used for Itron s 2.4GZ gas meter modules is also used to collect register data and hourly interval data from the Smart Charging Station. This enables AMI networks to collect billing-grade metering data. Whether a utility offers an EV-specific tariff, or simply wants to do load research on EVs in their territory, this product leverages OpenWay communications to extract more value from existing infrastructure. SOLAR MONITORING Solar monitoring companies such as Sunrun generally install a socket-based meter with Itron s cellular module on the side of a customer s home to measure electricity generated by a solar array. Not only are these secondary meter installations costly and unsightly, but they also do not communicate with the solar inverter, do not provide information to the consumer/homeowner and do not communicate the availability of generation or solar inverter status to the local operating utility. CONCLUSION The smart grid is going to continue to evolve, and is going to be driven in large part by consumers making choices and decisions independently of utility planning or regulatory coordination. The unpredictable nature of consumer behavior, combined with the potential of disruptive technologies to constantly change the local utility s operating paradigm, underscores the need for collaborative networking solutions. Energy utilization, generation and storage by end consumers require accurate measurement and communications. Intelligence and control must be extended to multiple parties in a collaborative fashion in order to discover and realize opportunities to create mutual value. Itron sensing applications are designed to facilitate these interactions, by combining best-of-breed energy management products with Itron sensing and communications technology. While we have started with electric vehicles and solar, the possibilities for further applying this solution are endless. Itron will continue to leverage our world-class solid state metrology products and leading meter data communications and management technologies to build the collaborative energy exchange that will define our energy future. SOLAR MONITORING SOLUTION Itron is working with a number of inverter manufacturers to embed sensing technology in a solar inverter to address these issues. Revenue grade metrology on board the inverter means a second socket-based meter is not necessary, which reduces installation costs and impact to the consumer. With Itron Cellular Solutions, Itron sensing applications provide a direct cellular link to the solar monitoring company for analysis of solar inverters. In addition, ZigBee and Wi-Fi communications can be used to collect generation data and solar inverter status, and publish that data to both the consumer and the local utility, if desired or required. In this way, all parties can be connected in a collaborative network that maximizes the value of distributed solar generation. The diagram below shows how consumers, utilities, and solar monitoring companies are connected via Itron sensing applications. Utility Option Traditional AMI System Web Presentment Solar Inverter with Itron Sensing Utility Meter Solar Provider and/or Utility Join us in creating a more resourceful world. To learn more visit itron.com While Itron strives to make the content of its marketing materials as timely and accurate as possible, Itron makes no claims, promises, or guarantees about the accuracy, completeness, or adequacy of, and expressly disclaims liability for errors and omissions in, such materials. No warranty of any kind, implied, expressed, or statutory, including but not limited to the warranties of non-infringement of third party rights, title, merchantability, and fitness for a particular purpose, is given with respect to the content of these marketing materials. Copyright 2015 Itron. All rights reserved.. 101172WP-04 06/15 CORPORATE HQ 2111 North Molter Road Liberty Lake, WA 99019 USA Phone: 1.800.635.5461 Fax: 1.509.891.3355