Friday, October 30, 2009

Andres Carvallo Speaks at UCLA's Smart Grid Forum


Join UCLA WINMEC (http://winmec.ucla.edu/) for its third Smart Grid Leadership Forum of the UCLA WINSmartGrid Connection - a partnership between universities, industry and government. On November 4th, 2009, we are planning a thought leadership forum at UCLA on the state of the Transmission and Distribution Power Grid in the United States and the direction the community is headed in the formation of the Future Smart Grid. We will be joined by several leaders from government, industry, and academia. New topics in this third Leadership Forum will include Carbon Cap and Trade and its affect on Smart Grid, Stimulus Fund Progress and how it is being invested, Smart Meter Implementations nationwide by utilities, Investments into new technologies to support the future Energy Grid, renewable energy sources and their link into the grid, upgrading the infrastructure and intellectual / knowledge base.

http://winmec.ucla.edu/smartgrid/2009-11/

http://winmec.ucla.edu/smartgrid/2009-11/program.asp

http://winmec.ucla.edu/smartgrid/2009-11/speaker-bio.asp#80015

Wednesday, October 28, 2009

Obama Administration Announces $3.4 Billion in Smart Grid Stimulus Awards


The Obama Administration this morning announced that 100 projects ( PDF) will receive $3.4 billion in federal smart grid investment grants made available by the Department of Energy as part of the economic stimulus package passed earlier this year. The $3.4 billion will be matched by $4.7 billion in private spending, raising the total amount of smart grid spending spurred by the grant program to $8.1 billion.

Due to the overwhelming response to the first funding authorization announcement issued by DOE this summer, this single round of funding replaces the previous plan to issue the grants in two or more rounds. In addition to the $3.4 billion in matching investment grants, the stimulus package also provided for smart grid demonstration project funding and loan incentives to federal power organizations.

The funding will flow to projects in 49 states (see
PDF of state-by-state awards and PDF map), with DOE planning to disburse the funds within the next 60 days. The bulk of the awards involve deployment of smart meters, encompassing projects that call for the installation of 18 million new advanced meters, representing 13% of American homes.

In announcing the awards this morning, the Administration broke down the funding amounts according to the following policy goals:

· Empowering Consumers to Save Energy and Cut Utility Bills - $1 billion.

· Making Electricity Distribution and Transmission More Efficient - $400 million.

· Integrating and Crosscutting Across Different "Smart" Components of a Smart Grid - $2 billion.

· Building a Smart Grid Manufacturing Industry - $25 million.

In addition to the stepped-up smart meter deployments, which could ultimately expand to 40 million homes over the next several years, the administration says the investment grants will:

· Create tens of thousands of jobs across the country.

· Reduce power outage costs by $150 billion per year, about $500 for every man, woman and child in the U.S.

· Install more than 850 sensors, Phasor Measurement Units, that will cover 100 percent of the U.S. electric grid, making it easier for utilities to monitor grid conditions and minimize blackouts and other problems.

· Install more than 200,000 smart transformers, making it easier for companies to replace units before they fail.

· Install almost 700 automated substations, about 5 percent of the nation’s total, making it easier for utilities to respond to problems.

· Install more than 1 million in-home displays, 170,000 smart thermostats, and 175,000 other load control devices to enable consumers to reduce their energy use. Funding will also help expand the market for smart washers, dryers, and dishwashers, so that American consumers can further control their energy use and lower their electricity bills.

· Put the U.S. on a path to get 20 percent or more of our energy from renewable sources by 2020.

· Reduce peak electricity demand by more than 1400 MW, which is the equivalent of several larger power plants and can save ratepayers more than $1.5 billion in capital costs and help lower utility bills.

Monday, October 19, 2009

Oracle Customer Care and Billing System and IBM Managed Services Put Austin on Track to 'Smart Grid 2.0'

Smart Grid Today

October 14, 2009

IBM is set to install and manage a utility services billing system in the City of Austin, Texas, that Austin Energy CIO Andres Carvallo told us yesterday is “critical to get going on smart grid 2.0.” He's referring to the comprehensive approach to a “next-gen” smart grid he outlined when we interviewed him recently in his office just across Lady Bird Lake from downtown Austin. The municipal utility deployed about 410,000 smart meters from Elster, GE and AMI partner Landis & Gyr, covering its service footprint of a million consumers plus 43,000 businesses.

“Smart grid 1.0,” as he referred to Austin's initial smart grid plan, took the utility five years to deploy and cost over $100 million. The muni deployed its first 125,000 smart meters in 2003.

The city will spend over $58 million on the billing project, Jeff Smith, vice president of communications sector solutions at IBM, told us yesterday, declining to say how much IBM's eight-year billing system contract is worth.

The billing system contract may not come as a surprise considering IBM has been working on Austin's smart grid with Austin Energy, the City of Austin, its chamber, the University of Texas, Applied Materials, Cisco, Dell, Freescale Semiconductor, GE, GridPoint, Intel, Microsoft, Oracle, the consortium SeMaTech and the Environmental Defense Fund. That said, the deal is “important as a link in the chain for all the things Austin Energy's going to need to become a smart utility,” said Smith.

The billing system is the “last piece to enable smart grid 2.0,” since it will allow for real-time pricing and metering for solar systems or “any generation on the edge,” Carvallo noted. “The billing system we currently have doesn't handle these things.”

The system should be in place by April 2011, he added, noting that the choice of a vendor took about 18 months. The new system will involve the Oracle Customer Care & Billing software, IBM Websphere and Tivoli middleware software and will support the city's electric, water and waste-collection operations.

The contract is “important for IBM generally and specifically,” said Smith: “Generally speaking, we have a big play around smarter utilities…. This is a proof point in [our] journey to help utilities do something that makes people's lives better.”

Specifically, Austin Energy is something of “a showcase of us as an example of a company that has a great vision of how to transform itself into something that's smarter.”

The toughest part of getting the billing system in place will be making sure that the ideas IBM and the City of Austin hold about “how the system will behave when it's done” match up well enough, said Smith.

Saturday, October 17, 2009

Austin Energy / City of Austin Selects IBM to Manage New Billing System

ARMONK, N.Y. - 13 Oct 2009: IBM (NYSE: IBM) announced today it has signed an eight-year agreement to install and manage a new utility services billing system for Austin Energy / City of Austin that is designed to improve customer service while preparing the city for broader green energy initiatives.

The new billing system will support the city's electric, water and waste-collection operations and other city operational fees. It will have an open architecture, be compatible with other city systems, and be capable of providing real time access to information for customers and employees. The goal is to provide a single point of contact for customers through multiple communications channels for utility-based products and services.


More importantly, the billing system, when combined with new meters the city plans to deploy this fall, will allow the city to begin implementing a smart electric grid. By providing consumers with real-time information on their energy consumption, smart grids help customers better manage their energy usage and lower their monthly bills. For utilities like Austin Energy, smart grids make it easier to detect outages and integrate cleaner, renewable energy sources such as solar and wind power.


"The City of Austin has long been at the forefront of green energy initiatives, so we are excited to work with the city on this new billing system, which will lay the groundwork for the development of a smart grid in Central Texas," said Jeff Smith, vice president, Communications Sector Solutions, IBM.


IBM and the City of Austin are members of the Pecan Street Project (www.pecanstreetproject.org), a consortium of public and private partners including Austin Energy, Austin Technology Incubator, the Environmental Defense Fund, the Greater Austin Chamber of Commerce, The University of Texas at Austin, Applied Materials, Cisco, Dell, Freescale Semiconductor, GE, GridPoint, Intel, Microsoft, Oracle and SEMATECH. The group's goal is to design a clean energy infrastructure, business model and proving ground for tomorrow's energy technology.


The new billing system consists of the Oracle Customer Care and Billing application running on IBM WebSphere and IBM Tivoli middleware.


http://www-03.ibm.com/press/us/en/pressrelease/28612.wss


Wednesday, October 14, 2009

Andres Carvallo Named to the Hispanic Business 100 Influentials 2009


Andres Carvallo Named to the Hispanic Business 100 Influentials 2009

On course to developing the country's first smart grid, Mr. Carvallo is leading the nation's ninth-largest utility's technology vision, planning and development. With a mechanical engineering degree earned at the University of Kansas, and the completion of executive management programs at the University of Idaho, Stanford University and The Wharton School, he translates the academic into the practical in applying technological solutions to energy innovation.

Witness this year's 100 Influentials list: 100 luminaries selected from the halls of power in Washington; the corporate world; information technology professionals; the health care sector; education; the media and other areas. This year's list even includes an astronaut. Click through for the full list, complete with profiles.

http://www.hispanicbusiness.com/rankings/

http://www.hispanicbusiness.com/

Monday, October 12, 2009

Andres Carvallo Speaks at Next Generation Utilities 2009

The Next Generation Utilities North America Summit 2009 will once again serve as an arena for senior level executives to engage in clear and focused dialogue with their peers and examine their management objectives in a relaxed and vibrant environment. I will review our Smart Grid 1.0 journey and get into the details of our Smart Grid 2.0 plans.

http://www.ngusummitna.com/

Seeking Energy Savings at the Heart of the Internet

Kate Galbraith

New York Times

October 12, 2009

NEW YORK — Digital-era icons like Google and Twitter have made life more efficient — and fun. But they also guzzle vast amounts of energy.

Scattered around the world are scores of data centers that sift through the endless streams of information that keep the Internet and office computers running. In the United States alone, those data centers accounted for 1.5 percent of the country’s electricity use in 2006 — more than the entire state of Massachusetts. And their power use could nearly double over five years, according to government reports.

Experts say that data centers present an obvious opportunity to improve efficiency.

“It’s becoming a big deal,” said Dale Sartor, an energy efficiency expert at Lawrence Berkeley National Laboratory near San Francisco. He noted that in some cases, the energy costs of a server over its useful life of three or four years exceeded the initial cost of the server itself.

Some of the largest opportunities lie in the way data centers are kept cool. The buildings — many of which are enormous — must typically be kept below 80 degrees Fahrenheit (26.7 Celsius), so that the chips work at maximum efficiency. And that requires a great deal of energy.

The cooling equipment alone can consume 25 percent of the power that goes into a data center, said Christian Belady, an efficiency specialist at Microsoft. “So if there’s anything we can do to eliminate that, right there we use 25 percent less power.”

Companies are innovating in this area, not least by using a tool that is ancient and free: the weather. Last month, Microsoft opened a data storage center in Dublin, which it said would take advantage of the Irish chill to achieve greater efficiencies. The system brings in air via large, high-up ducts that are controlled by valves, so it works somewhat like an attic fan, Mr. Belady said.

Nonetheless, he said, the company has backup systems in case the temperature spikes or the air is smoky.

Other Internet giants are making similar moves. In June, Yahoo announced that it would locate a data center in Buffalo, New York, to take advantage of the “micro-climate” to cool the servers entirely with outside air. And Google has a data center in Belgium where, according to Niki Fenwick, a spokeswoman, “the local climate allows us to efficiently cool the data center without needing to use electricity to power chillers.”

She noted, however, that “not all Google data centers can be located in cold climates, because we want our tools to be as fast as possible.” (In other words, the transmission of data can slow down over long distances.)

A number of companies, including Microsoft, Yahoo and Deutsche Telekom’s T-Systems, are also locating their data centers near hydroelectric plants, allowing them to play up the virtues of renewable power (though hydropower is often less expensive than conventional power, at least in the United States, so there is a bottom-line reason too).

Traditionally, many data centers have been designed “like a vault,” according to Andres Carvallo, the chief information officer for Austin Energy, a utility in the heart of Texas’s high-tech “Silicon Hills” that runs a rebate program to encourage companies to buy more efficient data center equipment. In other words, he explained, they had no access to the outside air.

That is changing. “There’s certainly a renaissance around designing a data center,” Mr. Carvallo said.

Companies are indeed innovating. In Uitikon, Switzerland, I.B.M. is using the waste heat from a data center to keep a swimming pool warm.

Mr. Belady of Microsoft said that his company was pushing its suppliers to build servers that could work in higher temperatures — up to 95 degrees Fahrenheit (35 Celsius) — allowing Microsoft to build systems that use the outside air closer to the Equator.

Mr. Belady also emphasized the importance of pushing companies to measure the effectiveness of their power or energy usage, so that they could understand how much power or energy actually makes it to the number-crunching equipment, rather than going toward cooling or other auxiliary uses. Today, only about 10 percent of data center operators make such measurements, he estimated.

There is also innovation surrounding the management of the power supply to the chips, which goes through a number of transformations, said Mr. Sartor of Lawrence Berkeley National Laboratory. For example, he said, interruptible power supplies can often be bypassed, thus avoiding losses associated with converting power from alternating current to direct current and back to alternating current. In this regard, “Europeans, like so many areas of efficiency, are typically ahead” of the United States, he said.

Meanwhile, the need for more computations continues to grow. Mr. Sartor cited an example in his backyard: Whereas earlier this decade a supercomputer at Lawrence Berkeley National Laboratory used a few hundred kilowatts of power, its needs are projected to grow to 17 megawatts over the coming years.

“We’re talking about tens of millions of dollars to power our new supercomputer facility, and that starts catching management’s concern,” he said.

“We are dramatically improving the efficiency of computation. The situation is that our appetite for computation is going up way faster than the efficiency is going up.”

One piece of good news is that cooperation has increased in recent years among companies eager to tackle the data center efficiency problem. A number of cross-company consortiums, like the Green Grid, have sprung up (a symposium is being held this week in the Silicon Valley to discuss data center efficiency, with participation from several large multinational companies).

“Everybody recognizes that we have to drive efficiency as an industry, not just as individuals,” said Mr. Belady of Microsoft.

http://www.nytimes.com/2009/10/12/business/energy-environment/12iht-green.html?hpw

Friday, October 02, 2009

Enterprise Leadership Interviews Andres Carvallo


In this podcast, Carvallo goes into detail about building the enterprise architecture for the Smart Grid based on service-oriented architecture and cloud computing.

He also talks about his involvement in driving the IT Leadership and CTO Best Practices Collection, a 700-page document that describes essential IT processes, such as how to manage a data center to how to run a project management office. He also provides some takeaways for CIOs who might be interested in moving to Smart Grid technology. Despite the economy, Austin, Texas, has seen a spike in major businesses, such as google.com and Hewlett-Packard, moving into the area, as well as more people relocating there to find jobs. Meanwhile, Austin Energy, the nation’s ninth largest community-owned electric utility, is making sure it can meet the power demands of its one million residential customers and 41,000 businesses, and continues to return more than $1.5 billion in profits back to the community.

If all goes as planned, Austin Energy could become the country’s first electrical utility to deliver Smart Grid technology. A Smart Grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost, and increase reliability and transparency.

Perhaps, the credit for putting Austin Energy on its Smart Grid journey belongs to Andres Carvallo, the organization’s CIO. In fact, this year Computerworld Honors Program’s recognized the outstanding significance of Carvallo’s Smart Grid work in the energy field. Carvallo just could become the first CIO to deliver the country’s first Smart Grid for a public utility.

http://www.enterpriseleadership.org/blogs/podcasts/2009/09/02/andres-carvallo-austin-energy-s-cio-on-developing-smart-grid-technology-for-a-public-utility