Austin smart energy project
Pecan Street Project in Austin, Texas, stands out for its early embrace of stakeholder collaboration and its lack of reliance on a utility-centric, ratepayer risk model followed by at least one troubled predecessor (aka SmartGridCity).
The project just issued a new request for information (RFI) from vendors who would like to partner in this comprehensive smart grid demonstration project, allowing those vendors to have their gear tested in a real-world project. The deadline for interested parties is May 17.
The new RFI reflects some changes over the past months from its original form, which are worth calling out because those changes reflect the project's focus.
"The biggest evolution is that our entire deployment is around home energy management (HEM) trials," Executive Director Brewster McCracken told me. "The HEM is the operating system for customer participation.
"One thing that's unchanged from our initial RFI in late November is that—unique to this nation's smart grid projects—the focus here is on the customer side of the meter.
"I'd like to clarify that we're not trying to identify one solution provider," McCracken added, "but will test many solutions to help develop standards and best practices for HEMs for smart grid systems."
As many as 1,000 homes in the Mueller neighborhood adjacent to downtown Austin (formerly the site of the municipal airport), as well as older nearby neighborhoods will be participating in energy management trials to begin this fall, McCracken said.
Right now, in Phase One, those homes are wired to gather baseline energy use information, including electricity, natural gas and water. In Phase Two, the project will integrate a variety of dynamic pricing models for participating homes, which will also incorporate electric vehicles, solar photovoltaic panels and home energy storage. Each home will be monitored as a whole house as well as six separate circuits for various energy consumption patterns.
The project has been modeling the effects of different technologies on over-arching challenges faced by utilities such as peak demand, pollution and finances relating to meeting those two challenges. Participants discovered that when HEMs were involved in the mix, the value propositions of various technologies changed radically, many of them positively.
Naturally, having been a critic of Xcel Energy's conduct of its SmartGridCity project in Boulder, Colo., with its cost overruns charged to ratepayers, I had to ask McCracken how Pecan Street would avoid such a scenario.
"First, having stakeholder participation by actual consumers can give us feedback and act as an early warning system if we get off track," he said. "One lesson we learned from SmartGridCity is that we're taking the exact opposite approach. They took the utility side of the meter and they generated great expense without consumer involvement. You have to do both, but the customer side has been neglected."
On the issue of potential ratepayer liability, McCracken said:
"If you are a regulator and you want an insurance policy against rate shock, you'd want a nonprofit corporation based in a tier-one research university," he said.
That, in fact, is the model for Pecan Street Project, which has involvement from a wide variety of stakeholders, including Austin Energy, but no recourse to cost recovery mechanisms typically available to investor-owned utilities.
The project got off the ground in 2009 with an impressive array of local partners, which included the City of Austin, Austin Energy, The University of Texas, the Greater Austin Chamber of Commerce, the Environmental Defense Fund and the Austin Technology Incubator.
While I won't recount the details, the project attracted $10.4 million in federal stimulus funds and $14.5 million in local matching funds, which includes in-kind services from many stakeholders and financial support from the Capital Area Council of Governments, augmented last October by $350,000 from the Doris Duke Charitable Foundation.
I also spoke with Bert Haskell, who joined Pecan Street in August 2010 as technology director, with a background in renewable energy and consumer electronics. We touched on the interoperability aspect of the project.
Haskell said Pecan Street would approach interoperability from three domains: technical, informational and operational. The technical domain refers to communications standards and the informational domain refers to data formats. As for the operational domain, Haskell said, "we'd like to understand the policies and regulatory frameworks and business models that will emerge in the new energy economy."
"Our program right now is pretty unique," Haskell said, "with a level of collaboration and focus on what consumers want out of a smart grid. I hope we're emulated around the country. Smart grid will not be business as usual. We think the power industry is going to re-invent itself."
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