Archive for May 11th, 2009

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Whirlpool: smart grid appliances by 2015

May 11, 2009

Lynne Kiesling

Last week Whirlpool announced that by 2015 all of their appliances would have embedded digital intelligence to make them responsive, transactive smart grid devices. There have been a few articles on this point, most recently this Reuters/GreenBiz one. Of course the crucial work here will be in developing open interoperability standards:

The home appliance manufacturer, famous for brands that include KitchenAid, Maytag, Amana, and its namesake, Whirlpool, among others, will form public-private partnerships to create an open, global standard for home appliances to transmit and receive signals by 2010. Once the standard is in place, the company will roll out compatible, electronically controlled appliances over the next five years.

The partnerships also will design policies that reward and incent manufacturers, utilities and consumers for offering and using the peak demand reduction abilities.

Game on, baby!

Relatedly, here’s an interesting GigaOM/Business Week article on the NIST interoperability standards work that I’ve been discussing. This article does a nice job of capturing the challenges, comparing the electricity industry standards development to other technology infrastructure industries, and highlighting the opportunities that open up if we can come up with an architecture for an open, interoperable smart grid that can become a platform for innovation. I particularly like the conclusion:

There’s the risk that the time crunch and complexity of the smart grid standards process could result in wrong choices. More likely, given the condensed timeline, is that standards bodies could set such broad guidelines that they’ll have little teeth. That’s probably a good thing, as companies, utilities and policymakers are just starting to discover what the real value of the smart grid is and will need market competition (not policy, standards, or technology) to help shape its future.

Hmmmm, where’ve I heard that before … ?

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Munson: From Edison to Enron to Casten

May 11, 2009

Michael Giberson

Richard Munson’s book From Edison to Enron provides a pretty engaging run through the history of the electric power business in the United States.  The title actually understates the scope just a bit on each end, with Munson touching briefly on developments before Thomas Edison gets involved and discussing developments after Enron’s 2001 collapse up to the book’s 2005 publication date. The book provides a good background for anyone seeking to understand the current state of the industry including the variety of state and federal regulatory experiments affecting electric power.  Advanced students of the industry will want to go much deeper than Munson does, but Munson’s book offers a good beginning.

David Sicilia offers a more penetrating and critical review of the book on EH.net, pointing out a few flaws and offering alternative interpretations of some episodes.

Sicilia highlights singles out for critique several issues related to monopolization in the power industry. He finds Munson “innaccurate or unpersuasive” on topics of economies of scale, utility regulation, and natural monopoly. I’ll agree that Munson’s discussion doesn’t compel the reader to believe, for example, that no additional economies of scale were available in the industry after 1967.  But Munson is telling a story, not arguing a legal brief, so I’m not concerned that Munson doesn’t beat every point to death with supporting arguments and data.

On this issue of economies of scale and central station power verses distributed power, however, it may bear mentioning that Munson has served as Secretary for the U.S. Combined Heat and Power Association. You can take this fact as indicating either that Munson surely knows what he is talking about, or that he has  may have some sort of financial conflict of interest. Reasonably, I think, you can conclude that his writing and his career reflect a consistent set of beliefs about the present and future of the industry.

Chapter Seven, Entrepreneurs, stands out in the book by being focused primarily on a single individual, Tom Casten, a serial entrepreneur in congeneration and perhaps not coincidently a harsh critic of monopoly regulation of electric utilities.  (By the way, both Lynne and I are fans of Casten’s entrepreneurism in electric power, e.g., see this post.) Perhaps also of note is that shortly after From Edison to Enron was published, Munson left his position as executive director of the Northeast-Midwest Institute to become a senior vice-president at Recycled Energy Development, a cogeneration project developer for which Tom Casten is chairman (and Sean Casten is president and CEO). Perhaps another reason for any reader suspicious of Munson’s narrative to see a potential conflict of interest. To me it just appears as Munson acting in concert with a consistent set of beliefs about the industry.

Whether the book tells a good story or not has little to do with Munson’s interests outside of the book. While the book has its flaws, I find it a good introduction to the history of the industry in the United States.

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