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solonavi 25 February 2009 General, Technology 733 views No Comment Print This Post  Email This Post

cnet

Google now wants to organize your home’s energy information.

The search giant on Tuesday muscled into the burgeoning smart-grid software business, showing off a prototype Web application that displays home energy consumption broken down by appliance. The software uses so-called smart meters, which can communicate home energy consumption back to utilities every few minutes.

The driving idea behind the Google PowerMeter iGoogle gadget–and nearly all smart-grid companies–is that giving consumers access to more detailed home energy data will lead to lower usage. There are dozens of smart-grid trial programs now going on, offered through utilities.

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Google cites figures showing that regularly viewing real-time energy use will prod people to cut electricity by 5 percent to 15 percent on average through behavioral changes. The product is now in private beta.

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Through its Google.org philanthropic arm, the company has invested in a number of renewable energy firms, as part of an effort to make renewable energy cheaper than coal-powered electricity. It has installed a large solar array at its company headquarters and is testing a fleet of plug-in electric cars.

In the smart-grid arena, Google is taking a more overtly commercial position by introducing its own product. To gain broader acceptance for PowerMeter, it is creating a partnership program for hardware manufacturers, utilities, and government agencies. A company that makes a smart meter or in-home display for energy usage could, for example, make its information available in an Google gadget format or build a specialized application using PowerMeter.

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For a hint on where Google might go next, one could look at demand response software, which gives utilities the ability to remotely control home appliances with a consumer’s consent and ability to override. Google joined an industry association called the Demand Response and Smart Grid Coalition in November.

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Google’s effort to influence smart-grid policy reflects the potential disruption that energy-efficiency regulations and smart-grid products pose to utilities.

Incentives for smart-grid deployments–the Obama administration has set a target of bringing smart meters to 40 million homes over the next three years–are a big part of the stimulus package being considered by Congress, with as an early draft offering $11 billion for research.

Yet many utilities are lukewarm or unenthusiastic about smart-grid technology. That’s because utility regulations are traditionally structured around making investments to build new power plants and selling more electricity, not energy efficiency, said Roy Ellis, who focuses on energy, utilities, and chemicals regulatory relations at consulting firm Capgemini.

“Today, the vast majority of utilities are serious about carbon reduction. But once you say that, the business case still has to work for them to operate their business,” Ellis said. “The business case starts to bump up against shareholder value.”