Cisco Unveils First Smart Grid Hardware And Customers

May 25, 2010

Cisco Systems kept its promise to build industrial strength smart-grid hardware, unveiling on Tuesday its first router and switch.

The Silicon Valley networking giant has made no secret about its interest in this potentially lucrative market. But so far its efforts have appeared sluggish, with few utilities other than Duke Energy climbing aboard.

Cisco's Connected Grid line built with special features for the grid, including a greater resistence to extreme temperatures and electromagnetic fields.

This could be ready to change. Along with the new products – engineered with special features, such as an ability to resist strong electromagnetic fields – the company named several utilities now testing the products and said it expects them to become customers. They are San Diego Gas & Electric, Southern California Edison, Enel Group in Italy and E.ON Westfalen Weser in Germany

Cisco also introduced a brand name for its line of hardware: Connected Grid. And it said additional products were on the way, included an in-home energy display expected in several months that could put the company in head-to-head competition with vendors such as EcoFactor and Tendril.

To design products for the market, “we really needed to start from the ground up,” says Brad Tips, product manager for substation automation.

The new router and switch target the substation market, where extreme temperatures and electric fields make for difficult conditions. Standard routers and switches would not likely survive the 15 years or more utilities demand, said Tips.

Cisco says its Connected Grid Router 2010 and Switch 2520 will withstand temperatures from 40 below zero to 140 degrees Fahrenheit. Traditional products operate in a narrower 32-degree to 100-degree range.

They also will operate in high electromagnetic fields, withstand abnormal electrical surges and run with no fans or moving parts to eliminate the likelihood of failure. The Switch 2520 has optional support for powerline over Ethernet with a similar feature expected for the router.

The products will cost more than traditional networking gear – a base price of $5,900 for the router and $5,400 for the switch. But Cisco says they will competitively stack up with gear from suppliers RuggedCom, GarrettCom, Hirschmann Automation and Control, and Encore Networks.

Cisco had promised its first smart grid products within nine to 12 months of last May’s push into the market space, so it claims to be on time. The two products will be available commercially by August.

Along with new consumer-facing products, Cisco said it would unveil what it calls field-area network gear, such as pole-top routers expected to work out of doors in neighborhood settings. It withheld additional information on the in-home consumer display.


Smart Grid Reduces Home Energy Use 20 Percent Duke Says

November 19, 2009

If you need more proof the smart grid is a powerful weapon in the battle against global warming, consider a recent pilot project by Duke Energy.

The company installed sensing devices and software in a bevy of homes near its headquarters in Charlotte and remotely managed the use of appliances. Turn on a dishwasher, and Duke might delay its operation to a time when energy demand is less.

Customers didn't see any difference in the quality of their services, says Duek CEO James Rogers

Run an air conditioner, and Duke might cycle down the refrigerator to reduce its electrical consumption.

The result was a 20 percent reduction in home energy use without “customers seeing any difference in the quality of their service,” CEO James Rogers said Wednesday evening.

Rogers held up the test as evidence that technology will drive new efficiencies in energy use. There is little doubt “energy efficiency gains will come with the deployment of technology,” he said at the GreenBeat 2009 conference in San Mateo.

The company’s strategy, he explained, is to use its financial muscle and customer reach to put the latest devices in the hands of ratepayers.

Duke expects to roll out smart meters to its 4 million customers within five years. It then sees itself as a distributor of technology – paying to put software and hardware in homes and reaping a return from ratepayers on its investment.

The smart meter is a communications device, Rogers said, and open standards will allow third parties to develop products that plug into the grid. “We can’t even envision the products that are coming,” he says.

The company has strengthened its capital reserves for the task – raising $6 billion recently at interest rates under 4 percent. “I want to step in and make that investment in the home,” he says, perhaps even leavings rooftops to install solar panels.

The smart grid is coming and Duke is figuring out how to make it pay.


Smart Grids As Open Systems: Let A Thousand Flowers Bloom

November 17, 2009

Think smart grid. Then think iPhone app.

That’s the concept Duke Energy Chief Technology Officer David Mohler invokes when he discusses the opportunity ahead for smart grid companies.

Open up the electrical wire to third party development, says Duke's David Mohler

Duke, the North Carolina utility, doesn’t see itself developing products for the consumer-facing end of the smart grid, which energy pundits expect will bring intelligence and interactivity to electricity distribution.

Instead the innovation should be left to third party companies better able to experiment with consumer demand. “Let a thousand flowers bloom,” Mohler said Tuesday at the Dow Jones Alternative Energy Innovations conference. “That’s not our core competency.”

To enable the innovation, Mohler advocates “opening up the wire” to development and consumer choice in much the same way Apple permits developers to write apps for its iPhone.

This openness should create a rush of experimentation – and a radically different way of viewing energy management and consumption.

“I don’t think we even know what possibilities are,” he said. “It’s going to be like when the Internet was rolled out.”

After all, who would have predicted the iPhone?


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