Internet of Things (IoT) or M2M and Cloud Computing



Cirrus Clouds on the Pacific Highway - San Diego



Here are the next big money spinners of the digital age - IoT and Cloud Computing. Intel has stated that data from devices will be at least 10 times that of data from human users (assuming no cyborgs out there :)). IoT is also called M2M, though this is the enterprise reference of the same paradigm. The reason why these two are going to fuel the next big spend in the digital economy is because IoT allows for innovation in devices, far greater than what we have experienced and these devices will generate data, and a lot of it.  This data will certainly need to be managed and can only be handled & computed on the cloud, because connected devices cannot afford to compute locally. The collateral opportunity is Big Data related services and Analytics which service providers can leverage.

Coke was one of the pioneers in this space, though most people don't know this. They created intelligent vending machines that used the power of the internet to compute and optimize reorder quantities. Diebold - the leading global ATM maker is moving in that direction as well. They are on to creating the next level of secure and rich transaction experiences, which will be the real deal in anytime banking.

The new IoT architecture will rely on connected devices, that use the Cloud to do all the heavy computing work. Cloud is of course the next level of distributed computing and differentiated and intelligent devices will segregate or channel computing at the device level, while the Cloud itself will provide all the raw computing power.

Smart Grid Regulatory Bodies (Part 1) - FERC

I plan to introduce Smart Grid regulators and regulations through a sequence of medium sized blogs going forward. This piece introduces the FERC and highlights areas where it impacts the Smart Grid.  The FERC or Federal Energy Regulatory Commission is essentially the SEC of the Utility and Energy world.

As a Federal US agency, FERC’s primary responsibility is interstate wholesale Power, Oil and Natural Gas sale and transmission regulation as well as the management of energy markets. FERC has an additional focus on hydropower regulation and licensing of hydro projects as well. FERC however, does not do retail regulation or consumer level monitoring.

Ten cases where the FERC would get involved (as a result of the Energy Policy Act 2005), and areas where the FERC would impact Smart Grid are as follows –

      Direct Impact on Smart Grid

1.       Energy Market monitoring and investigation. This primarily includes transmission and   
    wholesale of electricity between states

2.       Establishment and monitoring of standards for high voltage transmission infrastructure

3.       Enforcement of regulation and imposition of penalties on utilities for non-adherence to FERC standards

4.       Administration of utility specific accounting & financial standards and monitoring of utility conduct

5.       Environmental Regulation

Indirect Impact on Smart Grid

6.       M&A of Electrical Companies

7.       Regulation of transmission and resale of natural gas between states

8.       Regulation of interstate oil transportation

9.       Regulation and approval of gas pipelines (and gas storage) and power transmission sites
    (limited). Also, regulation of site closure

10.   Licensing and inspection of private, municipal, and state hydroelectric projects

11.   Safety monitoring of proposed and existing LNG terminals

Smart Grid in 5 Bullets

1. Smart Grid is the convergence of the Communication Infrastructure with the Power Infrastructure.
   
2. Smart Grid came into the fore-front chiefly because of the American Recovery and Reinvestment Act – 2009.
   
3. Smart Grid is ‘Smart’ because it can heal itself (re-routing and pro-active maintenance) and provide a better experience to consumers in terms of cost as well as responsiveness.
   
4. Smart Grid will be defined by Smart Meters, Smart Software Platforms and Intelligent Customer Support.
   
5. Smart Grid will allow consumers to sell power back to the grid in addition to buying it, changing the power transmission paradigm from a one-way street to a two-way street. 

Capex based Building Management to Opex based Building Management

Building Management being a larger term, realized through Building Management Software is undergoing an interesting change in paradigm. Most often there isn't a real correlation between how well Buildings are managed and the amount of investment made in building management tools . Reason being the cost of investment (restricting purchase of such systems) and the learning curve (there is still a learning curve problem in all that has been invested in). Thereby commonly, BMS (s could be s/w or systems) are seen as white elephants due to their Capex Model oriented nature.

Recently Johnson Controls (JCI), Indie Energy and Serious Materials have launched s suite of intelligent SaaS driven applications that enable prosumers to choose that which they need and scale up as their needs expand on-demand. This approach has changed the game from a Capex oriented BMS investment to one of Opex for the prosumer, thereby solving the issue of cost as well as learning curve. Learning investment as well as cost of operation reduces considerably in this model making it more viable for smaller organizations to adopt a structured approach towards BMS.

JCI's Panoptix - http://bit.ly/vbPadE
Indie Energy App Store - http://indieenergy.com/about/
Serious Material's Serious Energy Apps - http://www.seriousenergy.com/