By GUEST AUTHOR Mariana Gerzanych CEO |  350Green

Electricity providers and consumers have had a good marriage since the 1800s, small breakdowns here and there, sometimes scandals, regulation and deregulation but overall it’s been even keeled. That is until consumers decided they want more, demanding more electricity for their new toys: Electric Cars. Utilities ignored the whim for a decade but are starting to take notice. A study of EV impact on the grid done by ISO/RTO (ummm Power Companies) shows a positive outlook of what’s to come.

The report is unprintable 120 pages, here is the gist of it:

    * Spread out EV charging would reduce the impact on electric load

    * Power companies will need new tools to manage the demand from EVs

EVs will follow Prius sales, clustering by geographical areas, mainly North East and West coasts. This will put more strain on some Utilities and not the others, especially if all those EVs will charge at the same time. Assuming Obama gets his wish for 1 million EVs in 5 years, and everyone plugged in simultaneously: 3,800 MW of additional electricity will be needed, spread the charging over 12 hours and the demand drops to 500 MW. Here is the link to the research study: http://bit.ly/bkCGUg.

The report isn’t earth shattering, it does validate other studies and shows that Electricity providers are starting to think about EVs. It’s a bit on the conservative side though, most analysts project 1 mill EVs by 2015, whereas the report predicts a million by 2017–the Grid better be ready.

Mariana Gerzanych is CEO of 350Green LLC, a Company that will be installing charging station infrastructure for Electric Cars.  350Green is a partner in the eTec $99.8 mill DOE grant award to electrify the EV infrastructure in 5 markets: San Diego, Portland, Seattle, Phoenix/Tucson and Nashville. “It took us all 5 seconds to decide which city to move the headquarters to” and San Diego has extended a warm welcome. You can find Mariana on Twitter @ukr50 and read more of her musings on www.350Green.com/news.

The Graduate.  It’s 1967 and Ben Braddock gets career advice.

Mr. McGuire: I want to say one word to you.  Just one word.

Benjamin: Yes, sir.

Mr. McGuire: Are you listening?

Benjamin: Yes, I am.

Mr. McGuire: Plastics.

Benjamin: Exactly how do you mean?

Mr. McGuire: There’s a great future in plastics. Think about it. Will you think about it?

Dustin Hoffman as Ben spent the rest of the movie being distracted by the archetypical cougar and never got around to seeking gainful employment.  A current-day sequel would find a 65 year-old Ben advising his grandson to seek his fame and fortune in the ripe opportunity of energy storage. 

The certainty of long-term expansion of energy storage as an industry segment is driven by huge needs which exist on both the supply and demand side of the equation.  Giant utility companies are mandated to dramatically increase the production of electrical power from alternative sources of energy.  The two largest sources, solar and wind, share the problem of intermittency.  Unlike coal and natural gas generated power, solar and wind have an uneven output which is to varying degrees challenging to forecast.  Until recently this was of manageable consequence for most utilities because wind and solar were a small percentage of their total input.  But what happens when these uneven sources move towards 20% as mandated in California?  For many utilities the peaks of need are satisfied by natural gas “peaker plants” which are fired up to meet demand on the electric grid.  During periods of low demand wind turbines can be idled to avoid excess power into the grid.  Both of these alternatives underutilize the production capacity of the capital equipment.  With efficient energy storage a higher portion of power produced can be utilized and production capacity can be designed to more closely approximate average demand rather than peak demand.  Just these two important needs present a life-time of opportunity for the development of energy storage. 

Ben Braddock’s grandson will also find a target rich environment of opportunities for energy storage on the demand side of electrical consumption.  As smart grids are installed, electrical utilities will be able to flatten out consumption using technology to influence consumption behaviors via pricing and information.  The Nissan Leaf automobile in our garages will be used as a reserve of electrical power to be sold back to the utility.  Excess electricity from PV solar panels on the roofs of our homes will flow into energy storage for future use or to sell into the grid.  Energy storage systems in cars, homes, businesses, substations and in the field become a stabilizing buffer to smooth out the variations of both production and consumption.  It’s a business proposition as compelling as plastics were 43 years ago.

Energy storage systems are as big as Lake Meade and as small as a AAA battery.  Included are:

Pumped-storage hydroelectricity
Superconducting magnetic energy storage
Flow batteries
Conventional batteries (e.g. rechargeable electricity storage system)
Gas holder
Grid energy storage
Fuel cell and hydrogen technology
Gravitational mass
Capacitors (e.g. rechargeable electricity storage system)
Electromagnetic mass
Mainspring
Thermal energy storage
Solar chimney
Compressed fluids (e.g. compressed air)
Flywheels
Vacuum storage (in rush generation technology)

CleanTECH San Diego’s database of cleantech companies lists nine companies in the energy storage sector.  Sempra has stated their interest in compressed air as a large capacity energy storage system for wind and solar.  San Diego is one of only five cities in the U.S. selected to participate in the EV Project.  1000 Nissan Leaf automobiles owned by San Diego business and individuals will be driven and monitored in the best possible test lab, the real world.  Maxwell Technologies is a leading producer of ultracapacitors and power systems for consumer and industrial electronics, transportation, telecommunications, and electricity generation industries.

The wealth of opportunity in energy storage which young Ben Braddock III faces is supported by a simple but enormous truth.  The amount of electricity produced by any utility is substantially greater than what is ultimately consumed.  Some is lost in transmission.  A greater amount is wasted because of the mismatch in time of supply and demand.  Energy storage addresses the mismatch.  As the cost of electricity escalates the economic advantage of “waste not” becomes more compelling.

There are frequent meetings in San Diego about smart grid, smart meters, energy storage, etc.  On April 22^_nd the San Diego EDC and CleanTECH San Diego will present, Earth Day Brilliance Found in Smart Meter Opportunities.  Click here for details.

My parents never sought my approval as a child.  That was not part of their generation’s mission statement.  Nor did they seek my opinion. That I might have some input on what we were going to eat or when was not a consideration let alone my thoughts on the selection of a family car.  My friends and I never had any expectation that our parents sought our approval in their decisions.  That things are different today is obvious, although not inherently good or bad.

Excesses which result from elevated attitudes of entitlement are all around us.  There are also significant positive behavioral changes which emanate from the parental quest for approval.  The emotional hook of an 8 year old girl crawling into her father’s lap and saying “Daddy, I don’t want you to die” has had a broader and deeper impact on smoking than even the American Lung Association could have ever hoped.  Second graders have assumed the role of family recycling czars and energy efficiency auditors.  Last year I purchased a couple of cases of Compact Fluorescent Light Bulbs (CFLs) to distribute to my co-workers.  Angie, my assistant, said her daughter had been bugging her for weeks to change the lights in their house to CFLs.  Another approval problem solved.

How can we ramp-up constructive opportunities to build upon this approval seeking phenomenon?  Are there viable strategies appropriate for business to embrace?  At the CleanTECH San Diego Showcase this week (see post below) the wide-ranging discussion on Smart Grid included some comments by the presenters about their children.  Lee Krevat of SDG&E described telling his 13 year old that perhaps the all electric Nissan Leaf would be a good choice for the family.  After doing her internet research his daughter expressed her approval and (more…)

The inaugural CleanTECH San Diego Showcase presents Smart Grid, Transforming the Energy Industry this Thursday November 12th at the La Jolla Marriott. Keynote speaker, Ellen Pao, is a partner with Kleiner Perkins Caufield & Byers, the preeminent player in the venture capital universe.  Kleiner Perkins’ successes include Amazon.com, Compaq, Electronic Arts, Genentech, Google, Intuit, Lotus Development, Netscape, Segway, Sun Microsystems and scores of other ventures over a 37 year history.  A year ago the firm’s $500 million Green Growth Fund committed $75 million to smart grid start-up Silver Spring Networks.  Following Ms. Pao’s remarks will be a panel discussion by the CEO’s of three venture-funded clean tech companies, Aptera, Applied Solar and PCN Technology.  Each of these San Diego-based companies is approaching the smart grid future from a different perspective. 

The smart meter system which San Diego Gas & Electric is in the process of installing is only of portion of the smart grid.  As state-mandated renewable energy becomes a larger portion of the total base of energy supply, the energy network becomes far more complex and thus more difficult to control.  Smart grid provides the two-way communication necessary to manage a diverse base of power generation and use. 

In addition to SDG&E, other smart grid companies listed in CleanTECH San Diego’s database of cleantech companies include Balance Energy, IPS Group, On-Ramp Wireless, PCN Technology and EcoDog.  The smart grid opportunity for San Diego-based technologies fans out beyond this list when wireless applications and information security are taken into consideration.

In September SDG&E announced a major Smart Grid coalition formed with CleanTECH San Diego, UC San Diego and two dozen other entities including tech giants Qualcomm, IBM, Intel, Cisco, General Electric and local start-up On-Ramp Wireless.  The San Diego coalition is seeking $100 million of federal stimulus funds for smart grid development to benefit the region and to serve as a prototype project for the rest of the world to model.  The initiative is in addition to the GridComm wireless smart grid project for which SDG&E was recently awarded $28.1 million in stimulus funds by the DOE to match with $32 million from the utility. 

The networking hour before the CleanTECH San Diego Showcase is a unique opportunity to get face to face with the captains of industry, futurists, venture capitalists and propeller heads who play in the clean tech space.  Click here to make your reservation.

The following resources will add to your understanding of Smart Grid.

“It’s Your Smart Grid”, an interactive educational website by General Electric.

Glossary of Smart Grid Terms

The Smart Grid in 2010: Market Segments, Applications and Industry Players.  David J. Leeds of GTM Research  (145 pages)  Please e-mail your request to me at glenn@glennmosier.com and I will forward the PDF file.

San Diego Gas & Electric was one of one hundred recipients announced today to receive a smart grid investment grant from the Department of Energy.  Three hundred other applicants were not as fortunate.  SDG&E will provide matching funds of over $32 million for their GridComm wireless smart grid project.  Click here to see their grant application.  Last month SDG&E announced a major Smart Grid coalition formed with CleanTECH San Diego, UC San Diego and two dozen other entities including tech giants Qualcomm, GE, IBM, Intel, Cisco, and a local rising star, On-Ramp Wireless.

The good news has many layers.  The DOE funds will accelerate a project which SDG&E has already begun.  The Brief Project Description in the DOE’s list of awards states, “Implement an advanced wireless communications system to provide connection for 1,400,000 smart meters, enable dynamic pricing, and examples of smart equipment that will allow increased monitoring, communication, and control over the electrical system”.  San Diego’s early adopter status quickly generates jobs and a more efficient energy system.  In addition, the “lessons learned” will boost several San Diego companies as providers of technical services to the national expansion of the smart grid.  Click here for the complete list of DOE award winners.

This morning I participated in the latest CleanTECH San Diego SCRUB session.  SCRUB is an opportunity for early stage clean tech companies to present their business story to a group of CleanTECH San Diego members.  Three local emerging clean tech ventures made their case this morning to a panel of 28 CleanTECH San Diego members representing a mix of venture capitalists, engineers, marketing specialists, intellectual property attorneys as well as local leaders from industry, research and government.  The objective of SCRUB is to provide immediate feedback and assistance to take each company to the next stage. 

Today’s SCRUB showcased three distinctly different clean tech businesses.  Marine Power Partners has developed a patent pending waterwheel that generates continuous base-load electricity from flowing water at lower capital and operating costs than either solar or wind systems.  A Smart Grid innovator, On-Ramp Wireless, is a systems provider for low-power wide-area scalable sensor networking and location tracking.  New Leaf Biofuel collects waste cooking oil (more…)

Today I attended a media event held to announce a major Smart Grid coalition formed by San Diego Gas & Electric with CleanTECH San Diego, UC San Diego and two dozen other entities including tech giants Qualcomm, IBM, Intel, Cisco, and a local rising star, On-Ramp Wireless.  The San Diego coalition is seeking $100 million of federal stimulus funds for smart grid development to benefit the region and to serve as a prototype project for the rest of the world to model.

In August, SDG&E’s parent, Sempra Energy, was recognized by IDC Energy Insights and Intelligent Utility magazine as the #1 “intelligent utility” in the nation in recognition of their work to move their customer base to smart meters. 

General Electric, a member of the coalition, launched “It’s Your Smart Grid”, an interactive educational website.  It is extremely well done.  We need the same for all other categories of clean technology.   Check out “It’s Your Smart Grid”.