Energy Storage & The Internet Of Things (IOT)

  

Even that massive energy grid is starting to come up against the demands of a power-hungry and carbon-conscious nation, however, with the help of two emerging technologies—the Internet of Things and innovative devices for energy storage—U.S. utilities, tech companies and energy researchers are in the process of reinventing the way we keep the lights on.
The phrase “Internet of Things” (IoT)
describes a vast network of devices that can monitor and manage energy use in everything, from thermostats and dishwashers to factories and office buildings (and a lot else)—even as it collects continuous tracking data on consumption that will allow the utilities to forecast and manage demand on the grid in real time and with great precision. Worldwide, the market for IoT-connected devices and the IT services that support them is expected to grow from $655.8 billion in 2014 to $1.7 trillion in 2020, according to IDC, a market research firm in Framingham, Mass. Meanwhile, ingenious new ways to store energy—such as the lithium-ion batteries that Tesla will begin manufacturing within a year at its $5 billion Giga Factory in the Nevada desert—will help keep the grid in balance, storing excess energy when prices and demand are low, providing backup during outages and helping to bring renewable sources of energy online in scale. Though the electric grid has been called one of the greatest inventions of the 20th century, the network is aging. “If…the technologies employed in the grid do not change, it is likely to be difficult to maintain acceptable reliability and electric rates,” warns an MIT study titled The Future of the Electric Grid. “The U.S. electric utility industry has historically devoted a very small fraction of its revenues to R&D, instead relying primarily on its suppliers for innovation.” The grid matches energy supply to demand as it happens and cannot store energy. As a result, generators that rely on fuels such as coal, oil, gas and nuclear have to be powered up and down to meet fluctuating demand. Power systems are built to be as big as they are so that they can meet peak demand—during the hottest days of the year, for example, when all air conditioners are blasting. But much of the time, plants stand idle. From 2005 to 2009 in New York and New England, more than 30 percent of capacity was in use less than 12 percent of the time, according to the MIT study.On an early autumn afternoon in 1882, steam dynamos started driving electricity out of the Edison Illuminating Company on Pearl Street in Manhattan. One of the first commercial power plants in the United States, it was capable of lighting a grand total of 400 light bulbs. Today’s electrical grid—six million miles of high-voltage transmission and distribution lines that link a network of generating stations—serves electricity to 143 million residential, commercial, government and industrial customers.
  

By using IoT technology to gather precise metrics, such as running time and power consumption of air-conditioning units, smart homes, smart buildings and even smart cities, we will be able to make more precise predictions of the load on utilities, leading to both greater energy efficiency and a reduction of strain on the grid. Nearly half of those who have bought smart home products say they would allow energy providers to adjust their thermostats, according to Parks Associates, a market research firm in Mountain View, Calif. In exchange, utilities could offer a peak-time rebate. “Peak-time rebates represent a pay-for-performance model that does not require exhaustive pilots,” writes Tom Kerber, director of research, home controls and energy at Parks Associates. “Understanding customers’ daily usage and likely participation in an event allows retailers to create a plan for purchasing power on the day-ahead market and bidding demand response into the spot market.”
In commercial offices, BuildingIQ’s Cloud-based software taps into existing sensors that measure pressure and temperature, making changes to the air handler that result in a 10 to 25 percent reduction in heating and cooling energy expenses. Some utilities are providing the software to their largest customers, calling on them to reduce energy automatically during demand response events. IoT technology will also have a huge impact outside homes, in cities where sensors can detect patterns to determine when the lights should go on. “We’re moving in the direction where the infrastructures we build will be smarter when it comes to energy usage,” says Jason Mars, a computer engineering professor at the University of Michigan. With the advent of renewable energy, cutting-edge batteries will also reshape the power grid. In 2010, renewable sources of energy other than hydropower accounted for only 4.2 percent of U.S. generation, according to figures cited in the MIT grid paper, but that figure varies greatly by state. In 2013, California’s three big investor-owned utility companies received 22.7 percent of their electricity from renewables other than hydropower, according to the state’s Public Utilities Commission. By 2020, legislation mandates that renewables must be up to a third.
  
But the supply of renewable energy fluctuates. Compared to a coal-fired plant, such sources may not produce the same amount from one hour to the next—for example, if a cloud passes over the sun or the wind starts to gust—making it difficult for grid operators to match supply with demand.“Supercharged batteries with enough capacity to light up a neighborhood could transform the grid.”For this reason, among others, the grid of the future must nimbly manage power from many sources. The solution is in storage technology, including such novel approaches as storing power in compressed air (PowerSouth Energy Cooperative in Alabama) or in molten sand and glass (Solar Reserve’s project at the Crescent Dunes Solar Energy Project in Nevada). Other innovators are working with flywheels in a vacuum (which store rotational energy) and pumped hydropower (which pushes water to higher elevations in off-peak periods and storing it in the form of future gravitational energy).
Supercharged batteries with enough capacity to light up a neighborhood could transform the grid. As the cost of the technology drops, consumers will be able to fill batteries with excess solar energy or draw from the grid when demand and prices are low—and then use power stored in the batteries when demand on the grid is high or if the supply falters during the day due to weather.
In the spring, Tesla, the Palo Alto–based maker of luxury electric vehicles, announced it would begin selling stationary rechargeable batteries. “The response has been overwhelming,” chief executive Elon Musk said during the company’s earnings call in May. “There is no way that we could possibly satisfy the demand this year. We are basically sold out through the middle of next year.”
San Mateo’s Solar City, which designs, finances and installs solar power systems, expects the cost of its batteries to drop as manufacturing scales up, said chief executive Peter Rive, during the company’s last earnings call. “Over the next five to 10 years, these cost reductions will make it feasible to deploy battery by default with all of our solar power systems… Battery spread throughout the distribution system can lower the cost of grid service.” Sungevity, an Oakland-based developer of rooftop power systems, will begin selling energy storage manufactured by Germany’s Sonnenbatterie GmbH in the U.S. and Europe later this year. The lithium-ion cells can be recharged 10,000 times.Electric and hybrid plug-in vehicles may also have a role in managing the grid. If plugged in and not in use, the car’s battery could serve as an operating reserve.“Vehicles are parked the vast majority of the time,” says Samveg Saxena, a research scientist at Lawrence Berkeley National Laboratory who is developing models of how millions of plug-in vehicles would impact the grid—research that has been of great interest to utilities, energy regulators and automobile companies. “They’re only used for mobility sometimes. Grid storage becomes a side effect of deploying clean transportation.”

  
Assuming the financial incentives are attractive enough, vehicle owners may someday be willing to sell the energy stored in their batteries during peak periods on the grid.“We’ve barely scratched the surface of that potential,” said Rahul Tongia, a Brookings India expert on energy delivery, adding that the total horsepower of vehicles in the U.S. is larger than the horsepower of the grid. “The electrical grid is more than a hundred years old, and we shouldn’t expect miracles. We should aim for long-term solutions, and at the end of the day, there is no one answer and no one solution.”

Compiled By Naved Jafry & Garson Silvers

Courtesy :The Atlantic Rethink

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