Tools for developing energy data warehouses

By Staff -- Purchasing, 11/4/1999

Advanced technologies notwithstanding, most experts say energy users already possess the systems they need to make a good head start in developing energy data warehouses. End users simply must reconfigure or "re-purpose" the data their systems already are capturing.

John Woolard, president of Silicon Energy, Alameda, Calif.-based developer of the new Enerscape energy management software package, sees three levels of information that end users can exploit.

- Billing information.

- Metering information (integral-, sub-, and real-time meters).

- System and process information (from building control systems in commercial cases, from process control systems in manufacturing).

David Matasek, director of utility services with the controls group of Johnson Controls in Milwaukee, Wis., contends that, "Many power users already own the basic tool they need to take control of their power costs and start saving 15%-20% today. Playing to win in the power market means using the building automation system (BAS) to manage aggressively on both sides of the meter." Today, Matasek says, the BAS "helps energy users control their load profiles by shedding, shifting, switching, and scheduling loads in response to price signals from the supplying utility. Tomorrow, under deregulation, the BAS will help customers use their load-profile control capability as leverage to secure the best prices from competing suppliers." Instead of passively recording power consumption, Matasek says the BAS "actively collects and synthesizes supply and demand information that customers can use to implement a defined energy strategy. The BAS can deliver information directly to the energy manager's desktop for review and action. It also can trigger actions automatically, according to programmed instructions. Properly configured, the BAS continuously monitors energy consumed and forecasted supply prices and adjusts consumption patterns to achieve optimum savings."

Mike Hadley, vice president of marketing for Silicon Energy, notes that "Building or process control systems have not been typically optimized for controlling energy costs. Rather, they've been optimized for keeping lights on or for keeping production lines running smoothly." Hadley says new software applications will shift the focus of existing systems from operations to dynamic demand management and cost control in context of competitive wholesale and retail commodity marketplaces.

How energy IT will be delivered

Recognizing the importance of energy information--and dollars to be made in helping end users gather and exploit their data--hundreds of organizations are jumping on the energy IT bandwagon. For example, information hardware, network, and software developers will be competing directly with more integrated energy service providers (ESPs), adding service offerings to help end users exploit information produced by their components or systems. Meantime, big, generic management consulting firms--already specializing in complex IT rollouts--can also be expected to move in on the energy IT market. Many ESPs are dedicating considerable resources to developing proprietary energy IT products and services. Others are establishing relationships with existing or emerging suppliers of energy IT, often buying and installing systems free of charge, in the form of value-added services for end users. For organizations that don't want the expense or risk of purchasing energy IT, companies such as Silicon Energy are also organized to provide subscription access to Internet-based energy management software combined with such added features as rate databases and consumption forecasting systems (based on weather patterns, for example).

David Gibbons, director of marketing and strategic development for hardware/software firm COM/Energy Technologies in Cambridge, Mass., says the company started out pursuing only direct sales to end users. However, it quickly realized that, as a matter of economics, it would need to establish indirect channels for delivering its "Energy Connections" brand of energy IT products to end users as well. At present, he says the company is looking into--

- Teaming with suppliers of building or process control systems to deliver energy IT solutions to users that--for reasons of scale--may slip through the cracks because they're too small to invest in high-end advanced energy management systems. "We design our sub-meters and other components," Gibbons says, "to integrate with their systems. We provide them access to lower cost solutions and they enable us to access a much larger customer base through their established sales networks."

- Teaming with capital equipment manufacturers to incorporate energy IT hardware into new designs. "This creates a natural value extension for the OEM. End users will be able to track precisely the amount of energy being consumed by a piece of equipment and to understand when maintenance is required," Gibbons says. Over time, he notes, information technology will be used to create smart machines--equipment that acts automatically according to an end user's predetermined consumption strategy. While noting that market conditions are not yet ripe for mass deployment of smart equipment, Gibbons says, "there's no question this is going to happen."

- Teaming with wholesale electrical distributors to sell off-the-shelf components directly to sophisticated energy users, managing their own energy strategies and infrastructures.

- Teaming with energy service providers (ESPs). "These companies are in the business of analyzing how energy is being used and finding more efficient ways of doing things. Our products represent a diagnostic tool for them," Gibbons says. Indeed, he believes that many ESPs are likely to provide end users with information tools free of charge (as "value-added services") as a means for establishing long-term relationships with clients.

While exploring these other avenues, Gibbons says the firm continues to sell directly to larger end users (such as property managers, multisite retailers, or industrial companies). He says the company also augments its hardware and software sales with services such as due diligence on suppliers, RFP development, contract negotiation, risk management, and monitoring suppliers' performance against contract terms and conditions.

Regardless of the source, it's important to note that most experts--even those with high stakes in the energy IT business--agree that end users should always own their data and ensure that their privacy is protected. Gibbons of COM/Energy Technologies says, "Customers need to be careful that providers don't end up with rights to walk away with their data." Gifford of EnergyPoints says: "End users must be careful not to depend only on suppliers for energy information. Such dependence only increases an end user's risks by limiting their ability to change suppliers should it become advantageous or necessary to do so." Woolard of Silicon Energy says, "Most savvy customers will insist on owning their information--the value of this information is incredible and frequently underappreciated."

The good from the bad

Because the energy IT market is so hot, and because technology is moving so quickly, it will be difficult for end users to distinguish the good from the bad, at least in the near term.

From the looks of it, however, flexibility will be the key moving forward. The best systems will be designed to move seamlessly from today's regulated tariff-based conditions to the competitive market conditions that will dominate most states in a few years. In software, "open architecture" will be an important phrase, indicating which products are most capable of accommodating the huge variety of available hardware and the diversity of options for gathering and communicating data and information. Mike Hadley, vice president of marketing for Silicon Energy, says, "We're designed to be agnostic to whatever the customer has in place. End users don't have to replace their legacy systems to use our software. We can support any number of locations and any number of legacy hardware systems." Says Gibbons of COM/Energy Technologies "We've been careful to design our 'Energy Connections' products to measure any kind of utility--electrons, molecules, steam, water, wastewater--and to utilize existing network structure for transporting data--telco, power, line, twisted pair, Internet, wireless. Whether a facility is remotely located, with few network communication options, or in the heart of NYC, with every option under the sun, we can configure our system to communicate across the available infrastructure."

Charles Watkins, president of DukeSolutions in Charlotte, N.C., observes that, "Energy end users are being inundated by would-be providers of energy information services. As yet, however, there's more data than information. Over the next six months to a year, we're going to see some big technological advances, innovations that will bridge the gap between data and information.