Patent Trolls anticipate Smart Metering Bonanza

Over the last year, different groups have been beavering away to decide on a wireless standard for smart meters.  It’s been interesting to observe the ways that different countries have approached this.  There’s been the pragmatic approach of going with what’s available today, but with the understanding that it might need to be changed, so that everything currently being installed is at risk of needing replacement.  That’s the UK approach of DECC.  Then there’s the academic approach which is favoured by SGIP in the US, which entails producing a giant matrix of the vital (and not so vital) statistics of every possible wireless standard.  At which point there will presumably be a flash of smoke, a glamorous assistant and a magician will be brought on stage to perform the conjuring trick of comparing apples, lobsters and elephants and deciding which is most appropriate of them for the smart energy feast.  Or we have the slightly nepotistic ETSI approach over in Europe, which seems to be one of giving EU funding to all of their consultant or professor friends, who in return for this largesse promise to write their own, brand new wireless specification in time for the party.

Whilst some of these approaches consider cost in terms of the price of silicon, or even the opportunity cost in terms of time to market, one significant cost has been missing from their calculations – the cost of choosing a standard that opens up Intellectual Property disputes.  That’s a real risk.  The only place I’ve seen it publicly stated is in a briefing document from the Bluetooth SIG, which points out that from the IP viewpoint, wireless standards are far from equal.  It’s a very valid concern.  We’re already seeing the patent trolls coming out and attacking ZigBee and Wi-Fi.  As volumes start to increase, so will their determination to make a fast buck.  As soon as that happens, deployment could grind to a halt.

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All I want for Christmas is Smart Energy

Have the girls and boys who have been working hard to make Smart Energy happen been good this year?  Will Santa bring them what they want?  It’s looking less than likely.  Despite promises that specifications would be complete, progress has inevitably slipped.  What’s worse, the elves in some of the utilities didn’t pay attention to the lists the boys and girls stuck up their chimneys last year, and instead of sending them energy savings, it turns out that they actually sent them higher utility bills.

Of course, things were never going to happen as quickly as projected, even with the amount of stimulus money being thrown at the companies involved.  If anything that’s resulted in things slowing down as everyone has concentrated on scrabbling around for a part of the pie, insisting that their toys are better than anyone else’s, and that they deserves the biggest box under the tree.

However, the story of the year is probably the level of consumer resentment that has built up towards smart metering deployments.  Much of that seems to have been unnecessarily self-inflicted.  In the Netherlands we’ve seen programs delayed because of privacy issues, and in the US there has been major customer resentment at higher bills.  And that’s before we get into the ridiculous paranoia about the meters irradiating the population.

It’s interesting to contrast what’s happening within the UK.  Not only are they taking a lead in deployment of real smart metering, with British Gas’ decision to roll out 2 million gas and electricity meters.  There’s also the UK Government’s highly detailed consultation and a growing level of consumer education.  It will be interesting to see whether that results in more customer satisfaction, and a bigger change in energy usage?  That level of up-front education may be the most significant initiative of all the Smart Energy deployments that are happening around the world.

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Ten Wireless Standards, Sitting on the Wall…

The Smart Metering industry is deperate to decide on a standard for short range communication.  The UK Goverment has rushed through its consultation with a deadline for a technical standard by the end of next year, and in the US, SGIP’s PAP02 group wants to do it even faster.  Whilst we need to start deploying devices, it concerns me that there’s a rush to make decisions with very little consideration of the relative merits of the different contenders.

There’s no shortage of contenders.  At the last count I came across ten short range wireless standards that all think they should be the winner.  Those include Bluetooth, Wi-Fi, ZigBee, Wavenis, Dash7, wireless MBUS, wireless KNX, DECT, Z-Wave and Bluetooth low energy.  And they’re just the industry developed standards.

What worried me even more than the obvious rush was a off-hand comment made in a European standards meeting that I attended earlier this year.  One of the people responsible for deciding on a common standard for Europe made the comment that “we’re not going to give any time to industry standards”.  The subject of her venom was ZigBee, but it’s a charge that I’m increasingly hearing levelled at all of the “industry” standards.  It appears there’s a perception amongst members of the older established Standards Development Organisations (SDOs) that because industry standards have not been produced by their traditional specification process, they’re not as good.  That’s a very dangerous approach to take.

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Smart Metering – the next Y2K bonanza?

At a number of smart metering and smart grid conferences that I’ve been attending recently, it’s be interesting to note the number of fifty and sixty-something consultants who are looking suspiciously like cats who are overdosing on cream.  What has brought the smiles to their faces is their belief that the rush to deploy smart meters is considerably ahead of any solidification of standards, or even an understanding of what to do with them.  That means that there will be lots of work to try and make the current generation of meters work, only to do it all over again in five years time, when the industry finally decides what the standards should be.  If that’s how it pans out, then smart metering may pay their pensions in the same way that Y2K worries provided a happy retirement for a previous generation of engineers.   It might be in their interest, but it’s a game-plan that is definitely not in the best interest of the industry.

Within the more general subject of smart grid, media coverage is centring on smart meters and the impact they will have on the consumer.  That’s resulting in some aggressive battles between competing standards groups, a growing level of negative publicity for utilities that are being portrayed as greedy ogres trying to get more money out of the consumer, and the appearance of ever more flamboyant futurologists who believe that the utilities will control all of the appliances in our homes.

That level of noise has the effect of making smart meters look as if they are the lynchpin of the smart grid.  Hence every utility is rushing to deploy them, backed by willing legislators showering them with stimulus funds.   It’s not difficult to see why we’re in this topsy-turvy state.  Underlying improvements to the grid don’t have a direct impact on consumers, or only do when the lack of them means that the consumer’s power disappears.  Which makes it boring.  In contrast, home automation offers the science fiction vision of devices that turn themselves on or off to minimise our energy bills and save the world.  But does it help the industry?

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Who owns Smart Energy?

There’s a lot of debate within the industry about who owns Smart Energy.  Is it the utilities?  Is it the consumer?  Will it be Google?  Until now, nobody has spotted who the real owner is, but at last it can be revealed – it’s the ZigBee Alliance.  They quietly trademarked the phrase “Smart Energy” in the US last December.  So if you make any Smart Energy product using any form of wireless, it may be time to get your cheque book out.

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Smart Energy, mHealth and the Chocolate Factory

Although they may seem strange bedfellows, both the mHealth industry the smart metering industries (both favourite children of the technology world), are facing the same problem.  Both are moving from a world of almost no data to data overload of a level they never imagined, even in their worst nightmares.  Whether it’s from an annual health check or a visit from the meter reader, both are used to getting one data point per customer per year.  The advent of connected sensors means that is changing to anything up to one reading per second.

It’s a bit like the case of a child who has hitherto only been allowed chocolate on Christmas Day.  Now they’re being led into a chocolate factory and told they can eat as much as they want.  The inevitable result is a very happy child for a few hours, until they’re violently sick.  At which point they either vow never to eat another chocolate, or learn to treat it in a more sensible manner.

Today the medical industry and energy utilities are being shown the doors of the chocolate factory.  We have yet to see how they behave once they enter it.  Some may emerge as triumphant Charlies, but others risk becoming the commercial equivalent of Augustus Gloop and Veruca Salt.

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