The Wall Street Journal looked at Texas Energy price increases this year and got nearly everything wrong.
The big changes in electrical prices in Texas this year mirror the price changes in all energy markets. It is unclear to me how people think that *any* industry, no matter how regulated, can repeal supply and demand for its primary supplies. Some are arguing that these price changes argue for extended market regulation. The regulated energy market is not the natural order; we have a regulated market structure only because nothing else made sense in 1908 when the current model was created in Chicago..
Read MoreIntelligent Buildings
B2B2B2B
Several precise correspondents disagreed with my characterization of the ideal interface on every energy widget as a single Business to Business B2B economic interface. Some argued for Business 2 Machine (B2M) and some argued for Machine to Machine (M2M). A few argued for P2B (Person to Business). I think they all make it too complex, and limit the opportunity for new business models. B2B is meant to liberate new markets, new market entrants, new trading models.
Starting with today’s Automated Demand-Response (ADR) interfaces, we get more benefits as we move them from M2M to B2B. People want to be in charge of their own property, so a Business inside the building puts the occupant in control. A business inside the building can only express their willingness to participate with an offer or bid. As not all bids are winning
Read MoreWeekend Reading on Smart Homes
The Sunday New York Times has some nice introductory material on smart homes. They skate quickly be prices to devices and the smart grid. They write about putting the homeowner in control. They even show several home panels.
With only one screenshot, I cannot comment on the systems described. One looks more like a home theater console with a dishwasher added. Another allows scheduling of building systems, but gives no sign of interaction with and feedback from the power
Read MoreService enabling Telecommunications – lessons for Buildings and Grid
Peter Carbone, Vice President of SOA for Nortel, gave a nice high level talk on the challenges facing a company that grew up with rigid account control and vertical integration in a regulated environment learning to dance in the world of SOA and mash-ups. As markets for building systems are still characterized by rigid account control and vertical integration, and the power grid is still vertically integrated, regulated, and almost complete account control, there are some useful lessons.
Infrastructure convergence was the enabling and driving change for telecommunications. Provisioning telecommunications was long the most difficult task. Over the last decade, the diverse communication infrastructure converged to a single packet-based infrastructure with resulting dramatic simplification of security and reliability. The questions move from “What low level communications do you need” to “What interactive services do you need?”
This evolution changed how Nortel had to think about and market their services. Before the change, Nortel sold vertically integrated applications that were inflexible. As the core technologies converged, Nortel was forced to decompose advanced services into core functions and then plug them back into the new architecture.
Fortunately, decomposing integrated services into core functions looks a lot like defining a service for service oriented architecture. Fundamental telecommunications functions can now be built into enterprise applications without requiring exotic skills are deep domain knowledge.
Skills-based routing and deployment was one example. Peter discussed a SAP integration with critical system causing expensive downtime, emergency part ordering, and synchronizing communication with an outside expert so that the repair personnel, the piece of equipment, and, via telecommunications and real-time identification of the expert on call, the expert’s telepresence were synchronized.
In a similar vein, he discussed abstracting the GPS function from the cell phone to block access in the security system when the phone was in a forbidden zone. Peter gave many more examples and you can find his slides on the OASIS conference site.
So what can building systems and the power grid learn from this?
Well, the owners expect the systems to just run, and are annoyed whenever someone says words like BACnet or LON (or any other control protocol) in their presence. We need to decompose advanced services to discover the core functions, from the owner’s and the tenant’s perspective, and present them as interfaces that can be plugged back into the enterprise.
As Peter summed up the C-Level response: “I just spent $100 Million fixing my processes, you had better be compatible.”
Building services that can present themselves as that can interact with SAP, or with PeopleSoft will have an advantage. The services that know how to display themselves on Google Earth will know how to request the nearest technician.
Likewise, Grid requests that present themselves to ERP services will find faster acceptance. Grid requests that describe grid pricing as shapes that can be pinned to Google Earth will enable the enterprise to come up with multi-site responses that may be different from any single site.
No one cares about the old vertical applications. Enterprise interactions are everything.