IBM, Partners Team To Lower Customers' Energy Costs

IBM's Smart Grid technology, utilizing software and monitors to let customers have more control of their energy consumption, is starting to gain traction as consumers and businesses look to lower their costs. And solution providers are going along for the ride, according to IBM.

Mark Hanny, vice president of ISV alliances and developer relations at IBM, said solution providers are eyeing Smart Grid technology because it's becoming a priority for local governments and utilities, even without a federal stimulus bump.

"This whole move is creating great opportunities for our partners," Hanny said. "In this economy, you want to show people and businesses where they can save money and be more efficient. This is what we're working on today, things that sell well in this economy and have lower TCO to the customer. If you can deliver a better solution, cheaper to your customer, you will probably do well."

IBM has more than 50 Smart Grid engagements around the world, including a 100-user pilot project announced this week in Fayetteville, N.C., through IBM solution provider Consert.

The Raleigh, N.C.-based IBM business partner deployed Smart Grid solutions to 100 residential and commercial customers through the Fayetteville Public Works Commission, and the customers realized an average of 21 percent savings in their energy costs, with a range of 8 percent to 40 percent, said Roy Moore, chief development officer at Consert.

"It's one of those things where you go to work in the morning feeling really good about what you're doing," Moore said.

Consert is rolling out additional Smart Grid pilots in North Carolina and Michigan, Moore said. "In each, we try to demo the technology, and vet out the economic proposition to the utility and consumers," he said.

In a Smart Grid project, customers can set their daily energy use profiles, check their consumption and select a target bill amount and authorize the public works commission to cycle their unused appliances off during peak energy hours.

The pilot aimed to reduce "ghost" consumption on devices such as air conditioners and water heaters that use energy when no one is home.

By early next year, consumers will have the ability to control the same energy choices through a mobile device, according to IBM.

Consert placed a small controller on pilot users' high-consumption devices and a gateway was integrated to the meter to enable two-way communication between the consumer and the public works commission. The system handles up to 256 devices per customer, according to IBM.

The solution included IBM's DB2, WebSphere and Tivoli software, according to Consert. The solution provider doesn't sell hardware, so any hardware sales are made direct by IBM or through another source, Moore said.

Although it seems odd to walk into a business and tell them your solution will lower revenue by 10 to 15 percent, the pitch is working, Moore said.

"We understand we live in a capitalistic society. But we go to people like those in Fayetteville, who put the consumer first," he said. "If they employ our full solution, it's a shared cost model. We share the savings with them. It's always providing economic benefit to them. The savings that accrue to us in the form of a fee can be used to make the financing payment. Our objective is for them to not to have to pay out of pocket. We can make the case that we can lower your energy costs and have it paid for in a five- to seven-year time frame."

For example, if your utility bill is $200 but you'd like to lower it to $150 a month, the solution can intelligently help you figure out where to lower the costs, Moore said.

"You, the consumer, are in control. It looks for patterns to adjust your profile to better accommodate their lifestyle," Moore said. "It's not Big Brother capturing their information, but a rules engine looking for ways to optimize the system so the customer maintains comfort and convenience and not bear the costs."

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