June 2007

ZigBee: The Choice for Energy Management and E ciency

2009 ZigBee Alliance. All rights reserved.

www.zigbee.org

ZigBee: The Choice for Energy Management and E ciency | ZigBee White Paper - June 2007

Introduction ZigBee Focuses on Energy

As we near the end of the rst decade of the 21st century, the world sits on what Vice Presidentturned-environmentalist Al Gore famously calls in the documentary An Inconvenient Truth, "a tipping point:" when increasing greenhouse gases could lead to a "planetary emergency." Adding to the dilemma, the worlds growing population and a growing global thirst for energy stands to escalate the situation, culminating in a perfect storm of economic, social and environmental pressures on scarce energy resources. In nearly every country, researchers expect existing energy production capabilities will fail to meet future demand without new sources of energy, including new power plant construction. According to a recent report from the North American Electric Reliability Corporation (NERC), electricity demand in the United States is expected to grow by 141,000 megawatts in the next decade. Yet, only 57,000 megawatts of new resources have been identi ed, leaving a shortfall of 84,000 megawatts - an amount equivalent to 160 large power plants. Globally, it is predicted that more coal red power plants will be built to meet increasing demand due to their cheaper economics. Alternative sources of energy, including clean energy technologies such as wind, solar and fuel cells are being investigated and brought on-line to increase the global energy supply. However, these supply side solutions ignore another attractive alternative which is to slow down or decrease energy consumption through the use of technology to dramatically increase energy e ciency. The cleanest energy is the energy not generated in the rst place. For a glimpse into our future, should we maintain todays status quo, consider Californias past. During the summer of 2000, Californians endured rolling blackouts nearly everyday. Both residents and businesses tolerated a long, hot summer as rolling blackouts plagued the most populous state in the United States and a global economic powerhouse. While not only a nuisance and aninconvenience, repercussions

were felt in both corporate board rooms and political o ces. Many individuals believe rolling blackouts are an isolated issue which "cannot happen here." Unfortunately, the existing trends for energy supply and demand in many parts of the world indicate blackouts, brownouts and high energy costs are on the horizon and could become our everyday reality without innovative energy e ciency action by consumers, utilities and governments. Since few want their children to inherit the potential e ects of global warming or see their landscape dotted with new power plants, innovators are turning to technology to provide e ciency solutions. By wirelessly connecting dramatically di erent devices like utility meters, thermostats, lights, HVAC systems and appliances, home area networks (HAN) give residential consumers an unprecedented way to improve energy e ciency and utilities an ability to create load management programs with minimal customer inconvenience. ZigBee is an established wireless standard being used by companies for the HAN thereby providing the "last foot/meter" connection needed by innovative utility companies to have a new dialogue with their customers in support of energy e ciency and other advanced metering infrastructure (AMI) powered initiatives.

Governments: Setting Energy E ciency Expectations Everywhere

Policymakers worldwide are now looking to create alternative solutions like AMI that improve energy e ciency. In virtually all cases, ZigBee has been identi ed as a technology key to their common vision of energy management and e ciency. Here are just a few examples. The GridWise Alliance is a collaborative venture between the U.S. Department of Energy and public and private stakeholders who are rethinking the U.S. electric infrastructure. Their mission is formidable:

2009 ZigBee Alliance. All rights reserved.

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ZigBee: The Choice for Energy Management and E ciency | ZigBee White Paper - June 2007

change the way energy is planned, built and operated. Their vision is of an electric system that integrates the infrastructure, processes, devices, information, and market structure so that energy can be generated, distributed and consumed more e ciently and cost e ectively; thereby achieving a more resilient, secure and reliable energy system. 2 In the United States, the U.S. Energy Policy Act of 2005, and initiatives in California, Texas and several other states urge or require improved energy e ciency. The State of Californias Title 24 2005 Building Energy E ciency Standards mandates programmable communicating thermostats to all residents and obligates utilities to devise energy e ciency strategies to make use of this connectivity. In May 2007, the Public Utility Commission of Texas set forth rules on features for AMI and set minimum technology requirements which included a requirement for HAN capabilities. In March 2007, the European Union (EU) Summit met in Brussels and adopted a road map for an integrated energy and environment policy based on clear targets to ensure less fossil fuel usage along with energy e ciency measures. During the summit, energy performance standards and certi cation requirements were established for buildings that would allow technology to play a key role in using energy more rationally. Currently, the EUs framework programs for research and technological development fund large amounts of energy research. Likewise, its Intelligent Energy Executive Agency is spending 730 million between 2007 and 2013 in support of research into energy saving, energy e ciency, renewable energies and the energy-related aspects of transport in the EU, Croatia, Liechtenstein, Iceland, and Norway.3 In early 2007, the rst East Asian Summit resulted in the creation of the Energy Security Accord a program designed to reduce Asias dependence on fossil fuels and promote the use of alternative energy sources. During the second EAS, which met recently with 16 nations participating, Japan promised $2

Customers Manage Energy Consumption for Improved E ciency Utility customers use of ZigBee enabled products allows them the ability to:

View and react to energy consumption by the minute, hour or day Track pricing and adjust energy usage to conserve energy during peak demands Plan, budget and pre-pay utility bills Save money during price uctuations by reducing energy consumption Enjoy discounts on energy management programs Help the environment by reducing their carbon footprint Adjust and control their environment and enjoy "in-time" comfort

billion in aid to Asian countries to help improve energy e ciency and to adopt clean technologies that would reduce greenhouse gases.4

Energy management and e ciency e orts are also underway in Australia via the Victorian Parliament passed legislation which provides for a state-wide rollout of AMI. Utilities operating in Victoria must begin rollout of AMI by December 31, 2008 and complete installation in four years. Importantly, ZigBee was speci ed as the technology to provide the vital connection between the utility meters and the HAN.

Visionary Utilities: Innovators in Action ZigBee members are banding together to respond swiftly to policy changes worldwide. CenterPoint Energy, Southern California Edison (SCE) and Sempra Energy, which does business as San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co., are looking to ZigBee-based programs to deliver extraordinary energy

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ZigBee: The Choice for Energy Management and E ciency | ZigBee White Paper - June 2007

e ciency. There are many pilots and larger scale test implementations of ZigBee HANs in many di erent Utility service areas. To accomplish their goals, utilities are relying upon leading utility supply and service companies like Cellnet, Eaton Itron, Philips, Schneider Electric, Siemens, Tendril Networks, Comverge, Control4, DCSI, Develco, Elster, Golden Power, GridPoint, IBM, Johnson Controls, Legrand, Nivis, NURI Telecom, Sensus Metering, Silver Spring Networks, Site Controls, SmartSynch, Talon Communications, Trilliant Networks, Tritech Technology and Viconics to provide them with smart meters and AMI ZigBee solutions.

SCE, for example, is piloting its next-generation of electric meters program. Scheduled for rollout in 2008, it will improve customer service and enable customers to proactively manage their energy use. Another Alliance member, CenterPoint Energy, is According to SCE, advanced metering has the potenrolling out AMI technology across its territory in Houstial to reduce peak power consumption among its ton, Texas where it services more than 3 million customers by as much as 1,000 megawatts an customers. Its use of metering technology from amount equivalent to the entire output of a major ZigBee promoter Itron gives CenterPoint a ZigBee power plant.5 SCE also has an AMI program in place connection point to every customer. In the future, this which will replace todays electric meters with "next new technology is expected to give customers the generation" electronic meter technology, thereby ability to better manage their energy usage using real providing customers with time-di erentiated rates time price signals and the ability to remotely control and demand response options. Advanced meters can appliances to reduce consumption. reduce day-to-day utility operational costs by streamEuropean countries are also expanding initiatives to lining processes and automating the matching of promote adoption of energy e ciency technologies, resources with energy with an emphasis on AMI. For demand. The scope of SCEs Energy E ciency Prevents Blackouts example, the Swedish parliametering solution is to replace ment passed regulations approximately ve million elecUnfortunately, energy cannot be easily stored requiring all electricity meters tric meters for SCEs residential, in large amounts on the energy grid. When to be read on a monthly basis, commercial and industrial power plants and the power grid are versus annually, by July 1, 2009. customers (below 200 kw in 6 Note that while SCE operating at full capacity and demand for State-owned utilities such as demand). Swedish company Vatten AB power exceeds capacity, rolling blackouts are is an electric utility, it fully have ordered automated expects that other gas and implemented to prevent total grid failure. metering systems and are lookwater utilities in its area will be The only way to avoid this situation is to ing at ZigBee as one of their able to leverage its AMI by provide more capacity by adding energy technology solutions. communicating data from supply through building more power plants, water and gas meters through Develco, working closely with the use of a ZigBee HAN. or to use the available electricity more Denmarks largest utility, e ciently. This situation underlines the DONG Energy (Danish Oil and SCE neighbor, SDG&E cites the Natural Gas) has developed signi cant impact of using advanced use of ZigBee technology as energy e cient products and one of the 13 initiatives metering technology and ZigBee technology systems. Develco SmartAMM outlined in the to provide better management of energy use.
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"San Diego Smart Grid" sytems. Develco SmartAMM study authored by its energy consultants. This study builds a business case for AMI and o ers a bene t analysis to increase the number of customer-owned distributed generation systems, like residential solar systems. SDG&Es AMI initiative institutes a supervisory control and data acquisition (SCADA) switch rollout program, seeks new energy supply from energy e ciency, demand response, renewable energy and distributed generation, and more. Implementation of the AMI initiative, along with the 12 others spelled out in the report, could generate $1.4 billion in utility system bene ts and nearly $1.4 billion in societal bene ts over 20 years. The total capital cost for all 13 improvement initiatives are estimated to be $490 million.

ZigBee: The Choice for Energy Management and E ciency | ZigBee White Paper - June 2007

ZigBee Helps Utilities Improve Customer Service save money. ZigBee allows is a system which covers a consumers to set their therwide range of products Utility companies can exceed customer-service mostats, to turn on or o their including SmartRead GSM expectations and enhance operations by air conditioner, or heater, and SmartRead ber. Both are implementing AMI and ZigBee HANs by: based on energy pricing as part of AMI programs utilizing Improving resource management and e ciency well as comfort. A pool pump ZigBee. Develcos SmartAMM or hot water heater can also Managing peak load provides an open standardsbe programmed to turn on or based approach to new Increasing revenue assurance o only at a speci c energy energy e ciency programs, Improving meter reading e ciences price points, saving even more from energy monitoring and Optimizing eld workforce productivity money. Lights controlled by net metering, to tracking and Detecting and verify outages ZigBee wireless technology adjusting energy consumpcan be set to automatically Managing large volumes of meter data tion. Develco uses ZigBee to turn o during peak demand Managing energy use at multiple facilities provide a gateway from the and only come on when the utility company to each house Improving distribution reliability and e ciencies consumer arrives home. They or building. Once installed, Establishing vital data source for optimizing can also dim to prede ned these ZigBee-enabled homes energy and water delivery water delivery levels when energy is more and buildings feature remote expensive or when sunlight is bright. Should a access to the power sources consumer forget to program lights for security, they for air conditioning, heating and security systems. can even be remotely and securely accessed via the ZigBee: The Wireless Standard for Internet and programmed appropriately.

AMI, HANs and Demand Response

AMI is de ned as the communications hardware and software and associated system and data management software that creates a network between advanced meters and utility business systems. This allows collection and distribution of information to customers and other parties such as competitive retail suppliers, in addition to the utility itself. Importantly, it connects the utility to a HAN typically comprised of ZigBee-enabled devices including appliances, thermostats, water heaters, pool pumps, and more. This network of ZigBee devices is easy to connect and allows users to customize and monitor their energy consumption in an environment where devices communicate to each other and can connect to the outside world to enable remote access and control either by the utility, a third-party service provider or the customer. With AMI and ZigBee HAN devices, customers gain complete daily, hourly or by the minute control over their energy consumption thereby empowers them to

From a utility perspective, when demand for electricity is high, a message can be sent to customers informing them of the high demand and that real time electricity prices are increasing. The customer then has a choice: They can do nothing, and continue using their current level of electricity, but at a higher price. Alternatively, they could choose to reduce their electricity usage manually or allow the utility to selectively adjust usage automatically. This two-way interaction is called con rmed demand-response. Research shows that residential demand-response adoption rates of as low as 30 percent could provide signi cant consumer and utility savings. Another study estimated the potential economic bene ts of demand response activities from demand bidding could reach $800 million annually, depending on the level of system need. Economic bene ts from emergency demand response range from $85 million to more than $300 million annually. Experts believe new technology is the key to giving customers more knowledge and control over their energy

2009 ZigBee Alliance. All rights reserved.

www.zigbee.org

ZigBee: The Choice for Energy Management and E ciency | ZigBee White Paper - June 2007

consumption. Since ZigBee is a global wireless standard based on IEEE 802.15.4, it makes it easy and inexpensive to wirelessly connect dramatically di erent devices no matter where they are used. ZigBee members are building products and o ering services today that help both consumers and utilities to respond to our changing times while also preparing for an e cient and solid energy future.

Information + Control = E ciency

Analysts predict that advanced metering systems could bring customer usage and meter data into new utility central nervous systems. AMI and ZigBee provide

more e cient customer management and provide the added advantage of new tools and real-time data to react to emergencies. For example, should a power outage impact an area of homes or businesses, utility companies can pinpoint this information down to a single fault area within seconds. Using the data collected from the in building networks in the a ected area, the Utility can reroute grid feeds using remote switches to isolate the fault and restore service to the majority of a ected customers within minutes all without a truck roll. By deploying repairmen in a targeted manner during wide-spread outages, power can be restored faster than was previously possible. Minimizing power disruptions also reduces the risk of lost revenue and avoids punitive nes or damages for the utility.

ZigBee Smart Meters in Action

Control4 recently launched a demonstration event showing a smart-metering system in action. Designed to educate others, the demonstration highlights a fully integrated smart-metering system that uses Cellnet UtiliNet Radio to transmit to a ZigBee-enabled Cellnet Focus AX-SD Utility Meter outside of the house. This meter integrates a ZigBee-enabled transceiver. Messages sent by the energy utility are received by the UtiliNet Radio and bridged to the ZigBee radio to the Control4 ZigBee-enabled Home Theater Controller (HTC). Control4s HTC then communicates to the other ZigBee-enabled devices such as, wireless thermostat; wireless in-wall and outlet based lighting control devices. All of these technologies work together, enabling consumers to wirelessly control energy consumption. The demonstration system has three pre-de ned electricity rate messages: low, medium and high. It demonstrates the type of messages a utility might send to communicate an immediate change in electricity rates. For example: Low Rate periods allow for normal modes of heating, air conditioning and lighting. Medium Rate periods sees the utility sending a message through the meter to the HTC alerting of a rate change, and the HTC could be programmed to change the thermostat and / or change the lighting levels. The message could be announced visually and audibly through a TV set. High Rate periods or emergencies allow the utility to request the system take more aggressive action such as, turning o the heating/cooling, lights and other non-essential devices. After the emergency has passed, the Low or Medium Rate period would restore use automatically. In the demonstration system, energy use and current rate mode are indicated by the Control4 system on-screen and touch panel interfaces. The consumer can choose the lifestyle response (e.g. lights or temperature) to the various utility rate changes through the Control4 interface. Set points can also be determined through agreements with utility companies or based on price uctuations. This approach gives consumers the ability to decide how much energy to consume, when and at what price. It is a prime example of ZigBee in action.

2009 ZigBee Alliance. All rights reserved.

www.zigbee.org

ZigBee: The Choice for Energy Management and E ciency | ZigBee White Paper - June 2007

The Bottom Line

ZigBees wireless open standard technology is being selected around the world as the energy management and e ciency technology of choice. ZigBee is playing a major role in how energy is priced and used. Consumers and businesses will see changes they never dreamed possible. Everyone will have a larger opportunity than ever before to play a larger role in improving our planets environment and shaping a new future for generations to come. The tipping point is indeed here and much bigger than ever imagined.

1 The Wall Street Journal report from NERC (North American Electric Reliability Corp.), October 16, 2006 2 Gridwise Alliance, Web site homepage, http://www.gridwise.org/ 3 Overviews of the European Union Activities, Energy, March, 2007, http://europa.eu/pol/ener/overview_en.htm 4 Success for the EAS?, The Japan Times Online, January 17, 2007, http://search.japantimes.co.jp/cgibin/ed20070117a1.html 5 A Vision for Advanced Metering: Delivering Customer Value through Innovation, Advanced Metering Infrastructure, Fact Sheet, Copyright 2006, Southern California Edison, http://www.sce.com/NR/rdonlyres/55FFD941-74DB-401998CF-FCB218486BB0/0/DOCUUpdatedAMIfactSheetv35070308.pdf 6 SCEs Vision for Advanced Metering, Program Vision, Advanced Metering Infrastructure, http://www.sce.com/PowerandEnvironment/ami/vision/ 7 San Diego Smart Grid Final Report, Science Applications International Corporation, October, 2006, http://www.gridwise.org/pdf/061017_SDSmartGridStudyFINAL .pdf 8 Residential Demand Response, Electric Light and Power Magazine, November 2006, http://uaelp.pennnet.com/display_article/277479/34/ARTCL/n one/none/Residential_Demand_Response/. 9 Grid 2030 A National Vision for Electricitys Second 100 Years, U.S. Department of Energy, O ce of Electric Transmission and Distribution, July 2003, http://www.climatevision.gov/sectors/electricpower/pdfs/elect ric_vision.pdf.

2009 ZigBee Alliance. All rights reserved.

www.zigbee.org