Customer Service Strategy

There is no doubt, Social Networks are changing the relation of the complete society worldwide, creating one closer communication between people. This phenomena is called for some professionals in the Social Network such as: "Collective Intelligence".

In present, it is well known, there is people permanently connected to any Social Network, and the trend, is even increasing in terms of users and the content. As examples, the Radio had 50 million listeners in 40 years, TV had 50 million spectators in 13 years, Internet had 50 million users in 4 years and Facebook had 50 million users in only 1 year.

Some studies gives information about these Social Networks are covering one hole in the human relations, which has been activated for thousands years. In relation, there is Scientifics studies about some drugs, in concrete heroin, the most danger drug. Heroin is activating some parts of the brain which no other substance is able to cover, only by some experiences, but this experiences are difficult to experiment. For that reason, and by scientifics experimentation, this drugs are really with high dependence, because are feeding one lack in the brain.

Social Networks are in similar situation, are feeding one necessity of human being, the necessity of interacting with other people to socialize. If it is analyzed the pyramid of Maxwell, the human being is searching to cover after basic physiological needs in this order: affiliation, recognition and in the top of pyramid; self-realization.

During hundred years, the human social activities have been developed in the center of the villages, almost in Western culture, the center of the village was the center of the social and economical activity, all news was communicated in this centers, normally one square and the most important market, after this conception, it appeared newspaper, TV etc, but of course not being interactive . Nowadays, the people had the same features, and of course, the same relation (that society had in the old market), which nowadays one company or business, is able to have with customers; reputation, after-sales service etc.

The message is, the concept of the old market in the cities, with its human relationship in terms of social and economical activities, are coming back. Social Networks are bringing back this concept, the only change is the interface, in the past was face to face relation and nowadays are by Social Networks.

Having in consideration this concept, it is necessary to understand the importance of the social interaction of society, being this, one feature innate of human being, which recently is increasing after the crisis creating more collaborative society, sharing knowledge and making properly administration of this knowledge (creating and making retransmission of it).

Therefore, the communication of companies with customers also change. The companies must understand the needs of the customer, being this customer more and more important (see Figure 1). As example, following the Service Marketing main instructions, it has to be considered that for selling one Service, and even more one consulting Service, which is completely intangible, it is extremely necessary to take care about the image, the segmentation of customers and the customer loyalty, because the process of buying one Consulting Service, or one Service in general, it is a rational decision. Totally contrary of buying one product, which the irrational component is the most important, the emotion.

Figure 1_ The trend of the word "Customer" in the interest over time, from 2004 to nowadays in Google trend. Having a inflection point from end 2008 (crisis starting) giving support of the concept, the customer is day by day more important in business . Source: Google Trend

Following with Service concept, when it is bought one Service, the perception of risk is crucial, because is very difficult to change after contract it. Just thinking about risk in new possibilities of contracting a new Service, having in reference, one experience in the past, the customer is able to think "may be the new one is even worse". For that reason, is very important the Certification in the Service Business.

With this explanation, the idea is, in next future the value for selling Service, even in selling products, will be more important and will be implemented more day by day, because the products will bring more service, and this Service will bring the possibility to create "Loyalty", the most optimized Customer, the most profitable.

At the same time, in relation with Customer relationship, one study reveals the importance of customers in the new business Model of Utilities during the last DistribuTech in San Antonio (Tx), with one report 2014 State of the Consumer Report.

In this report, there is a clear mention of the disposal of customers to interact with Utilities, in that case with the interaction in the Utilities websites for being informed and staying in more close contact (even being part in a proactive perspective) and seeing by positive way the use of Renewable Energies.
All this information is exposing the needs to interact by different way compared the way it has been made so far, the companies, and not only Utilities, must interact with customers and make this customers parts of the companies, and of course, paying attention for staying updated in the new technologies and innovation and being creative because the ideas, companies and business models will change by exponential line.

The ways of making business, contact with customer etc, will change very quickly, and nobody knows which will be the way for do it in the next future, simply, it has to be invented. The companies which will achieve, it will be the companies which adapt more quicker to the new scenarios, not the companies best placed in the market, because this market will change every day faster (one example is Utility business model in the last 50 years). 
 

One interview to Salim Ismail, the CEO of Singularity University, exposed about the change of model. The business models, is based in the predictability, and the world is unpredictable. The democratization is going to be the future and the "crazy" entrepreneurs are going to be who will allow progress.

This will be one challenge, and it has to be taken like that, the companies must understand to change the communication with customers and to be proactive for offering one communication based in the interaction. 
The "Smart" technologies companies will give this opportunity, first by corporate Websites, Social Networks but also with applications in tablets, PC or Smart Phones. Not only creating tools or applications for helping to manage the Energy Efficiency in Homes, EV or PV rooftop system. Companies will be able to give possibilities to customer to create the innovation of the companies by the customer experiences, may be creating software applications open to development, like in some videogames the customer is creating new possibilities, why not create open applications for letting customer to create solutions, and not being Gamification Marketing, being real solutions of the customers, the real users of the product or service such as application developer by the interaction with apps. The companies will have to implement systems which not only offers solutions to customers created by companies, also will give possibilities to create solutions created by customers, because at the end, the customer will know better the applications than companies, staying in interaction with product or service and the day by day experiences.

Considering this interaction, this it will create one community, which will reinforce the brand, the affiliate of Maxwell pyramid, and then, the loyalty of the customer. Being customers the real "Brand Ambassadors" of the company. Even why not this company is creating the own Social Network for the community where there will be activities for customers, and then, creating community between the customers. This will be one new way to create the old market, but involving the brand such as common interaction, the only change is the channel, in the past was face to face and now by social Networks, and after why not, face to face between this customers by activities. 

With this implementation, the company has the opportunity to know the real needs of the customer, creating a long term and win-to-win (W2W) relation, proposing ideas which makes the customer feels part of the brand, and making this customers part of the community; affiliation, recognition and in the top of pyramid; self-realization.

For that, the companies will have to be consequential with its image, there is no possibility to give one image and after do the contrary. In the next future, the companies will have to be the complete responsible of its product or service, closing the 360º of the life cycle, it means. The companies will be the responsible for the complete business: production, recycling etc, and may be even more. For that, as example with recycling, will not be acceptable to send (after end of life cycle), products to other countries because there is no environmental restrictions or safety properly standards, because soon or later, this information come to light and will break the affiliation of the customer.

Connection with the sentence "and may be even more", and knowing this change will involved all industries, for example, automotive industry has one challenge with EV (Electric Vehicle) and FCV (Fuel Cell Vehicle), because the EV implies some topics which the Automotive Industry never thougth, in this case, "give one integrate service for the complete new challenge".

In this integrate service will include applications in the Smart Phone for optimizing the charging of the EV.

The complete system for EV charger: (in house mostly long term charger = 8 hours full charged), solar PV rooftop systems integrates with other smart Home technologies (Air conditioned, or geothermal energy and security system). The producer of the EV will have to give applications which support one integrate system for managing all complete system, or at least the EV charger.

Such as one supposition, if this customer is recharging the EV during night, by energy produced from PV system during the day, covering with PV system the 70% of the battery load of the EV (in spring season).

If one day there is no production of solar PV energy by shadowing or cloudy day, (being the system related to one meteorological forecasting system). 
The owner of the EV is able to charge the complete battery of EV in the parking job center (after the jouney to the job the battery level is 30%), because the company has better price of the Electricity in the parking EV charger by one contract for employees (only using the long term charge, because for quick charge, the price is higher, and staying working minimum 8 hours, it is not relevance to use quick charge), then the EV is charged at the end of the work day and ready to start the journey to come back.

For tomorrow, the batteries will be charged in the house by the recommendation of the forecasting system which indicates that tomorrow will be a sunshine day, and knowing it is spring, the load will be already 70%, enough for making the journey to the job. Such as Safety reasons, the management EV Charger system estimate always a minimum charge in the EV of 30%, for the assurance for the jouney to the job center, one calculation for number of km (or milles) from house to job center.

With the experience information by the Smart Phone application system (in cloud data base) that in winter is only being able to complete maximum 40% of the load and in summer, during July and August , the complete 100% of the range of the EV charge. This information is including in the database with the reference of one deep study of the production of the PV system, the geographic location (by sun radiation) and the average consumption of Electricity in the house in every month by data (for considering solar hours, different in winter than summer) and historical weather conditions.

Figure 2_Example of PV systems. In the left side, the front of the building is installed PV panels for the electricity generation for the Building (Sto). In the right, one PV roof for supplying the cars of the vehicles of the industry_source: Javier Sanchez Rios.
* Consider Buildings with energetic certification, for example Leed (gold or platinum), where is included the EV chargers, it used to be in a preferent position in terms of value of the Real Estate Building Assets for selling or renting.

If the customer is not living in a sunshine country, the alternative will be by small wind energy or even with micro hydro power installed in the sewerage system in the neighbor community drain system (similar system is used in USA and first prototype in northern Spain). The system is collecting the water of raining and such as hydraulic system.

If the possibility is FCV (Fuel Cell Vehicles), in that case the system will change, because the hydrogen is very dangerous, high risk of explosions (highly flammable), and then, there will be no possibilities for managing in any house.
The hydrogen Fuel tank stocks in places with restrictions, in terms of security, similar to actual petrol stations but with its proper standards. Some implementations, one example in Barcelona Metropolitan Transport Company, are applying production of hydrogen by electrolysis process and supplied the production process by Renewable Energies.

The Hydrogen storage system presents complexity because the electric systems (switches, lighting etc) in the place of the storage must avoid any electric arc in the switching on/off or lighting on/off (for flammable features of the hydrogen). Even the warehouse is one cylindrical building, with one plastic cover on the top (roof), because in case of explosion the blast is going up, not expanding in circle avoiding bigger damages.

One example following with Hydrogen is; Schneider Electric & Areva have signed one contract for Hydrogen production by electrolysis for storage hydrogen in case of low demand in Wind Power Farms, why not in future this system is able to sell surplus production to FCV.

Making a conclusion of all exposed, please think about such as industry challenges. The new possibilities presented to automotive industry with EV & FCV in the next future. Because the challenge is not only regarding the vehicles, the automotive industry will have to give support to all involved EV & FCV. For example if customers want to know the level of batteries in the EV by the Smart Phones, the Automotive Industry will have to implement one communication systems which communicates the EV with charger, and both with Smart Phone.

In this case of situation, if the EV charger is installed in one new building, for sure the engineering studies are going to implement internet communication, mostly by cable (coaxial, fiber optic etc) or even wireless.
In existing buildings, the situation is more complicated. It will very expensive to implement one communication system from EV charger by conventional cable for internet communication, and even more wireless. Because, in the most of cases, the parking are underground (no wireless cover). May by, the communication by electric cables will be the solution for the communication between the EV and the EV charger (with one route). For that, it will be one solution in Power Line Communication (PLC), from underground floor to first floor, when the signal is arriving to first floor, then with one router for codifying the signal from PLC, after that, the system can use whatever wireless communication and being connected to whatever Smart Phone.

On the other hand, PLC is used in Automotive Industry for communication in the vehicle and then, for avoiding more cables in the wire harness of the Vehicle, using basiclyFlexRay, LIN (Local Interconnection Network) and CAN bus (Controller Area Network) developed by Robert Bosch GmbH, which nowadays is implemented in a lot of industrial implementations for its high reliability in industrial environments. See Figure 3 with one example of vehicle harness wire. But think about linking this PLC systems of the car with the PLC of the electric systems and then the possibility to the brand for receiving infomation about the performance in the car, like nowadays is working AMI systems, sending the information during the night, when the EV is charging and transmitting information to the database to the vendor: number of revolutions of the engine during the day, temperatures of performance etc, and then giving to this vendor more information for optimizing preventive maintenance and for staying in a better position for dealing with supplier (Procurement and Inverse Logistic).

Just imagine the communication infrastructure in existing buildings like big Supermarkets, Stadiums etc (in parkings with no wireless cover).

Figure 3_Sectioned Car 5 Series BMW (Bayerische Motoren Werke) in Berlin Teknikmuseum_source: Javier Sanchez Rios

With all those inputs, the challenges presented by automotive industry are enormous. Automotive Industry, which so far there was no any implication in fuel availability. 
As may be will happen with hydrogen tanks, which the placed will be in emplacements similars that it is nowadays with petrol stations.
In case of EV, the long term charger will be implemented in every home or existing parkings buildings (outdoor & indoor), and it is well known the availability of charger points will play an important role in the EV implementaton. 
In relation with that, even Tesla, is implementing EV charges in highways (free of charger for Tesla customers)

Then, the Automotive Industry will have one great challence, because the customer, will want to know the state of the EV Bateries level (despite of the EV is placed: indoor or outdor parking, with wireless or not cover), and for getting this "Service", the Automotive Industry will need to implement new technological solutions which never face. Think about the other industries with other implementations...

Figure 4_ Tittle page from the book: El Vehículo Eléctrico, Desafíos Tecnológicos, Infraestructuras y Oportunidades de Negocio - (english: The Electric Vehicle, Technological Challenges, Infrastructure and Business Oportunities)_source: Javier Sanchez Rios.

References: 

1_El Vehículo Eléctrico, Desafíos Tecnológicos, Infraestructuras y Oportunidades de Negocio - (english: The Electric Vehicle, Technological Challenges, Infrastructure and Business Oportunities): Cetib (Col.legi Inginyers Tècnics Industrial de Barcelona), Circutor, STA (Sociedad Técnicos Automoción).

2_ Power Line Communication for Smart Grid, Smart Homes & Smart Cars. Edited by Krzysztof Iniewsky and Tracey Mozel 

  

Wind Power Over Production

It is well know the relevance of Wind Power production in Spain. In some cases, arriving close to 50% of the mix generation (see Figure 1).

As a example, the 28th January 2014, there was a pick of wind power yield, as it is possible to check in the Spanish TSO: Transmission System Operator  website (Red Eléctrica de España).


Figure 1_Wind Power Yield in the Spanish Electric System 28th January 2014// Source: REE

ACER (Agency for the Cooperation of Energy Regulators), published some weeks ago an information which has to be considered.
This information is one study about the integration of Renewable Energies in the Electric System across Europe.
Taking a look in the case of Spain, whit high amount of Wind Power Generation. And being Wind Power, the most important of all Renewable Energies in terms of capacity and generation, comparing with other  Renewable Energies like PV Solar Power or CSP (Concentrated Solar Power).

In concrete, the study explains the amount of Energy, by in this case, Wind Power, it is necessary to manage by the TSO to the Electric System for over generation.

In other words, the amount of power which TSO must to manage for non being able to insert in the system, in consequences of the low demand. 

It is necessary to consider, this situation is happening normally during wind storms and low energy demand.

The study exposed that the Spanish Electric Systems "wasted" 8% of total Wind Power yield during the spring of 2013, in concrete 29th, 30th and 31st March 2013, days of holidays in Spain (see Figure  2).

Figure 2_Wind curtailment compared to demand in Spain, 25th to 31st March (MWh) Source: ACER

If it is compared this data with other countries, Spain has increased the negative progression respect other members of UE. 

If it is taken in consideration 2010 and 2011, the Wind Energy yield "wasted" was only near 1%, and comparing with Italy which "wasted", in some cases near to 5% and averages of 2% in 2011 and more than 1% in 2012. 

At the same time, Germany, UK and Ireland, with results being high than the range of Spain.

Getting in deep about what really happened in Spain for explaining this abnormal situation. It is has to be understood that 2013 was very rainy year. Considering Spain as a country with dry weather, because northern areas have abundant rainfall, but the most of people in Spain lives in Mediterranean coast, where normally suffers dry weather.
 

In contrary, 2013 was a really rainy year in Spain, and in consequence, the hydropower resources was really great, non having the possibility to use storage pump during night. Similarly, the crisis was decreasing the demand of Electricity in Spain from 2008 year by year.

On the other hand, Spanish Electric System  (data updated at end 2013) has 108.148 MW of installed Power (all kind of Energy Production), 0.2% more than 2012, even having a Demand Decreasing. An example for that is, in 2013, the maximum power needed for the complete system was 40.227 MW (27th February 2013). Other point for considering is, those days , Spain is under cold and wind storm.

This means, less than half of the total power installed, even considering 20% of "Security Range" for whatever unusual event, is over capacity. It means, the Electric System does not need it. Then, with this information it is possible to conclude next, for Spanish Electric Systems is not needed around 48.000 to 50.000 MW Power Generation installed. Knowing the cost of that for the public entities and for private investors which made investments in Renewable Energies in time when in Spain was enabled Feed-in-Tariff, overall in Cogeneration plants which right now are not profitability (around 27.000 MW installed).
Looping the loop, 2013 was a year which was even installed Concentrated Solar Energy plants, increasing 15% (2.300 MW) of its capacity, and also, an increasing of 3.2 % of Photovoltaic (2.300 MW) and Wind Power which has been increased 0.8%.

Considering all this information it is easy to think about the issues presented in the Spanish Electric System for the future (see Electric SystemChallenges blog), decreasing demand with over capacity.

Regarding the ACER  information, the study proposed to reinforce the Spanish  interconnection between France, Morocco and Portugal for having more flexibility in cases like exposed. It means, to use the international interconnection to export in whatever case of over production, and then mitigate the possible Electric System collapse by overloading Power Lines and Trafos. See interconnection for 29th March 2013 as example in Figure 3, source:   Electricity Interconnection in South-Western Europe .

Having in consideration the yellow area of Figure 2 (wasting Wind Production), the Electric interconnection of Spain between France, Morocco and Portugal during this day, even having during night hours over production. It is well understood the system exported Electric production to France, but incomprehensibly the system imported Electric production from Portugal, and there was no active intereconnection between Spain and Morocco during night hours (see Figure 3  Hours 02-03 to 07-08). Even the systems imported electricity from Portugal in this critical night hours (of course being a little bit less than other hours).

Of course ACER is recommending it has to be more understanding between all European Electric interconnections and also with Morocco. Because, it is not possible to waste Electric production and at the same time, importing electricity from Portugal to Spain.

Figure 3_ Spanish Electric interconnection in real time jfor 28th January 2014: Source: Electricity Interconnection Wester-South Europe

Nevertheless, it has to be considered to apply the technological resources it has nowadays in the field. Wind Power, it will be able to success with more efficiency and then, overcome the most important disadvantage.

It is well known, the storage systems will be one of the most advantages systems for the Wind and Solar PV Energy achievement. With the feasebility to control the concrete moment to integrate the intermittent  energy. Which sometimes is not needed when is produced, the question is easy, are right now available this conventional storage systems, in terms of profitability. It seems in  some states the technology is taking off. 

But, it is the time for integrating in Renewable Energies investments this technologies, with the cost it represents. May be is necessary to wait more time for being possible to integrate this storage systems in Wind & PV Solar Power projects. Just waiting for more mature technology and then, to get lower cost generation. Because it is well known, the systems are well introduced in the field.

Last news informed about the progression in the new technologies in the storage systems. Researchers has developed a metal-free flow battery which performs also with vanadium flows batteries, reducing the use of the expensive metal and being free of precious metals. And of course, the time and investments will reduce the cost of this storage systems.

Similarly, Demand Response will play one important role, also in this Wind Power achievement. Just for growing the demand during night hours, with incentives for increasing the electricity demand in this hours. When the consumption is less, peak-off hours normally in residential and industrial consumptions (see Figure 4 of the 28th January 2014, peak-off from 2:00 h. to 6:00 h. /Spanish Case - Western Europe Area - latest sunset Europe compare with central and east Europe). Of course, Europe is a little bit in one emerging situation in this topic compared to US.

Figure 4_ Electricity demand tracking in real time, associated generation mix and CO2 emissions_Source: REE (www.ree.com)

The other technology which can help to reduce the "waste" of this electricity generated is EV Charger. Which is able to incorporate inside Demand Response management, and play a great role in the process of smooth the electric load curve. Increasing the demand during the night with the charging of EV, for that, of course, it is needed the implementation of the EV. And, at the same time, the EV Charger in the most of residential consumers. This will reduce the fluctuations and reduce cost of the Electric System operation.

Figure 5_ Inside the Nacelle of one Wind Turbine during Hannover Messe im 2004 where is possible to see the high number of poles in the generator_Source: Javier Sanchez Rios

Electric Systems Challenges

Some weeks ago, I read in a Spanish newspaper information coming from the president of one of the Top 5 Spanish Utilities, Mr. Ignacio Sánchez Galán. He talked about the possibility to transfer the incentives (Feed-in-Tariff), which the Spanish Government gives to the Renewable Energies producers (mostly Wind and PV Energy), to the investigation for getting a more profitable production in this Renewable Energy technologies and, at the same time, insert this Wind and Solar PV yield in the Pool at the same conditions than the rest of generation (being out of Feed-in-Tariff incentives).

This information was communicated to the European Union last 11th October in Brussels by the 10 CEO of the Top 10 Utilities in Europe which represents the 50% of the Electricity production and the 30% of the Renewable energy production in the EU, having more than 213 million customers. With this information, the Utilities wants to transmit that the Integration of Renewable Energies in the Electric System has economical and technical consequence.

From the technical point of view, Wind and Solar PV Energy is not fully controlled such as could be Hydraulic, thermal or other technologies (Utilization Factor), just by the nature of the wind and sun (not stable and shadowing respectively). 

Like in the most European countries,in Spain, the Renewable Energies have a priority to enter in the Electric Pool such as first option in the mix generation . It means, all the other generation must to enter in the mix after the clean energies. 
This process has consequences in the Operation of the Electric System, because the first to enter in the Pool, is the most intermittent yield (Wind and Solar PV Energy).

In line with what is mentioned in the previous paragraph, which has serious technical consequences, it is necessary to have the respective forecasting systems to predict the energy production for every Renewable Energy Tecnology (e.g.: Wind Power Forecasting systems; Sipreolico; Spain / Prediktor: Denmark / Eurowind: Germany) to align supply and demand. As a example, in Spain, the System Operator is controlling in some cases, even more than 20 % of the mix generation by Renewable Energies (mostly Wind Power).

Other point for having in consideration, is the quality of wave which generates this big amount of Electricity generated by Wind and Solar PV Energy, which at the end, is integrated in the Electric Systems. 
This amount of electricity can create consequence in the frequency stability of the Electric System, for not being 100% controlled, but also, it has to be considered that the instability in the system can be produced by the own characteristics of the AC Electric System (mostly used worldwide), which the demand must be adjusted to the production, simply because the AC is not possible to storage. 
The main point is, this frequency it will be the base of time (clock) of the microcontrollers of the electronics systems, which, some of them, are responsible for security control systems. As a example related directly with this issue; the Nuclear Plants could switch off for security reasons when the frequency is going down from the value of 49 Hz (in the case of being placed in Europe with the frequency reference in 50Hz). In this case, the Nuclear Plant falls down, therefore, if the Electric System needs this Nuclear Plant for any peak demand, it needs a long time for getting in an stable situation for producing again. This time can arrive even to 45 or 50 hours in some cases, and of course, creating a serious problem in moments of high peak demand.

If this is not enough, the future applications like EV charger will integrate a high number of harmonics in the Grid, which are overloading the capacity of the complete systems: Power lines, trafos and protections systems. 

Having in mind this issues exposed, the point is, the Utilities are responsible for the assurance of the electricity supply, and then supporting the issues which generates Renewable Energies in the complete Electric Systems, and the cost in the distribution assets, which of course are responsible Utilities.

Economically, and taking in advance the situation, which Onshore Wind Power is producing at 80€ MW/h, Offshore Wind at 180€ MW/h, and Solar PV at 400€ MW/h, there is a big difference between Wind and Solar technology. 
The possibility for inserting this technologies in the "ordinary" pool, staying out of the "special regime", named adopted in Spain for designation of non subsidiaries -out of Feed-in-Tariff, and take this economic resources to the investigation for optimizing economically and technically both technologies, and specially Solar PV, for the high Levelized Cost of Energy, is getting a conclusion for some professionals: the actual system is not working, because is increasing the cost of Electricity and reducing the competitiveness of the companies.

From another point of view, from Renewable Energy producers and some customers, one point which is not in consideration from the Utilities, is the great investment in Electric Distribution and Transmission AC Power Systems made in the past, before crisis, when the Electricity demand was increasing year by year. 
Nowadays, this demand is even lower. In consequence the end consumer is paying a bill which includes this bad forecasting on demand made before crisis, as it happened in Spain, but also it is necessary to consider other cases, as a example the Australian Electric System is in the same roll, the demand is falling down but the bill for the end consumers is increasing every month by month.

Germany, one of the most important examples to follow regarding policy in Renewable Energies, which is still the worldwide number one in Photovoltaic MW installed and one reference in Wind Energy ,has approved the first coal-fired plant in eight years, this situation shows the change in the Energy Policy (also one example in New England, USA), which in the new Energy Policy, after the new government coalition, the new policy is eliminating the subsidiary for Wind Energy and keeping only the Feed-in-Tariff for Photovoltaic industry. This situation, it gives an idea about the situation of the Electricity price for the German consumers and companies which must pay the cost of Clean Energy. Even there is a possibility, in the next future, of the non increasing demand of electricity. But this, it seems not probable for German economy next year - very diversified economy with high value products and services and with records on exports, may be for getting the best worldwide Network of Commerce Chambers.

In the particular case of Spain, from the point of view of Renewable Energies producers, which erected projects with specific Feed-in-Tariff conditions defined by the previous Spanish Government, which right now, this conditions, are not implemented. 
The final consequence has been the modification of the law, breaking the security for the investors, receiving complaints from the most important investors of this Renewable Energy projects (e.g.: RREEF from Deutsche Bank and the last in the list; Eiser Infrastructure ltd with the Luxemburg subsidiary: Energia Solar Luxemburg). 

Moreover, Renewable Energy producers and End Customers, are claiming about the cost of Electricity, they demand one audit of the fixed cost of the Electric bill. 
In the Spanish Electric System, the bill of the Electricity is make by two sections; one variable (cost of Electricity production depending of supply and demand) and the fixed cost. Regarding the fixed cost, as it happens in some countries, the transmission of electricity is not a private business, in the most of cases, it is a company regulated by the State, which is also composed by private investors, having no competence, just for being one "strategic sector".

At the same time, the distribution, which is related directly to private companies, are responsible of the distribution of the Electricity. And this distribution, is included in the fixed part of the Electric bill, for using this infrastructure in terms of capacity.  

The question of this Renewable Energy producer and part of End Customers is, which is the value of the infrastructure of transmission and distribution of the Electricity which is included in the fixed section of the Electric bill?, who audit the real cost of this infrastructure? The customer must pay in the Electricity bill for using this infrastructure because is "the way" which use the Electricity for arriving from the production to the End Customer connection. The problem presents nowadays is, the demand is decreasing but the price of Electricity is increasing. The first consequence for that is, the reduction of competitiveness in the Spanish economy for the high price of Electricity, and on the other hand, one collateral issue, the increasing production of Coal Power Plant.

In conclusion, it is well known the Utilities gives the responsibility to the policy for the excessive cost of Feed-in-Tariff subsidiaries to Renewable Energies. But is well known, when there is a great production of Wind Power (in the case of Spain can arrive to an average of 20% of the total mix generation, and in some cases being almost 50% of the total production) the cost of the Electricity gets down, then, the Renewable Energies are not the responsible for increasing the Electricity price.

The claim of Renewable Energy producers (and also some part of the End Consumers) is why the price of the Electricity is increasing and the demand decreasing. Some reports talk about the Utilities will invest in AMI and Analysis of the grid for DR control systems in the next years, but I think the Electric System must review some points which are on the table in a short term. May be what exposed the President of one of the Top 5 Utilities in Spain is right, when he is saying to "relocate" the money of Feed-in-Tariff for the  Renewable Energies (PV and Thermo-solar) into the Research for getting this technology "mature" in terms of profitability. But on the other hand, the Utilities and Government must review the cost of transmission and distribution assets because it is not possible to pay more money for the Electricity when the demand is lower.

Bottom line: All parts must be opened to find one solution because is in risk the competitiveness of the economy.

Google, the engine of the global "Smart" World

In the last blog, it was introduced the influence which Google is able to have in the next future "Smart" business and more in concrete with business which is related to energy, from energy generation to end consumer and the way for using marketing for getting the real needs from customer and the way to improve this implementations.

During this week it has been reviewed information in some media about the acquisition of Google in this last year and the products which is thinking to launch to the market, some of them, just waiting for the legal approval.

One of new possible implementations I knew as a casualty  reading some information about the future trends of satellite communications. Google is in implementation process about new innovative and low cost opeation systems for internet communications.

This systems which is between the conventional satellite system and earth communication systems used nowadays, will enable Google to create the own infrastructure communication systems around the world, at the beginning for its own communication systems and it will see in the future. Such as all communication systems, it will communicate information via wireless connecting Data Centers located in earth.

At the same time, Google has made one step forward this week with the implementation of Data Center supplied by Wind Power Farm in Sweden

With  this new application for supplying the electricity needs for Data Center performance, Google starts to get the most Energy Efficiency in the Operations of Data Centers, having the coverage of Renewable Energy production for reducing the cost of the electricity supplying to the server, the percentage of required power supply, of course, it will depend of the Wind Farm Production. It is well known, Data Centers has a great electricity consumption, being supplied by Medium Voltage (MV) and having also supplying in Low Voltage (LV) for auxiliary supplying, considering the great system for Heating, Ventilation and Air Conditioned (HVAC) systems for cooling the high temperature for the performing of Data Centers, and using one Uninterruptible Power Supply (UPS), for the assurance of the Electricity supplying, in some cases, with two companies for the supplying in case of whatever issue, and the Genset (normally Diesel Generator) in case of mayor issue. For that reason, I consider one example of complexity because Wind Power is being intermittent generation and considering Data Centers are critical infrastructure, in some cases is managing information with high relevance, in terms of security, the Data Center supplied by Wind Energy is a big challenge and I think is opening a new application for considering in next future.

Talking about big challenges, one acquisition of Google has been one company (Makani Power), which is developing Airbone Wind Power Systems (see picture at bottom of the blog), out of the conventional Wind Power systems. The system is one Airbone systems which is lifting in the air by the "plane structure", taking the most profit of the wind, for staying in altitude (less turbulence wind), in one vessel which reduce the material, cost and the fatigue in the structure (for non staying fix in the ground) and open a new possibility for Wind Power with unlimited resource and opening the wind resource to more placement, because the wind in altitude is more frequent than onshore or even conventional offshore.

On the other hand, I would like to know the technical characteristics in case of integration in Grid, but may be is a good system for implementing off-grid in remote places far from whatever Power Line.

Following with acquisition, months ago, Google got into the Robotics Industry business, with one US Robotic company, Boston Dynamics. In my blog (Robotics for optimizing renewable energies - blog ), I exposed the possibilities for Robotics Engineering will have in the next future for Operations and Management (O&M) business, and in concrete for Renewable Energies business, which O&M is the main reduction part of the Cash Flow generated by the electricity in a PPA contract, or in case of Europe and other countries by Feed-in-Tariff. In this context, why not think about the possibility to implement this Robotic Technology, which right now, is mostly developed for disasters, for developing in O&M business. By this way, getting other applications, being possible to get and enormous number of possibilities, which at the same time, in the most of cases, this robots will be able to be supplied by renewable energies and controlled them by the Google new communications system.

Following with Google product launches, some weeks ago, I listened about the Google glasses, it seems, it is going to be one tool for recording videos, pictures and being connected to internet watching like an small screen reflected in the glass, with the possibility for staying located by geolocation, of course if the device is under internet cover.

On the other hand, I think, only two weeks ago, I have listened about one lens which is able to control the sugar level for diabetic people, advising by some flashes by one red "micro-led" installed on the same lens and then advising to the user (patient).

Considering all this possibilities, and also what it was exposed on the last blog. And getting in consideration that Google can develope one complete system with never end possibilities.

Considering the investment of Google in Renewable Energies (in conventional and new systems), and then use it for supplying its infrastructure in Data Centers, using this data centers as part of the new communication system in a mix system of conventional earth systems and satellite communication systems, which at the end can control Electric Generation Systems, Robotics applications, Smart Home applications, Tablets, Smart Phones, Google Glass devices, and who knows which is going to be next, it is clear, it opens a lot of possibilities.

Making a supposition of all together, it is possible to get what is the magnitude about Google can implement. Trying to put one example, and please try to see in a constructive way, the important is to see the possibilities.

Imagine one situation, one person who is diabetic and it has the Google lens and Google Glass. Imagine the lens is indicating by flashing to this example person the level of sugar in blood exceed the normal level and this person starts to feels bad and unfortunately is falling down to the ground loosing the awareness and gets on the ground.

The possibility to implement actions by the complete systems developed for Google is able to be as next example. In this moment, after the patient is on the floor, the Google Glass can detect this patient has any problem because there is no flashes in his/her eyes in a determined time (flashes in eyes in some people is every hear beat) and being 11 o'clock in the morning and in the middle of nowhere (no people around half km or half mile).

This Google Glasses can detect that the person has any problem. The system can search by geolocation ( in the worst case, no one is close to this patient) whoever is close this patient who use Google Glass or even any Smart Phone, and send one message to this person advising: "Emergency - One person in the street "Calle suceso" is on the floor - diabetic patient". After receiving this message, the systems is indicating the way to get in the position of the patient is, and this person who goes walking to assist the patient is receiving one video by Youtube which explains the process that has to be followed for trying to restore the patient and even, the person, and others around the place, can received one medical professional talking at the phone for explaining the process.

During this process, one ambulance has been advice by the system, of course the closer ambulance to the place, and the police can be advised and one automatic system to regulate the traffic and then the ambulance make the trip in the less possible time. In the meanwhile the traffic which, may be is stopped in the road until the ambulance cross the street, can received advertisement after the advising in the "car radio" about one ambulance is going to cross the street in the next minutes.

In the next future, the regulation of traffic can be regulated automatically (semaphores etc), and why not regulated by Robots, for controlling the situation in whatever emergency situation.

When the person (or the persons) has arrived to the patient which is on the street, the medical entity can see the situation by the camera from the Google Glass of the person for attending (if required) the patient until ambulance arrives. At the same time, think about possibilities with new bracelets which read the heart beat for someone who can suffer a heart attack.

With the example of the situation exposed, I would like to express what is the possibility of the complete Google System. From the energy production to supply the electricity to the Data Centers (and in the next future for supplying robotic systems, self drive automatic electric vehicles and communications system) which are going to make more competitive systems  in a long term, by zero cost of raw material, Wind and Sun, just considering the O&M of the infrastructure.

The communication system, which will operate around the world, it can communicate and control all "Smart" devices coordinating all and giving real answer for optimizing all process in our "normal" life and making advertisement for profitability and for knowing the trends of every step takes by the company decreasing risk in the investment. This implementation can be one new system model of operation which perform all the chain, being one serious compentence for Utilities, Facilities, Health Care busines, Capital Goods, Automotive Industries, Bank Industry with the Smart Phone payment application "Wallet"., in the Simulation Industry for artificial intelligence, for starting to execute models of all this information, with acquisition of DeepMind Technologies, and in future...what else industry.

On the other hand, the only issue which this global system will bring, because one Big Data, independently operated by different servers, it is the possibility for being cracked in terms of cybersecurity (Hacker), then the security in the cyber industry is going to be crucial for the reliability of this next future applications.

Makani Power - Google Airbone Wind Energy

New member in the "Smart" game

During last "Consumer Electronics Show" in Las Vegas, it was possible to know new implementations and solutions for the next, and immediate future, from electronic consumer industry, covering a great range of innovative products from the most consumer product in electronics industry; e.g.: cell phones, home appliances, TV's etc, to one of the most extreme version of EV; eFIA (see video in youtube).

If it is taken in consideration the most known consumer electronics products, it is possible to get some information about the new possibilities. Regarding "Smart Homes", LG, one of the most important Korean Electronic Consumer with Samsung, it has presented a new "Home Chat", one tool which allows customers to communicate, monitor and share with all LG home appliances. The language used by this system is called, "Natural Language Processing (NLP)". This language enables to communicate, from every internet device, in this case; the Smart Phones with LINE (free calls and messages) to all the appliances which operates in home, giving a new dimension of the Domotic Technology. With this implementation, the Domotic takes control over all new systems which operates in future in this Smart Homes, and not only the most used implementations: HVAC and security.

With this new interaction, the customer has the possibility to control all home appliances and watch the state of all devices in the Smart TV. From this point, a lot of applications can be implemented. Some examples, the home appliances can give information to the Customer Service Department of the Brand in case of whatever issue, and communicating to try solving this issue in the office by remote control (making Resets, updating software or firmware). At the same time, the Service Engineer will know what is really the issue in the home appliances, and also known, number of cycles, kind of cycles in any washing machine or dishwashing, number of times it gets open the door of the freezer, reference number and year of production of the appliances for whatever consulting etc, and then, being with more information for not having issues with availability of properly spare part (in case of need it), and finishing the intervention in the first visit, very important thing for end consumer. And of course, the design and production can improve the Product.

In this context, it is easy to think what it will be future applications linked with LG has presented. The new applications in the Smart Phones will be the control of all new application which would be implemented in the new Smart Homes: EV, EV charger, security, domotic, Energy Efficiency etc and etc.

In this field, there are high number of possibilities, as example and related security, it is possible to control and monitoring the starting of the extraction ventilator in the hood, if right now the extraction hood can switch on when detects a determined level of steam, why is not possible for getting systems which control level of gas or carbon monoxide for security applications, and of course being connected with emergency responsible and Smart Phones of the customer. At the same time, in this new future control systems, the EV charger can give electricity from the battery of the EV to the grid (in contrary way as normally), in case of emergency in the electric system (outages), not being able to use home appliances or other electric devices which needs electricity, like it happened in USA with the extreme weather conditions weeks ago, and then, controlling all the electricity demand by security reasons from any responsible entity. Of course, all related with Energy Efficiency and Demand Response (DR) will have an extraordinary possibilities of new business opportunities, playing with high and low demand.

Related to Energy Efficiency, and not necessarily in any emergency situation, if it is checked some topics in Google Trend, it will be shown that one of the most important topics is: "Save Energy". The people is concerned about the cost (in terms of money) and the cost (in terms of environment) about energy.

Lawrence Berkeley National Laboratory, from US Department of Energy has developed one solution for comparing data coming from the energy management systems, which enables to compare this data from different buildings at the same time, and then getting conclusions about better performance and get Energy Efficiency best practice from the experimental point of view.

Regarding Utilities, one study from New York University gives some information about which will be the most important topics in future for their customers, being mainly; bill pay options, social responsibility and transparency.

Therefore, the future will bring a lot of new challenges for Utilities and then, possibilities, but of course it will be other companies and business which will know also this opportunities.

This week, Google announced the acquisition of Nets, one company which made temperature sensors for home applications. With this acquisition, Google will integrate all the information from the temperature sensors in internet. At the same time, Google, with the acquisition of Motorola, will have the possibility for integrating the information of all mentioned devices and applications in the Smart Phones and opening new range of possibilities in the Smart Homes technologies, even with possibility for, in the meanwhile it is checked the temperature in the sensor, customer can received advertisement.

Related with advertisement, one point which is also changing in the advertisement business is the way to contact with potential customers. Outbound Marketing is almost part of history, the customers are really tired to find more and more advertisement which sometimes is never watched. May be one reason of that is the great implementation of Marketing which gives more "quality" information, information which generates interesting content and the way to explained: "Content Marketing" and "Gamification", being really one alternative for the industry business, as it is well introduced in retail business so far.

There are some information  about  "Gamification" in the "Smart Energy" business. Some explanations about webs which are opened to the people to propose alternatives and solutions for the "day by day" performance for getting best practices by the experimentation of the people. One example is "www.worldwithoutoil.org", this web is a game for proposing alternatives for a life without oil, giving possibilities for working in team for finding solutions for Smart Homes and Smart Cities, it is one web which enables to improve the "day by day" life of the people in a complete system of interaction and interchange information regarding how to life with no petrol products.

Following with an example of Gamification, Siemens has been one company which has implemented one game for simulating Smart technologies in relation with Energy (see: power matrix and picture at bottom of post). This new concept of interaction, it will enable to share a lot of information worldwide, and the people will participate in the evolution and trend of the "things", being a collaborative system. 
Just thinking about possibilities of this new concept of sharing infomation and considering I have been working in home appliances industry, I see from another point of view, and regarding this Gamification Marketing, it is could be the finish of "Instructions for Use" (IFU's) as it is known, in my opinion this new concept can make the end of the IFU's in paper, and the starting for developing simulation systems for making more real and understandable the IFU's with the interaction of the customer with an screen playing with control panels and remote control of the appliances and devices and watching what is happening when it is pressed one determined button, and also helping to the producers to create the most "easy to use" products.

Taken in consideration all the points exposed, it is possible to conclude the main point of all this proposals is the big amount of data which will create all this implementations; from Smart Homes, Smart Cities, Smart Grids and all the applications involved. All this information will create a Big Data, an enormous data. It is well known the Big Data will be one of the most important points for the most of companies which are involved in the business mentioned for getting conclusions and trends about the needs for customers, technologies and how to implemented at a lower cost, and then, creating business strategies.

 As a example, one Utility can have the information regarding Electricity consumptions from a number of customer by AMI systems (consumption peak related to time etc). On the other hand, for example, Security company will have some information too, and get some conclusions about the needs of the customer and possibilities for improvement products and services. And of course, it will be possible to cross this information in a big data, from Utility and Security company, being one company which manage all this information and even give some advertisement in the customer's Smart Phone or PC when interact with this technologies, as Google can do with the temperature sensors.

Trying to get one conclusion of all explained, there will be one company which will be able to do all explained technically and in terms of advertisement possibilities as can make any Utility in close future, but this company will be in one preference position for knowing the best possible future business. Google it is a company of marketing which use all the technological possibilities for making this marketing; internet searcher, trends for advertisement, web SEO, geolocation and etc etc.

My question is , if Google crosses all the information coming from all the Smart Energy Technologies: Smart Homes, Smart Cities, Smart Grids, Renewable Energies, with the enormous information which is "created" on the web every day, Google will have an enormous information (and information is power), and then, the best positioned to get conclusions in terms of business and advertisemen.

...and it is well known, that Google has the best tool (search engine) for crossing all this information and extract conclusions for business and advertisement possibilities, which the rest of competence have not at the same technological level...