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Eastern protocols and the pan-Asian energy network
An ambitious plan to connect energy systems from China to Australia raises the question of whether such grand designs could help shape the nature of smart grid protocols in the region.
Imagine a massive, interconnected energy system stretching more than 9,000 kilometres from Mohe in China to Hobart in Australia. Sounds ambitious? Not to Simon Taggart, one of the founders of the Desertec Foundation, who now has an even grander vision for Asia.
His company, Grenatec, is touting a ‘pan-Asian energy infrastructure’, which will tie in existing and planned grid connections with gas and fibre optic lines to “increase energy market competition, lower consumer prices and increase energy security,” according to its website.
Taggart thinks the money to pay for the venture could come from the elimination of current fossil fuel subsidies and “other economic perversities.” But is such a scheme feasible? And if so, what smart grid communications protocols might be needed to make it work?
“This is a long-range vision,” states Taggart. “Our objective, which we are achieving, is to reduce the fragmented thinking in the infrastructure area in the region, which views infrastructure projects on a strictly national basis.
“Grenatec’s objectives are to get industry and government to realise there are huge multilateral cost benefits and efficiency gains by thinking big, thinking collectively and integrating markets.”
In terms of communications protocols, Taggart maintains that: “National smart grids are a lot less smart if they can’t talk to their neighbours. Open, agreed standards create huge efficiencies. The internet showed this through universal acceptance of the Internet Protocol.”
Taggart’s mention of Internet Protocol, or IP, could be coincidental. But there are good reasons to suspect IP might be a natural communications fit for the kind of infrastructure he is proposing, since it is already used to connect networks on an even wider scale.
Furthermore, several potential members of the pan-Asian energy club are already very advanced in terms of IP communications.
Network readiness
Singapore, Hong Kong, Taiwan, the Korean Republic and Australia all figure among the top 20 nations in the World Economic Forum’s 2009-2010 Networked Readiness Index of propensity to exploit IT communications opportunities, for example.
Eric Dresselhuys, executive vice president of Silver Spring Networks, which advocates IP-based smart grid technologies, says: “Even if there was no grand plan to link up the electrical grids, being interoperable from a supervisory control point of view would still have value.
“Everybody wants interoperability, everybody wants to leverage a global marketplace for products and everybody wants proven products. That’s really quite valuable.”
Still, before a scheme like the pan-Asian energy infrastructure can channel smart grid communication development towards a common standard such as IP, it first has to gain acceptance among potential member nations.
And observers feel there is still a long way to go on this front. Says Danny Dicks, principal consultant at the Innovation Observatory: “They are at too early a stage of development for utilities to be considering the communications question yet.
“I think utilities will wait to see what traction the ideas have before they consider the detail of communications protocols.”
Meanwhile Jenny Chase, who specialises in the Chinese energy market at Bloomberg New Energy Finance, says: “China is built on trade, so perhaps it would be in favour.”
However, she adds, in order to achieve the economies of scale envisaged by Grenatec, “you don’t need that big a grid.”
Five parties
Taggart argues that for the Grenatec concept to work, “you really just need five parties, Japan, South Korea, China, the Association of Southeast Asian Nations and Australia, to get around a table.”
He reasons China, Singapore and Australia could all have an interest in taking the lead in such a project. China, he notes, could provide the ultra-high voltage direct current transmission technology. Singapore would be an obvious home for overall network management.
And Australia, Taggart says, “could take the lead since it, perhaps more than any country, has the most to gain.”
Dresselhuys of Silver Spring Networks counters that Australia “has already done more on smart grid than the other countries, so they might feel that they don’t have a problem.”
Overall, the fact the proposed members of the energy infrastructure group include wildly different ideologies and political agendas makes it difficult to see how Grenatec’s vision might take place in practice. Nonetheless, Dresselhuys remains optimistic.
“Grand plans can be quite useful because they can rally the political will to get things done, to make these things a moon shot,” he says. “If you don’t have that big goal in mind it can be challenging to get these things resolved. I like it for that reason.
“But a grand plan that is an unfunded mandate isn’t so good. It can be disheartening to participants.”
Going back to IP, he says: “The internet never had a grand plan, but it did have standards, and those standards transcended international borders. My message would be that it’s possible to do this, and to do it at scale. Let’s get to work.”
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