Strategic Developer: Franchising the energy web

20.06.2006
I'm already so depressed about the sorry state of our planet's energy systems that I'm afraid Al Gore's An Inconvenient Truth would just send me over the edge. Oh, I'll probably relent and go see the movie, but in my case the ex-Veep will be preaching to the choir. I don't need to be convinced any more than I already am that we're in for a rough ride. What I need, instead, are hopeful signs that we'll be able to engineer our way out of the mess we're in.

Among the various road maps, one published in 2003 (http://www.epri.com/roadmap/) by the Electric Power Research Institute stands out among the crowd, head and shoulders above the White House's own plan (http://www.whitehouse.gov/energy/National-Energy-Policy.pdf). The EPRI report lays out a carefully staged, decades-long strategy that includes modernization of the power grid, decentralized production, real-time price signals in support of demand response capabilities, and -- in the long term -- use of hydrogen as a complementary energy carrier.

In "The Energy Web (http://www.infoworld.com/4232)," an October 2004 blog essay, I bemoaned the fact that, during the run-up to that year's U.S. presidential election, neither of the political parties were championing any of EPRI's excellent analysis and solid planning. In the end, however, I concluded that neither could contribute much.

Information technology is both the key enabler and a prime beneficiary of the EPRI vision, and information technologists -- not politicians -- will make the difference. "Maybe," I mused, "a new entrepreneurial partnership between energy and IT is all we really need."

Last Friday, I got a glimpse of what such a partnership might look like. For my weekly podcast (http://akamai.infoworld.com/weblog/udell/gems/ju_frost.mp3), I interviewed Mike Frost, CEO o f Site Controls (http://site-controls.com/), a 3-year-old Austin, Texas, startup focused on the part of the energy web that can be built out now, for profit, with near-term ROI and a growth path that could eventually produce macro-level network effects.

Site Controls works with retail, restaurant, and convenience-store franchises. Using an Internet-connected server based on Linux and Java at each location, its system monitors and controls CO2 sensors, HVAC fans, and thermostats for two purposes: to lower operating costs and to assure QoS (quality of service). In this context, QoS might mean the permissible temperature range for Petco's fish tanks.