German utility Yello Strom steals the smart grid spotlight — at least for today

The net is abuzz today with talk of Yello Strom, the German utility that reportedly takes smart grid technology and web integration to the max with its new Sparzahler meter — rivaling U.S. utilities that are just beginning to adopt green initiatives. But, on closer inspection, it’s simply the first to integrate a lot of features that debuted in the U.S.

sparzahler

For example, one of the Sparzahler’s celebrated features is that it’s the first European smart meter to give its customers access to Google PowerMeter — but there are already eight North American utilities that do the same. The other is that the company is developing an application that will let its smart meters tweet customers’ energy consumption. But Yello Strom isn’t the first to work on this idea either. Back in February, we reported on a startup called Tweet-a-Watt that also tweets energy data via a plug-in energy meter made by Zigbee. It makes sense that Yello Strom’s Twitter app is getting more attention than Tweet-a-Watt’s because it has the full weight of a utility behind it (and won’t require consumers to buy an additional gadget), but it’s not a revolutionary concept.

On top of that, how many people really want their energy consumption broadcast over Twitter? How many really want to constantly see how much power their friends are using? Yes, it sounds like a cool piece of technology (in a “look what we can do!” kind of way) but with Twitter’s niche traction, it’s a longshot that this use of the micro-blogging site will become a household norm in Germany or elsewhere. It might even seem a little random as a bonus feature — though, as Fast Company points out, it makes more sense for a utility in Germany’s deregulated energy market where companies have to constantly compete for customers.

Perhaps the biggest difference in the Yello Strom model is that it has to sell its smart meters to households for about $5.60 to $11.24 a month. In the U.S., most utilities are providing them to customers for free. Predictably, this has shrunk the scale of its roll out, with the utility reporting sales of 100 to 200 meters a day. When a U.S. utility like PG&E or Florida Power and Light deploys smart meters, it happens in the hundreds of thousands (and eventually the millions by 2012).

Yello Strom meters are also unique in that they use home broadband connections, as opposed to broader wireless networks operated here by companies like SmartSynch, Silver Spring Networks and the like. On one hand, this means faster data retrieval, on the other, home networks are more prone to outages and disruptions, so it’s a toss up. The one clear advantage is that hooking into home broadband will allow Yello Strom to continue innovating helpful, consumer-facing applications like the Twitter client to help regular people better understand their energy use and finances — and ultimately alter their habits. This won’t be impossible for American network providers, just not as quick and easy to implement.

So while excitement over Yello Strom and its business model is not completely unmerited, it would be hasty to declare Europe in the lead when it comes to the smart grid. After all, Google PowerMeter and Microsoft Hohm — perhaps the two most groundbreaking household energy management systems yet (which Yello Strom has pounced on) — are U.S. exports.

Next Story: DOE taps DuPont for $9M solar research project
Previous Story: Gilt Groupe gets $40M to make luxury online retail even glitzier

Bookmark and Share

Tags: , , , ,

Photo of Camille Ricketts

About the Author, Camille Ricketts

Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.

With GreenBeat 2009, VentureBeat's all-star conference on all things Smart Grid, coming up in November, Camille will be expanding coverage of this exciting space. Stay up to date by following @greenbeat2009 on Twitter or by becoming a fan of the event on Facebook here.

  • Bruno
    Europe Is lightyears ahead in cleantech. There is absolutely no way how the us with its crappy education system and non-skilled workers could compete with that. You don't agree? Then you probably also think that frequent power outages and busy 911 numbers are just normal.
  • katiefehrenbacher
    Thanks for the analysis of the piece I wrote. A few things I wanted to address in your post.
    First off I think you're missing the point of the original story -- I think Yello Strom is one of the most innovative utilities, which includes that they're taking some of the biggest risks. Which is why I called them "the coolest" not the most successful -- they're really interesting because they are embracing broadband. And they are doing so mostly because they are in a deregulated market. Which is a totally different market than the regulated U.S. power market. My story purposefully didn't pose that Europe is taking the lead in smart grid, so I'm not sure where you're getting that as your conclusion.

    Also Tweet-a-Watt isn't a startup, it's a project created for the Greener Gadgets conference, which could be offered as an open source project. It's not a startup itself.