Photo: Visit Malta
The Mediterranean island nation of Malta on Wednesday unveiled a deal with IBM to build a “smart utility” system that will digitize the country’s electricity grid and water system.
Granted, Malta is a microstate with a population of 403,500 (smaller than Sacramento; bigger than Iceland). But the world — and utility infrastructure giants like General Electric (GE) — will be watching closely. Not only is Malta the first country to green its national grid but it will also serve as a test case for whether integrating so-called smart technologies into both electricity and water systems can help mitigate the increasing deleterious effects of global warming on the island.
As with other island states, power and water are intricately linked on Malta. All of the archipelago’s electricity is generated from imported fuel oil while the country depends on energy-intensive desalinization plants for half its water supply. Meanwhile, rising sea levels threaten its underground freshwater supplies.
“About 55% of the cost of water on Malta is related to electricity – it’s a pretty staggering amount,” Guido Bartels, general manager of IBM’s Global Energy & Utilities Industry division, told Green Wombat from Malta on Tuesday.
So how can digitizing the grid help? IBM (IBM) and its partners will replace Malta’s 250,000 utility meters with interactive versions that will allow Malta’s electric utility, Enemalta, to monitor electricity use in real-time and set variable rates that reward customers that cut their power consumption. As part of the $91 million (€70 million) project, a sensor network will be deployed on the grid – along transmission lines, substations and other infrastructure – to provide information that will let the utility more efficiently manage electricity distribution and detect potential problems. IBM will provide the software that will aggregate and analyze all that data so Enemalta can identify opportunities to reduce costs – and emissions from Malta’s carbon-intensive power plants. (For an excellent primer on smart grids, see Earth2Tech editor Katie Fehrenbacher’s recent story.)
A sensor network will also be installed on the water system for Malta’s Water Services Corporation. “They’ll indicate where there is water leakage and provide better information about the water network,” says Robert Aguilera, IBM’s lead executive for the Malta project, which is set to be completed in 2012. “The information that will be collected by the system will allow the government to make decisions on how to save money on water and electricity consumption.”
Cutting the volume of water that must be desalinated would, of course, reduce electricity use in the 122-square-mile (316-square-kilometer) nation.
With the U.S. Congress debating an economic stimulus package that includes tens of billions of dollars for greening the power grid, IBM sees smart grid-related technologies as a $126 billion market opportunity in 2009. That’s because what’s happening in Malta today will likely be the future elsewhere – no country is an island when it comes to climate change. Rising electricity prices and water shortages are afflicting regions stretching from Australia to Africa to California.
IBM spokeswoman Emily Horn says Big Blue has not yet publicly identified which companies will be providing the smart meters, software and other services for the Malta grid project.
Malta’s greenhouse gas emissions are expected to rise 62% above 1990 levels by 2012, according to the European Environment Agency, and as a member of the European Union the country will be under pressure to cut its carbon. A smart energy grid will help but Malta, like Hawaii and other island states, will have to start replacing carbon-intensive fuel oil with renewable energy.
The island could present opportunities for other types of smart networks. According to the Maltese government, Malta has the second-highest concentration of cars in the world, with 660 vehicles per square kilometer. That also contributes to the country’s dependence on imported oil and its greenhouse gas emissions.
Given that Silicon Valley company Better Place has described islands as the ideal location to install its electric car charging infrastructure, perhaps CEO Shai Agassi should be looking at adding Malta to the list of countries that have signed deals with the startup.