About NES

NES was formed as a result of the spinoff of Echelon Corporation’s Grid Modernization Division in October 2014. However, the beginnings of NES go back much further than October 2014. Echelon Corporation was founded in 1988 by A. C. "Mike" Markkula, an original principal in Apple Computer, and led by M. Kenneth Oshman, one of the four founders of Rolm Corporation. Mike Markula was an angel investor for Apple Computer and also the second CEO of Apple Computer. The original vision for computer networking - connecting all kinds of devices ranging from industrial components to refrigerators and thermostats in the home - was ahead of its time. It ultimately found expression in systems that insure efficient energy use, known today as the “smart grid” and “IOT or the Internet of Things.” Echelon started as a private company that later successfully completed a public offering in July 1998.

NES has more than 15 years of experience working with utilities companies worldwide to supply the infrastructure for automation and value-added services for a broad range of applications. NES has been deeply involved in the world’s leading networked smart metering system deployments, including our role as the power line communications (PLC) and Data Concentrator provider to Enel SpA of Italy for their 30 million meter deployment in Italy.

In June 2000, Echelon entered into a research and development agreement with Enel, the world’s largest publicly traded utility, under which we integrated our PLC technology into Enel’s remote metering project in Italy.  In this project, which is called the Contatore Elettronico, Enel replaced its existing stand-alone electricity meters with communicating solid-state meters at over 30 million customer sites throughout its service territory.  This is the largest meter replacement and upgrade project ever undertaken in the world. The deployment started in 2001 and the project was completed in 2006.  Over 30 million PLC powered smart electricity meters and over 350,000 Echelon Data Concentrators were deployed by Enel, with new meters being installed at a rate of approximately 700,000 per month at the peak of the project. Our NES System builds upon the same core PLC communications technology, data concentrator technology and open standards employed in Enel’s Contatore Elettronico project and provides utilities with an extremely cost-effective system that can be deployed quickly to deliver immediate cost savings and operational improvements.   

In September 2002, Echelon began a technology trial with Continuon Netbeheer, a leading Dutch utility grid operator and subsidiary of the Dutch utility Nuon, now known as Alliander. The initial trial was completed successfully and progressed to a larger deployment of the initial NES system, designed to implement the complete end-to-end infrastructure of a full smart metering deployment, including the first of its kind joint deployment of smart electric meters and smart gas meters on the same communications infrastructure, with full connectivity through to Continuon’s information systems and business processes.  We worked closely with Nuon during the planning, implementation, integration and installations phases of the pre-deployment pilot, which was successfully completed in 2004.

Following these projects, NES has worked on numerous advanced smart grid meter deployments with large utilities such as Vattenfall and E.ON in Sweden, Fortum in Finland, Duke Energy in the U.S, Tauron in Poland, SEAS-NVE, NRGi, EnergiMidt and ELRO in Denmark, and Alliander in the Netherlands as well as numerous other deployments and trials with utilities throughout the world. Today, NES’ smart grid technology is used in nearly 40 million smart meters and other smart end devices around the world.

In the early stages of its existence, the NES System was composed primarily of Smart Meters, Data Concentrators, and two primary software tools: a head-end data collection system referred to as NES System Software used by utilities to collect data and remotely configure the devices on the network, and an optical configuration tool (the NES Provisioning Tool) used to locally configure those devices.

The collection of devices and software tools that comprise the NES System has expanded since that time. In 2010, the first Control Point Module was released. Control Point Modules enable devices connected to low voltage grids, such as load control modules and power quality sensors, to become intelligent end points in the NES System capable of communicating and interacting with the other devices on the NES system - extending the smart grid beyond the meter.

This was followed shortly with the introduction of OSGP (Open Smart Grid Protocol) Modules. OSGP Modules vastly expanded the capacities of the NES system by providing the capacity to transform basic electric meter and devices into smart, communicating meters capable of interoperating with the Networked Energy Services (NES) system in much the same fashion that meters manufactured by NES do. As part of this effort, the European Telecommunications Standards Institute (ETSI) published the Open Smart Grid Protocol (OSGP). This specification, based largely on the way the NES system is designed, defines an open standard for smart grid device communication on networks such as the NES System, providing even more opportunity for the NES system to grow.

The Smart Meters and Control Nodes manufactured by NES have continued to evolve and improve. In 2014, the DCN 3000 Distributed Control Node was released: a highly advanced Control Node offering significant improvements over the earlier Data Concentrator models. This was followed in 2015 with the introduction of the Generation 4 Smart Meter, which provided even more advanced metering features and flexibility than the earlier meter models.

With these improvements to the hardware products that comprise the NES System have come improvements to its software tools as well, from enhancements to NES System Software and to the NES Provisioning Tool, to new software applications that can be used for network diagnostics, topology management, and a host of other network tasks.

In 2015, NES introduced an industry-leading security suite: NES Security Suite v4. This AES-based security protocol, which is referred to as OSGP-AES-128-PSK, was also recently added to the OSGP Smart Grid Protocol (OSGP) Specification.

NES looks forward to continuing to evolve and improve these products to offer the best and most efficient smart grid networking options possible.

NES was formed as a result of the spinoff of Echelon Corporation’s Grid Modernization Division in October 2014. However, the beginnings of NES go back much further than October 2014. Echelon Corporation was founded in 1988 by A. C. "Mike" Markkula, an original principal in Apple Computer, and led by M. Kenneth Oshman, one of the four founders of Rolm Corporation. Mike Markula was an angel investor for Apple Computer and also the second CEO of Apple Computer. The original vision for computer networking - connecting all kinds of devices ranging from industrial components to refrigerators and thermostats in the home - was ahead of its time. It ultimately found expression in systems that insure efficient energy use, known today as the “smart grid” and “IOT or the Internet of Things.” Echelon started as a private company that later successfully completed a public offering in July 1998.

NES has more than 15 years of experience working with utilities companies worldwide to supply the infrastructure for automation and value-added services for a broad range of applications. NES has been deeply involved in the world’s leading networked smart metering system deployments, including our role as the power line communications (PLC) and Data Concentrator provider to Enel SpA of Italy for their 30 million meter deployment in Italy.

In June 2000, Echelon entered into a research and development agreement with Enel, the world’s largest publicly traded utility, under which we integrated our PLC technology into Enel’s remote metering project in Italy.  In this project, which is called the Contatore Elettronico, Enel replaced its existing stand-alone electricity meters with communicating solid-state meters at over 30 million customer sites throughout its service territory.  This is the largest meter replacement and upgrade project ever undertaken in the world. The deployment started in 2001 and the project was completed in 2006.  Over 30 million PLC powered smart electricity meters and over 350,000 Echelon Data Concentrators were deployed by Enel, with new meters being installed at a rate of approximately 700,000 per month at the peak of the project. Our NES System builds upon the same core PLC communications technology, data concentrator technology and open standards employed in Enel’s Contatore Elettronico project and provides utilities with an extremely cost-effective system that can be deployed quickly to deliver immediate cost savings and operational improvements.   

In September 2002, Echelon began a technology trial with Continuon Netbeheer, a leading Dutch utility grid operator and subsidiary of the Dutch utility Nuon, now known as Alliander. The initial trial was completed successfully and progressed to a larger deployment of the initial NES system, designed to implement the complete end-to-end infrastructure of a full smart metering deployment, including the first of its kind joint deployment of smart electric meters and smart gas meters on the same communications infrastructure, with full connectivity through to Continuon’s information systems and business processes.  We worked closely with Nuon during the planning, implementation, integration and installations phases of the pre-deployment pilot, which was successfully completed in 2004.

Following these projects, NES has worked on numerous advanced smart grid meter deployments with large utilities such as Vattenfall and E.ON in Sweden, Fortum in Finland, Duke Energy in the U.S, Tauron in Poland, SEAS-NVE, NRGi, EnergiMidt and ELRO in Denmark, and Alliander in the Netherlands as well as numerous other deployments and trials with utilities throughout the world. Today, NES’ smart grid technology is used in nearly 40 million smart meters and other smart end devices around the world.

In the early stages of its existence, the NES System was composed primarily of Smart Meters, Data Concentrators, and two primary software tools: a head-end data collection system referred to as NES System Software used by utilities to collect data and remotely configure the devices on the network, and an optical configuration tool (the NES Provisioning Tool) used to locally configure those devices.

The collection of devices and software tools that comprise the NES System has expanded since that time. In 2010, the first Control Point Module was released. Control Point Modules enable devices connected to low voltage grids, such as load control modules and power quality sensors, to become intelligent end points in the NES System capable of communicating and interacting with the other devices on the NES system - extending the smart grid beyond the meter.

This was followed shortly with the introduction of OSGP (Open Smart Grid Protocol) Modules. OSGP Modules vastly expanded the capacities of the NES system by providing the capacity to transform basic electric meter and devices into smart, communicating meters capable of interoperating with the Networked Energy Services (NES) system in much the same fashion that meters manufactured by NES do. As part of this effort, the European Telecommunications Standards Institute (ETSI) published the Open Smart Grid Protocol (OSGP). This specification, based largely on the way the NES system is designed, defines an open standard for smart grid device communication on networks such as the NES System, providing even more opportunity for the NES system to grow.

The Smart Meters and Control Nodes manufactured by NES have continued to evolve and improve. In 2014, the DCN 3000 Distributed Control Node was released: a highly advanced Control Node offering significant improvements over the earlier Data Concentrator models. This was followed in 2015 with the introduction of the Generation 4 Smart Meter, which provided even more advanced metering features and flexibility than the earlier meter models.

With these improvements to the hardware products that comprise the NES System have come improvements to its software tools as well, from enhancements to NES System Software and to the NES Provisioning Tool, to new software applications that can be used for network diagnostics, topology management, and a host of other network tasks.

In 2015, NES introduced an industry-leading security suite: NES Security Suite v4. This AES-based security protocol, which is referred to as OSGP-AES-128-PSK, was also recently added to the OSGP Smart Grid Protocol (OSGP) Specification.

NES looks forward to continuing to evolve and improve these products to offer the best and most efficient smart grid networking options possible.