As businesses continue to position themselves for a share of federal grants worth $4.5 billion debate has centred about what type of customers can share more energy.  Industrial consumers are larger energy users than the aggregate total for the residential sector and may have an even greater incentive to reduce consumption.

However, smart grid innovators concerned with developing technology for use in the home point out that they are developing methods that can save individuals money, thus putting more money in their pockets.  These businesses are focusing on “the little guy” while the other side of the debate is focused on “big business.”

Time of use pricing programs have been around for years for large industrial customers and remain the most popular type of smart grid program available today.  Companies including CPower and EnerNOC have enlisted large commercial energy users into their energy management programs.  Comverge and Cooper Power, on the other hand, have been helping utility companies bring smart grid technology to residential consumers.

The Electric Power Research Institute (EPRI), an independent, non-profit group funded by the electric utility industry, published results of a study in January that showed demand response would be evenly distributed among the commercial, industrial, and residential sectors in the future.

Obviously, demand response programs for residential consumers are a very different market than the one for large industrial and commercial users.  Instead of a several-hundred or a few-thousand large customers, residential consumers number in the millions and depending upon where people live they consumer power very differently.

“Residential demand response has yet to prove that it works,” said Bob Dolin, chief technology officer at Echelon.  Echelon has the unique position as a large player in both commercial and residential smart grid technology.  It is a leader in building automation technology and played a major role in Italy’s deployment of 30 million smart meters over a five-year period from 2000 to 2005.

Dolin added that most residents probably aren’t at home during the times of day when energy prices are highest – between 4 and 6pm.  This is an obvious point for the commercial and industrial market when plants and businesses are open.

Gary Fromer, chief executive officer of CPower, agrees with Dolin’s analysis.  Fromer believes smart meters and smart appliances are devices that we can “look forward to over the long-term.”

“Society will have to spend quite a bit of money to install smart meters, controls and intelligent appliances in homes,” said Fromer.  “The biggest bang for the buck that we can get immediately is large energy users learning to better manage systems that are in many cases already in place.”
Bud Vos, CTO at Comverge, says that residential consumers can’t be ignored and can be signed up for long-term contracts.  Commercial and industrial customers typically opt for short-term contracts.

The residential smart grid market is largely untapped.  It will develop as smart grid technology becomes more available as will new prospects for the sector.  Trial runs have shown promising results where consumers are able to save 20 percent off their monthly bills simply by tracing their consumption through a smart meter.

 

CPower
17 State Street, #129
Suite 1910
New York, NY 10004
www.cpowered.com

EnerNOC
75 Federal Street
Suite 300
Boston, MA 02110
http://www.enernoc.com

Comverge
120 Eagle Rock Road, Suite 190
East Hanover, NJ 07936
http://www.comverge.com

Cooper Power
1319 Lincoln Avenue
Waukesha, WI  53186-5386
http://www.cooperpower.com

Echelon Corporation
550 Meridian Ave.
San Jose, CA 95126 USA
http://www.echelon.com

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