Saturday, 27 June 2009 18:35

Energy experts gathered at the Virtual Energy Forum to discuss concerns with smart grid technology that need to be addressed.  The forum is a free conference that brings together energy industry stakeholders twice a year.  This time the participants considered the role of the consumer within a smart grid.

Alan Schurr, vice president of strategy and development at IBM, spoke on the first day.  Schurr mentioned that utilities need to adapt different business models based upon smart grid infrastructure.  He cited a study from 2008 that said 70 percent of consumers were willing to find new ways of interacting with their power company.

More than 80 percent of study participants indicated they were interested in smart meters but there was no overriding opinion on how the devices should be used.  Those aged between 18 and 34 had no preference between using their computers, a wall panel, or an automation device to control energy consumption.

There are numerous smart meter projects underway that are focused on devices that display the level of energy consumption, but Schurr said this is not what customers may actually prefer.  “This is not the most desirable trait, people are looking more for management tools that consumption information,” he explained.

Despite the fact that utilities typically don’t encourage their customers to take an active role in their energy use, study participants responded that energy providers should educate their customers about smart grid technology.  The Internet was also named as an education source and younger consumers were most willing to educate themselves on the topic.

“There is a strong age bias around the innovativeness that consumers pursue, the millennial generation is much more interested in these products and services, and is willing to pay a premium,” added Schurr.  “Our research shows that consumers are more interested in setting preferences and parameters and having service providers automate processes.”

Consumers want to be able to customise their energy options, much like they do with their iPods or computers.  This requires a big change in how utilities conduct business, said Schurr.  “Utilities don’t follow this model,” said Schurr.

The IBM VP said it is imperative for energy providers to research their consumer market in order to determine what they want concerning smart grid technology and how that market may be segmented.  Utilities will have to consider the consumer in their strategic planning.  A “one size fits all” attitude from utilities will no longer suffice.

The second day of the virtual conference featured Bracken Darrell, president of Whirlpool Europe.  Darrell spoke on how appliances are evolving into more efficient, and intelligent devices.  “Passive energy reduction is what consumers are looking for,” he said.

Appliances have become much more energy efficient since the 1970s but future gains will be much more costly for consumers.  “The potential return on further improvement in absolute product efficiency is declining,” said Darrell.  “Any additional gains will likely lead to significant customer performance and product cost implications.”

In the green kitchen of the future, smart appliances will automatically switch on and off according to demand response signals.  “Each individual solution is the most energy efficient option, but collectively they are even more efficient due to smart logistics,” said Darrell.

Once smart appliances become common, renewable energy sources will become more valuable by creating variable demand when these sources are available.  Interactive storage of renewable power must be developed as well.  “Everyone in the industry needs to work together to develop global standards for communication protocols and create the proper incentive structures to make the grid cleaner and more efficient.”

Another speaker at the event was Matthew Appelbaum, mayor of Boulder, Colorado.  Appelbaum spoke on the city’s ambition to become America’s first smart grid city.  The mayor said that a smart grid would not only save money for the city but would also help them dramatically reduce carbon emissions.

“The smart program is a key component of our Climate Action Plan,” said Appelbaum, “the smart grid will help us meet our greenhouse gas reduction goals.”

IBM
One New Orchard Road
Armonk, NY 10504
http://www.ibm.com

Whirlpool
2000 North M63
Benton Harbor, MI 49022
http://www.whirlpoolcorp.com
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