Navigant Research Blog

The Race to Control the Smart Home Heats Up

— September 3, 2014

The race to control the smart home is heating up.  Four tech giants have made strategic moves that portend a lengthy fight – one in which consumers should come out ahead, eventually, and more energy efficient homes should result.

The four big players – Microsoft, Samsung, Apple, and Google – are each taking different approaches and are at different stages of development.  Their recent tactical moves include:

  • Microsoft is acting as an incubator.  The software giant (along with partner American Family Insurance) has set up an accelerator program to encourage tech startups to create smarter homes.  In the current round, 10 companies have been chosen, two with a clear focus on energy efficiency.  Chai Energy aims to give consumers real-time energy consumption data for the whole house and for individual appliances.  Heatworks offers what it calls “the first digital tankless water heater” to conserve energy and reduce water consumption.
  • Samsung is making acquisitions.  In August, the gadget and appliance maker announced its purchase of SmartThings, a startup offering a hardware-software solution that connects many in-home devices, such as light switches, outlets, locks, and thermostats.  Also in August, Samsung bought Quietside, a U.S.-based distributor of heating, ventilation, and air conditioning (HVAC) products, and the South Korean conglomerate says it will release an enhanced lineup of HVAC products that better addresses North American customers’ needs.
  • Apple is featuring HomeKit as part of iOS 8.  The mobile operating system will include HomeKit, a new software framework, when it is released this fall; the new software will enable users to connect iOS and third-party devices in the home in order to control lights, door locks, and thermostats, among other devices, from mobile devices.
  • Google’s Nest Labs is opening its platform. The company’s software is now available to outside developers that can write applications that connect devices to Nest thermostats and smoke detectors.  The company also acquired Dropcam, a startup that offers video monitoring equipment for the home.

No Quarter

This competition for smart home supremacy will continue for a number of years.  Why?  Because home energy management remains a fragmented world, with no single standard or platform.  No clear leader has emerged, and interoperability will be an issue.  Furthermore, none of these companies want to concede ground to the other if they don’t have to.  From an energy-savings standpoint, Google’s Nest Labs has momentum.  But don’t count out the others in terms of volume and the ability to drive adoption, particularly Apple and Samsung; both can leverage large installed bases of mobile device users, and Samsung has the advantage of already selling connected appliances.  The race has just gotten started.

 

New Approaches Boost Energy Efficiency

— August 7, 2014

National Grid’s U.S. division has rolled out a home energy management (HEM) pilot in Massachusetts that combines free hardware and special applications in a bid to get customers to cut their electricity use and help the utility manage demand more efficiently.  The pilot is targeted at customers in Worcester, which, for the past few years, has been the focal point of National Grid’s testing of smart grid technologies, including new Itron smart meters and other infrastructure upgrades.

About 15,000 customers are eligible to take part in the pilot.  They can choose from several free bundles of technology.  One of the more novel devices is a digital picture frame made by Ceiva that receives electricity consumption data from a smart meter and makes suggestions for reducing use.  Smart thermostats from Carrier and smart electrical plugs from Safeplug are also available.  Ceiva’s software, called Homeview, enables customers to view consumption data online and on mobile devices.  For the utility, Ceiva’s Entryway software suite supports the management of smart meter-connected home area networks, residential demand response (DR) capabilities, and energy efficiency programs.  The pilot is scheduled to last about 2 years at a cost of $44 million.

Cheers All Around

A number of utilities are deploying similar technology to help customers reduce energy consumption.  Glendale Water & Power and San Diego Gas & Electric support Ceiva devices as part of their efforts to encourage customers to use electricity more efficiently.  In addition, utilities like NV Energy, using EcoFactor technology, and Oklahoma Gas & Electric, which has deployed thermostats from Energate and software from Silver Spring Networks, have taken the lead on HEM programs for several years (for a deeper dive into the HEM space, see Navigant Research’s report, Home Energy Management).

Utilities like National Grid and the others mentioned here are to be commended for providing a range of technologies that help customers reduce consumption while also helping utilities meet efficiency targets.  That’s what a smarter grid is intended to do, and more utilities should do the same.

 

Behavioral Programs Yield Savings for Customers

— August 5, 2014

A new study of four rural cooperative utilities in Minnesota demonstrates that behavioral programs based on smart meter data can help customers become more efficient electricity users.  And while the results were encouraging, the savings were not overly dramatic, falling within the range of expected outcomes based on other similar programs.

Among the four Minnesota utilities, the average annual residential electricity savings ranged from 1.8% to 2.8% for customers who opted in to the MyMeter program, a web-based system that users can access to manage consumption.  The four cooperatives involved in the programs were Beltrami Electric Cooperative, Lake Region Electric Cooperative, Stearns Electric Association, and Wright-Hennepin Cooperative Electric Association.  The total number of households was more than 14,000.

MyMeter is a software solution provided by startup Accelerated Innovations that features four key offerings for customers who opt in: help with load management and efficiency, visualization of energy use, improved billing options, and a communications platform.

Consistent Findings

The study compared the four Minnesota cooperatives’ results with two utilities in Massachusetts that had gone through an evaluation of similar efficiency programs.  Results from Western Massachusetts Electric’s program showed average savings of 1.9%, while savings among customers taking part in Cape Light Compact’s program averaged 1.5%.  Though these results were somewhat lower than the Minnesota figures, the study authors viewed them as within the range of expected savings.

Although they weren’t part of this study, it is useful to note results from Opower, another behavioral-based vendor that helps utilities’ customers lower their energy consumption.  Opower says its behavioral programs can reduce energy consumption by 1.5% to 2.5%, on average – close to what the cooperatives achieved.

One benefit of the program for the four Minnesota cooperatives is that the state’s department of commerce has accepted the results and will allow the four to count the savings toward a state-mandated goal, which calls for energy savings of 1.5% of annual retail energy sales for each utility.

The programs used by the four Minnesota cooperatives are a clear example of what can be done when utilities leverage smart meter data by giving customers access to the information and the tools they need to reduce consumption.  Other utilities that have deployed smart meters should take note.  Behavioral programs can help achieve two goals: meeting regulatory mandates for overall energy reduction and satisfying customers who want new ways to manage their energy budgets.

 

Blackout-Plagued India Moves toward a Smarter Grid

— July 10, 2014

Utilities in India continue to take concrete steps toward upgrading to a smarter power grid that in the last few years has suffered massive blackouts.  Though the steps are not yet widespread, they show progress toward a more modern and stable grid.

Within a 2-week span, two utilities announced contract awards for new meters.  The largest announcement came when Bangalore Electricity Supply Company ordered 1.7 million digital smart meters from Landis+Gyr.  The meters are to be delivered over the next 12 months to Bangalore Electric, which provides power to the city of Bangalore and eight districts in the state of Karnataka, population 64 million.  The second recent announcement came when West Bengal State Electricity Distribution Company Limited ordered more than 1 million digital smart meters from Landis+Gyr.  Headquartered in Kolkata, the utility manages electricity distribution for 96% of the state of West Bengal, population 90.3 million.  West Bengal has been at the forefront of smart metering in India, having begun upgrading devices in 2009.  This deal follows an order for 1.5 million meters from Landis+Gyr, which were deployed last year.

Progress, Perhaps

In a separate deal, Essel Utilities will deploy an unusual retrofit meter solution.  The utility will install a module, made by local metering company Aquameas, that contains a radio unit from Cyan Holdings called the CyLec 865 MHz RF device.  A total of 5,000 of these units will be attached to existing meters.  The retrofit installations are to take place in the city of Muzaffarpur, in the state of Bihar, starting late in the fourth quarter of 2014.

Earlier moves made by Indian utilities and smart grid vendors indicate that the market is progressing.  Tata Power Delhi was the first utility in India to launch an automated demand response project with smart meters.  The project in the nation’s capital is for commercial and industrial customers that can take advantage of the latest technology.  Approximately 250 customers are involved, with the potential of helping shed loads totaling 20 MW.  Project partners include IBM, Honeywell, and Landis+Gyr.  Washington state-based meter provider Itron has made India a priority for its smart metering efforts, opening a lab last year to highlight its solutions for the Indian market, where it has also been active in supplying advanced water meters.

India still has a long way to go to reach its goals of a more modern electric grid that could eventually involve some 130 million meters.  But utilities are moving ahead with projects and pilots that could bring the country’s power grid closer to the 21st century.

 

Blog Articles

Most Recent

By Date

Tags

Clean Transportation, Electric Vehicles, Policy & Regulation, Renewable Energy, Smart Energy Practice, Smart Energy Program, Smart Grid Practice, Smart Transportation Practice, Smart Transportation Program, Utility Innovations

By Author


{"userID":"","pageName":"Neil Strother","path":"\/author\/neilstrother?page=4","date":"4\/2\/2015"}