Opower, one of the largest providers of behavioral energy efficiency and demand response (DR) solutions to utilities, recently announced results from its latest behavioral DR (BDR) program this summer. The company reports that it deployed over 12 million personalized communications across 29 DR events, delivering 3% average peak reduction and over 5% savings for programs employing peak time rebate pricing plans. Utilities included Baltimore Gas and Electric, Commonwealth Edison, DTE Energy, Consumers Energy, Pacific Gas and Electric, and Hydro Ottawa.
This news underscores a growing trend of utilities looking to expand their demand-side management (DSM) programs through non-hardware-based methods in order to more cost-effectively engage a larger swath of their customer bases. With increased access to advanced metering infrastructure (AMI) smart meter data, electronic communication methods, and software-based tools, many companies are designing ways to use behavioral and analytical concepts in the energy industry that have been successfully implemented in other industry sectors.
Behavioral methodologies include ideas like home energy reports, which compare residential customers’ usage to their neighbors, and BDR, where customers get notifications when energy prices are high or when the grid is stressed. These methods rely on customer actions, as opposed to automated responses through hardware like thermostats or light bulbs. Such programs may capture less savings per customer than hardware, but due to a lower capital cost, they can be rolled out to many more customers to achieve a similar or greater aggregate impact.
Analytical tools like virtual energy audits and end-use disaggregation provide opportunities to greatly increase the effectiveness of DSM programs for commercial and industrial customers. As opposed to the standard practice of utilities sending energy engineers to do onsite audits of every building in order to determine energy savings potential, software programs can take in utility meter data and layer on facility characteristics and weather history to create an accurate picture of energy usage before stepping in the door. This allows for prioritization within a portfolio of buildings so that the highest-potential sites can be targeted first for further investigation, rather than random door-to-door approaches.
These types of programs are described in Navigant Research’s new report Behavioral and Analytical Demand-Side Management. The programs are still emerging, and there are barriers to overcome in order to reach large-scale deployment, but the path does appear favorable for success. Most of the activity currently comes from vendors and utilities in the United States, but it will soon spread to Europe, Asia, and beyond.
Tags: Advanced Metering Infrastructure, Demand Side Management, Utility Transformations
| No Comments »