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The role of the demand side in delivering effective Smart Grids
Initial results from Task 23 of the
IEA DSM Implementing Agreement
Linda Hull, EA Technology
Task 23 Operating Agent
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The partners
Task 23: The role of the demand side in delivering effective Smart Grids
TECHNOLOGY TOOLS
POLICY
CUSTOMER
SMART GRID
TECHNOLOGY TOOLS
POLICY
CUSTOMER
TECHNOLOGY TOOLS
POLICY
CUSTOMER
TECHNOLOGY TOOLS
POLICY
CUSTOMER
SMART GRID
Exploring the interaction of policies, technologies and other tools - from the perspective of consumers
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What is expected of consumers?
Smart appliances
Home energy manager Smart meter
In house display
Controllable thermostat
Micro-generation
Electric Vehicles
More complex tariffs
Smart Phone
Customers as active participants • how much energy they use • when they use energy
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Energy Behaviour
External facilitators
External barriers
Awareness
Attitude
Social Norm
Self efficacy
Intention Behaviour Habitual behaviour
positive feedback
negative feedback
Societal level
Individual level
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External facilitators
External barriers
Awareness
Attitude
Social Norm
Self efficacy
Intention Behaviour Habitual behaviour
Societal level
Individual level
Impact of markets
Market unbundling J Opportunity for new entrants to
offer innovative solutions L Broken value chain
Competition J Autonomy L Too much choice
Mandated ToU tariffs J Incentive to avoid demand
during peak J Loss of autonomy L Impact on low income /
vulnerable customers
Regulation of monopoly activities J Incentives to seek innovative
solutions Approach - market mapping
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The individual ..
• Case studies – 38 pilots / trials /
schemes
• Existing consumer surveys – 22 surveys
• UK market research – 1,000 households
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External facilitators
External barriers
Awareness
Attitude
Social Norm
Self efficacy
Intention Behaviour Habitual behaviour
Societal level
Individual level
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14
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11
7
6
49
59
56
32
44
27
16
25
26
43
44
55
3
4
14
5
12
0 20 40 60 80 100
Saving money is the most important thing about reducing energy use
I am concerned about the environment and do anything I can to help the planet
An important reason why I want to reduce our energy consumption is because I am
concerned about the environment
I think climate change is generally exaggerated
I think saving energy is important but I wouldn’t change my lifestyle to do it
I tend to choose electricity and gas suppliers that have reward point schemes
%
Completely agree
Agree
Disagree
Completely disagree
Base: All (1004)
Attitudes towards energy efficiency UK market research for Task 23
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Q: How far would you agree or disagree with each of these statements…? § Saving money is the key aspect of energy efficiency… § Around half (49%) would accept some change in their lifestyle in order to save
energy
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8
32
22
20
50
49
40
15
23
31
3
6
9
0 20 40 60 80 100
… if there was a reward/incentive scheme of some kind?
… if there were ways of scheduling appliances and activities that use
electricity automatically, rather than having to do so yourself/manually?
… if you could control household appliances remotely (i.e. when you are
out of the home)
%
Very interested
Fairly interested
Not really interested Not at all interested
Base: All (1004)
Overall Interest in the DSR Concept UK market research for Task 23
§ The general interest in DSR is relatively high, esp. if there is an incentive/reward scheme (although at this point no level of reward was specified)
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Ecowatt launched in 2009 - 18,500 Internet users have signed up to EcoWatt alerts - consumption has fallen between l% and 1.5% at peak periods
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Thinking Energy
• Trial in Milton Keynes – Partners E.ON, Milton Keynes Council, National Energy Foundation – 75 homes
• Householders use the system to – Educate themselves about their energy use – Gain greater heating comfort – Gain extra control over appliances
Source: GreenWave
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Time of Use Tariffs In Italy • Since January 2012
– Customers subject to a ToU tariff • Unless they switch to a supplier acting in competitive market
– Peak prices between 08:00 – 19:00 (working days)
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• Results – Minimal impact on load curve – To get a benefit < €1/year
• Consumer would need to shift more than 20% of their energy
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Results – market status
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MRL is generally lower than IRL - confirms that Smart Grid initiatives still at early market stage
Market readiness level - MRL
Initiative readiness level - IRL
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What Next? • Helping to ensure that Smart Grids move from early
market to mainstream users – crossing the chasm
• By ensuring that Smart Grid propositions designed to meet the needs of consumers
Diffusion of innovation
innovators early adopters
early majority
late majority
laggards
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What do Smart Grids offer?
Support move to low carbon economy • Reduced carbon emissions • Facilitates connection of
renewables / new electric loads • Optimising use of existing network
assets • Optimise use of renewable
generation
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What do Smart Grids offer consumers?
Want / need Examples
Tangible benefits Cost savings or other incentives Time savings Improved comfort
Autonomy Information on usage / learning Choice (products / tariffs / service offering) Control over home environment
"Feel good" factor Reduced emissions / impact on climate