electricity retailing: location-based approach for quality customer experiences

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Electricity retailing: location-based approaches for quality customer experiences Hervé Senot Director, Carbon::GIS GIS & energy analytics 25/09/2014

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Page 1: Electricity retailing: location-based approach for quality customer experiences

Electricity retailing: location-based

approaches for

quality customer experiences

Hervé SenotDirector, Carbon::GIS

GIS & energy analytics

25/09/2014

Page 2: Electricity retailing: location-based approach for quality customer experiences

People + systems.

Page 3: Electricity retailing: location-based approach for quality customer experiences

This presentation: industry, government &

academic.

Page 4: Electricity retailing: location-based approach for quality customer experiences

Introduction

Electricity retailing and … location? Really?

Page 5: Electricity retailing: location-based approach for quality customer experiences

Electricity generation and location: sure.

Page 6: Electricity retailing: location-based approach for quality customer experiences

Source: Sustainability Victoria, Victorian Wind Atlas

Page 7: Electricity retailing: location-based approach for quality customer experiences

Electricity distribution and location: fine.

Page 8: Electricity retailing: location-based approach for quality customer experiences

Source: Seattle City Light, Vegetation Management

Page 9: Electricity retailing: location-based approach for quality customer experiences

Electricity retailing: interface between users

and the grid

Page 10: Electricity retailing: location-based approach for quality customer experiences

Source: Herald Sun, Electricity bills give Victorians a $3000-a-year power shock (6/8/2014)

Page 11: Electricity retailing: location-based approach for quality customer experiences

- Act I -

The customer

Page 12: Electricity retailing: location-based approach for quality customer experiences

Wholesaling

Billing

Sources: The Guardian, A new generation of electricity pylons (2011), http://electricitywizard.com.au/

Page 13: Electricity retailing: location-based approach for quality customer experiences

Source: Origin Energy website

Page 14: Electricity retailing: location-based approach for quality customer experiences

☐ Nice☒ Different☐ Unusual

Page 15: Electricity retailing: location-based approach for quality customer experiences

Price?

Page 16: Electricity retailing: location-based approach for quality customer experiences

Source: Choice.com.au, Energy retailers marketing tactics (2013)

One respondent summed up the attitude of many:

“I am lost as to know who to use for

electricity.

They all have different offers, but the bills end up the same.”

Page 17: Electricity retailing: location-based approach for quality customer experiences

Customer experience?

Page 18: Electricity retailing: location-based approach for quality customer experiences

Source: vaasa ETT, World Energy Retail Market Rankings (2012)

Page 19: Electricity retailing: location-based approach for quality customer experiences

Source: Energy and Water Ombudsman (Victoria), Annual Report (2013)

Page 20: Electricity retailing: location-based approach for quality customer experiences

Source: Herald Sun, Cold-hearted power companies tell shivering pensioners to rug up (30/07/2014)

Page 21: Electricity retailing: location-based approach for quality customer experiences

“Currently, many utilities in Australia are not commanding strong public

trust.”

Source: CSIRO, Change and choice (2013)

Page 22: Electricity retailing: location-based approach for quality customer experiences

Australia: we have a customer relationship

problem.

Page 23: Electricity retailing: location-based approach for quality customer experiences

- Act II -

The technology

Page 24: Electricity retailing: location-based approach for quality customer experiences

Data. Lots of it.

Everywhere. All the time.

Page 25: Electricity retailing: location-based approach for quality customer experiences

Source: http://www.winpure.com/blog/does-my-company-need-data-cleansing-software/

Page 26: Electricity retailing: location-based approach for quality customer experiences

Solar PV + storage.

Page 27: Electricity retailing: location-based approach for quality customer experiences

Source: ABC News,Wikimedia, The Age, http://www.lithiumion-batteries.com/

C + Cu → Si + Li

Centralised → Distributed

Page 28: Electricity retailing: location-based approach for quality customer experiences

Electric Vehicles.

Page 29: Electricity retailing: location-based approach for quality customer experiences

Source: Wikimedia, Tesla Roadster charging

Page 30: Electricity retailing: location-based approach for quality customer experiences

Connected Home.

Page 31: Electricity retailing: location-based approach for quality customer experiences

Source: Nest.com

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Increased customer expectations

+Distributed energy

resources=

Page 33: Electricity retailing: location-based approach for quality customer experiences

Challenge or opportunity?

Page 34: Electricity retailing: location-based approach for quality customer experiences
Page 35: Electricity retailing: location-based approach for quality customer experiences

- Act III -

Solutions

Page 36: Electricity retailing: location-based approach for quality customer experiences
Page 37: Electricity retailing: location-based approach for quality customer experiences

Customer analyticsspatial data provides the

grounding.

Page 38: Electricity retailing: location-based approach for quality customer experiences

Innovative service designconnecting local resources to

local energy needs.

Page 39: Electricity retailing: location-based approach for quality customer experiences

Solution 1Customer analyticsKnow thy customer

Page 40: Electricity retailing: location-based approach for quality customer experiences

Geo-demographics+

historical bills=

customer segments

Page 41: Electricity retailing: location-based approach for quality customer experiences

Source: Nick Bearman, Using R for geodemographic analysis (speakerdeck.com)

Page 42: Electricity retailing: location-based approach for quality customer experiences

NILMNon-Intrusive

Load Monitoring.

Page 43: Electricity retailing: location-based approach for quality customer experiences

Heating in winter 2013

30 kWh / day

1 week away in January

fridge + standby load: 80W

Heating in winter 2014

15 kWh / day

No air conditioning in summer 2013-

2014

Smart meter data, visual insights.

Source: Carbon GIS

Page 44: Electricity retailing: location-based approach for quality customer experiences

Smart meter data, spatial insights.

Air conditioningsize

2.5 kW

Page 45: Electricity retailing: location-based approach for quality customer experiences
Page 46: Electricity retailing: location-based approach for quality customer experiences

Application #1 early detection of

customer hardship

Page 47: Electricity retailing: location-based approach for quality customer experiences

Alerts & feedback

Page 48: Electricity retailing: location-based approach for quality customer experiences

Application #2 personalised energy

recommendations

Page 49: Electricity retailing: location-based approach for quality customer experiences

Source: Bidgely

value for

customer

Page 50: Electricity retailing: location-based approach for quality customer experiences

Application #3improved

customer service in call center

Page 51: Electricity retailing: location-based approach for quality customer experiences

“Have I used more electricity this time?

But I can’t figure out why.”

Source: Nichols L. & Strengers Y., Changing Demand: Flexibility Of Energy Practices In Households With Children (2014)

Page 52: Electricity retailing: location-based approach for quality customer experiences

Smart meter data + solar data = upsell opportunity

Solar compatibility

36%

Page 53: Electricity retailing: location-based approach for quality customer experiences

ReactivePro-activePredictive

Pre-emptive

Page 54: Electricity retailing: location-based approach for quality customer experiences

Solution 2Innovative service design

Engage thy customer

Page 55: Electricity retailing: location-based approach for quality customer experiences

Local, socialconversations.

Page 56: Electricity retailing: location-based approach for quality customer experiences

Source: www.intelligentutility.com, The Twitter-based customer service conversation

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Sourcing local energy using an app.

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Source: Powershop app

Page 59: Electricity retailing: location-based approach for quality customer experiences

Source: http://vandebron.nl/

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Usingpeer rankings.

Page 61: Electricity retailing: location-based approach for quality customer experiences

Source: OPower website

Page 62: Electricity retailing: location-based approach for quality customer experiences

Building a virtual power plant.

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=

distributed aggregated

Page 64: Electricity retailing: location-based approach for quality customer experiences

Energy trading platform for EV charging.

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=

Page 66: Electricity retailing: location-based approach for quality customer experiences

Conclusion

Take-away?

Page 67: Electricity retailing: location-based approach for quality customer experiences

The future electricity grid is

customer-centricand

distributed.

Page 68: Electricity retailing: location-based approach for quality customer experiences

Source: CSIRO, Change and choice (2013)

Page 69: Electricity retailing: location-based approach for quality customer experiences

The transition path to get there can be orderly.

Or not.

Page 70: Electricity retailing: location-based approach for quality customer experiences
Page 71: Electricity retailing: location-based approach for quality customer experiences

RE: think business model. Or others will.

Page 72: Electricity retailing: location-based approach for quality customer experiences

Thank you.

Hervé [email protected]: @hsenot

GIS & energy analytics