the future of residential demand response is here
DESCRIPTION
After years of experiments with dynamic pricing and various enabling technologies, utilities are rolling out these demand-response tools on a mass scale. This new generation of programs combines behavioral demand response, smart thermostats, dynamic pricing, and customer choice into models that are compelling for customers and utilities alike. Modern residential demand-response programs also offer greater opportunities for customer engagement, energy savings, and peak reductions.TRANSCRIPT
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The State of Residential Demand Response
Director of Customer Solutions, E Source
E Source Forum 2014 September 29–October 2, 2014
Rachel Reiss Buckley
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July 17, 2013: Jersey Shore
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The Culprit
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Now They’re Interested
Residential DLC Participation Rates (2011)
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Residential DR Market Disruptions
New program models
Energy savings too
Customer engagement
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Thermostats Are a Driving Force of Residential DR Change
1st generation 2nd generation 3rd generation
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Smart Thermostats Are Mainstream
http://www.youtube.com/watch?v=DqB3X3jkNPk
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Smart Thermostat Program Models 2014
BYOT
Bonus incentives
Free thermostat
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Residential DR Program Models 2014
Utility intervention for DR
Customer choice
Behavioral demand response Free thermostat/
direct install
Free thermostat from retail electric provider
Bring your own thermostat
Dynamic pricing program
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Self-Install
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Underlying Factors Driving Customer Engagement
Customer engagement
Device choice
Self-install Non-
automated response
Remote interface
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Remote Interface Usage
8 logins per user per week
88% of participants accessed their
thermostat remotely
53% of respondents changed the setpoint a
few times per week
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Many Uses for the Remote Interface
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The Biggest Hurdle
Evidence of energy savings
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Energy and Demand Savings (Reported)
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A Note About the Numbers
Know the story behind the numbers, ask questions: Does the data in the report match what’s in the
press release? What evaluation standards and confidence levels
are they required to use? What’s the sample size? Are they reporting HVAC energy savings or whole-
house energy savings? How was the trial set up?
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Utility Technology provider
Evaluator Impacts
Sample study notes Link to study
Pacific Gas and Electric Co.a
Opower/ Honeywell
Nexant No significant savings at 95% confidence level
95% confidence level; randomized control trial, results net Home Energy Report impact
Findings from the Opower/Honeywell Smart Thermostat Field Assessment
NV Energy EcoFactor ADM 11% average summer HVAC savings; 6.4% winter gas savings
Low variability in p-test, difference-in-differences methodology
2013 M&V Demand Response Program (PDF)
National Grida Ecobee Cadmus 16% cooling-season energy use; 10% heating-season gas use
90% confidence level-gas, none indicated- electric; small sample size, pre-/post- analysis
Wi-Fi Programmable Controllable Thermostat Pilot Program Evaluation (PDF)
Energy Savings Studies (Third Party)
Note: a. pilot program. © E Source
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What’s Next?
Savings data: Normalize? Ignore? Wait
for more? Partner with the
innovators
Leverage dynamic pricing with behavioral
DR and/or enabling technologies
More customer choice and more customer
engagement
Residential demand response
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We’re Getting There … Slowly
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Resources Smart Thermostats Rising: Current Technologies and Trends, E Source,
TAS-F-12 (2014) Smart Thermostat Pilots and Programs, E Source, EDRP-RB-52 (2014) What resources are available to help utilities justify natural gas savings
from smart thermostats and explain to regulators why the new smart thermostats differ from their old programmable predecessors?, E Source, IV-Tech-Answer-50 (2014)
Smart Thermostat Math: How to Read the Numbers, E Source blog post (2014)
Smart Thermostat Programs: Cutting Energy Use and Demand, E Source, TAS-RB-87 (2014)
How do utilities report the energy-efficiency savings associated with smart thermostat installation as a component of their DSM programs?, E Source, IV-DSM-AskES-114 (2014)
What energy-efficiency savings are utilities claiming from the use of smart thermostats?, E Source, IV-Tech-Answer-1 (2014)
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Rachel Reiss Buckley Director, Customer Solutions, E Source 303-345-9104 [email protected]
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