The July/August 2009 edition of Intelligent Utility had several articles highlighting consumers’ thoughts on the smart grid and commercializing the intelligent utility, many of which echo our themes of the need for smart markets to motivate consumer engagement of a smart grid and smart meters. For example, an article entitled “Smart Selling and The Intelligent Utility” noted:
“…While the smart grid can inform consumers about usage, that is almost an ancillary benefit,” said Mike Ingram, senior manager for TVA demand response. “The root of where we need to go is peak reduction. The way you bring this about is through advertising energy efficiency. It’s how utilities will open up the doors. This helps us enlist consumers with smart thermostats and smart meters. Their conservation will allow them to reduce their monthly bills. But utilities need to move forward with two-way communication to the meter to switch off loads during peak times.”
Of course, we tend to go further than the idea of advertising efficiency as a way to enlist consumers (why not give them a trading opportunity to capitalize on instead?), but it does at least acknowledge that more needs to be done than simply informing customers about usage.
A second article entitled “The Front Line” offered some fascinating consumer feedback on Americans’ notions of a smart grid, namely that people want to maintain control over their usage and saving behavior and that – in the end – almost nobody cares that the smart grid is smart, but rather it is all about money:
Karen and Oscar
…Both of them want more cheap electricity. Neither wants the smart grid. Karen and Oscar both believe the federal government is scheming to control their lives, and the smart grid is part of that scheme. “The utilities have no control of the government. They’re telling me I can’t keep my thermostat above a certain level,” Oscar complained. “They’re not telling you what they’re really doing. They’re going to control your energy. Your air conditioner won’t go on; it won’t go lower than 80 degrees. You’ll save money, but only because you can’t crank it any lower. The utility should resist and tell the government they won’t be part of the smart grid.”
…Anything that takes control away from the user is bad, in my opinion.” To Karen and Oscar, the smart grid is Big Brother.
Mickey
…Mickey had been very busy, and he hadn’t heard anything about the smart grid, but he figured it must be like the online programs he’s part of. … Mickey believes the smart grid shouldn’t be imposed on people. “Not every house can do it, but maybe if a lot of them could, it would help. Maybe rates wouldn’t have to go up so much. You give me a little bit, I’ll give you a little bit. It should be up to the individual—the people who participate, they reap the benefits.”
Pilar and Esteban
The complex has a manned security gate, and the speed bumps on the narrow roads allow the visitor to appreciate the tiny, manicured gardens and swept sidewalks. Esteban stepped out on his landing as I walked up the stairs to the second floor unit. Pilar offered coffee, and had her computer running wirelessly on the coffee table in the middle of the spacious living room. Esteban is an engineer and Pilar is a hospital administrator. …Their experiences with financial crises lead them to believe that the smart grid should be designed “especially to save a lot of money. It’s a little about the environment—but it’s all about money.”
Lessons Learned
What do we learn from these smart Americans?
First, most households haven’t heard much about the smart grid and many households won’t see the smart grid the same way we do. For example, Karen and Oscar see the smart grid as a threat. Mickey believes the smart grid will be like the programs he participates in. Naturally, most people will merely associate the notion of a smart grid with their other energy experiences.
Second, to be attractive, any energy innovation must ultimately be understood first in terms of energy use in my home, and maybe also in terms of energy use in my community. Beyond that, the difficulties increase. “The grid” as a concept can be alien, overwhelming and sterile. On the other hand, my home and my town are likely to be sheltering, personal concepts. If the smart grid is truly smart, it will get int ouch with where people live.
Third, just about any discussion with residential utility customers about the future of energy quickly turns to green energy—how good it is and how perplexed customers are that utilities aren’t building more green energy resources. Many American households do not understand the economic and operating challenges of green energy.
Finally, and most importantly, right now, saving money is a higher priority for most American households than investing in green energy. … Among these interviewees, almost nobody cares that the smart grid is smart—but everybody wants the smart grid to save money.
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