Jack Audet:

This posted to smartgrid@ostp.gov by Jack Audet.

When pared down to a fundamental level, an electric utility’s base function is to provide a flow of energy into a consumer’s facility (typically a flow of electrons) and bill the consumer accordingly. While this gives the utility business a certain monopoly on information, it does not limit or dictate how the consumer uses, measures or controls the energy purchased.

Currently little is done in the way of real time monitoring of energy consumption on a residential level. As convenient as it would be to utilize the power measuring apparatus already installed in the existing utility meter (or future smart meter), the inertia against changes needed at the utility and regulatory level to achieve this may be insurmountable. There is little stopping a consumer from adding a small, cost effective energy monitoring device on the incoming power circuit, water main or gas main at his home. Once easy access to this real time information is available to the consumer, an entire world of innovation in monitoring and efficiency is possible.

Existing internet channels, wireless communications and IP gateways can be utilized to interface with services that collect, analyze and optimize this data. The next logical step would be allowing these same services to control demand response measures (or more accurately, cost control measure). The utilities can focus on generating and delivering commodities (electricity, water, gas, oil, etc) but, will need to develop real time energy pricing schemes and new ways to communicate these price structures to the consumers.

The hesitation by consumers to allow utilities into their homes in the form of demand response controls has been obvious. The hesitation regarding demand response in general has been obvious for years. Consumers want control and authority over their energy purchases. Real time energy pricing and the cost of peak time consumption will be what a consumer will react to and learn to control. Simply knowing the real time cost of energy use will go a long way towards efficiency.

While these changes will make load planning, generation dispatch and infrastructure planning more complex, the net benefit will be reduced load, reduced peaks and reduced overall energy use.

Jack Audet