Google, ATT, and several other IT oriented firms recently sent a letter to President Obama asking the Government to expand residential and business access to real time energy data. The letter claims that the United States can see dramatic gains in innovation if consumers can access this data. The letters authors go on to say "Studies and experience show that when people have access to direct feedback on their electricity use, they can achieve significant savings through simple behavioral changes." Studies and experience show?
I love how these big firms in one letter settle the innovation game. Or suggest more innovation would occur if only government would step in and choose their solution that is essentially we will save more if people have more energy usage data. But what is the proof? Can you imaging back in 1998 "Yahoo says, no value in additional search engines, asks Clinton to require all private consumer data be opened to Yahoo search spider"?
There are studies that suggest real time data helps reduce energy usage for a period of time. There are studies that show people react to Time of Use information and price signals. There are studies that show real time data results in no persitent energy savings. Studies, studies, and more studies. I can't find one single study that says more real time energy information results in more innovation in the residential energy market. Even if someone can provide me the study, its irrelevant because innovation is about the successful application of technology to a market, resulting in growth and success. Innovation results in a market. It is unclear a market for "real time energy information to residential customers" really exists yet. But Google etc. are ready to set the rules.....
I do know a bit about saving energy. Last year an OI Ventures company reduced energy use in more than 28K small businesses and 6,800 homes. In a previous business the Gridlogix team and its partners reduced energy usage 20% in 1,000 large buildings using real time data. Energy usage data put in the hands of experts helps select measures which will result in energy savings in a home, small business or large business.
Really what the authors of this letter may be pushing for is access to consumer utility bill data. Right now that means using 15 Min interval data (essentially state of the art). But, 15min interval data (in residential) does not really help solve anything. If you really want to deterministically select measures to reduceenergy usage in a home you need to sample down at 15khz (yes that is 15,000 times a second). 15khz is a huge amount of data. Its unlikely people are going to pay to sample everyone's power at 15khz. Its called disagregation and companies like EMME are delivering it for less than the cost of smart meters.
The letter says we need this data to save energy, but many new ventures save energy for customers without this data. How can that be? Their is no single solution to saving energy. You can save energy at "peak", when a lot of people need energy. You can reduce baseline load, which is sort of the nominal energy used all the time. You can save energy by changing behavior, like eating less on a diet. You can save energy by replacing your light bulbs and air conditioner. Successful entrepreneurs are making money selling solutions that reduce baseline load by replacing inefficient equipment with quick payback solutions.
It seems companies with strong lobbyists have somehow proven that the best path forward is real time data hitting you from all directions (Email, web, phone, etc) all marshalled to drive behavior change. They are so convinced its such a great idea, they need government to step in and open data access to any third party the consumer chooses. But what about the TED 5000 which can be installed by anyone. Or what about Earth Aid, a great little start-up that deliverers you an integrated energy bill, for free, on top of your existing utility. Don't these guys deserve a chance?
Innovation must precede regulation. A market grows as entrepreneurs fight it out to offer a solution that works - technically and commericialy. Once the market settles on a dominant design, then it is time to regulate to help further reduce cost and improve quality. I don't think the market has chosen a dominimate design for metering information, behavior change, baseline load reduction etc.
Google et. al. suggest (as if it were true) that more data will drive behavior change. Perhaps that is true when a bunch of geeks get in a room and review an energy profile, but what about Grandma? I know if I lose weight, I will be healthier. I have bought a WiFi scale so that I can monitor my weight all the time and record it automatically on my iPhone. I get daily coaching reports. But, darn it, my weight is not going down.
The folks who signed this letter are the same folks who will sell and move the data. Where are the people who sell solutions that reduce energy usage? If a company thought an edict from the President would drive more business, wouldn't they be for it? But, this proposal as well as the Markey bill will cause a lot of people to spend a lot of money on real time data access with limited results. It disintermediates what the thoughtful utilities are trying to do, which may cause them to revert to doing nothing in energy efficiency, is that good?
TOU is just another game for high cost energy in markets with low reserve margin. The bulk of CO2 comes from base load. I don't need a meter to tell me to install a 19 seer air conditioner, CFLs, etc. And once these base load systems are in, I don't need to stare at Google Power meter to learn more. Normal people want to live their life, not stare at goats.
Before we go spend several billions more, maybe we should actually do some real scientific study on what drives people to adopt persistent energy efficiency measures. For example, pre-pay meters provide a simple status signal (Yellow/Red light) and drive 15% reduction in energy usage - no interval data required.
PS: FERC/federal government probably does not have the power to regulate consumer market access to this data and the related standards. They can't touch COOPs which is 33% of electric. Its unclear they can regulate IOUs. And, once again these meter strategies ignore Oil/Gas which represents 35% or more of the energy usage in a residential application.
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