TW: Posted from this same piece ten days ago here. This segment focuses on how smart sensor technology will facilitate two-way communication with utilities making energy consumption visible to consumers. The consumption visibility combined with appliance timers and web-based controls should provide consumers the opportunity to curb energy usage by 10% or more. Utilities will also be able to introduce tiered pricing to reflect higher or lower demand periods during the day, nights or weekends.
From Economist:
"...most important would be the introduction of smart meters, which track electricity use in real-time and can transmit that information back to the power company. Smart meters have been used by commercial and industrial customers for decades, says Eric Miller of Trilliant, an American company that installs communications networks and software to implement smart meters. But in recent years they have become cheap enough for wider deployment.
Smart meters establish a two-way data connection between the customer and the power company, by sending information over a communications network that may include power-line, radio or cellular-network connections. Once smart meters are installed, power companies can determine the location of outages more easily, and no longer need to send staff to read meters, or to turn the power on or off at a particular property...Smart meters also help to curtail the theft of electricity.
...But the smart meter is only the first step. Eventually smart meters will communicate with smart thermostats, appliances and other devices, giving people a much clearer view of how much electricity they are consuming. Customers will be able to access that information via read-outs in their homes or web-based portals, through which they will be able to set temperature preferences for their thermostats, for example, or opt in or out of programmes that let them use cleaner energy sources, such as solar or wind power.
As well as giving utilities more control, smart meters also give them more flexibility. In particular, they can vary the price of electricity throughout the day in response to demand. Telling people that electricity is more expensive when demand is high will encourage them to do their laundry when demand has fallen and electricity is cheaper...This could be done by showing real-time price and usage information on a display so that consumers can decide whether to turn on the washing machine. Studies have found that when people are made aware of how much power they are using, they reduce their use by about 7%. With added incentives, people curtail their electricity use during peaks in demand by 15% or more.
But eventually it should be possible to do it automatically, so that the dishwasher waits for the price to fall below a certain level before switching on, for example, or the air-conditioner turns itself down when the price goes up. This is more complex than today’s pricing, of course, but customers will be able to save money if they are prepared to put up with a bit more complexity. “If you don’t want to participate, then you’re going to pay a much higher rate per kilowatt-hour,” says Peter Corsell of GridPoint, a company that has developed a web-based portal that lets people respond to price changes from utilities. “And if you want to opt in, you may save a whole lot of money.” During a one-year pilot study carried out by PNNL, for example, consumers reduced their electricity bills by an average of 10% compared with the previous year."
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