Jun 8, 2007

Smart Grids: Ready, Set, Wash!

(updated June 11th, 2007)

There have been several developments in the past years that have taken place in the electricity and energy distribution area. These are some of the important ones (focused a bit towards Germany)

* the liberalisation of the electricity market (it is now possible to change suppliers easily)
* the growth of de-centralised energy supply (especially through renewable energy)
* the necessity to use energy more efficiently - among others to curb global warming

The internet and communication technology have also developed rapidly and in the e-Energy study created by the Fraunhofer Society they have recommended possible measures to combine these new developments to reduce energy distribution problems.

Consumer participation for energy optimisation
One of the challenges for the energy industry is to keep the electricity supply stable - i.e. demands should be met. Since electricity is not being stored, having too much or too little demand/supply can be a problem.
Through the emergence of broadband technology, it is now very easy to have the consumer participate in the process of optimisation of energy use. Because currently the information flow between the consumer and the supplier is, well... bad! At the moment it's like getting some stuff at the supermarket where there are no prices and after a few months you get the bill (note: in Germany it's quite normal that you get your electricity bill and usage information once a year).

Idea: Demand Response with Smart Metering
So a demand response is needed. In a study by the U.S. Department of Energy Demand Response (RD) is defined as
"Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized."
This would mean that at times when energy supply is too high, you would get an incentive to use up some energy (by paying less for electricity)! Maybe you'll get a message via your mobile phone to do your washing at a certain time. This would require dynamic pricing, so you would pay less for using energy during critical peaks. Or by a set tariff in the noon hours you would pay less and during morning and evening you would pay more for each kWh.
This does involve the consumer thinking about electricity consumption - maybe this could be the initial step for the consumer to think about how he/she is using energy. For some this might be the first time they ever thought about using energy efficiently. This might catalyse some more changes in consumer behaviour towards a more sustainable society. Or maybe I'm just dreaming.

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