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PowerLines by Linnea Brush
April 26, 2010
Smart Grid of the People
Power Channels: Communications Power, Digital Power, Energy Efficiency, Power Components, Power Quality Protection, Renewable Energy, Smart Grid Power, Switch-Mode Power
One thing all products need are customers, and the product needs to be well-defined in order for the customer to know he or she needs it. Power supply makers are good at designing products that address very specific demands from customers, who are usually system makers. The system maker still acts as the “middle man” between the power supply maker and the ultimate end user, however. In other words, the person buying the computer doesn’t have much clout in telling the system maker what kind of power supply they want or how it should be designed.
The upcoming “Smart Grid” is about to change this model. Not only is the Smart Grid not well-defined, it is not even being controlled by the equivalent of the system maker – the utility companies. This is still up for debate, of course, but all the signs are pointing in the direction of consumer demands dominating the smart grid, not utility demands. And if things play out in logical fashion, that is going to put a lot of power (so to speak) in the hands of power supply companies.
A recent report from Accenture is simply one of many that supports the power of the people in smart grid development. “Understanding Consumer Preferences in Energy Efficiency” states that consumers are not willing to allow electricity providers to remotely limit the use of their home appliances as part of electricity management plans without significant rate discounts. It also found that almost half of consumers would be deterred from joining electricity management programs if their electricity bills were to increase as a result.
Even more interesting is the finding that only 29% of consumers trust their electricity providers to advise them on actions they can take to optimize their electricity consumption (the report covers 9,000 consumers in 17 countries, so this is a worldwide perspective). Only 20% trust online service providers, and even fewer (13%) said they trust retailers, equipment manufacturers, cable television or telecommunications companies to do so. The most-trusted sources of energy efficiency advice are environmental associations and academic/scientific associations.
This atmosphere of distrust could put critical aspects of the smart grid into the control of the power supply companies. The Accenture report concludes with, “The most successful utilities will be those that blend sophisticated consumer-centric capabilities with new smart metering and in-home technologies to best meet emerging consumer needs and expectations.” There is no way the utilities can do this on their own; new power architectures are needed, and the power supply industry must provide them.
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We would like to hear your comments on the topics discussed in this column. We welcome the opportunity to publish opposing opinions. Please email Jeff Shepard at jshepard@darnell.com.
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