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The Consumer End of the Smart Grid

The Consumer End of the Smart Grid. Agenda. Goal: Educate Rule Makers about Consumer Benefit from the Smart Grid Consumer-end Overview Demonstration Standards Regulatory Policy Q&A. Rationale: Energy markets are facing unprecedented challenges.

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The Consumer End of the Smart Grid

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  1. The Consumer End of the Smart Grid

  2. Agenda • Goal: Educate Rule Makers about Consumer Benefit from the Smart Grid • Consumer-end Overview • Demonstration • Standards • Regulatory Policy • Q&A

  3. Rationale: Energy markets are facing unprecedented challenges • Residential electricity demand is outpacing supply • Demand increasing at 1.9% p.a.1 • Supply increasing at 0.6% p.a. 1 • Utilities are supply constrained • Costlier to build plants (CapEx) • Spot market electricity prices rising (OpEx) • Carbon Cap/Tax/Regulation • Consumers are changing • Conscious of cost of energy • More aware of the environment • Expect more of their tech • Diverse and varied CERA’s Power Capital Cost Index (PCCI) Sources : Energy Information Administration http://www.eia.doe.gov/emeu/aer/pdf/pages/sec8_47, Edison Electric Institute, CERA Sources : 1.North America Electric Reliability Council

  4. Rationale: Energy efficiency (consumer reduction) is the 5th fuel ENERGY EFFICIENCY WIND CARBON NUCLEAR SOLAR Now real-time dispatch-able, like a fuel “"end-use efficiency"--is the largest, cheapest, safest, cleanest, fastest, most diverse, least visible, least understood and most neglected way to provide energy services.” Amory B. Lovins - Co-founder, chairman and chief scientist of the Rocky Mountain Institute

  5. Tendril at a glance • Founded in 2004 – Venture Funded • HQ in Boulder, Colorado • 40+ People • We sell residential energy management systems to utilities and their consumers • Platform consisting of hosted software and in-home hardware • Platform supports Demand Response, Energy Efficiency, Variable Pricing, and Prepay programs • Promoter ZigBee Alliance – Smart Energy Open Protocol • First major deployment in progress – Texas • Pilots/Trials in 4 States • Partnerships with leading AMI/Meter vendors • Itron chose Tendril as “preferred Home Area Network partner” in 2/09

  6. Key Media Quotes Q1 Media Agree

  7. Core Beliefs • Nobody can predict the exact outcome of the future (e.g. nobody could predict Google at the dawn of the Internet) • open systems are required • flexible models are required • future-proofing is required • Utilities move to become “information injection points”, not the centralized master. • We must serve 2 masters • Consumers will drive reduction and need ease of use, choice in devices, ease of access, many modalities, privacy • Utilities will drive coordination and grid stability and require security, spot-control, access to consumers

  8. The Consumer-Touch Elements of the Smart Grid broadband machine to machine broadband

  9. Consumers benefit from using less, emitting less and spending less In Home Display Mobile Web/Remote Portal Access Methods Thermostat Outlet Circuit Breaker Electric/Gas Meters And Many More… In-home Devices

  10. Smart Grid Configurations Serve Varying Groups Opportunity for State Energy Program Funding to enable Smart Grid benefits now

  11. Agenda • Goal: Educate Rule Makers about Consumer Benefit from the Smart Grid • Consumer-end Overview • Demonstration • Standards • Regulatory Policy • Q&A

  12. Agenda • Goal: Educate Rule Makers about Consumer Benefit from the Smart Grid • Consumer-end Overview • Demonstration • Standards • Regulatory Policy • Q&A

  13. Smart Grid Standards – where are they? Where do we need them? • Standards • Strong In-Home Standard (Smart Energy Profile) • Strong Meter Data Standard (C12.x) • Emerging Price-based Demand Response (OpenADR) • Where do we need them? • Enterprise Interface to the Home • Other • Internet (or other network) Protocol is a red-herring. Bridging will always be necessary. Key is application.

  14. Agenda • Goal: Educate Rule Makers about Consumer Benefit from the Smart Grid • Consumer-end Overview • Demonstration • Standards • Regulatory Policy • Q&A

  15. Policy/Regulatory Drivers that would favor the Consumer end of the Smart Grid • Incentives – align the incentive to make money from reduction • Variable Pricing – increase the incentive to shift load • More aggressive, faster, broader pilot approvals – to promote choice, competition, and innovation • Carbon incentives – increase the consumer, utility incentive to shift load to enviro-friendly times • Stimulus accelerants(?) – Tendril will be seeking Federal $$ • Bottom Line: Focus policy debate on the benefits of consumer awareness around energy usage as foundation for other programs.

  16. Questions?

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