Proven Approaches to Successful Demand Response Programmes Global Best Practice

Christophe DromacqueHead of Research

VaasaETT EUW – AmsterdamOctober 17th 2013

Outline

Lesson leanrt from best practice examples

The potential of dynamic pricing programmes

Best Practice, Data, Analysis & Expertise from around the World

Customer Psychology & Behaviour

Customer Lifetime Value(Switching and Loyalty, Prices/Savings/Margins, Billing/CRM, Branding, New Offerings

Smart Energy Issues(smart grid, demand response, dynamic pricing, feedback, smart billing energy efficiency, smart home, distributed generation)

Our Key Focus

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‘Empower Demand Phase I’

• 340 sample groups• 158,000+ residential

participants• 45% organised after 2005• Results measured: energy

conservation, peak clipping and financial savings

Uncover the potential of residential demand response

through a mass pilot comparison

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‘Empower Demand Phase I’

Impact of customer engagement in ToU pilots

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‘Empower Demand Phase 2’

• 9 pilots analysed• Focus on Communication (including

also feedback and education)• Evaluation of Latest Technologies &

Solutions• Consideration of Increased

potential if latest technologies and communication knowledge applied

Applying insights from behavioural science to customer engagement

around energy

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Good practice 1: In-depth customer segmentationMeter hunt, SEAS NVE, DenmarkWeb portal, personalized tips and feedbackAverage consumption reduction: 17%

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Good practice 2: Pre-programme communication and educationPerth solar city, AustraliaIHDs, ToU tariffs, DSM, PV, Solar water heaters Average consumption reduction: 1.5% (IHD) – 40.7% (PV)Peak clipping: 5% (IHD + TOU) - 25% (automated AC)

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Good practice 3: Customer education and support during programme

Perth solar city, Australia

CER trials, Republic of Ireland

Power Cents DC, USA

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Good practice 4: Integrated approach to feedbackOG&E Smart Study Together, USADynamic tariffs, IHD, web portal and mobile appAverage savings of $157 compared to standard rate planPeak clipping: 6% - 16% (excluding automation of appliances)

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Good practice 5: Step-by-Step Discovery, Experimentation and EnlightenmentEnel info +, Italy Ongoing

Smart info display Web Portal Mobile App

Few months

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Good practice 6: Personalized actionable insightsOpower’s home energy reportsPaper-based consumption reportsAverage consumption reduction: 1.5% - 3.5%

Participants’ energy use compared with that of

their neighbors

Shows participants the results of those actions

over timeSuggested actions

participants can take in order to reduce usage

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Choice Comfort Savings

Good practice 7: Complexity should not be dealt with by the customerEnergy Select , Gulf Power, USACPP, ToU tariffs, smart thermostatAverage energy reduction = 22% during high price period (TOU)Average energy reduction = 41% during critical period (CPP)

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Both reports I mentioned can be downloaded from ESMIG’s website:

http://esmig.eu/resource/empower-demand-report-phase-i

And

http://esmig.eu/resource/empower-demand-report-phase-ii

THANK YOU

Christophe DROMACQUEHead of Researchchristophe.dromacque@vaasaett.com