EDUCATION CENTER

Central and Eastern European smart grid projects are progressing, but the customer is not a part of it.

I have just returned from the 2012 Smart Utilities Central & Eastern Europe conference in Prague.  The event was very well organized, with a large number of delegates from local utilities, all looking to learn how to deploy smart grids and smart meter systems.  There are a large number of pilots and legislative drivers happening across the region, and so it was an interesting conference, hearing a different perspective on how the rollouts are approached compared to other parts of Europe.

However, there was one word missing, which should have been on everyone’s lips:  Customer.  Not one of the utilities from the region mentioned their customers, and how they would benefit from improved technology.  No-one seemed aware of issues around data privacy and consumer engagement.  Utilities from other parts of Europe – Germany, the Netherlands quite rightly put their customers and the security of their data at the top of the list of priorities when deploying a smart energy network, but this angle was completely missing from the strategies of the CEE utilities.  Quite how customers are meant to benefit from all the new energy technology coming down the line just wasn’t discussed.  In fact, some of the utilities were plain hostile to new technologies such as micro-generation and renewables – they see them as messing with their well-managed grid.

We’ve already seen smart meter deployments run into issues around data privacy and customer consent in Europe, America and Asia, so its an issue that’s out there and waiting to be uncovered.  I think a lot of the issue comes firstly from the market structure;  with the ex-state DSOs being responsible for metering, their background is hardly customer focused, and this attitude filters through.  Secondly, a certain naivety about the way the market is moving for energy – upward prices are only going to increase the demands from customers for ways to reduce their own costs.

This is all not to say that smart metering won’t happen in Central & Eastern Europe – it will.  Some countries are moving faster than others, and some utilites are actively investigating all the options – but all are driven by the same EU legislative environment.  As the technology becomes more widespread, so even the most distant utility will be forced to concede that the customer needs to be connected more dynamically to the grid.

NY

Challenges of marketing the smart meter rollout in the UK

I have been doing some marketing work with one of our energy supplier customers here in the UK, and they have been explaining to me their plans for marketing smart meters to their customer base, to ensure wide adoption and acceptance.  It revolves around community champions and drip feeding positive stories out to local bodies and groups that can influence their local community.

This makes a lot of sense.  The upcoming smart meter rollout will take around 7 or 8 years to complete across the nation.  Every home will be visited, and every energy user and bill payer will have new tools at their disposal for managing their energy use.   To get these people excited about having a smart meter, without having to tell them they are at the bottom of an 8 year queue is a challenge that the energy suppliers have yet to embrace.  There seems to be a widespread assumption that smart meter marketing will be in a similar vein to the digital TV switchover.  However, this was a campaign run on a region-by-region basis, to consumers who were obligated to update their own equipment at a time that suited them.  This is the complete opposite of the smart meter rollout, which will have a national focus, and is aimed at people not empowered to upgrade to a smart meter whenever they want.

So the question is, how do you engage consumers in being positive about a smart meter, without running a massive 8 year, national campaign which, as well as being extortionately expensive, would be talking to an irrelevant audience for much of that time.  Some thoughts below:

1. Local focus – By focusing on specific areas and rolling out smart meters, ideally on a street-by-street basis, the smart meter supplier can run a highly targeted, even personal marketing campaign to ensure meter acceptance.  Knowing that everyone you are targeting is going to get a meter in the next few weeks allows much more dynamic messaging and social interaction – competitions, use of local influencers and fosters a community spirit that means the laggards want to keep up with the Joneses.
2. Early Adopter Segmentation – Smart Meters are a new technology in the home.  When rolling out a new technology, the tried and trusted route of finding early adopters who actively want the smart meter, and can evangelise about the benefits is a sensible way to proceed.  The rollout then follows the path of least resistance, with people hearing about and discovering the benefits of smart meters for themselves, leading to mass market adoption.  To roll out smart meters as part of a standard meter replacement programme does not fit with this model – cynics and laggards will be getting the smart meter at the same time as some early adopters, meaning that the messages to market are completely mixed, making it harder to succeed.
3. Institutional support – Smart Meters offer significant benefit to those in fuel poverty and with other social issues, by allowing them a greater level of control and choice over how they use their energy and pay their bills.  By introducing smart meters to this sector early in the rollout, any negative perception around the smart meter service can be dissipated and allow the rollout to proceed nationally with credentials and benefit obvious to the wider market.  This also allows the engagement of local councils and other local bodies who can promote the benefits of smart meters within their own communities.
4. Learning Support – By introducing the concept of energy saving as a matter of course, whether it is through teaching in schools or wider educational programmes for the adult population, the wait for a smart meter will have a softer impact for those that are at the end of the waiting list. They can start using hints and tips to start saving energy and thus money without a smart meter.  When the smart meter does arrive, the behavioural changes can be validated by the customer in their home.  This can also be validated by friends and family who have a smart meter and are able to offer their learnings to those that do not.

Whatever the eventual marketing campaign for the smart meter rollout looks like, it needs to ensure that it does not alienate the large portion of the population who will be a long way from receiving a smart meter, and the cost savings that they bring.

The UK market has moved from ideas to reality

Earlier this week, Trilliant participated in the SSWG and Zigbee alliance interoperability event, in Westminster, to demonstrate that the HAN technology needed to deploy smart meters in the UK is keeping pace with the legislative requirements of the proposed smart meter rollout.  It was great to see the vendor community working together to showcase that the market has moved on significantly from where it was even a year ago.  The event was aimed at key stakeholders in government and the energy supply business, showing that interoperability enables choice and will allow projects to get off the ground rapidly.  The bespoke integration of components in the smart meter environment is no longer a barrier to adoption.

The event demonstrated that the UK market has genuinely moved from ideas and specifications to technical and commercial reality.  Any doubts raised in the past have been firmly blown away – the technology that forms the basis of smart metering in UK homes works, and from this point on will develop, grow and evolve with the market.

The UK market is seeing significant activity – British Gas are rolling out smart meters to millions of homes, and the other energy retailers are following closely behind.

However, the market still has some way to go before we can claim that the technology is ready for plug and play and horizontal adoption in the home.  Zigbee SEP 1.1 allows interoperability to be taken to heart by the wide variety of vendors in the market.  But there are some steps needed to ensure that a HAN rollout is a pain free experience for consumers and energy retailers alike.  The good thing about the Zigbee specification is that it recognises this and will continue to evolve.

• Ecosystem development – there are still only a relatively few number of in-home vendors in the market.  For the Zigbee HAN to truly be ubiquitous, there needs to be commitment from other service providers who would benefit from the use of the HAN.  In the energy world, further meter providers and energy service providers need to bring their products into the Zigbee fold.  Outside of the energy world, appliance manufacturers and other in-home service providers such as security and healthcare need to take advantage and build interoperable in-home products that allow new revenue models and value to be built for the homeowner.
• Channels to market – currently the energy retailers are providing the only channel to market for HAN technology in the home, via the smart meter rollout.  However, its not difficult to foresee that the HAN does not have to be tied to energy services in the future, and can be driven by any service provider willing to provide the technology.  with enough service providers and benefits on board, it is likely that the consumer themselves will want to invest in a Zigbee HAN, rather than waiting for the smart meter rollout to reach them.
• Cost Reduction – Of course, HAN technologies follow the technology adoption curve, just like any other technology.  Today we are at the beginning of that curve, and so the required components are expensive to procure, and the skills needed to integrate them sparse on the ground.  However, as the market progresses, cost of these components will come down, meaning that ubiquitous HAN components will be available in volume.
• Genuine plug and play – Most consumers want equipment they buy to just work.  HAN technology is still some way from that ideal, with consumer equipment tied to individual providers and required a complex setup in some cases.   This is largely to ensure that an element of control is maintained, and that security processes are not breached.  However, for the consumer to buy-in extensively to HAN services, the components will need to ‘just work’ out of the box.  This is a challenge that is not insurmountable, but keeping the network secure and available requires a large amount of effort to ensure HAN specifications are allowed to evolve and meet the needs of consumers over time
• Merger of HAN profiles.  Today, there are several different profiles for Zigbee HAN profiles – energy, home automation, healthcare etc.  This model works right now as it allows each community to focus on what they need in order to offer a service.   However, in the future there is likely to be significant overlap between many of these profiles, and so the creation of a central core to which any vertical service can apply itself is a sensible way to proceed and allow single HAN systems to be widely deployed.

Today, the market for HAN has taken a significant step forwards in the UK.  But to ensure that product is fit for consumer use, there are still a number of hurdles to get over.  However, the industry has demonstrated that it is willing to work together through standards bodies such as the SSWG and the Zigbee alliance to create a single ecosystem appropriate for rollout to every UK home.  And by working together, we will be able to continue the turning of ideas into the reality of a rich in-home experience for all.

NY

Some Considerations for Smart Meter Installations

Smart Meter installations require a revised approach and new skill sets compared to existing meter installs.  A whole new range of skills needs to be used, and the utility deploying smart meters must take steps to equipment its field teams.  Very few people out there have electrical, gas safety and communications qualifications, and it’s unlikely that a utility will find them amongst their existing staff.

Therefore, a full training programme for installation engineers needs to be put in place before a smart meter rollout can commence.   This is a tricky balance to get right.  Do utilities train an engineer in multiple tasks, put more engineers in a single van, or make multiple appointments at the same premises to complete all the necessary work?  The answer depends on several factors.  Some utilities put the needs of the installation engineers above all other requirements – the engineer is trained to do a single task, and not deviate from that process.  However, allowing the installation engineer some flexibility on site means that the utility can be flexible in the technology options they adopt.  For example, if installation is in an area of no communications coverage, then empowering the engineer to move the install site or use an alternative technology means a better customer experience and a lower install cost due to less return visits.  Conversely, the ability to put multiple skills in the same van is difficult to co-ordinate and may mean that a simple, scripted installation process by one engineer with no flexibility is easier to achieve.

Ultimately, for the majority of time that an engineer is on a customer premises, they will have their head in the hole where the meters lie.  However, this doesn’t change the fact that the first interaction that a homeowner is likely to have with their new smart meter is via the installation engineer, so they need to not just be qualified, but a customer facing resource as well.  Small things can make a big difference to the homeowner – arriving on time, being able to answer any questions or concerns on site and cleaning up after installation all go a long way to ensuring the customer is happy with their smart meter, and through association, their energy provider.

In short, smart meter installation engineers are the face of the deployment programme – they are who the customer interacts with, and a source of immediate knowledge on cutting energy consumption.  These engineers need to be selected and trained carefully, as the success of a rollout could hinge on the first impression they give.

Smart Grid Policy, Climate Change, Gold in Smart Grid Data and More…

Here are some of the most interesting stories on Smart Grid and smart meter technologies you might have missed this past week:

A Discussion on Policy for U.S. Smart Grid Interoperability
This article jumps right into the discussion that took place between some of the experts in the field in Boulder, Colorado.  The experts in Smart Grid tech got together to discuss the role of standards for U.S. Smart Grids.

Smart Grid Education, Powering the Smart Grid Promise and More…

Here are some of the most interesting stories on Smart Grid and smart meter technologies you might have missed this past week:

3 Key Documents To Help Get Your Brain Around Smart Grid
Here is a great article with 3 great documents to help you make sense of all the information, insight and technology that surrounds Smart Grid tech.  Brilliant look into what is really driving it and where it could take us.

Smart Grid, Your House, Electric Cars & You
In the future of Smart Grid technology, your grid, house, and smart electric car will all be connected.  How will this all look, feel and affect our lives?  This article dives into that exact question and tries to describe it in clear terms.

Smart Grid Global Spending, No Health Threat from Smart Meters and More…

Here are some of the most interesting stories on Smart Grid and smart meter technologies you might have missed this past week:

Smart Grid Research Shows No Health Threat from Smart Meters
Great news for Smart Grid and Smart Meters as new research is showing that there is absolutely no health threat from Smart Meters.  Rumors came out that there could be an inherent risk with Smart Meters installed in your home, these reports nullify that.

Smart Grid Managed Services Growth, MicroGrid Opportunities and More…

Here are some of the most interesting stories on Smart Grid and smart meter technologies you might have missed this past week:

Smart Grid Managed Services Could Grow 75% By 2011!
New studies are out showing that there is a strong possibility that the Smart Grid managed services could grow 75% year-over-year between 2010 and 2011.  To meet this, how will utilities handle the increased demand and handle the challenges?

Smart Grid Professionals, Smart Grid Conference, Internal Sharing of Energy Info and More…

Here are some of the most interesting stories on Smart Grid and smart meter technologies you might have missed this past week:

Survey Shows Smart Grid Professionals In Short Supply
New studies are out showing that Smart Grid professionals are in short supply across the industry.  Could this news affect future graduates make important job decisions?  The industry is in need.

Why the Smart Grid is an All Around Smart Idea
Experts are sounding off, putting to rest any notions that the Smart Grid is not a great idea.  The economic potential of the Smart Grid, they believe, can have a massive impact on so many different industries, in so many different ways.

MicroGrids, New Trends in Smart Grid Tech, Consumer Trust and More…

Here are some of the most interesting stories on Smart Grid and smart meter technologies you might have missed this past week:

Are MicroGrids A Smart First Step for the Smart Grid?
An interesting question with interesting possible answers as many are wondering if Smart MicroGrids are the smartest first step for the Smart Grid.  Many wonder if the best deployment strategy is to first deploy multiple smaller “MicroGrids” first and later deploy the larger and more connected network.