This is the first in a series (Part 2, Part 3, Part 4) of posts exploring how automated devices that produce energy conservation outcomes can integrate into local energy trading, reducing network costs and driving financial value for energy users.
You may have seen mention of some of these new home automation devices that are coming out. Devices and systems like the Nest thermostat, Elgato’s Eve, or the Wink Hub. It’s a sign of things to come, as the big players in the tech industry release products that are finding their way into the fabric of our home. Apple’s HomeKit, Google’s Home, and Amazon’s Echo are all examples, each touting voice control as a key feature — in Apple’s case based on Siri which may be familiar to iPhone users (with Amazon’s Alexa and of course Google Assistant on the competing platforms).
These platforms for the “Internet of Things” are making it possible for manufactures to create “ecosystems” of devices in the home. From lights to smart appliances like TVs and fridges to door locks to air conditioners and heaters that can respond to our commands, literally. Elgato’s Eve is a great example, integrating with HomeKit and taking advantage of its built in Siri support. At this stage it’s difficult to pick a winner in the “home as platform” race, but given the clout of each of these companies, we can be sure of one thing: these concepts will gain in popularity and acceptance, and probably quicker than we expect.
These devices and platforms are piquing the interest of many in the energy sector. Here at Nexergy we can see a point in the not too distant future where inverter manufacturers start to embrace these platforms over proprietary solutions, to reduce development costs and to compete with closed ecosystems (which some leading manufacturers seem to be angling towards, taking notes from the Apple playbook). That is to say, soon you’ll have another feature to consider when buying your battery and solar panels — is it supported by my Apple TV or Android smartphone?
But perhaps one of the more exciting aspects of these devices and ecosystems is their potential for harnessing energy efficiency at a significant scale. Let’s explore the Nest thermostat as example of this in practice. Nest is constantly monitoring your house environment and optimising your use of heating and cooling in response — working out when people are using a room and adjusting the temperature accordingly, for example. This inherently provides a benefit for the owner of the system, in the form of energy savings from electricity that is not used when its not needed, with no perceptible difference in comfort.
But there’s another way these devices can provide value. In the USA, Nest offer an option to participate in what they call Rush Hour Rewards. Participants in the program receiving bonus payments for allowing the control of their thermostats in response to a signal from their energy utility. Zen Ecosystems also employ this approach via their Zen Within product.
This basic idea has been employed in a business context for some time, under the label of “demand response” (or “DR” for short). This is because in this context—say large energy users in industry—there are significant large single loads where control of those loads is easier to manage, sometimes via manual intervention. Whilst DR in Australia’s National Electricity Market is limited, it has been very successful in Western Australia and international markets.
What’s interesting about Nest’s and similar programs is that it’s not a big single load that’s being controlled. They provide the ability to co-ordinate a number of smaller loads — individual home air conditioners and heaters — which in aggregate (at the network level) add up to a significant load. It’s also fully automated, with participants typically not noticing any change in the utility of the devices being controlled.
This is similar in thinking to the idea of the Virtual Power Plant, where a large number of individual home-scale batteries are mobilised instead of a single big power plant, but applied to energy efficiency devices. But instead of a battery discharging to provide energy to the network to meet demand, “behind the meter” devices instead reduce their energy to make existing energy on the grid go further.
The key thing, though, is that a kilowatt saved through energy efficiency is more valuable than an increase in generation. We’ll explain why in our next instalment...
Posted by Grant Young, Chief Experience Officer (CXO) of Nexergy.
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