Empowering smart energy efficiency

In countries around the world, experts predict existing energy production capacities will fail to meet future demand without new sources of energy, including new power plant construction. According to a recent report from the North American Electric Reliability Corporation (NERC), electricity demand in the United States alone is expected to grow by 135,000 megawatts in the next decade. Yet, only 77,000 megawatts of new resources have been identified, leaving a shortfall of 58,000 megawatts – an amount equivalent to 110 large power plants. Adding solar and wind generation may be faster and less controversial than building coal fired power plants, but those options still require several years of planning and development. Additional sources of generation are not the only issue. New transmission lines are often a required part of the equation and can cost $1 million per mile to install. These supply side solutions ignore another attractive option – slowing or decreasing energy consumption through the use of technology to dramatically increase energy efficiency. Another benefit to reducing demand is that the cleanest energy is the energy not generated in the first place.

Since few want their children to inherit the potential effects of global warming or see their landscape dotted with new power plants, innovators are turning to technology to provide efficiency solutions. By wirelessly connecting dramatically different devices like utility meters, thermostats, lights, HVAC systems and appliances, Home Area Networks (HAN) give utility customers an unprecedented way to improve energy efficiency. At the same time, utilities gain an opportunity to communicate with their customers in new ways while also giving utilities the means to create voluntary residential demand response programs with minimal customer inconvenience.

ZigBee is an established wireless standard being used by companies for the HAN thereby providing the ‘last foot/meter’ connection needed by utility companies to create real-time dialogue with their customers in support of energy efficiency and other advanced metering infrastructure (AMI) powered initiatives. ZigBee Alliance members have created a standard approach for the HAN through the public application profile. It not only supports demand response, time-of-use pricing programs, energy monitoring but also facilitates pay-as-you-use and net metering programs and builds a foundation for future smart grid management of distributed generation and advance storage techniques.

Members are banding together to respond swiftly to policy changes worldwide. Some of the world’s leading AMI companies are offering ZigBee solutions. Utilities are also taking an active role in the development of ZigBee.

Southern California Edison (SCE), for example, is piloting its next-generation of electric meters program that will improve customer service and enable customers to proactively manage their energy use. According to SCE, advanced metering has the potential to reduce peak power consumption among its customers by as much as 1,000 megawatts – an amount equivalent to the entire output of a major power plant. The scope of SCE’s metering solution is to replace approximately five million electric meters for SCE’s residential, commercial and industrial customers (below 200 kW in demand). San Diego Gas & Electric (SDG&E) cites the use of ZigBee technology as one of the 13 initiatives outlined in the San Diego Smart Grid study authored by its energy consultants. SDG&E’s AMI initiative institutes a supervisory control and data acquisition (SCADA) switch rollout program, seeks new energy supply from energy efficiency, demand response, renewable energy and distributed generation and more. Implementation of the AMI initiative, along with the 12 others spelled out in the report, could generate $1.4 billion in utility system benefits and nearly $1.4 billion in societal benefits over 20 years.

To the north, installation of ZigBee in the California Central Valley region in an area extending from Modesto to Sacramento; further east, AMI technology across CenterPoint Energy’s territory in Houston, Texas is rolling out, where the company services more than three million customers.

AMI allows collection and distribution of information to customers and other parties, in addition to the utility itself. Importantly, it connects the utility to the ZigBee Smart Energy HAN allowing users to customize the information they receive from their utility and to monitor their energy consumption. It also creates a network where devices communicate with each other and if allowed, can connect to the outside world enabling remote access and control either by the utility, a third-party service provider or the customer.

With AMI and ZigBee Smart Energy devices, customers gain complete daily, hourly or by-the-minute control over their energy consumption. ZigBee allows consumers to set their thermostats, to turn on or off their air conditioner, or heater, based on energy pricing as well as comfort. A pool pump or hot water heater can also be programmed to turn on or off only at a specific energy price points, saving even more money. Lights controlled by ZigBee wireless technology can be set to automatically turn off during peak demand and only come on when the consumer arrives home. Should a consumer forget to program lights for security, they can even be remotely and securely accessed via the internet and programmed appropriately. From a utility perspective, demand response programs are more powerful and easier to implement. When demand for electricity is high, a message can be sent to customers via the ZigBee Smart Energy HAN informing them of the high demand and that real time electricity prices are increasing. The customer then has a variety of voluntary choices: do nothing and continue using their current level of electricity, but at a higher price; reduce their electricity usage manually; or allow the utility to selectively adjust electricity usage automatically

A recent study has shown that when customers have knowledge, they become more efficient. The US Department of Energy's Pacific Northwest National Laboratory released the results of a yearlong study showing that households with digital tools controlling temperature and price preferences saved on average 10 percent on utility bills. The study also showed that if households have digital tools to control temperature and price preferences, peak loads on utility grids can be cut by up to 15 percent translating into $70 billion dollars saved over a 20 year period on new power plants and infrastructure expenditures.

Consumers are ready for new technologies to save money on energy usage in addition to protecting the environment, allowing utilities an opportunity to lead the efficiency movement. The 2007 National Technology Readiness Survey sponsored by the Center for Excellence in Service at the University of Maryland's Robert H. Smith School of Business and the technology research firm Rockbridge Associates, Inc. found that 83 percent of adults said they wanted protect the environment, and 59 percent said they like trying new technologies.

ZigBee wireless products and services provide a standards-based approach to new energy efficiency programs such as demand response, time-of-use pricing programs, energy monitoring, pay-as-you-use and net metering programs. ZigBee’s wireless open standard technology is being selected as the energy management and efficiency technology of choice. ZigBee is playing a major role in how energy is priced and used. Consumers and businesses will see changes they never imagined. People will have a greater opportunity than ever before to save money on their energy bills by being more energy efficient, while also playing a significant role to improve the environment and shape a new future for generations to come.