Proven Approaches to

Successful Demand Response

Programmes

Global Best Practice

Christophe Dromacque

Head of Research

VaasaETT

EUW – Amsterdam

October 17th 2013

Outline

Lessons learnt 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

VaasaETT 4

‘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

VaasaETT 5

‘Empower Demand Phase I’

Impact of customer engagement in ToU pilots

VaasaETT 6

‘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

VaasaETT 7

Good practice 1: In-depth customer segmentation Meter hunt, SEAS NVE, Denmark Web portal, personalized tips and feedback Average consumption reduction: 17%

VaasaETT 8

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

VaasaETT 9

Good practice 3: Customer education and support during programme

Perth solar city, Australia

CER trials, Republic of Ireland

Power Cents DC, USA

VaasaETT 10

Good practice 4: Integrated approach to feedback OG&E Smart Study Together, USA Dynamic tariffs, IHD, web portal and mobile app Average savings of $157 compared to standard rate plan Peak clipping: 6% - 16% (excluding automation of appliances)

VaasaETT 11

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

Smart info display Web Portal Mobile App

Few months

VaasaETT 12

Good practice 6: Personalized actionable insights Opower’s home energy reports Paper-based consumption reports Average consumption reduction: 1.5% - 3.5%

Participants’ energy use compared with that of

their neighbors

Shows participants the results of those actions

over time

Suggested actions participants can take in order to reduce usage

VaasaETT 13

Choice Comfort Savings

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

VaasaETT 14

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 DROMACQUE

Head of Research

christophe.dromacque@vaasaett.com