Smarter Grid / Consumer Behavior...Smarter Grid / Consumer Behavior SICEM 2009 Seoul International...
Transcript of Smarter Grid / Consumer Behavior...Smarter Grid / Consumer Behavior SICEM 2009 Seoul International...
Experience you can trust.
Smarter Grid / Consumer Behavior
SICEM 2009Seoul International Conference on Electricity Market
Frank S. LimVice President, Business Development, Asia/Pacific
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KEMA has been serving clients for more than 80 years
•
Established in 1927, Arnhem, the Netherlands•
Three primary business lines:– Consulting– Testing
– Certification•
1,850 professionals in more than 20 countries•
Annual revenue of $300+ million
Independent experts to the global energy and utility industryIndependent experts to the global energy and utility industry
Serving electric utilities’ diverse needs from generation to retail
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Our perspectives are often inclusive of global drivers and activities from our international footprint
Europe•
Belgium•
Bulgaria - Sofia•
Czech Republic - Brno•
France - Saint Laurent de Mûre•
Germany - Bonn•
Germany - Duisburg•
Germany - Dresden •
Germany - Munich•
Italy – Osnago
North America•
Massachusetts - Burlington•
California - Anaheim•
California - Lafayette•
California - Oakland •
California - San Diego•
California - Walnut Creek•
Colorado - Englewood•
North Carolina - Raleigh•
Montana - Helena•
Oregon - Corvallis•
Pennsylvania - Chalfont•
Virginia - Fairfax•
Wisconsin - Madison•
British Columbia - North Vancouver
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Ontario - TorontoAsia & Australia•
Australia - Sydney•
India - Bangalore•
China – Guangzhou•
China - Hong Kong•
China – Shanghai•
China - Wenzhou •
Japan – Tokyo
Middle East•
Israel - Petah Tikva•
Oman - Muscat•
Qatar - Doha•
Saudi Arabiav - Ryadh•
United Arab Emerates - Dubai
South America and the Caribbean •
Colombia - Santafe de Bogata•
Brazil - Rio de Janeiro•
Netherlands Antillies – Curcao
•
Lisbon•
Madrid•
the Netherlands - Arnhem•
Poland - Warsaw•
Russian Federation - Moscow•
Turkey - Dudullu-Istanbul•
United Kingdom - Glasgow,•
United Kingdom - London•
United Kingdom – Monmouth
Key to Locations:Red = Consulting services business & technicalYellow = Products and processes testing & certification
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Design System
Manage Procurement
EnhancePerformance
Formulate Strategy
ManageDeployment
DeployPlan Harvest
We are also supporting some of the word’s largest AMI and smart grid utility programs, going back to late 2005
• Use Case and requirements development assistance• Market and technology assessments• Vendor audits and quality assurance support
• Use Case and requirements development• Field demonstration/ regulatory support• Business case analysis and regulatory strategy support
• Business case and regulatory filing development• Field demonstration deployment support• Regulatory filing support
• AMI and MDM system procurement support• AMI benefits testing and process design• Quality assurance development and support
• System requirements development• Procurement support• “Digital City” design and development (proposed)
• Requirements and design analysis• Financial analysis• Procurement and PMO support
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R&D Standards Policies Regulations
RelativeInvestment
Level
Modern Grid Initiative
PSERC1
• Electricity Advisory Committee (DoE)
– Ralph Masiello recently appointed for initial term
– Provide counsel for the nation’s grid modernization efforts
• GridWise Alliance– Ralph Masiello serves on Board of
Directors– Rob Wilhite serves as Chairman of the
Implementation Work Group– Seek to identify, solicit, and support
Smart Grid demonstrations and deployments
• GridWise Architecture Council– John Chowdhury is a member – Promotes interoperability and open
platforms for smart grid technologies• Other key industry consortia are
tracked or followed by KEMA on a routine basis
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Note 1: Power Systems Engineering Research CenterNote 2: New York State Energy Research and Development Authority
We are also active with a number of smart grid consortia and alliances
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KEMA has released the first comprehensive industry viewpoint on the “Utility of the Future”
“Utility of the Future: Directions for enhancing sustainability, reliability and
profitability”• First of a series of publications in helping
utilities achieve their smart grid goals
• Volume 1 is an outgrowth of strategy work performed by KEMA for major utilities and other key energy industry suppliers
• Outlines a vision of the “Utility of the Future” that is organized and managed much more like high-tech product and service companies, operating in a multi-player ecology of businesses with shifting roles
Above figure excerpt from EnergyBiz magazine, September-October issue, 2008
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The Smart Grid movement is well underway•
Select Smart Energy Initiatives in North America– Department of Energy (DoE) Modern Grid Initiative– DoE Electricity Advisory Committee & Task Force– GridWise Alliance– GridWise Architecture Council– Demonstration projects via key national labs (e.g., Pacific Northwest)– Numerous utility programs – one has now filed for full deployment in two jurisdictions
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Energy Independence & Security Act of 2007 – Signed Dec.19, 2007– Title XIII: Smart Grid Provisions - It is now U.S. policy to support the modernization of the electric transmission and
distribution system to maintain reliability and infrastructure protection
– Smart Grid Technology Research, Development and Demonstration – including matching funds
– State Consideration of Smart Grid – encourages regulatory reviews beyond just AMI
– Smart Grid System Report – due soon•
American Recovery and Reinvestment Act – Signed Feb. 17, 2009– Electricity Delivery & Energy Reliability (Smart Grid) - $4.5 Billion for Federal matching grants (up to 50%) and
demonstration project funding
– Energy Efficiency - $16.8 Billion for block grants to states to promote energy conservation and energy programs
– Tax Incentives - 50% special depreciation allowance for utility property through 2009 and 30% investment tax credits
for smart grid technology manufacturers
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The Smart Grid concept varies among individual users – The strategy taken will depend on in part on the boundaries set:
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Energy Markets
SmartGeneration
SmartGeneration
CentralizedCentralized DistributedDistributed
IntermittentIntermittent
Critical / Backup
Critical / Backup
SmartGrid
SmartGrid
SmartEnd UseSmart
End Use
TransmissionTransmission DistributionDistribution
InformationSystems
InformationSystems
AssetManagement
AssetManagement
Grid Monitoring
Grid Monitoring
Grid Automation
Grid Automation
EnterpriseIntegrationEnterpriseIntegration
BaseloadBaseload
PeakingPeaking
GreenPowerGreenPower
Commercial/Industrial
Commercial/Industrial ResidentialResidential
Smart Motors& Devices
Smart Motors& Devices Smart
AppliancesSmart
Appliances
BuildingAutomation
BuildingAutomation
PhotovoltaicPhotovoltaic
Plug -in HybridsPlug -in Hybrids
Advanced Metering
Advanced Metering
Site EnergyMgmt Systems
Site EnergyMgmt Systems
DemandResponseDemand
Response
DistributionOperations
DistributionOperations
PowerElectronics
PowerElectronics
SmartStorageSmart
Storage
Communication& Control
Communication& Control
TransmissionOperations
TransmissionOperations
Smart Dist. Devices
Smart Dist. Devices
SmartGeneration
SmartGeneration
CentralizedCentralized DistributedDistributed
IntermittentIntermittent
Critical / Backup
Critical / Backup
SmartGrid
SmartGrid
SmartEnd UseSmart
End Use
TransmissionTransmission DistributionDistribution
InformationSystems
InformationSystems
AssetManagement
AssetManagement
Grid Monitoring
Grid Monitoring
Grid Automation
Grid Automation
EnterpriseIntegrationEnterpriseIntegration
BaseloadBaseload
PeakingPeaking
GreenPowerGreenPower
Commercial/Industrial
Commercial/Industrial ResidentialResidential
Smart Motors& Devices
Smart Motors& Devices Smart
AppliancesSmart
Appliances
BuildingAutomation
BuildingAutomation
PhotovoltaicPhotovoltaic
Plug -in HybridsPlug -in Hybrids
Advanced Metering
Advanced Metering
Site EnergyMgmt Systems
Site EnergyMgmt Systems
DemandResponseDemand
Response
DistributionOperations
DistributionOperations
PowerElectronics
PowerElectronics
SmartStorageSmart
Storage
Communication& Control
Communication& Control
TransmissionOperations
TransmissionOperations
Smart Dist. Devices
Smart Dist. Devices
Energy Markets
Source: Global Environment Fund and The Center for Smart Energy
Perspective On AMI and Smart Grid
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AMI is the evolutionary step to previous-generation AMR systems, offering much greater functionality and benefits
Traditional AMR
(One-way)
AMR Plus
AMI(Full two-way)
Fina
ncia
l Inv
estm
ent/
Pot
entia
l Ret
urn
Operational Functionality/ Flexibility
• Automated monthly reads• Tamper reporting• Improved meter reading
accuracy
• Daily or on-demand reads• Hourly interval data• Outage notification• Load profiling
• Integrated remote reconnect• Advanced (time-based) rates• Distributed Generation detection and control• Remote meter programming• Power Quality monitoring/ reporting• Home area network interface• Enhanced security compliance
AMR vs. AMI Capability
Perspective On AMI and Smart Grid
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AMI provides increased network connectivity providing an information link between the customer and the utility
AMI Meter
MDM/ Utility Back Office • Outage Mgmt.
• Adv. Billing
Customer Premise
AMI Connectivity (illustrative) AMI Communications Trends
• Full two-way (bi-directional)• Near real-time data read/access• Higher bandwidth• Increasing number of
communications nodes• Robust Meter Data Management
systems to interface with back office
• Peer-to-peer mesh networks• Distributed generation control• Multiple backhaul integration • Device interoperability• Open communications protocols• Self-diagnostics and programming• Minimal network administration• Self-registry capabilities• Price signals to smart appliances• Meter as a premise “portal”
Remote Access
Gas or H2 O AMR Meters
Wired Solutions
Wireless Solutions
Perspective On AMI and Smart Grid
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AMI is a comprehensive service offering that ranges from Customer Premise Devices to Meter Data Management
Meter
Meter LAN
Wide AreaNetwork(WAN)
EndpointDevices
HomeArea
Network(HAN)
Communications Infrastructure MDMPremiseEquipment
Meter
Data Acquisition
The following options are some of the more commonly ones considered. We would use this framework to explore those that are most appropriate to the needs of a Client
•Interfaces to in- premise devices, including home area networks (HAN) and load control devices and communicating thermostats
•Interval recording•200-amp reconnect/ disconnect switches
•Power outage/ restoration reporting
•Tamper and theft notification
•Remote reprogramming
•Licensed RF point-to-point•Unlicensed RF mesh •Broadband over powerline
•Any COL existing fiber or communications network
•Commercial cellular services
•Leased line data service
•Vendor specific to infrastructure
•Typical commercially offered systems plus integration
•Emulation of interface to existing CIS
Meter Data Management
Collectors
Perspective On AMI and Smart Grid
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A robust Meter Data Management (MDM) system will be foundational to AMI
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Data Capture – AMI Systems can product a significant volume of meter consumption, interval and event data.
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Data Distribution – Meter data will be used by different systems within the utility, a common source of this information is essential.
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Data Verification, Editing and Estimating (VEE) – Some of this meter data may be incorrect, there needs to be a process that intelligently processes this information.
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Storage – With all this information, there needs to be a system of record that maintains this information.
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Aggregation – There may be many meters associated with an account, there must be a system that allows multiple meters to be viewed as one entity.
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A robust Meter Data Management (MDM) system will be foundational to AMI (continued)
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Data Affiliation – Often there is a need to associate meters (physical) to service points (accounts)
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Official Record Keeping – There must be one system of record with versioning and an audit trail (SOX).
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Reporting (performance) – There is a need to understand how well elements of the system are operating.
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Reporting (other information) – Various standard use and trend reports are typically provided.
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Data Conformity – Meter information may be from various sources and in different format, there must be a common data structure.
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Data Extraction – There are often tools that use the meter information.•
Asset Management – There is a need to maintain information about core meter data (multipliers, version, etc.)
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Typical Components of a SmartGrid/IntelliGrid/Utility of the Future
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Interoperability and acceptable standards will be vital to full systems integration for smart grid components
Make sure they can talk to each other – not chickens talking to ducks
Web Services
SubstationAutomation
DistributionAutomation
Adv.Meters
DG
z
AMICommunication
Data Models
Data Models
(XML)
IEC 61979 - EMSIEC 61968 – DMSIEC 60870 – other control centers
IEC 61850DNP 3.0IEC 60870
IEC 60256DLM/COSEM
Customer Services
System Operations
Enterprise Systems
HAN/ Bldg.
Controls
BACnetLONWorks
ZigBeeWiFi
HomeplugX10 PLC
IEEE 1547
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• Assess Current Situation
• Perform Market/ Customer Research Studies
• Develop Strategic Options & Roadmap
• Perform Risk Assessment and Mitigation Plan
• Conduct Business Case Analysis
• Design Implementation Plans (e.g., Regulatory, Supply Chain)
Design System
Manage Procurement
EnhancePerformance
Formulate Strategy
ManageDeployment
DeployPlan Harvest
• Develop Requirements and Use Cases
• Redesign Business Processes and Develop Change Mgmt Plan
• Develop IT System Architecture (e.g., MDM, Operational)
• Develop QA Program and Security Requirements
• Perform Systems Integration and/or Testing
• Manage Bid Evaluation and Vendor Selection Process (e.g., RFP)
• Implement QA Program and Provide Supplier Assessments
• Design and Manage Acceptance Testing and PoC/ Field Demonstrations
• Provide PMO Oversight Services
• Implement/Oversee IT System Changes
• Manage Final Acceptance Testing and Commissioning
• Implement Process Change Management
• Perform Program Evaluation, Measurement and Verification
• Analyze Additional Value Creation Options
• Develop Operational Effectiveness Improvements
• Develop and Manage IT and Automation System Enhancements
Key Milestones - KEMA Focus Areas
KEMA's has a proven and practical methodology that is providing significant assistance to leading AMI, Energy Efficiency and Smart Grid programs
Perspective On AMI and Smart Grid
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One form of promoting the smart grid concept is being pursued through Duke Energy’s KY demonstration center
• Cincinnati-based, technology demonstration center that showcases features and benefits of the “Utility of the Future” to various stakeholder groups
• Demonstrates key components of the smart grid vision and how it operates
• Integrates the work at the center with related promotional, educational and marketing activities targeted for various stakeholder groups
KEMA is pleased to be Duke’s exclusive partner in designing and operating Envision as the premier smart grid demonstration center in the world
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Consumer Behaviour/Reaction to two pilot programs
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PSE&G (Public Service Electric and Gas Company) Demand Response Program
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SDG&E (San Diego Gas & Electric) Direct Load Control Program
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myPower Pricing Pilot Overview
Program Goals•
Understand how price signals can influence customers’ energy usage patterns.
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Test customers’ reaction to the opportunity to conserve and shift load when power is in peak demand.
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Assess the value of technology in supporting customers’ ability in becoming more energy savvy.
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Improve understanding of system requirements, technology options and performance.
Program Designed•
To test participant response to variable TOU and CPP rates. •
To integrate testing of in-home technology and multiple two-way communications systems that transferred energy pricing and interval consumption data to and from the customer’s meter.
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To try multiple technology solutions under real field conditions.
Source: myPower Pricing Pilot 2007 End of Program Survey
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myPower Pricing Pilot Overview
myPower Connection
Customers 319 Residential
Rate* TOU-CPP (RSP)
Equipment
Electric interval meter Programmable thermostatTwo-way communications infrastructure - PLC, RF, Hybrid
Customer Education and Communication
MailE-mailTelephoneSignal to thermostat
Usage and Billing Information Internet
* RS = Residential Service, TOU-CPP = Time-of-Use, Critical Peak Pricing
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myPower Time-of-Use – Critical Peak Pricing (TOU-CPP)
Summer 2007 Pricing PlanWeekdays
June - September
0
4
8
12
16
20
24
28
9 AM 1 PM
Time of Day
Pric
e in
cen
ts p
er k
Wh
9 AM
8.7¢Medium
Price(Base Price)
23.7 ¢High Price(On-
Peak)
8.7¢Medium
Price(Base Price) 3.7¢
Low Price (Night Discount)
6P M 10 PM
$1.46Critical Price
Standard Residential Rate
WeekendsJune - September
0
4
8
12
16
20
24
28
9 AM
Time of Day
Pric
e in
cen
ts p
er k
Wh
9 AM
8.7¢Medium
Price(Base Price)
3.7¢ Low Price (Night Discount)
10 PM
Standard Residential Rate
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Operational Assessment - CustomerCustomer Response•
Customers were recruited through a direct mail campaign with a 4% response rate, supplemented by telemarketing with a 16% response rate.
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Incentives were used to drive customer interest and participation ($25 upfront incentive and $75 at completion of pilot).
Customer Screening•
Potential customers screened over the phone for in-home attributes such as central A/C, electric house heating, broadband Internet, type of HVAC system, in-home phone lines, etc.
Customer Education and Communication•
In-depth educational materials customized by segment included pricing plan information, thermostat programming guides, Energy Savers Guide, energy conservation information and tips, myPower FAQ’s, etc.
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Notified customers of CPP events using two methods chosen by the customer – home/office/cell phone and/or e-mail. Delivered customized telephone notices using an automated outbound dialer.
•
Pilot website enabled customers to view energy usage and bills online, compare savings to the standard residential rate (RS) and access energy savings information.
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Customer Assessment Overall, customers were satisfied with myPower
Source: myPower Pricing Pilot 2007 End of Program Survey
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91% of myPower customers agreed PSE&G should offer more programs similar to myPower to customers.
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Roughly eight out of ten myPower customers (77%) participants would recommend myPower to a friend or relative.
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78% of myPower customers participants thought program participation should be voluntary.
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The majority of myPower customers (84%) participants believed programs such as myPower benefit the environment.
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71% of both myPower customers and believed they saved money.
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In Summary•
myPower participants consistently lowered their energy use in response to price signals across two summers (peak demand reduction of 1.33 kW for myPower).– During the summer there were daily reductions in energy use from 1:00
p.m. to 6:00 p.m. due to on-peak prices in the TOU rate. – During Critical Peak Price events, customers increased their load
reductions during the 1:00 p.m. to 6:00 p.m. period.– Participants achieved summer period energy savings of 3-4%.
•
Technology-enabled customers produced greater reductions in energy use in response to the TOU rates and the CPP events.
•
Majority of participants achieved bill savings of 87% •
myPower Pricing participants would recommend the program to a friend or relative, believe they saved money, believe the program is good for the environment and that PSE&G should offer more programs similar to myPower.
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Consumer Behaviour/Reaction to two pilot programs
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PSE&G (Public Service Electric and Gas Company) Demand Response Program
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SDG&E (San Diego Gas & Electric) Direct Load Control Program
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SDG&E Summer Saver Program
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A direct load control (DLC) program that cycles air conditioners using a wireless device connected to the air conditioning unit
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20,000 residential participants and 4,500 commercial
participants•
Residential customers choose between 4 different cycling options and commercial customers have a similar menu of choices.
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SDG&E compensates program participants through annual bill credits.
Source: Process Evaluation of SDG&E Summer Saver Program Final Report - KEMA.Inc. U.S.A.
50% cycling, which allows your A/C to run half the time that it ran in the hour prior to the conservation period. This usually results in approximately a 1 to 3 degree increase in room temperature during the conservation period.
100% cycling turns your A/C compressor "off" for the entire conservation period. Though not recommended for people with medical conditions or pets in the house, the 100% option is an excellent choice for people who aren't home during the day.
Summer Saver OptionsA. 7-Day/100 option Receive up to a $194 annual bill credit*
B. 5-Day/100 option Receive up to a $184 annual bill credit*
C. 7-Day/50 option Get a $35 - $56 annual bill credit
D. 5-Day/50 option Get a $25 - $46 annual bill credit
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SDG&E Summer Saver Program – KEMA Evaluation
Source: Process Evaluation of SDG&E Summer Saver Program Final Report - KEMA.Inc. U.S.A.
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SDG&E asked KEMA to do a process evaluation to gauge participant satisfaction with the program and to identify areas for program improvement especially in the marketing area
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The report's findings and recommendations were based on four research efforts:
– 1) a survey of 300 program participants; – 2) a survey of 301 SDG&E customers who had dropped
out of the Program; – 3) a survey of 251 "non-participants" -- SDG&E
customers who had been marketed to by the Program but who had not joined the Program; and an external best practices study, which collected information about DLC program best practices as well as lesson learned through interviews with 6 DLC program managers.
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Why Join the Program?
n = 300
4.2%
2.3%
0.3%
1.2%
1.6%
5.6%
5.6%
34.0%
45.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Don't know/ Refused
Other reasons
Helping avoid more powerplants
Fighting global warming
Don't use AC that much
Helping environment
Helping SDG&E avoidoutages
Saving my energy
Getting SDG&E incentives
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Participants’ Main Reasons for Joining the Summer Saver Program
Source: Process Evaluation of SDG&E Summer Saver Program Final Report - KEMA.Inc. U.S.A.
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SDG&E Summer Saver Program – The Findings
Source: Process Evaluation of SDG&E Summer Saver Program Final Report - KEMA.Inc. U.S.A.
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Participant satisfaction levels with the enrollment process (94%)
and the device installation process (95%) were very high.
•
Only 56% of participants recalled the Summer Saver Program
information. Yet of those recalling the information, 86 percent were
satisfied with it.
•
Satisfaction with the Program as a whole was lower (74%),
primarily due to the discomfort of some participants during control
events
•
One key finding of the report was that improving the Summer Saver
marketing/ informational materials and approaches should increase
participant satisfaction and reduce dropout rates
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Comparing Comfort Levels During Cycling Events Participants vs. Dropout Customers
21%
5%
21%
3%
26%
4%
28%
4%
26%
18%
8% 9%
21%
72%
14%
78%
0% 0% 0%4%
1% 2% 1% 2%6%
0%
28%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Participants Dropout Customers Participants Dropout Customers
Residential Commercial
Very comfortableFairly comfortableSomewhat uncomfortableVery uncomfortableDepends on time of dayDepends on day activatedDon't know
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SDG&E Summer Saver Program - Summary & Recommendation
Source: Process Evaluation of SDG&E Summer Saver Program Final Report - KEMA.Inc. U.S.A.
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The surveys found low awareness/knowledge levels concerning the frequency of Program cycling events, the availability of different cycling options, the ability of participants to switch between cycling options, and even the availability of the bill credits.
•
The research found that many of those who dropped out of Summer Saver might have stayed with the Program if they had known about some of these options or benefits.
•
It was also found that 68 percent of residential non-participants and 82 percent of commercial non-participants who were previously unaware of Summer Saver were interested in receiving Program information. These customers represent significant untapped potential for future program recruitment.
•
The report recommended ways that the Program could improve its marketing, education, and participant retention efforts.
Experience you can trust.
Thank you for your time.