Utility Week

28 | 26TH JANUARY - 1ST FEBRUARY 2018 | UTILITY WEEK Customers Market view U tilities learnt an important lesson dur- ing the US roll out of smart meters – that customers would not be passive participants in the technology decision. Fur- ther, that educating customers before, during and aer the deployment about the benefits of technology advancement is advantageous to all parties. Of course, now that many utili- ties have achieved recovery for advanced metering infrastructure (AMI) deployment efforts, questions are raised once again about the continued need to engage customers in the dialogue around technology advancement and investment. One would think the lessons that were learnt in Bakersfield, California, nearly a decade ago would have remained strongly ingrained in the minds of utilities. But new grid modernisation efforts are prov- ing otherwise. Utilities that have successfully deployed AMI are now faced with some important questions, namely: 1) What do they now need to do to optimise these investments? 2) What are the benefits to consumers to make these technology advancements? 3) How much will it cost to educate consum- ers and what is the risk-benefit analysis of doing do? Let us take a closer look at the current dilemmas facing utilities looking to further undergo transformation in the area of grid modernisation and the role of the consumer during the process. A key mistake utilities made when they built their AMI business cases was to assume that technology transformation would end with the last meter in, and when the net- works were optimised. Of course, regula- tors needed a defined timeline and cost to approve AMI, but any technologist would understand inherently that technology trans- formation is a process – not a one-time deal. That is because digital infrastructure must be upgraded and maintained as technology advances. Furthermore, those networking compa- nies that promised transformation of the grid through AMI should have mentioned that the smart meter network is simply a platform from which transformation blossoms. It is the backbone for new applications to run over it. The end game was never just under- standing customer energy use. Customer benefits The conversation around smart technology is an ironic one. Why does one assume that enabling equipment with a wi-fi capability or plugging into the internet makes some- thing smart? The Internet of Things has most certainly brought about the introduction of smart solutions, and enabling infrastruc- ture to respond in real time to a changing landscape does make something smart, but an important piece of the equation is how utilities deploy this kind of infrastructure or use advanced technologies to modernise the grid. This means smart people must know what to do with smart technologies to solve real world problems. In the case of the grid, reliability and security remain top priorities for modernis- ing the grid. While those functions may not necessarily rely on customer engagement, customers most certainly can understand the benefits of those investments. Kilowatt-hour reduction is an example of a component to grid modernisation that involves people making intelligent decisions to understand, manage and control their energy use. While automation helps, choos- ing to automate homes through use of smart home appliance or smart devices is a respon- sibility that falls on the consumer. So while customers may not see the need to protest in the streets about self-healing networks, there are significant benefits to those utili- ties that keep the benefits discussion going with customers, as well as the responsibil- ity to educate, empower and sometimes arm customers with the tools and technologies necessary to help them participate in a sus- tainable smart energy lifestyle. Lower energy bills are not always the pri- mary benefit to consumers when it comes to grid reliability. This means utilities should be careful about what they promise in their messages. However, understanding that their communities are safer and more resilient from any kind of threat – whether that is man-made or natural – is a real benefit that should be articulated. Furthermore, environ- mental benefits around carbon reduction can also be seen as a benefit to consumers. For those utilities and policymakers who are tasked with allocating funds for grid modernisation, or approving business cases related to these investments, it is wise to ensure the customer is not le behind. Con- sumers can be the largest proponents of these advancements and play a critical role in both deployment of new technology and adoption of it. The cost of education Rather than put a dollar amount next to the grid modernisation line item, perhaps it is wiser to calculate a price per customer that equates to a percentage of the overall tech- nology investment. If customers are indeed necessary to the success of grid modernisa- tion, that technology education should be part and parcel to the funding of any grid mod business case. One can argue that the risk of lack of education is twofold: first the slow adop- tion of behavioural change, and second the costs associated with crises communications should customers decide they have been taken advantage of. The new year is upon us and one of the great advantages the internet and advanced technology has brought us is the ability to communicate better, louder and more directly than ever before. For those utilities and policymakers who are struggling with how to address the needs of customers dur- ing the grid modernisation process, it is best to remember the power of the customer has never been greater. Whether it is the ease and wide availability of social media or the ability to reach regulators more directly and profoundly than ever before, the voice of the customer is loud and wants to be heard. Best to harness it for its ability to improve our energy future, not wait for what happens when it is ignored. Juliet Shavit, president and chief executive, SmartMark Communications Smart grid 2.0 After smart meters have been installed in every home, the smart grid transformation can begin in earnest, but consumers have a vital role to play, says Juliet Shavit.

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