Contemporary Perceptions of the Smart Grid. February, 2010

Transcription

1 Cntemprary Perceptins f the Smart Grid Survey at the 37th Annual PURC Cnference February, 2010 Leadership in Infrastructure Plicy 0 CD Hbbs, PURC Senir Fellw Public Utility Research Center cdhbbs@warringtn.ufl.edu (518)

2 Survey Demgraphics Survey Set A: PURC Cnference Demgraphics PURC Officers 3% Analysts and Cnsultants 23% Energy Utility Operating Managers 22% University Faculty 21% Regulatry Cmmissiners and Staff 17% Envirnmental Attrneys 11% Energy Utility Suppliers 3% Survey Set B: University Graduate Student Demgraphics MBA Entrepreneurship 33% Master f Arts Internatinal Business 33% MBA 21% MS Engineering 6% MS Finance 6% Leadership in Infrastructure Plicy 1

3 Survey Parameters 15 Questins arund tpics fcused n Smart Grid benefits, utcmes, and implementatin (See Appendix A) Sample sets represent tw distinct generatins Sample sets represent tw reference frames relative t the energy utility industry The survey seeks t measure the respndents: Willingness t use Smart Grid functinality Cnfidence in purprted Smart Grid benefits Perceptin f cnvergence f the telecmmunicatins and energy utility industries Perceptin f achievability f renewable prtfli targets prpsed at State and Federal levels Perceptins f evlutin f the retail energy retail markets Perceptin f the surce and ecnmic impact f smart grid benefits Leadership in Infrastructure Plicy 2

4 Survey Respnses There were 46 respndents frm Subset A: Participants This subset represents the age grup There were 33 respndents frm Subset B: Graduate Students This subset represents the age grup There were 79 respndents in the cmbined survey This subset represents all age grups Leadership in Infrastructure Plicy 3

5 What is the Smart Grid? Is there a cnsensus definitin f Smart Grid? 1e 68% 61% Nne 74% 10% 1d 18% 4% Between energy cnsumers and the utility 4% 1c 9% Between Federal and State regulatrs 0% 13% 1b 12% Within utility sils (G,T,D, Custmer)) 13% 1a 10% 12% Between regulatr and utility 9% 0% 20% 40% 60% 80% 68% f all respndents agreed that there was NO cnsensus definitin f Smart Grid, with the greatest respnse frm industry prfessinals (3ut f 4) 18% f saw a cnsensus between energy cnsumers and their utility, but nly 4% f industry prs agreed Lack f a cmmn and shared vcabulary and framewrk fr explaining Smart Grid benefits and assciated csts will likely extend the cnfusin ver what Smart Grid is and lead t disappintment at many levels with Smart Grid results. Leadership in Infrastructure Plicy 4

6 Surce f Smart Grid Benefits Greatest Benefits f Smart Grid Fastest Payback Frm Smart Grid Investment 2e 2d 2c 2b 2a 1% 0% 2% 37% 36% 37% 30% 33% 28% 13% 18% 9% 19% 12% 24% Transmissin efficiency Generatin efficiency Custmer Energy management Distributin efficiency Wrst Best 3D 3C 3B 3A 1=fastest Custmer Energy management Distributin efficiency Transmissin efficiency Generatin efficiency 4=slwest 0% 10% 20% 30% 40% % perceived custmer energy management t prvide the greatest ecnmic benefits f smart grid, while 30% perceived the greatest benefits wuld cme frm distributin efficiency Hwever, distributin efficiency was perceived t have a slightly faster investment payback then custmer energy management Bth transmissin and generatin efficiencies were perceived as lesser in benefits and slwer in payback Leadership in Infrastructure Plicy 5

7 Benefits frm Smart Grid Deplyment Greatest Benefit f Custmer Energy Management Lcus f Smart Grid Benefits 4d 23% 21% 24% Vluntary investment in energy efficiency 9d 54% 45% 61% Lcal utility and cmmunity 4c 10% 9% 11% Invluntary demand respnse 9c 19% 18% 20% T the lcal cmmunity 4b 20% 30% 13% Vluntary demand respnse 9b 24% 30% 20% Acrss the state 4A 47% 39% 52% Time f day demand shift 9a 3% 6% 0% Acrss the natin 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% 70% 1 ut f 2 see the greatest benefit f custmer energy management cming frm shifting demand t different times f the day, 1 ut f 5 see the greatest benefit frm either vluntary demand respnse r investment in energy efficiency 1ut f 2 see mst f the benefits f a fully deplyed smart grid flwing t the lcal utility and cmmunity, 1ut f 5 see mst f the benefits flwing t the State 6% f the MBA subset see mst f the benefits at the natinal level, but nne f the subset see any benefits f a fully deplyed smart grid flwing t the natin Leadership in Infrastructure Plicy 6

8 In a Smart Grid Wrld, Wh Will Service the Custmer? Future Retail Energy Marketers 5d 8% 9% 7% Other Only half the respndents and a quarter f the believe it will be the lcal utility 5c 5b 5a 23% 24% 22% 32% 39% 26% 38% 27% 46% Utility Spin Offs WalMart, etc. Lcal Utility A quarter f bth grups believe it will be a utility marketing spin ff 40% f the and 25% f the see retail marketers with deep cnsumer experience, e.g. WalMart, entering the market t sell retail energy packages 0% 10% 20% 30% 40% 50% Leadership in Infrastructure Plicy 7

9 Requirements t Achieve Renewable Prtfli Targets Requirements t Achieve Renewable Targets 6e 6d 6c 6b 6a 9% 16% 24% 11% 11% 15% 9% 22% 30% 43% 47% 58% 39% 37% 58% Easily Achievable Only at a Very high cst Feds enact Cap and Trade Federal funding f generatin Federal funding f transmissin 0% 10% 20% 30% 40% 50% 60% 70% respndents perceive achieving a renewable prtfli target wuld be very cstly (43%) and wuld require Federal funding f generatin investment (40%) and, t a lesser extent, transmissin investment (22%). Only 1 ut f 10 feel the need fr a carbn Cap and Trade regime. 15% f see prtfli targets as easily achievable but requiring Federal funding f bth generatin and transmissin investment (60%). 1ut f 4 see a carbn Cap and Trade regime as required. 10% f respndents see renewable prtfli targets as easily achievable cmpared with 15% f. 43% f respndents see achieving renewable prtfli targets as achievable nly at a very high cst cmpared with 9% f. Leadership in Infrastructure Plicy 8

10 Why and Hw Wuld Yu Use the Smart Grid? Why Use Smart Grid Features? What if yur bill isn t reduced? 11e 11d 11c 11b 11a 5% 6% 4% 44% 45% 43% 77% 79% 76% 67% 73% 63% 66% 73% 61% Other Mnitr Usage Remtely Reduce My Bill Reduce Usage Better understand usage 12n 12yes 39% 30% 46% 61% 70% 54% Wuldn t Use Wuld Still Use 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% respndents expresses strng (67-77%) interest in using Smart Grid derived infrmatin t understand and manage usage and t reduce energy bills. A smaller subset (44%) wanted t be able t mnitr usage remtely. 1 ut f 2 respndents and 3 ut f 4 wuld still use Smart Grid functinality in their hme if they saw n reductin in their bill t understand and reduce usage Leadership in Infrastructure Plicy 9

11 Will Energy and Telecm Industries Cnverge? Cnvergence f Energy and Telecmmunicatins? Wuld yu buy Electricity frm a Majr Telc Prvider? 29% 44% 7n 24% 14n 24% 33% 59% 71% 56% 7yes 76% 14yes 76% 67% 41% 0% 20% 40% 60% 80% 0% 20% 40% 60% 80% 71% f respndents agree that the electric energy and telecmmunicatins industries are cnverging Hwever, age differentiatin appears in the questin f whether the respndent wuld purchase electricity frm a majr (e.g. Verizn, Sprint, AT&T, T-Mbile) telecmmunicatins prvider Only 4 ut f 10 respndents wuld buy electricity frm a telc prvider. But 3 ut f 4 wuld be willing t buy electricity frm a telc Leadership in Infrastructure Plicy 10

12 Imprtance f Telc Netwrks t Smart Grid Success Imprtance f Telc Netwrks t Smart Grid Success Subset 10-1 MBA Subset % 22% 0%4%0%4%0% 11% 15% 20% % 42% 9% 0%3%0%3%3% 3% 27% Scale f 1 (unimprtant) t 10 (very imprtant) Scale f 1 (unimprtant) t 10 (very imprtant) 74% f respndents rank the imprtance f telecmmunicatins netwrks t a successful Smart Grid implementatin 7 r higher (85% f ) 22% f respndents rank the imprtance f telecmmunicatins netwrks a 10, while nly 9% f d s respndents see telecmmunicatins netwrks as relatively mre imprtant t Smart Grid success than. Leadership in Infrastructure Plicy 11

13 Hw Invlved D Custmers Want t Be? 13n 15% 12% 17% 8 ut f 10 respndents replied yes t the questin, If electric utilities culd invest in digitizing the transmissin/distributin grids and gain savings withut tuching custmers (via in-hme devices), wuld that interest yu? 13yes 85% 88% A few (less than 10%) anntated nly if the savings was passed n in lwer rates 83% 0% 20% 40% 60% 80% 100% Leadership in Infrastructure Plicy 12

14 Electricity in the Cmmunicatins Bundle 16% 100% f respnding said yes t this questin and 72% f respnding prfessinals did the same. 15n 0% 28% 84% 1 ut f 3 respndents wuld nt buy electricity in a cmmunicatins bundle EVEN IF they culd save n their bill. 15yes 100% 72% 0% 20% 40% 60% 80% 100% 120% If it prvided Smart Grid functinality and prvided a savings n yur electric bill, wuld yu be willing t buy electricity as a part f a cmmunicatins bundle such as are ffered by cable r telephne cmpanies? Leadership in Infrastructure Plicy 13

15 Summary and Observatins The absence f a cmmn Smart Grid framewrk and vcabulary is a barrier t reaching agreement n its benefits and csts at all levels f stakehlders - pliticians, regulatrs, utilities, cnsultants and energy cnsumers. There is brad agreement n the cnvergence f the electric energy and telecmmunicatins industries. Further research is needed t determine hw this cnvergence will manifest and at what segments f the energy value chain. There are generatinal differences revealed by the tw sample subsets regarding the perceptin f telecmmunicatins prviders. The subset appears less trustful f telc prviders than the MBA subset (the mbile subset). This generatinal difference may bear n the rate f cnvergence f the tw industries r n the successful entry f telc prviders as marketers f electric energy packages t cnsumers. Leadership in Infrastructure Plicy 14

16 Summary and Observatins There is an appetite fr infrmatin abut energy usage and management f energy usage that des nt depend n a reduced energy bill. Drivers f this phenmenn amng energy cnsumers might be envirnmental cncerns, an increasing fcus n sustainability, energy security r a myriad f ther factrs. Again mre research is called fr t identify these drivers. There is a lack f clarity abut where the benefits f a fully deplyed Smart Grid manifest natinally, reginally, r lcally. There is an equal lack f clarity abut where benefits will be derived frm generatin, transmissin, distributin, r custmer energy management. Research t quantify the benefits n a gegraphic basis as well as acrss the energy value chain wuld greatly assist cst effective deplyment f Smart Grid technlgy and investment n behalf f the energy cnsumer. Leadership in Infrastructure Plicy 15