Sunday, August 7, 2011

Smart Meters in Texas – Lessons for Australia?

The US State of Texas is often mentioned as having the most similar electricity market to Australia’s. Since 2002 most of Texas has been a single partially deregulated market, similar to eastern Australia’s National Electricity Market (NEM). Each market serves a population of about 20 million people.

So what is happening in Texas with smart meters may be a good indicator of what might happen in Australia. A recent survey in Texas of 500 participants in a smart meter and in-home display (IHD) pilot program showed that 71% of customers reported changing their electricity consumption behaviour as a result of having access to their energy use data.

The survey was carried out on the back of the implementation of smart meters and smart grid technology, partly funded with a $200m Smart Grid Investment Grant from the US Department of Energy. The survey responses showed that:

  • 83% of respondents reported turning off lights at night or when not in the room
  • 51% adjusted the temperature on their thermostat
  • 93% reported they are satisfied with their in-home display, and 97% reported they will continue using it.

To date, wholesaler CenterPoint Energy has installed nearly 1.5 million smart meters in its 2.2 million have a smart meter can get detailed information on their electric usage by visiting the SmartMeterTexas.com website. In the future they will have the option of purchasing an IHD, providing them with up-to-the-minute usage information.

There is some scepticism about the use of smart meters, particularly if all they do is provide information about energy use, as in this case. Many customers obviously find it interesting to see how and when energy is used and the impact changes in use can have, but there is no guarantee that the novelty will not wear off. This survey confirms that this would show if it has had any long term effect on behaviour.

Smart meters may have some impact on their own, but they are likely to only really come into their own when they are combined with other Smart Grid technologies that offer differential pricing, so customers can actively manage energy use to save money. Without that, the best bet to reduce usage is to provide online analysis that shows the customer’s electricity use compared with figures for neighbours. Wanting to do better than others (and save more money than they do) is a powerful incentive.

A version of this article first appeared in The Green IT Review (www.thegreenitreport.com)

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