Just last week, Oracle released a report titled “Turning Information Into Power Report: Moving Toward the Smart Grid” This report is a survey of 604 U.S. Energy Consumers and 200 Utility Mangers done in January 2009.
Report Shows General Interest in “being green,” but More Action Must Be Taken
The report finds that most Americans are concerned about energy costs (94%), and 95% are interested in receiving detailed information about their energy usage. 76% are interested in renewable energy technologies for their home. But only 20% of Americans said they would pay an upfront fee to view their energy usage.
On the utility side, 91% do believe that it is critical for the United States to adopt smart grid technology to meet the energy needs of the future. But so far, only 16% of utilities have begun implementation of these technologies. 42% believe that utility suppliers believe that upfront consumer expense is the biggest roadblock to the benefits of the smart grid.
What is a Smart Grid
As defined by the Oracle report, Smart Grid is defined as
An electricity delivery infrastructure that leverages advancements in IT, communications technology, and energy technology to improve delivery utilization/resilience and empower consumers to address environmental concerns
What do Utility managers and CEO’s feel are benefits to smart grid adoption?
- Improving power flow management through critical peak pricing programs and the ability to detect developing overload conditions (58%)
- Supplying customers with the tools to monitor and reduce energy use at home (45%)
- Minimizing environmental impact by revising the current distribution of power and alleviating the need for additional infrastructure (24%)
- Reducing the need for expanded grids by providing correctly-sized transformers and other distribution equipment (17%)
Initial steps are being taken towards adopting smart grid technology, but few utilities (3%) have fully implemented a smart grid program. That said, 60% have either assessed the opportunity for a smart grid system, or have developed a written plan for deploying these technologies.
The Roadblock to Smart Grid Technology is Cost
75% of consumers say the reason they have not implemented any kind of renewable energy system into their home is due to cost. 42% of utility companies have said their number one roadblock to smart grid implementation is the upfront expenses it will impose on its consumers.
The Final Verdict on the Smart Grid
Directly from the Oracle Report:
- Provide Actionable Information: U.S. consumers are concerned with energy costs and want more information on usage to make better decisions –opportunity for utilities to improve communication and customer satisfaction
- Boost Awareness Consumers are not necessarily aware of programs –including net metering and rebates –that may be available to them. They are also unclear that renewable energy may not reduce costs due to up-front expenses. There is a significant opportunity for utilities and government to focus on education and increase uptake
- Prepare for Smart Grid Implementations Utilities are preparing for the smart grid. They can streamline this process and maximize success by developing detailed transition plans, securing buy-in from stakeholders, and evaluating/implementing integrated, standards-based technology