Austin Energy Smart Grid to Get Smarter

Austin Energy is purchasing software that will enable the Utility to get signals from the meters indicating when a customer has lost power, when the power has come back on, and to verify that the customer in fact has electricity. The Austin City Council this week approved purchase of the software up to $330,369.

The software will help enhance the efficiency and speed of outage restoration and is one of the first steps toward testing and developing a self-reporting grid that will one day eliminate the need for customers to report power outages by phone as the technology matures.

Currently, just 20 percent of customers report their outage, slowing the identification of the cause of the outage and the speed of restoration. In combination with the software and customer calls, Austin Energy will be able to diagnose an outage quicker and dispatch crews based on the information.

The software is expected to be installed and operational within a year.

Energy management networks forecasted to be in over 9 million US households by 2014

Parks Associates' report Residential Energy Management: Forecasts for the Deployment of AMI and the Adoption of Energy-saving Products and Services finds over 80% of U.S. consumers are interested in reducing expenditures on energy consumption and willing to pay for cost-saving solutions. Cost-saving products and services that generate consumer interest include programmable thermostats, energy monitors and systems enhanced with energy-management capabilities, smart appliances, and energy-efficient CE systems.

However, the amount consumers are willing to spend does not cover the costs of required systems, creating a need for innovative business models that will enable a new energy management service industry.

Utility-based home area networks (HANs) are only one of several options for these solutions and services to enter the consumer market. By 2013, iREMs will outnumber utility-based HANs. By 2014, the vast majority of the nine million U.S. households with an energy management system will have an iREM. Engaging consumers is critical to success in this market. Business strategies must be developed that comprehend the magnitude of consumer education and support required for offerings in this arena.