The Energy Management Challenge

 

 

"The most environmentally sound, inexpensive and reliable power plant is the one we don't have to build because we've helped our customers save energy"

Jim Rogers, chairman and chief executive of Duke Energy

Managing the way energy is distributed, sold, and consumed is essential in the quest for energy efficiency in a carbon-constrained world. Energy consumers and energy providers alike seek to increase energy efficiency to conserve resources, protect the environment, and be more economically conscientious.

Consumer Side

  • Today, consumers who want to reduce electricity costs and lower their electricity bill lack the information — and control capabilities — required for doing so effectively.
  • Today, people who seek to integrate alternative power sources such as solar panels or back-up generators into the end-user infrastructure are faced with high costs of extra wiring and extra switching devices.
  • Today, Demand Response (DR) programs are not adopted on a widespread basis because they present a significant inconvenience to end-users.
  • Studies have shown that successful implementation of smart control capabilities at end-user premises can reduce peak electricity demand by as much as 15%.


Supplier Side


The electricity supply side is driven by economical, geo-political and environmental parameters.

  • Power providers are slow to adopt new technologies, while aging infrastructure requires billions of dollars in investments. Volatile oil pricing combined with the growing demand for energy in all parts of the world impacts the business models — and profitability — of power providers. The growing awareness of environmental considerations, coupled with strict new regulations, limits the ability of power providers to build new plants. The growing demand for electricity is constantly outpacing the growth of grid capacity.
  • The method for electricity demand management has not changed significantly in the last three decades. Where applied, it involves complex and costly patchwork of tailored technologies at the end-user site. Typically, the implementation of such solutions is inconsistent and poorly monitored, resulting in limited benefits for the consumer and the power provider alike.
  • With the steep rise in energy costs, there is a growing demand for a more efficient electricity distribution and management platform, one that will enable suppliers and consumers to derive tangible benefits from optimizing consumption and lowering peak demand.