Smith says that because smart meters send readings on electricity usage to utilities throughout the day, they make it possible for utilities to charge more for power when demand is highest (in the afternoon) and less when usage falls off (at night). But, according to Smith, utilities are hesitant to charge customers for extra energy use. They fear that if customers associate smart meters with higher bills, this will have a negative effect on how the technology is perceived.
Smart meters are expected to represent 1/3 of US electric meters in the next 5 years.
By making variable pricing plans possible, smart meters are expected to play a big role in getting customers to reduce their peak-hour energy consumption, a key goal of utility executives and policy makers. Electricity grids are sized to meet the maximum electricity need, so a drop in peak demand would let utilities operate with fewer expensive power plants, meaning they could provide electricity at a lower cost and with less pollution.
Utilities have run dozens of pilot tests of digital meters and found that people cut power consumption the most when faced with higher peak-hour rates. But utility executives and regulators have been reluctant to implement rate plans that penalize people for too much energy use, fearing that if customers associate smart meters with higher bills, they will stall the technology’s advance just as it is gaining traction.
…So, many utilities are trying an approach that is less controversial, but also less effective: offering rebates to customers who conserve energy in key periods of the day.
The article continues on to say that utilities are also finding that commercial customers are unable to cut their power usage. Last summer, Connecticut Light & Power Co., a subsidiary of Northeast Utilities Service Co., gave new meters to 3,000 residential and business customers. Commercial customers, faced with peak-hour pricing, cut their demand 7%—far last than residential customers who cut their peak use by 16-23%.
Jessica Brahaney Cain, director of CL&P’s smart-grid planning, said that this shows that many commercial customers don’t have the option of cutting usage during times of peak demand. “A restaurant has to use its ovens,” she says. “A dentist has to use his drills.”
How effective are smart meters if utilities don’t take advantage of the opportunities that they present? Should commercial facilities be charged more for energy during peak hours? If not, what other options are available?
Last Saturday, March 27th was Earth Hour. At 8:30 pm countries around the world turned off their lights in celebration of energy conservation.
Started in 2007 in Sydney, Australia, Earth Hour is now a global movement with more than 50 million people across 35 countries who participate every year to take a stand against climate change. According to the Earth Hour website, Earth Hour is
a global call to action to every individual, every business and every community throughout the world. It is a call to stand up, to take responsibility, to get involved and lead the way towards a sustainable future.
This year’s Earth Hour saw savings across Canada. British Columbians reduced electricity consumption enough to reduce the province’s electrical load by 1.04 per cent. Hamilton, Ontario reduced energy consumption by more than three times what they did last year during Earth Hour – decreasing demand 19.1 megawatts from the previous year, representing a 3.5 per cent drop in demand.
While Earth Hour does an excellent job of increasing awareness of energy conservation and helps to cut down on energy use for that hour, installing Legend Power’s electronic tap changer, the Harmonizer-AVR, conserves electrical energy throughout the year.
Implemented across North America, the Harmonizer-AVR would save 30 days worth of power. This is equal to 720 Earth Hours per year.
What energy conservation efforts are you involved in?
Electrical energy costs are rising. The chart below shows when the average energy costs in each state are predicted to reach 15 cents per kWh. Rates are calculated assuming a 5% annual increase. Once expected power costs reach 15 cents, the states column is highlighted in green.
The chart shows that by 2030, every state will be at 15 cents per kWh, with the majority reaching this price within the next 10 years.
Why is this important?
Because at 15 cents per kWh, Legend Power customers will achieve a three year payback without incentive funding.
The simplest, most cost-effective way to combat rising energy costs is through energy efficiency measures. By installing the Harmonizer-AVR, an electronic tap changer that safely reduces voltage coming into your commercial building, you reduce energy costs and are not at the mercy of market increases.
If voltage levels decrease below the minimum standard, the tap changer will select a 0% tap to ensure voltage levels do not drop to levels that could cause a brown out.
Have a look at our corporate video to hear what IKEA, Science World, and BC Hydro say firsthand about how effective the the Harmonizer is for their buildings.
Victoria Kamsler from Greenfiniti speaks on how you can access additional ROI by monetizing your carbon assets and create revenue streams through your commercial energy conservation efforts.
She notes that energy efficiency is one of the top three sectors for quick and easy carbon reductions.
If oil runs out in 2050, and coal is the new default for electrical energy, what’s next? How does electricity generation from coal affect global warming? What role does energy conservation and alternative energy play?
While we know that big-box retailers waste a lot of unnecessary energy and that by reducing their energy costs they’ll boost their profit margins, looking at the numbers is still staggering. According to ENERGY STAR:
Retail companies spend nearly $20 billion on energy each year…
A 10 percent reduction in energy costs for the average full-line discount retailer can boost net profit margins by as much as 1.55 percent and sales per square foot by $25.
A 10 percent reduction in energy costs for the average limited service restaurant can boost net profit margins by as much as 4 percent and sales per square foot by $17.
A 10 percent reduction in energy costs for the average supermarket can boost net profit margins by as much as 16 percent and sales per square foot by $44.
Places like Hawaii where energy costs are $.30-$.40/kWh—higher than average—can achieve savings even higher than these numbers.
To reduce your energy costs, the best action to take is to request a free building audit from Legend Power. The building audit quickly identifies facilities leaks, voltage optimization issues and utility overcharges.
I came across the Sustainable Office Toolkit today. It’s an excellent resource for offices who want to go green but need some direction. From their website:
The Sustainable Office Toolkit is a set of resources and tools developed by the Sustainability Division to help offices of all types and size move toward sustainability through practices such as recycling, energy and water conservation, and “green” building.
To become a sustainable office, your environmental program must become part of your business’s core operating principles and values. It must be carried out as systematically and with as much attention to detail as a project for your manager or board of directors. For example, simply posting recycling signs above a new container is not going to effect a change in behavior; and such a change is exactly what needs to happen.
The site has guidebooks on how to implement your green plan; modules to teach you about different areas of sustainabilty, like waste reduction, energy conservation and corporate social responsibility; and resources to help you out, including sample environmental policies, templates and environmental calculators. Although the toolkit is aimed at the state of Georgia, it’s helpful for any office wanting to go green but unsure of how to get started.
Dave Orton, Vice President of Sales & Marketing at Legend Power, explains the problems with the power grid, including line loss, peak demand and power fluctuation. These three problems come together to create a buffer of unnecessary energy, which results in economic and environmental waste for commercial buildings. Legend Power has developed a solution to the problems of the power grid, the Harmonizer-AVR.
The Energy Pyramid is a simple but effective diagram outlining how renewable energy, energy efficiency and energy conservation must work together to achieve our clean energy goals. While renewable energy is important, energy efficiency and energy conservation have the most opportunities and, thus, are where we should focus are efforts.
Legend Power is an electrical energy conservation company that uses a patented device to achieve significant energy conservation results through voltage optimization. Installation results have yielded clearly measurable reductions in electric bills, maintenance costs and greenhouse gases.
Legend Power helps utilities and facilities reduce their environmental footprint while increasing their competitiveness through cost effective and sustainable investments in energy efficiency. LegendPower.com
Do you associate smart meters with higher energy bills? Would you if you were charged more for energy during peak hours?
