Give Consumers Convenient Ways to Save Energy, Executives Urge

Comparing the nascent smart grid to other networks for telecom and highways, moderator Jesse Berst, managing director of Global Smart Energy, said families typically spend about the same amount on electricity as on gas and phones, but consumers don’t generally have the same choices in controlling energy use as they do with other expenses. “It’s no wonder why Google, Microsoft, Oracle and others are excited and see this is as one of the biggest opportunities of the first half of the decade,” he said.

Consumer participation will be critical to overhauling the energy grid, a number of speakers said. Rates will increase as utility companies revamp their infrastructure to be grid-compliant, and consumers will be able to shop utility companies to find better rates, they said. Utilities will need to take on more of a service model, which will include offering consumers ways to monitor, control and automate their energy use so they can do more to reduce their energy bills.

Chris Walker, Pioneer’s senior manager of product planning, said the smart grid will allow CE makers to take advantage of information already available and provide it through a feature on audio/video receivers or TVs, so consumers can manage their energy use. Walker said dynamic compression can enable allow to lower the volume and the amount of watts required while maintaining sound levels. And with feedback from A/V products, consumers can see how the use of specific features can directly affect their utility bills, he said. Turning off a display and dimming backlights are two things consumers can do to reduce energy usage, he said.

Walker said California, which has imposed strict energy limits on for big-screen TVs, will be at the forefront of CE energy legislation. As a result, he said, “over the next two to three years, you're going to see lots of products that allow consumers to see how much energy they're saving.” With “75 percent of products now being connected devices, these devices already have a way to communicate,” he said. “It wasn’t that way two to three years ago.”

Magnolia/Best Buy is studying closely opportunities in the residential monitoring and control market, said John Preiner, director of merchandising. The chain wants to “take an integral role in reducing energy consumption,” he said, and help reduce consumer confusion over changes in the utility eco-system. He envisions a dedicated space in retail stores and sees opportunities for the Best Buy’s Geek Squad house-call team to provide energy audits and help consumers reduce electric bills.

Will West, Control4’s CEO, said his company was drawn into the energy space. Of the 290 terawatts of energy use in the U.S., he said, 160 terawatts are consumed in homes. “We're not going to solve the energy problem without consumers,” West said. He said monitoring is just one piece of the solution. “If we provide just information on how much energy they're using, they might save 5 to 15 percent, and after six months that monitoring device will probably go into a drawer.” If consumers can see how running devices at energy-saving levels at off-peak hours translates to dollars and cents, they're far more likely to take an active role, he said. “But studies show that if we tie monitoring into an automated control system, that savings rate jumps to 30 percent,” he said.

The ultimate message for the electronics and utilities industries, West said, is that consumers need to be provided with convenient ways to save energy. “We have to stop treating consumers as rate payers and find ways to save energy without screwing up their lifestyle.”