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1 Taking Stock of Integrated Demand Response and Energy Efficiency Programs

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Page 1: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

1

Taking Stock of Integrated

Demand Response and Energy

Efficiency Programs

Page 2: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Speakers

Jason Brewington, Director, Product Management

Comverge

2

Stuart Schare, Managing Director, Energy

Navigant

Page 3: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Taking Stock of Integrated Demand Response and

Energy Efficiency Programs

• Driving increased enrollments

• Increasing customer engagement

• Keeping Wi-Fi devices online

• Energy savings from DR programs

• Interaction of DR and energy savings

• iDSM cost-effectiveness

Page 4: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Solutions

Sample Integrated Demand Response and Energy Efficiency Programs

Comverge by the Numbers

6,200,000+ energy management

devices deployed

2,000,000+ residential participants

enrolled into DR programs

100+ active utility customers

Comverge Overview

4

Demand Response

Energy Efficiency

Customer Engagement

Distributed Energy Resource

Management

Page 5: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

An Integrated Solution – Driving More Enrollments

5

A Viable Opportunity:

“68% of customers are interested in

smart thermostat programs”

-Smart Grid Consumer Collaborative, 2015

Top Three Reasons for Enrolling in

IDSM Program

1. Control Energy Use Remotely

2. Save Money

3. Needed new thermostat/upgrade

-Navigant Survey 2016

Page 6: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

An Integrated Solution – Driving More Enrollments

6

Direct Install

A Viable Opportunity:

“68% of customers are interested in

smart thermostat programs”

-Smart Grid Consumer Collaborative, 2015

Top Three Reasons for Enrolling in

IDSM Program

1. Control Energy Use Remotely

2. Save Money

3. Needed new thermostat/upgrade

-Navigant Survey 2016

Page 7: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

An Integrated Solution – Driving More Enrollments

7

Direct Install Direct Install of BYOT

A Viable Opportunity:

“68% of customers are interested in

smart thermostat programs”

-Smart Grid Consumer Collaborative, 2015

Top Three Reasons for Enrolling in

IDSM Program

1. Control Energy Use Remotely

2. Save Money

3. Needed new thermostat/upgrade

-Navigant Survey 2016

Page 8: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

An Integrated Solution – Driving More Enrollments

8

Direct Install Direct Install of BYOT “Referred” BYOT

A Viable Opportunity:

“68% of customers are interested in

smart thermostat programs”

-Smart Grid Consumer Collaborative, 2015

Top Three Reasons for Enrolling in

IDSM Program

1. Control Energy Use Remotely

2. Save Money

3. Needed new thermostat/upgrade

-Navigant Survey 2016

Page 9: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

An Integrated Solution – Driving More Enrollments

9

Direct Install Direct Install of BYOT “Referred” BYOT Self-Install

A Viable Opportunity:

“68% of customers are interested in

smart thermostat programs”

-Smart Grid Consumer Collaborative, 2015

Top Three Reasons for Enrolling in

IDSM Program

1. Control Energy Use Remotely

2. Save Money

3. Needed new thermostat/upgrade

-Navigant Survey 2016

Page 10: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

An Integrated Solution – Driving More Enrollments

10

Direct Install Direct Install of BYOT “Referred” BYOT Self-Install

A Viable Opportunity:

“68% of customers are interested in

smart thermostat programs”

-Smart Grid Consumer Collaborative, 2015

Top Three Reasons for Enrolling in

IDSM Program

1. Control Energy Use Remotely

2. Save Money

3. Needed new thermostat/upgrade

-Navigant Survey 2016

Page 11: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

CUSTOMER GOALSUTILITY GOALS

An Integrated DSM Solution

Predictable Bill

Affordable, reliable

power

Energy Efficiency

Options

Control

11

Reliable, Predictable

Results

Manage Overall Cost

Effectiveness

Finding “Good Grid

Citizens”

Offer new value

additions, new

revenue streams

Page 12: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

CUSTOMER GOALSUTILITY GOALS

An Integrated DSM Solution

12

Page 13: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

En•gage•ment – n.

13

1. the act of engaging or state of

being engaged

-or-

2. (mechanics) being interlocked

to enable coordinated

movement.

Page 14: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

En•gage•ment – n.

14

Photo: Rich Niewiroski Jr.

1. the act of engaging or state of

being engaged

-or-

2. (mechanics) being interlocked

to enable coordinated

movement.

Page 15: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

En•gage•ment – n.

15

1. the act of engaging or state of

being engaged

-or-

2. (mechanics) being interlocked

to enable coordinated

movement.

Page 16: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

To the Great Indoors…

Moving from an “Outside the home” approach…

...to an “Inside the home” mindset

16

Page 17: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

To the Great Indoors…

Moving from an “Outside the home” approach…

...to an “Inside the home” mindset

A Spectrum of Involvement

How a device gets inside the home informs your touchpoints

17

Direct Install Direct Install of BYOT ”Referred” BYOT Self-Install

Page 18: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

The Fundamentals – Keys to Program Engagement

Mobile App

Branding

Seamless User Experience

18

Page 19: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

The Fundamentals…

1. Mobile App

19

Page 20: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

The Fundamentals…

1. Mobile App

– 60 Percent, 2013 and now*

20

* SOURCE: ComScore 2016 U.S. Mobile App Report

Page 21: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

The Fundamentals…

1. Mobile App

2. Branding

21

Page 22: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

The Fundamentals…

1. Mobile App

2. Branding

3. Seamless User

Experience

22

Page 23: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Okay - Four Things...

Voice Control:

– Market is mature

– Integrations are growing rapidly

…a new way to engage customers

“Alexa, what’s new?”

“Hello, here is your daily update...

...It looks like you ran your A/C heavily during a critical

event yesterday; To save more money, refrain from

these activities during critical peak times.”

Page 24: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Mobile App Engagement – Learning from the

Broader Market

3-Month Retention Study – AppBoy, Inc.

24

Page 25: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Mobile App Engagement – Learning from the

Broader Market

25

Week 1 Week 2 Week 3 Week 4

😐

3-monthRetention

55%

37%

82%

88%�

� 29%

90%

23%

Source – Appboy 3-month Retention Study, 2017

Page 26: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Getting to Know You...Engagement Plan

Early Engagement is Important

Have an engagement plan

– Set up a weekly cycle

Take advantage of important touchpoints

– Direct install vs. BYOD

Page 27: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Getting to Know You... Engagement Plan

Early Engagement is Important

Have an engagement plan

– Set up a weekly cycle

Take advantage of important touchpoints

– Direct install vs. BYOD

Page 28: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Getting to Know You... Engagement Plan

Early Engagement is Important

Have an engagement plan

– Set up a weekly cycle

Take advantage of important touchpoints

– Direct install vs. BYOD

Page 29: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Getting to Know You... Engagement Plan

Early Engagement is Important

Have an engagement plan

– Set up a weekly cycle

Take advantage of important touchpoints

– Direct install vs. BYOD

Tell them something new…

OurEnergyMixCoal – 53%

Wind – 17%

Other Zero Carbon – 5%

(you contribute here)

Natural Gas – 5%

Our Energy Mix

Page 30: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Keeping devices online

The more the consumer engages, the

better your online metrics

Key Best Practices

– Education during install

– Call center

– Offline Notifications

©2016 Comverge - Confidential and Proprietary 30

Page 31: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Keeping devices online

The more the consumer engages, the

better your online metrics

Help is on the way… 50%

of consumers who purchase a “smart

home” device will purchase another

within a year.

©2016 Comverge - Confidential and Proprietary 31

Page 32: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Keeping devices online

The more the consumer engages, the

better your online metrics

Help is on the way… 50%

of consumers who purchase a “smart

home” device will purchase another

within a year.

32

Page 33: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Summary

Integrated DSM provides a larger pool of potential

participants

Plan your customer engagement

Make sure your engagement portal/app is part of your

organization’s overall online strategy

Engagement improves device availability

33

Learn more at:

http://www.comverge.com/home/knowledge-center

Page 34: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED34 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED34

FROM AN M&V POINT OF VIEW…

WHAT DO WE MEAN BY INTEGRATED EE & DR

Demand Savings Energy Savings

Demand

Response

DR event peak load reduction,

peak days only.

Energy

Efficiency

Annual energy savings, every day.

1 4 7 10 13 16 19 22

Energy Savings

From DR

Demand Savings

from EE

Page 35: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED35 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED35

ENERGY SAVINGS FROM DR

DOES IT NET OUT TO ZERO?

Demand Savings Energy Savings

Demand

Response

DR event peak load reduction,

peak days only.

Energy savings

before/during/after events

Energy

Efficiency

Annual energy savings, excluding

snapback effects on peak days.

1 4 7 10 13 16 19 22

Page 36: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED36 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED36

TYPICAL RESIDENTIAL A/C LOAD CONTROL EVENT

ENERGY SAVINGS OR NOT?

• Snapback after

event “takes back”

a lot of the

savings from the

event

Energy saved

during the event

Page 37: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED37 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED37

DEMAND AND ENERGY SAVINGS

FROM DR EVENTS

This is 0.19 kWh net

energy savings for each

hour of event duration

Net impact reflects

extra energy use

during post-event

snapback

Is this a lot

or a little?

Typical impact from A/C

load control at 50% cycling

Page 38: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED38 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED38

ENERGY SAVINGS FROM DR EVENTS

Is this a lot

or a little?

This is the annual energy

savings from ten 4-hour

events over a year

Page 39: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED39 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED39

ENERGY SAVINGS FROM DR EVENTS ARE USUALLY SO SMALL

THEY ARE HARDLY WORTH CALCULATING

A lot or a little?

Answer: A little

Surely this is not what we

mean by iDSM!

This is typical of

residential A/C load

control programs

A single CFL produces

more than 5 times the

energy savings of A/C

load control

Page 40: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED40 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED40

INTEGRATED EE & DR

INTENTIONAL, NOT HAPPENSTANCE

Demand Savings Energy Savings

Demand

Response

DR event peak load reduction,

peak days only.

Energy savings

before/during/after events

Energy

Efficiency

Demand savings

on non-event days.

Annual energy savings, excluding

snapback effects on peak days.

1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22

Page 41: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED41 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED41

iDSM CASE STUDY

SMART THERMOSTAT PROGRAM WITH DR

101 kWh 96 kWh 198 kWh

• Jointly market free WiFi thermostat and bill savings

• Customer commitment to allow DR events

• Desired iDSM Program outcomes

- Energy and peak demand savings

- Improved cost-effectiveness

Energy Savings

Page 42: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED42 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED42

EE PEAK DEMAND IMPACTS

MISSING IN ACTION

Savings not statistically significant

90% confidence band crosses zero

No measured reduction

in peak demand

Page 43: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED43 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED43

UNINTENDED CONSEQUENCES

DAMPENING OF PEAK DEMAND AND ENERGY IMPACTS

Many participants use the

thermostat to save during the

morning/early afternoon…

Programmed setpoint

changes during coincident

times cause increase in

compressor kW use

…but they use more at peak

and through the evening

Figure: Subset of customers whose setpoint

changes at 4pm

Page 44: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED44 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED44

TOUGH TO GO IT ALONEEE AND DR PROGRAMS MAY NOT BE COST EFFECTIVE ON THEIR OWN

Synergies

• How much cost can be

shared effectively?

• Will the benefits diminish

through interactive effects?

Costs exceed benefits

for both the EE and

DR programs

Costs exceed benefits

for both the EE and

DR programs

Page 45: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED45 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED45

WITHOUT SYNERGIES AN EE/DR PORTFOLIO IS NO BETTER

THAN STAND-ALONE PROGRAMS

Costs still exceed benefits

Page 46: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED46 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED46

iDSM MAGIC

THE WHOLE IS LESS THAN THE SUM OF THE PARTS

Costs savings from

shared program delivery

DR benefit loss from

permanent EE load reductions

iDSM benefits

exceed costs

Page 47: Taking Stock of Integrated Demand Response and Energy ...energycentral.fileburst.com/EC/042617_comverge_slides.pdf · Taking Stock of Integrated Demand Response and Energy Efficiency

Q&A

47

Jason Brewington, Director, Product Management

Comverge

[email protected]

Stuart Schare, Managing Director, Energy

Navigant

[email protected]