alertmecreating smart homes

February 2012

Pilgrim Beart, AlertMe

18th April 2012

IET 5th Annual Smart Metering Conference

Introducing AlertMe

• Platform for the Smart Home / Connected Home– In-home devices– Gateway– Cloud services– A variety of UI’s

• Complete with out-of-the-box applications:– Smart Monitoring– Smart Energy– Smart Heating– Smart Data

Today

From Smart Data to Consumer Value• What data will be available from Smart Meter,

who owns it, and who can access it?• What kinds of value can be derived from that

data? Value to whom?• New services and business

The Value of Data

• General market trend is from products to services• Data is the lifeblood of any service• “New economy” companies easily deal with:

– Databases of millions of customers– Millions of hits/day

• “Old economy” companies struggle with:– A patchwork of legacy IT systems & processes

UK Smart Meters deserve the name

Data available on SMHAN (1)

• Basic Consumption– Electricity

• Day/Week/Month Cumulative Consumption & Cost• Instantaneous Active Import Power, 10sec - and 1s?• Microgen

– Gas• Day/Week/Month Cumulative Consumption & Cost• (30 min update because of battery-life)

• HH interval data for 13 months• Messaging

Data available on SMHAN (2)

• Tariff & Supplier– Electricity Tariff Supplier & Name– Current and next tariff – Tariff Rate Matrix– Billing period info (start time/date and duration)– Block thresholds & PPUs

• Volume-based stepped pricing. Green/standing charge.

– ?No power-based pricing? • Change of Tenancy/Change of Supplier• Prepayment/Debt

– Inc. Emergency Credit– Aggregate Debt (3 types & 2 recovery methods!)

• System Management - Power Quality?

Who “owns” the data?

…is a meaningless question!

• Security and Privacy (different things)– Who can access what data, under what conditions?

• Via the WAN & DCC (minimal data, not live)– Your Utility (in principle just enough for billing)– DNO’s (though ideally would like live view)– 3rd-parties nominated by consumer (e.g. switching services?)

• Via the home (inc. high-res live data)– The consumer– Third-party services consumer nominates– Consumer Gateway can push hi-res data into Cloud via broadband. Govt

not minded to regulate this, but there should be some “best practice” guidelines to ensure consumers understand what they are doing.

Value

Think of 3 stages:

Data -> Information -> Valuee.g.

Data = Tariff & consumption so far this monthInformation = Predicted bill at end of the monthValue = Household budgeting, Avoiding disconnection

Value from SM Data

• VIS - visibility• COST - translated into £• CO2 - translated• EARN - microgen• PRICESIGNAL - ToU, CPP• COMP - comparative norms• PREDICT - budgetting• SWITCH - tariff / supplier• PREPAY - and credit/debt• DISCONNECT

• PRIVACY - change of owner• MESSAGE - from utility• SMSOK - system working• TIME - reference• READINGS - to check bill

(source: CEDIG data dictionary)

Value from SM Data - Analytics

• ITEMISE• WARN• MAINT• HEAT• ASSIST• AUDIT• AUTOAPP• OPTIM

Examples• “Washing at 30°C would save you £34/year”• “Boiling only a cupful of water in your kettle would save

you £12/year”• “25% of your bill is spent on ‘baseload.’ Click for tips on

what might be causing this and how to address it”• “Your fridge is consuming more than last year – perhaps

the seals have gone. A new fridge would pay for itself in 3 years”

• “You’ve left the house but your fridge door is open (or your iron/over/hair curlers are still on)”

• “Mum didn’t get up this morning”• “More of your bill is spent on heating than in similar

homes.”• Ensure EV charged by 8am at minimal cost• Optimising heating patterns around occupancy

(all enabled by 1-second data)

30 minute data OK for balancing grid

Analytics needs 10 second data(and ideally 1 second)

Industry’s view

Smart Meter

SMWAN

SMHAN

IHD

BillingUp-sell

Retention

Value Added

Services

Consumer’s view

Me

Savings

Comfort

Convenience

Peace of MindFashion

Electric Vehicle

Solar Panels

IHD

Smart Meter

Everything else now in the Cloud

…why not your home?

“The number of internet connected devices is set to explode in the next four years to over 15 billion, twice the world's population” Suraj Shetty, Cisco VP global marketing, at its 5th annual trends forecast 1 June 2011

Smart Data Engines(Using the ADELE - Alertme Domestic Energy Load Engine - as an example)

A model, able to use whatever data is available:• Zero data (assume national averages)• Basic data (demographics or postcodes)• Low-res Energy data (quarterly/monthly reads)• Medium-res Energy data (Smart Meter HH)• High-res Energy data (10s via Consumer Gateway)• Temperature and per-appliance, if available• Other sources (e.g. customer-volunteered info)

Smart Data Engines (2)

Provides, uniquely for every customer:• Predicted bill (elec, gas)• Energy use profile over 24 hours• Bill break-down

– Lighting, Cooking, Heating, Appliances, Hot Water,…• Normative and Injunctive Comparisons• Energy advice – helps consumers manage spend• Spots up-sell/cross-sell opportunities

The Value of Data

To the Consumer:• Information and Insight• Control• Automation• Simplicity (esp. interoperability & low friction)• Peace of Mind• Savings (reduced consumption, switching)

The Value of Data

To Retailers (of Energy and others):• New Services (brand presence, loyalty)• Higher added-value

– Energy Services much higher margin vs. Energy Retail• Cross-sell, up-sell & e-commerce• Disintermediation (e.g. MVNO)• Bundling• One platform to unify the homeThis is not just a game utilities can play

– E.g. retailers & telcos can too– Utilities risk Disintermediation & Commoditisation

Data – the Ground Rules

• Must be Permissive– It’s the consumer’s data– The consumer chooses to grant access– If it doesn’t benefit them - they won’t!– It’s a trade (like gMail)

Conclusions

1. Caveat:• Nothing final until SMETS 2 process complete (due Sep ‘12)• Mass rollout now only 2.5 years away: 5m homes/year

2. Smart Meters are necessary• It’s just putting the cash register online

3. …but not sufficient• Market needs to deliver products and services which use them

4. Vital that Smart Meters:• Calculate once• Make it easy for consumers to allow third-party products and services to access

their data and turn it into value• Support an open standard

5. Energy services are being developed and launched right now• Using e.g. clip-on readers• Start preselecting your best customers, now!

alertmecreating smart homes

alertme2nd floor Heddon House149-151 Regent Street

London W1B 4JD+44 207 993 9500

alertmeThirty Station Road

CambridgeCB1 2RE

+44 1223 361555

alertme123 10th StreetSan Francisco

CA 94103+1 415 409-9288

pilgrim.beart@alertme.com

BACKUP

1. In Home Display (live in the home)Aesthetically pleasing(looks good in your kitchen)

Live “Speedometer” display(Power, at a glance)

Translate Energy units into Money

Comparative(consumption rising or falling?)

Added-value features

2. Offline (historical e.g. on bills)

3. Online (live, everywhere)

You spent £200 heating an empty home last winterIntelligent heating gives 20% savings on your gas bill by only heating the home when you are there.

Energy Monitoring – IHD or Online?Given the choice, which one would you choose?

Neither

Depends

Option 2 - Online

Option 1 - Display

8%

12%

40%

40%

UK market survey by Critical Research, May 2011. Sample size; 1,224

IHDs vs Online: Stereotypes

Online Persona:• More likely to be ~30-year-old• More likely to be male• Has young children• Fully-employed• Home mortgaged, or renting• Household income £2500/month• Owns a Laptop and/or SmartPhone• Uses computer at work to access internet

IHD Persona:• More likely to be 50+• More likely to be married• More likely to be female• Children have left home• May be retired• Home mortgaged/paid off, probably hasn’t

moved for 15 years• Household income £1250/month• Owns a desktop

Previous IHD experience:• People who’ve already had IHDs more likely to want Online

• Especially those that have discarded their IHD

The Value of Data

(Smart Meters are just one ofmany new data sources)

AlertMe Smart Data