Whilst there is considerable focus on the technological aspects of delivering Smart Grids, little is understood of the extent to which consumers are willing and able to embrace new technologies and initiatives that would enable their use of energy to be actively managed. There is a real risk that if consumers do not adopt new approaches to the way that they consume electricity, Smart Grids may not be able to achieve their full potential. This presentation provides an overview and summary of the key findings from a 2 year re-search project exploring Smart Grids from a consumer perspective.

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17 September 2015 SAFER, SMARTER, GREENERDNV GL © 2015
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Yvonne Boerakker
ENERGY
How to engage consumers to smart grids
1
IEA DSM Task 23:The Role of the Demand Side in Delivering Effective
Smart Grids

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Participants
Operating
Agent
Linda Hull
EA Technology
Yvonne
Boerakker
DNV GL
Even Bjørnstad
Enova
Chae, Yeoungjin
Korea Power
Exchange
Magnus Brolin
SP Technical Research
Institute
Duncan Yellen
EA Technology
A multi-national project with
partners from five countries
This slide deck is
one of the outputs of
IEA DSM Task 23

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Project Overview
Work Programme
Scope
To explore Smart Grid related policies, technologies and tools from the perspective of the
consumer (specifically households and small businesses) in order to gain a better
understanding of their impact on consumer willingness and ability to engage in Smart Grids.
Aim
To draw together international experiences in order to provide guidance on how to ensure
the demand side become an integral component of a successful Smart Grid.
Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective

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TECHNOLOGY TOOLS
POLICY
CUSTOMER
SMART GRID
TECHNOLOGY TOOLS
POLICY
CUSTOMER
TECHNOLOGY TOOLS
POLICY
CUSTOMER
TECHNOLOGY TOOLS
POLICY
CUSTOMER
SMART GRID
Project Overview

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Understanding Energy Behaviour (1)
5

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Understanding Energy Behaviour (2) –
energy behaviour model
External facilitators
External barriers
Attitude
Social
Norm
Self
efficacy
Intention Behaviour Habitual
behaviour
positive
feedback
negative
feedback
Societal level
Individual level
Awareness

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Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective
Background research & information
gathering
Collation of results
to produce a ‘Smart
Grid Guidance’
document
Key learning
points
applicable in
participating
countries
Work Programme
Research Collation Dissemination
The project was conducted over three distinct phases
June
2012
December
2013
May
2014

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Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective
Background research & information
gathering
Collation of results
to produce a ‘Smart
Grid Guidance’
document
Key learning
points
applicable in
participating
countries
Work Programme
Research Collation Dissemination
The project was conducted over three distinct phases
June
2012
December
2013
May
2014

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Background research
Three ‘areas’ of research
Impact of
markets
Interaction with
Smart Grid
initiatives
Risks and
Rewards
Identifying the drivers for Smart Grids
Assessing the impact of the electricity market on
consumers
Recognising the extent to which the electricity market
facilitates consumer engagement or represent a barrier
Gathering information on consumers views towards and
experiences with Smart Grid initiatives
Exploring risks and rewards viewed from the consumer
perspective
Understanding how this impacts the decision making
process
Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective

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Background research
Three ‘areas’ of research
Impact of
markets
Interaction with
Smart Grid
initiatives
Risks and
Rewards
Identifying the drivers for Smart Grids
Assessing the impact of the electricity market on
consumers
Recognising the extent to which the electricity market
facilitates consumer engagement or represent a barrier
Gathering information on consumers views towards and
experiences with Smart Grid initiatives
Exploring risks and rewards viewed from the consumer
perspective
Understanding how this impacts the decision making
process
Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective

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Impact of markets
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Drivers for Smart Grids
UK Drivers
 Support transition to low carbon economy
 Ensure security of supply
 Minimise costs to customers
 Empowering customers
The drivers for Smart Grids differ from one context to another
© EA Technology

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Electricity market impact on consumers
Key facilitators in UK
 Equalising incentives scheme
– DNOs no longer dis-incentivised to
seek ‘capital solutions’
 RIIO approach to network
regulation
– Strong incentive to deliver
efficiency savings and use
innovative approaches
Key barriers in UK
 Metering is the responsibility of
Suppliers
– Not network companies
 Consumers lack trust in energy
companies
 Time of use tariffs not
widespread

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Consumers can help by:
00:00 04:00 08:00 12:00 16:00 20:00
Dynamic load shifting
00:00 04:00 08:00 12:00 16:00 20:00
Permanent load shifting
00:00 04:00 08:00 12:00 16:00 20:00
Overall energy reduction
By reducing electricity
consumption
Changing pattern of
consumption
Demand side response
Sharing smart meter data
(e.g. with DNOs)

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Background research
Three ‘areas’ of research
Impact of
markets
Interaction with
Smart Grid
initiatives
Risks and
Rewards
Identifying the drivers for Smart Grids
Assessing the impact of the electricity market on
consumers
Recognising the extent to which the electricity market
facilitates consumer engagement or represent a barrier
Gathering information on consumers views towards and
experiences with Smart Grid initiatives
Exploring risks and rewards viewed from the consumer
perspective
Understanding how this impacts the decision making
process
Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective

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Consumer Interaction with Smart
Grid Initiatives
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INT2
INT3
INT6
INT4
INT7
KR1
Analysis of 23 case studies
17
IT1
SE3
SE4
SE
1
SE
2
NL2
NL3
NL1
Advice
Control
Feedback
Tariff
Key
INT5
NO1
NO2
UK5
UK9
UK7
UK8
UK6
UK1
UK2
Case
Studies
INT1
UK4
UK3

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Review of consumer attitudes from 22 consumer surveys
The views and opinions were wide-ranging
Some
consumers are
sceptical and
lack trust
There is a lot of
misunderstanding
about why industry
stakeholders are
developing smart
grids and why
consumers should
engage
Once the drivers for
Smart Grid are
understood, some
consumers say they
would be willing to
participate
Some consumers
say they would not
participate under
any circumstances
Many consumers say they would
participate in return for a financial
payment
The level of
payment
required varies,
but in many
cases it is not
unreasonable

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Key findings – top five
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Background research
Three ‘areas’ of research
Impact of
markets
Interaction with
Smart Grid
initiatives
Risks and
Rewards
Identifying the drivers for Smart Grids
Assessing the impact of the electricity market on
consumers
Recognising the extent to which the electricity market
facilitates consumer engagement or represent a barrier
Gathering information on consumers views towards and
experiences with Smart Grid initiatives
Exploring risks and rewards viewed from the consumer
perspective
Understanding how this impacts the decision making
process
Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective

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Risks and rewards from a consumer
perspective
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Predicting behaviour
 If Y > X then option will be selected
 If Y < X then option won’t be selected
Where:
 Y = benefits to the customer (£)
 X = cost to the customer (£)
The traditional ‘engineers’ approach to predicting whether a
consumer will do something is to use a neo-classical economic
model

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Loft insulation example
There are many examples to show that neo-classical economic modelling does
not predict behaviour
Benefits to the consumer
~ £180/year reduced heating bill
~ 730kg/year reduced CO2 emissions
Costs to the consumer
~ £0 – installed free of charge
But, they need to:
- allow installers into their home
- empty the loft of all its contents

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Example (continued)
Would not allow
assessor access
No response when
assessor called to
property
Household assessed
- no survey
necessary (not
suitable for
insulation)
Household assessed
- offered and
received free
insulation
Household assessed
- offered but did not
accept free
insulation
% of households
35%
16%
6%
16%
27%
Kirklees Scheme
An extremely successful scheme, achieving very high participation levels
A significant number of
households did not
take up the offer of
free insulation

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Key findings – top five
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Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective
Background research & information
gathering
Collation of results
to produce a ‘Smart
Grid Guidance’
document
Key learning
points
applicable in
participating
countries
Work Programme
Research Collation Dissemination
The project was conducted over three distinct phases
June
2012
Decembe
r 2013
May
2014

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Smart Grid Implementation Guidance document
Who is it for?
The document is intended to provide
guidance to implementers of Smart Grid
initiatives , specifically those initiatives
that require action from households and
small commercial / industrial businesses.
How should it be used?
The guidance document provides general
guidance, applicable in a range of
contexts, on how Smart Grid initiatives
should be designed in order to make them
more attractive to consumers.
What is it?
The guidance document describes a step-
by-step approach to implementing Smart
Grid initiatives.

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It is suggested that readers start by reviewing the
background information in Section 2, followed by the
overview of the step-by-step process in Section 3.
Thereafter, readers have the option to focus only on those
areas where they require further information and guidance.
The document contains a number of interesting and relevant examples to highlight the key
criteria from a consumer perspective.
Each Section concludes with a series of key messages for stakeholders, outlining general
criteria that need to be considered, and who is responsible for ensuring these criteria are
met.
Overview of guidance document
Section 12
Tools to assist implementers
- Assessment matrix to evaluate
the benefits of Smart Grids
- Quantifying benefits and
dis-benefits to the consumer
- Customer segmentation models
Step 1: Understand drivers
Section 4
Step 2: Define outcomes
Section 5
Step 3: Target consumers
Section 6
Step 4: Design offering
Section 7
Step 5: On-going support
Section 8
Step 6: Assess benefits
Section 9
Step 7: Monitor and Evaluate
Section 10
Step 8: Implement
Section 11
Section 13
Further Reading
Introduction
This Section provides a high level
description of the Factors for
successful implementation -
introduced in the form of a step
by step process
Section 1 Section 3
This Section describes the
Background to the project,
including:
- An overview of Smart Grids
- An introduction to energy
behaviours and energy
practices
Section 2

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Key messages – top five
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Impact of
markets
Interaction with
technology
Risks and
Rewards
Definitionofoffersand
programs
Synthesisand
Dissemination
Customer perspective
Project Outputs
Document
Type
Document Title Date
Research
Report
The Impact of Electricity
Markets on Consumers
January 2013
Interaction between Customers
and
Smart Grid Related Initiatives
November
2013
How risks and rewards from
the perspective of customers
affects the decision to engage
in Smart Grids
December
2013
Guidance
Document
Smart Grid Implementation:
How to engage consumers
July 2014
Executive
Summary
Smart Grid Implementation:
How to engage consumers
July 2014

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SAFER, SMARTER, GREENER
www.dnvgl.com
Thank you for your interest
31
Yvonne Boerakker
Yvonne.Boerakker@dnvgl.com
+31 263566017

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