Smart Meters are Disrupting the Retail Energy Landscape

Transcription

1 Smart Meters are Disrupting the Retail Energy Landscape Richard Ewers Principal (972) Pariveda Solutions, Inc. Dallas, TX

2 Table of Contents Smart Meters Are changing Landscape Historical Perspective and Current Landscape Benefits of Smart Meters Maturity Framework and Solution Barriers to Implementation 2 Pariveda Solutions. Confidential & Proprietary.

3 The introduction of Smart Meters is changing the retail energy landscape Smart meters are disrupting the foundation of residential, small commercial and indirectly, large commercial retail energy markets These disruptions present opportunities for retailers to increase profitability through operational efficiencies and next generation products In order to capitalize on these opportunities, retailers must overcome the technical and business challenges presented by Smart Meter data Building the necessary foundation now will be the difference between gaining an edge on competitors or being edged out of the market 3 Pariveda Solutions. Confidential & Proprietary.

4 Smart Meter Penetration is Significant in North America and Growing Quickly in Major Global Markets The percent of smart meter installations as part of new installations expected to increase every year though 2021 Utilities and municipalities drive smart meter installations because of the operational cost savings they realize Two-way communication capability of Smart Meters allows for real time transmission of usage for improved maintenance response Smart meter installations for residential and small commercial customers across the globe has increased dramatically The United States is expected to have over 91% penetration by 2024 Asian and European markets continue to grow with penetration is expected to reach 68-86% by Pariveda Solutions. Confidential & Proprietary.

5 Retail Energy Providers will experience several benefits from leveraging smart meter usage Reduced risk and increased margins from existing customer base through optimizations to existing forecasting and purchasing operations Improved retention of desirable customers through products tailored to specific customer usage behaviors Increased market share through introduction of next generation products that are difficult for competitors to replicate Benefit of Smart Meter Forecasting for Small Commercial 5 Pariveda Solutions. Confidential & Proprietary.

6 Retailers will determine their readiness using Pariveda s Retail Energy Maturity Framework Enabling Disruption Products Pricing Small Commercial Commercial Small Commercial Commercial Smart Meters (isolated vs part of larger system) Small Commercial Connected Home and Business Commercial Customer Empowerment Small Commercial 1st Gen Products 2nd Gen Products 2nd Gen Products 2nd Gen Products 2nd Gen Products 3rd Gen Products Connected products Matrix Pricing 1st Gen Retailer 2nd Gen Retailer 3rd Gen Retailer Deregulation Manual N Gen Retailer Smart Microgrids Commercial Non-Traditional Offerings Pricing must account for distributed generation and storage of energy Value Proposition Customer Retailer Platform Readiness Computing Investment to Close Gap Integration Investment to Close Gap Storage Investment to Close Gap Simple Pricing No Change - Minimally viable Calculate matrix pricing for all residential markets Targeted pricing (Some customers receive lower prices) Reduced risk Support pull pricing for all commercial customers Accommodate batch updates and manual uploads of usage data Structured data store capable of storing summary usage and forecasts (e.g. database or spreadsheet) Targeted pricing (Some customers receive lower prices) Reduced risk May improve quality / consistency of customer book Customer has more product options to choose as a result of automation pricing reduces operational costs and improves broker sales conversion rates Varies - benefits tied to available connected products Additional customer usage to develop new offerings (e.g. Nest alliance) Integrate with utilities to pull usage/premise data in batch updates or real time Ability to influence future energy pricing (e.g. Demand Response) Active partnership with customers improves customer retention Calculations must account for detailed forecasting and cost data to generate custom prices at the customer level Products are highly configurable by interval and granularity Ability to store interval usage and forecasts for all smart or IDR meter enabled customers Implement archiving strategy with market specific business rules Social Consciousness Reduced energy costs Value add products and services Opportunity to redefine traditional boundaries of retail energy industry - solar installments, smart home appliances, home maintenance contracts, insurance, etc Pricing accounts for additional forecasted and non-energy inputs (e.g. energy generation, storate, local distribution, hardware) Communicate directly with connected products, receive real time usage and send messages (e.g. power down device) Must store significant volumes of data required by detailed usage and customer data generated by connected devices and customer activity 6 Pariveda Solutions. Confidential & Proprietary.

7 Technical and Business Barriers Must be Addressed by Providers to Take Full Advantage of Smart Meter Data Smart meters will generate significantly more usage data than legacy meters, 730x more for residential A meter data management solution will be required to provide a single truth for usage and premise attributes Key Facets of Single Platform Storage Computing Pricing occurs at a customer level instead of by geography, requiring significantly more demand on real time pricing Existing products must be re-tooled for residential and small commercial customers to eliminate the need for generic profiles Pricing calculations will likely require realtime premise attribute calculations based on usage data (vs pre-calculated values necessary for generic pricing) Integration Batch processing of usage delivered by DC on periodic basis Real time collection of usage and premise attribute data Coordination with billing vendors to accommodate new product structures 7 Pariveda Solutions. Confidential & Proprietary.