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Technology for Good – episode twenty one with Gary Barnett

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Welcome to episode twenty one of the Technology for Good hangout. In this week’s episode we had industry analyst Gary Barnett, as a guest on the show. As well as being a fellow industry analyst, Gary is an old friend, so we had a lot of fun discussing this week’s crop of stories. We had some connectivity issues at times during the hangout unfortunately, but that didn’t stop us from having a very interesting discussion about topics as diverse as climate, energy efficiency, and communications.

Here are the stories that we discussed in this week’s show:

Climate
World’s energy systems vulnerable to climate impacts, report warns
Peak Coal: Why the Industry’s Dominance May Soon Be Over

Efficiency

Cable TV boxes become 2nd biggest energy users in many homes
Microsoft Supercharges Bing Search With Programmable Chips

Cloud

Amazon strikes back, launching speedy solid-state block storage one day after Google

Communications

Google’s Balloon Internet Experiment, One Year Later
Facebook has built it’s own switch
Antitheft Technology Led to a Dip in iPhone Thefts in Some Cities, Police Say
Google and Microsoft add phone kill switch
Fire Phone against the world: can Amazon take on iOS and Android

Health

Ahead of Apple’s HealthKit, WebMD app now tracks health & fitness data from connected accessories

Transportation

Harley-Davidson’s First Electric Motorcycle Surprisingly Doesn’t Suck

Start-ups

Microsoft launches new startup accelerator in Redmond, focusing on home automation and the ‘Internet of Things’
Swiss based encrypted email service, brought to you by CERN and MIT scientists.

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If Utilities don’t step up their customer communications, they risk their considerable smart grid investments

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Smart meter

Smart grids don’t come cheap.

They are typically projects costing in the order of hundreds of millions of dollars (or Euro’s, or pounds or whatever your currency of choice). Just think, the most fundamental piece of the smart grid, the smart meter, alone costs in the order of $100. When you factor in the costs of installation, etc., you are looking at over $200 per smart meter. Therefore if you have in the order of one million customers it’s going to cost you around $200m just for the smart meter rollout.

Given that they are so costly to implement, you’d think utility companies would do everything possible to protect these projects from failure – not so, according to the latest smart grid research from Oracle.

The report from Oracle surveyed 150 North American C-level utility executives about their vision and priorities for smart grids over the next ten years. The findings are both interesting and disturbing.

It is interesting but not too surprising for example, that when asked to select their top two smart grid priorities over the next 10 years, they chose improving service reliability (45%) and implementing smart metering (41%) at the top of the list.

What is worrying though is that while 71% of utilities say securing customer buy-in is key to successful smart grid roll-outs, only 43% say they are educating their customers on the value proposition of smart grids. This is hugely problematic because, as I have written about previously, customer push-back can go a long way to de-railing smart grid projects.

And those who are educating their customers, how are they doing it?

Well, from the report, to communicate with their customers 76% of utilities use postal communications, and 72% use their own website. Only 20% use social media (and who knows how well those 20% are using their social media channels).

Tellingly, the report also mentions that only 38% of utility customers take advantage of energy conservation programs when they are made available. There are a number of reasons for this:

  1. the savings from these programs often require work on the part of the customer for no immediately visible benefit
  2. the savings are typically small (or put another way, energy is still too cheap) and
  3. Because of the extremely poor job utility companies have done on communications to-date, their customers don’t trust them, or their motivations. There is no quick fix for this. It will take time and a significant improvement in how utility companies converse with their customers before they start to be trusted

I have written lots of times over the years about the need for utilities to improve their communications.

Utilities have a lot of work to do rolling out their smart grids – but if they don’t step up their customer communications, they risk their considerable smart grid investments.

Photo credit Tom Raftery

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No, energy is not too cheap!

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Dumb Thermostat UI

Is energy too cheap to motivate consumers to change their habits and use less?

In the Smart Grid Technology conference I attended in London last week a number of discussion points came up over and over again. I wrote already about how utility companies are wondering how to engage their customers around smart grid projects. Another topic which raised its head frequently was the question of how to motivate customers to change when energy is so cheap!

The obvious answer is to raise the price of energy, and this will happen over time, but it is the wrong answer – in the short-term at any rate.

The issue is not that energy is too cheap, rather it is that people have lots of demands on their attention. To make it worth people’s time to become involved in energy saving activities, if the return is not very high (because energy is cheap) then the process of reducing energy consumption needs to be made simple!

Look at the thermostat above. This is the thermostat to control the central heating/air conditioning in my home. I like to think I am reasonably technical. I have been a Windows sysadmin for a multi-national company, managing Windows, Exchange, Active Directory, ISA and SQL Servers. I edit php files regularly, I remotely manage my own CentOS server via SSH and I’ve even done quite a bit of regex scripting of .htaccess files!

But this thermostat is beyond me!

I know it has a timer, so it should be possible to set it to come on and off at pre-arranged times. Should. Getting it to do so seems to require a Stephen Hawking-like intellect. And, even if I did manage to figure it out, it is so unintuitive that the next time the clock goes forward (or back), I’d have forgotten again and would need to start over! Which begs the question, if my phone knows when to change its clock forward or back, why doesn’t the thermostat – but I digress!

This is far too much hassle entirely. So I don’t use the timer in my thermostat. Or any of its functionality (apart from on/off). And I’m far from being alone in this.

Home energy management systems have, to-date, suffered from having appalling user interfaces. Consequently, no-one uses them. Why would they? They are hard to use and energy is cheap. The room is too hot? Rather than trying to figure out how to turn it down, just open the window!

However, if energy management were made simple and no effort were required to make changes, then it wouldn’t matter nearly as much that the savings were not substantial.

Making energy device interfaces easier to use is no silver bullet mind. This kind of approach needs to be combined with a culture of increased client communications, as I outlined in my earlier post. However, combining these two strategies would go a long way towards making people energy responsive.