Intelligent software running on next-generation smart meters at the grid-edge will deliver value to retailers, DNSPs and consumers.
In the age of sustainability, the role of consumers in the renewable transition continues to evolve.
In this Q&A, Sense Head of Australia, David Johnson, explains what this shift means for each stakeholder and how smart technology can transform the Australian energy market.
How has consumer behaviour evolved during the energy transition?
Today, Australian consumers are more aware of their energy use, in part due to rising living expenses. Consumers are also more aware of environmental concerns, investing in clean technologies such as solar and EVs.
It’s still early days, but consumers are at the heart of the energy transition, and their actions are significantly accelerating electrification.
Why must utilities and consumers be on the same page when it comes to energy generation and consumption?
As the energy transition evolves, the role of grid-edge ‘behind the meter’ generation – primarily through rooftop solar and EVs – is growing at a phenomenal rate. Rooftop solar will likely become a significant new generation resource and EVs are emerging as controllable storage resources for home demand-side response (DR) and network virtual power plants (VPPs).
Retailers and DNSPs recognise that their customers are changing, and they must help facilitate their evolution.
When all parties are aligned, and utilities have full grid-edge visibility, it’s possible to effectively manage supply and demand, prevent grid overloads and optimise distribution – especially during peak periods.
What does the increasing uptake of CERs mean for retailers and DNSPs?
While electricity supply margins will continue to face pressure, consumer energy resources (CERs) offer retailers opportunities to grow ARPU and customer value over longer lifecycles and reduce bills without discounting tariffs and margins.
Building customer trust, consent, participation and engagement is essential for retailers to scale higher-margin propositions such as DR and VPP that leverage CERs for both home and grid use over longer and more predictable periods.
Retailers need better real-time grid-edge intelligence data to see when new CERs are added to offer better tariffs and propositions that can be scaled across all customers.
To maintain reliable and balanced networks, retailers and distribution network service providers (DNSPs) require better grid-edge intelligence and visibility. For example, monitoring changes in distribution transformer health as new loads come online is vital to avoid grid strain and prioritise network reinforcement. They will also need DR services to ease network congestion and balance the grid.
First-generation DR and VPP services shifted load by only two to four per cent. The next generation of DR, however, can achieve peak consumption reductions of up to 18 per cent, as seen in households in the US.
How can smart meter technology bridge the gap between consumers and utilities?
Sense’s AI software helps consumers understand and manage their energy consumption through a personalised, real-time view of whole home energy usage and individual appliances. On average, consumers reduce their consumption by eight to ten per cent.
Sense can also detect the highest-consuming appliances in real-time, making domestic DR at scale a reality. For example, Sense AI enables retailers and DNSPs to monitor the adoption and charging of EVs without extra hardware integration with EV chargers.
Outside the home, faults on the grid can be identified and located within 10m, based on tiny fluctuations in the power supply into the smart meter. The low voltage network can be monitored with greater precision, with a real time view on power quality, voltage and frequency right to the grid’s edge.
Sense will be rolled out to millions of US homes, have there been any learnings?
Our biggest learning is that scaling across entire distribution networks or customer bases is certainly possible, but requires a world class engagement app.
This app must provide consumers with specific, real-time information, give them time to establish familiarity and trust, and offer easy steps to engage with energy-saving behaviours to participate in DR at scale.
Sense AI software is the quickest and most effective way to gain grid-edge visibility and scale DR and VPPs affordably across a large number of users without requiring hardware IoT appliance deployments to be in place first.
How does the Australian energy market differ to the rest of the world?
It might be surprising to some, but Australia is much further along in the energy transition than other markets around the world.
The US is the first country to begin upgrading networks to AMI 2.0, the next generation of grid intelligence. However, Australia outpaces the US and Europe in rooftop solar and EVs, with grid-edge community storage likely to follow.
Australia is uniquely positioned to become the first market to transition to a next-generation distribution network. This shift to AMI 2.0 would reduce operational costs while providing comprehensive grid-edge intelligence and visibility to support the country’s energy transition.
What’s next for Sense?
Through our pilot with Melbourne families, we have developed an in-depth understanding of both Australian homes and appliances.
In a mature market like the US, our detection rate is 95 per cent accurate in explaining over 70 per cent of appliance consumption. In Australia, we’re rapidly approaching this level of performance as we gather more data and develop market specific algorithms. For instance, we have reached 98 per cent EV detection in Australia.
Our Australian beta testers have provided excellent feedback on our technology, with 91 per cent agreeing that Sense allows for better management of home energy use. Additionally, 96 per cent would be more likely to participate in DR if the Sense app advised them which appliances to switch off.
We are now working with meter technology and service coordinator partners to ensure Sense runs on the next generation of AMI 2.0 smart meters in this market.
Consumers will benefit from enhanced energy insight, the cost of grid management will fall, and domestic flexibility will become viable at scale.
We’re excited to help contribute to the energy transition in Australia.
Interested to learn more about these topics? Register here for Sense’s next webinar, Bridging the gap between consumers and utilities, exclusively for Energy readers, and connect with Dave on Linkedin.
