New Energy Economy

alertmecreating smart homes

February 2012

Pilgrim Beart

AlertMe 23rd February 2012

Allen & Overy, One Bishops Square, London

Today

• Consumer Energy Displays– 3 ways to engage and empower the consumer– Which do consumers prefer?

• The Value of Data– The rise of the Smart Home– Turning Data into Value– Smart Meters are just part of the puzzle

• AlertMe Smart Data

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

Access to data from SM HAN via CAD

Consumer HAN(s), managed by the Consumer

SMHAN, managed by Utilities

Smart Electricity MeterSmart Gas Meter In Home Display (IHD)

Comms Hub

DCCConsumer

Access Device (CAD)

• Appliances• Services• Internet• Future stuff!

…

1

2

3

The Value of Data

(Smart Meters are just one ofmany new data sources)

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

The Value of Data

• Data is the lifeblood of any service• Must turn Data -> Information -> Value• “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

The Value of Data

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

The Value of Data

For 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 home

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)• Don’t need to wait for Smart Meters!

AlertMe Smart Data

15

16

AlertMe Smart Data

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, ½-hourly)• High-res Energy data (10sec, via CAD)• Temperature• Other sources (e.g. customer-volunteered info)

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AlertMe Smart Data

Provides, for every customer, estimate of:• Size of bill (elec, gas)• Energy use profile over 24 hours• How bill breaks-down

– Lighting, Cooking, Heating, Appliances, Hot Water,…• Which appliances consume the most power

alertmecreating smart homes

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London W1B 4JD+44 207 993 9500

alertmeCompass House

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+44 1223 361555

alertme123 10th StreetSan Francisco

CA 94103+1 415 409-9288

pilgrim.beart@alertme.com