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Consumer energy management is tradtionally a low-involvement category. Utilities are challenged to engage customers as participants in emerging “smart grid” programs that promise to lower customer bills while harnessing demand-side energy resources. This presentation reviews utility industry efforts to employ game mechanics in motivating customers to engage in smart energy management behaviors.
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© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
Smart Energy Behavior
Peter Shaw, Senior DirectorSmart Energy Practice
J.D. Power and Associates
Using Game Dynamics to Engage Consumers
GSummitJune 20, 2012 San Francisco
The energy behavior challenge
• Low-involvement category
• Utilities being asked to go green
• Smart grid transformation
• Asking customers to join the party
2
The energy behavior challenge
• Low-involvement category
• Utilities being asked to go green
• Smart grid transformation
• Asking customers to join the party
3
The energy behavior challenge
• Low-involvement category
• Utilities being asked to go green
• Smart grid transformation
• Asking customers to join the party
4
The energy behavior challenge
• Low-involvement category
• Utilities being asked to go green
• Smart grid transformation
• Asking customers to join the party
5
What is a “smart grid”?
6
What is a “smart grid”?
7
Customers = virtual power plants
• Pricing and service plans
• Energy efficiency programs
• Demand Response
• Smart meters
• Networking of homes, appliances and vehicles
• Customer-owned generation and storage
• Plug-in electric vehicles
Technologies
Customer Programs
Source: iTeres
WindFarm
Offices
Central Power Plant
Storage
Industrial Plant
Generators
Isolated Microgrids
HousesSolar Panels
Storage
Storage
Generators
Storage
Future Power Grid
/ PEVs
/ PEVs
/ PEVs
8
Smart Grid
Traditional incentives
• Mandated standards
• Rebates
• Free stuff
• Marginal cost pricing
9
Green Button – government spurring innovation
Standardizes way for customers and app developers to download consumption data, use it to manage usage
10
How do we incentivize smart energy behaviors?
Smart energy behavioral segments
11
J.D. Power classified U.S. electric customers into six behavioral segments
But how engagement-ready are U.S. electric customers?
Most consumers are not proactively engaged
12
Stage 1: Pre-Active
Stage 2: Reactive
Stage 3: Active
Stage 4: Proactive
Stages of Engagement Industry
18%
44%
25%
12%
13.6
12.6
12.1
11.8
10.2
9.0
7.0
5.4
5.3
3.9
3.0
2.1
1.9
1.1
0.8
Earn points for reducing my energy use
Show me how much energy (money) I save if I take action
Show me how much energy (money) I’m saving when I takeaction
Display how much electricity my appliances actually use
Information on how much electricity I’m using/spending on anygiven day/week
Allow me to remotely adjust my thermostat or turn on/offappliances
Information on how much I am projected to use/spend thismonth
Alert me to an outage when I am not at home
Let me set an electricity budget and receive alerts if I exceed it
Show me how much I use compared with households like mine
Alert me to an outage affecting family members
Illustrate how my electricity use is impacting the environment
Enroll in a "Pay As You Go" payment plan
Give me an online game that helps me save energy
Provide me a social media tool to compare usage and shareinformation
Sm
art
En
erg
y S
erv
ice
Pla
n F
ea
ture
sCustomers want more than bill savings
13
What bothers most customers…
• Their “monthly mystery bill”
• Can’t relate usage to bill amount
• Don’t know how much energy they’re wasting
• Don’t get any feedback on their good efforts to be efficient
• Want information they can use, not data
• They don’t talk “utility speak” – kWh, load shapes, etc.
14
Key ingredients for sustained energy engagement
• Provide usage/spend information
• Put it in context; comparison with peers
• Education and messaging
• Price signals
• Consistent feedback
• Challenge and reward them!
15
The game mechanic’s arsenal
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Social Pressure FREE!!!
Social Comparison Accomplishments “Free Lunch”
Supersized Incentives
How do we measure impacts of game strategies?
• Improve customer value (empowerment, affordability, fun)
• Increase enrollments
• Generate conservation savings
• Generate peak reduction
• Improve customer sentiment
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Smart Energy
Innovation storm
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Facebook Unveils 'Social Energy' App
Social Game
Mechanics
Customer
Engagement
Program
Participation
Web Portal Mobile Social Messaging
The Platform For Customer Engagement
19
BACKGROUND
Successful demonstration of Simple Energy platform value through San Diego’s Biggest Energy Saver program in 2011
– Participants saved an average of 20%
– Paved the way for results at scale in 2012 through the San Diego Energy Challenge program
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SAN DIEGO ENERGY CHALLENGEPROGRAM STRUCTURE/TIMING
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SDUSD School Teams compete from June 11th – November 30th, 2012 to:
– Sign up the most households – Reduce the most energy on
Peek Time Rebate days– Win prizes
PRIZES
• Prizes for teams and individuals– Monthly iPad drawings– Sign-up/referral contests– Daily iTunes gift card drawings– iPad and gift card drawings for those
who consume 80-100% less than their baseline on a PTR (Peek Time Rebate) day.
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INCENTIVES/MECHANICS
• Supersized Incentives (Extrinsic Rewards)– iPads and iTunes gift cards for
individuals and groups
• Social Comparison (Intrinsic Motivators)– Approval/Shame– Status
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Web PortalMobile
Social
Messaging
ENGAGEMENT
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BIGGEST ENERGY SAVER – WINNER PROFILES
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SAVINGS
“When we first learned of the contest, my husband said, ‘we’re going to win this.’ So, we started looking for ways to save energy. We changed chemicals in the pool so we could turn off the pool pump, we plugged our home entertainment system into a power strip and made sure it was off when we weren’t watching it, and we turned off our computers instead of just letting them go to “sleep.” Near the end, when it got close, we cut back on TV and washed our dishes by hand.”
“I’ll admit, we got really into the contest. All of the my friends knew about it and they wrote notes on my Facebook wall encouraging us to keep it up.”
“We didn’t win any of the three drawings for an iPad; but, now that I think about it, we saved more than enough money to buy a brand new iPad!”
46.5%
1,356 kWh
SAVINGS VS 2010
34.2%
1,506 kWh
SAVINGS VS 2010
42.8%
1,488 kWh
SAVINGS VS 2010
12.6%
106 kWh
BIGGEST ENERGY SAVER: Erica F.
September: Josephine G.MONLTHY DRAWING WINNERS
October: Linda H. November: Tracy G.*
*Joined 11/1/11; Only November data included.
“I had no idea how much energy the ‘can lights’ in the kitchen used – and, I probably never would have thought to investigate that – but, the daily reminders motivated me to. Now, unless I need all of those lights, I use as few as possible.”
“We paid a lot of attention to the daily updates. In fact, when my boyfriend’s brother came to visit, I saw our energy use going up. When he left, I could really see the difference. It ‘s just amazing how much we were saving.”
26
"Every time I can see that there are other people on the leaderboard saving more energy than I am, I’m motivated to save even more.”
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