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Smart thermostats have developed a degree of excitement alongside announcements of ambitious smart meter rollouts and demand response (DR) programs; however, the market for smart thermostats has struggled to gain traction, especially given a much higher perceived average cost compared to basic programmable thermostats. Navigant Research forecasts that global revenue from smart thermostats will grow from $85.5 million in 2013 to $1.4 billion in 2020. The global installed base of smart thermostats will grow from fewer than 1.4 million in 2013 to 31.9 million by 2020, the research projects.

Credit: Cablegreen/Wikimedia Commons

Also known as programmable communicating thermostats (PCT), smart thermostats utilize integrated technologies that surpass the basic sensing and control functions of traditional thermostats. Functions range from remote reading and control to fully automated control systems that balance learned user habits with utility demand-side management. In some cases, the smart thermostat is part of an integrated home automation system that includes other devices such as smart lighting, plugs, entertainment, and security systems.

"Unlike products and solutions that are driven by government-sponsored utility smart grid programs, smart thermostats have remained largely in the commercial sphere, where individual energy efficiency awareness and cost savings determine purchasing decisions," said Bob Lockhart, research director with Navigant Research. "However, the combined factors of increased energy awareness, interest in home automation and security tools, and more user-friendly solutions have led to an uptick in shipments for residential smart thermostats during the past year and have revived a sense of optimism and excitement among vendors and stakeholders."

By 2020, penetration rates for smart thermostats will still be relatively low (4.7 percent) worldwide, but for utilities, the drivers for promoting smart thermostats to customers are strong, according to Navigant. Three main opportunities exist in the utility sector, Navigant says: small utilities geared toward low-cost, high-reward smart grid upgrades and functionality; generation utilities aiming to avoid plant-related upgrades and expansion; and utilities struggling to meet efficiency targets.

For more:
- see this report

Read more about: navigant research, Bob Lockhart
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2. MidAmerican dominates customer satisfaction rankings

By Barbara Vergetis Lundin

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3. HEM market showing signs of life

MidAmerican Energy Holdings Company has been ranked No. 1 in the United States for overall customer satisfaction among large commercial and industrial customers of electric utility holding companies, according to 2013 data from TQS Research, Inc.

In fact, MidAmerican's emphasis on customer satisfaction and sharing of best practices has resulted in all three of MidAmerican Energy Holdings Company's U.S. utilities -- MidAmerican Energy Company, Pacific Power and Rocky Mountain Power – making the top rankings.

MidAmerican Energy Company earned a "very satisfied" rating of 95.4 percent from the large commercial and industrial customers included in the survey. Rocky Mountain Power, earned 95 percent, and Pacific Power scored 95.7 percent. As a result of the operating companies' high ratings, MidAmerican Energy Holdings Company ranked first in the U.S. among electric utility holding companies, with 95.3 percent of large commercial and industrial customers surveyed.

"Improving customer satisfaction, particularly among large customers, has been one of our company's key initiatives," said Greg Abel, president, chairman and CEO of MidAmerican Energy Holdings Company. "These results confirm that our employees are listening to our customers."

MidAmerican Energy Holdings Company also ranked first in energy efficiency and account management.

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- see this case study

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Customer engagement goes beyond satisfaction

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4. Duke leveraging existing site for natural gas plant

The home energy management (HEM) market is expanding at a slow but steady pace, as new industry participants introduce innovative products and a few U.S. utilities, including Oklahoma Gas & Electric, NV Energy, and Baltimore Gas and Electric, promote HEM products linked with demand response programs, according to Navigant Research.

At the same time, the government of the United Kingdom has mandated that each home with smart electric and/or gas meters include an in-home HEM display. The installed base of homes with HEM systems, either standalone or networked, will grow from 4 million in 2013 to 87 million in 2022, according to Navigant.

"The home energy management market has shown new signs of life in the past year, as non-utility players, such as broadband service providers and home security companies, have moved in and started to lay the groundwork for growth," said Neil Strother, senior research analyst with Navigant Research. "In some countries, government mandates that require energy management tools to be included with smart meter deployments will also play an important role in driving the market over the next 10 years."

The barriers to wider adoption of HEM systems continue to be the cost and the perception of a long payback period, according to the report. Although some consumers will be motivated by rising electricity costs and a desire to conserve energy, others see little reason to jump in if the payoff is negligible (savings of 3 percent to 5 percent may not be enough for them to change). Similarly, most consumers have a hard time justifying the initial investment in HEM hardware systems that cost $200 or more.

For more:
- see this report

Read more about: Neil Strother, navigant research
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By Barbara Vergetis Lundin

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5. PNM energy storage project one of the largest in the nation

Duke Energy Carolinas, in partnership with North Carolina Electric Membership Corporation (NCEMC), has filed an application for a Certificate of Environmental Compatibility and Public Convenience and Necessity (CECPCN) with the Public Service Commission of South Carolina (PSCSC) to construct and operate a 750 MW natural gas-fired combined cycle plant at the existing Lee Steam Station in Anderson County, S.C. NCEMC will be a minority owner of 100 MW of the project if constructed.

Lee Steam Station. Credit: Duke Energy

A final decision to build at Lee has not been made, but Duke believes it is prudent to continue with the regulatory actions necessary to keep the project moving ahead. The utility's request is part of a comprehensive, long-term plan to add new generation, modernize the fleet, maintain a diverse fuel portfolio, and manage customer costs while delivering a high-quality, reliable power supply.

"The energy needs of our customers are significant over the next 15 years," said Clark Gillespy, Duke Energy state president -- South Carolina. "Our commitment is to meet our customers' needs in a way that balances affordable, reliable and increasingly clean electricity, and this project will help us satisfy that need."

Natural gas-fired combined cycle plants are a good match to meet needed base and intermediate load demands because of their high efficiency and flexibility. Their emissions of sulfur dioxide and nitrogen oxide are very low, and natural gas emits about half the carbon dioxide as coal. A combined cycle unit uses combustion turbine generators, boilers and a steam turbine generator to produce electricity.

Natural gas is burned in the combustion turbines to produce mechanical power that is converted into electrical power by the generators. For increased efficiency, the hot exhaust gases from the combustion turbines are used to create steam in the boilers that spins a steam turbine-generator and creates additional power.

"The Lee site is a great location for a combined cycle plant," Gillespy said. "Duke Energy will be able to leverage existing site infrastructure to minimize new generation project costs and impacts to the community and environment."

If approved, the plant could begin commercial operation as early as June 2017.

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- visit this website

By Barbara Vergetis Lundin

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