Ed Reilly

1. Ed Reilly

4. ReThinking Household Electricity Use

5. What’s the connection? • Carbon Dioxide Emissions • Households are responsible for 28% of total final energy demand, 34% of electricity use, and a quarter of UK carbon dioxide emissions. • (Design Council, 2005)

6. Objective • Present a solution (or set of solutions) to change people’s perception of household electricity use and ultimately alter their behavior.

7. Scope of Challenge • “Somehow or other, we’ve got to find a commercial answer that makes us money and makes our customers’ lives better by them consuming less energy. If I knew the answer, I could go away and collect my Nobel prize right now.” (Simon Skillings, Director of Strategy and Energy Policy, E.ON UK)

8. Outline • Understanding the Problem • Grouped and categorized challenges • Identifying Pieces to Solve the Puzzle • The knowledge exists • My Nobel Prize Entry • The head will only get you so far

9. What Needs to Be Overcome Conflict of Interest Passive Consumers

10. Energy Use Hidden Lack of Knowledge Passive Consumers Problems with Efficiency Lack of Motivation

11. Energy Use Hidden Where’s the electrical wires Where’s the water heater Where’s the heating/cooling system Where’s the electric meter (Design Council, 2005)

12. Lack of Knowledge

13. Metering vs. Monitoring • Current metering is antiquated • Users don’t have immediate access to information about the product or appliance use in their home • Gives no feedback that could help change behavior • Does not allow one to track usage over time (Design Council, 2005)

14. In the Dark • Comparable info on suppliers difficult to obtain. • Current bills are vague and inadequate. • With Direct Deposit payment, many don’t look at bills.

15. Problems with Efficiency • Efficiency has improved substantially but gains have been cancelled out by rising demand for more appliances and warmer houses. • Many don’t know what energy usage labels mean (especially in monetary terms). • Problem of larger friges and Plasma TV’s. (Design Council, 2005)

16. Problems with Efficiency Schemes • Have been designed to deliver insulation and low energy light bulbs rather than behavior change. • Few people seek out energy efficiency advice. • Large initial investment and promise of payback over long period. (Design Council, 2005)

17. Lack of Motivation • Usually only the minority who are relatively knowledgeable about climate change and committed to taking action will undertake measures. • (However) people will invest in energy saving measures if the process is convenient and if they are given a financial incentive. (Greensaver.org and Design Council, 2005)

18. Suppliers sell us energy as a product rather than a service. • Promoting energy efficiency is essentially counter-productive and would ultimately reduce their profits. Conflict of Interest

19. “These barriers and the lack of conventional drivers point to the need to re-think domestic energy services.” (Design Council, 2005)

20. Need to Change Perception and Behavior • “What is needed is a transformation in the way that everyone- government, industry and, most of all, householders themselves- thinks about energy.” • “The only alternative to centralized, technological fixes is mass behavior change, which in turn requires motivation, information and feedback and above all, support.” (D&AD Brief and Design Council, 2005)

21. Developing a Solution • The puzzle pieces are known • The technology exists • Renewables, the long-term solution • Need model to provide motivation

22. Pieces of the Solution • Add-ons to existing products/infrastructures • Interventions in energy provision (bills, meters, taps, switches, personal services, audit services, etc.) • Tools and products for awareness and useful information • New Services and supporting props/products • A radical new way of thinking about or offering energy provision and how that might then be designed or realized, such as an entire scenario or chain of actions/events (D&AD Brief, 2005)

23. Can Solve with Current Technology • Been shown that emissions from the domestic sector could be cut by 60% by 2050, without reliance on unknown technological advances. (Boardman et al, 2005)

24. Renewables • Intermittent power • Difficult to store • More expensive • Renewable Energy Credits are in addition to bill (Design Council, 2005 and EPA)

25. My shot. • Dying Polar Bears aside, how do we encourage and motivate energy efficiency and ultimately change behavior? • Carrots are better than sticks. • Head. Heart. Wallet.

26. Intelligent Metering

27. Intelligent Metering • Monitor • Track • Model Energy Use Hidden Lack of Knowledge (Design Council, 2005)

28. Intelligent Metering Energy Shares Investment Incentive

29. Energy Shares Incentive • Turn purchasing electricity into an investment instead of a cost • Energy Shares • Shares either buy your electricity or something similar to a bond • Pay same amount or a little less • More efficient and less you use, more shares you receive Conflict of Interest Lack of Motivation

30. Ex. 5% Return over 20 years • Like buying a stock or bond fund with earnings reinvested. • Magic of Compounding

31. Intelligent Metering Energy Management Providers Add Efficiencies Energy Shares Investment Incentive

32. Energy Managers • Weight Watchers for your home • Possibly a nonprofit • Manage creating efficiencies in homes • Expert knowledge Problems with Efficiency

33. What would they do? • Comprehensive audit • Tailored advice and education • Management of installations and quality control • Financing options • Follow-up audit • Regular check-ups • Help with behavioral change

34. Intelligent Metering Energy Management Providers Add Efficiencies Energy Shares Investment Incentive Users as Active Energy Managers

35. Consumer as Active Energy Manager • Efficiencies can only do so much, must change behavior too. Passive Consumers

36. Intelligent Metering Energy Management Providers Add Efficiencies Energy Shares Investment Incentive Regulation Users as Active Energy Managers Renewables

37. Regulation and Renewables • Info and awareness can later lead to regulation changes that allow consumer generation of substantial renewable power.

38. Intelligent Metering Energy Management Providers Add Efficiencies Energy Shares Investment Incentive Regulation Users as Active Energy Managers Renewables

39. Recap • The problem is not a technological one. • The problem is one of perception and motivation.

40. Questions?

41. Sources • www.designcouncil.org.uk/mt/red • www.greensavor.org • Factor Four by L. Hunter Lovins and Amory Lovins, 1998. • D&AD Design Brief: Experiencing Energy, 2005. • B Boardman et al, 40% House, Environmental Change Unit, Oxford University, 2005. • http://www.epa.gov/greenpower/buygreenpower/steps.htm • Too many others of lesser significance to list.