Smart Electronics Will Help Consumers and Utilities Save

The introduction of inexpensive, intelligent thermostats and controllers into people’s homes promises to help utility customers reduce energy consumption and save money.

 

Wide implementation of energy-saving devices should also result in more efficient use of generation and transmission capacity, reducing the need for new resources and aiding in cutting back pollution.

 

The beginning of this sea change has started with the installation of millions of “smart meters.” These devices can push information about customer use to utilities, but by the same token they can pull information from outside in, helping consumers or “smart” appliances to respond when demand or prices are high.

 

Many utilities intend to develop price plans that reduce the cost of energy consumed during off-peak times. And smart meters will help customers see the exact price effect of cooling their home to 70 degrees versus keeping it at 80 degrees—which can help them learn to tailor their energy use to stay within a budget.

 

One minor hurdle for the technology, though, is the existence of competing communications protocols. Z-Wave, a proprietary protocol used widely in Europe, is the older technology. ZigBee, a newer, wireless standard—and the one being favored thus far by U.S. utilities—is joining up with the HomePlug Powerline Alliance. HomePlug devices use the wiring of a building as a communications path, and soon ZigBee will be compatible with most HomePlug devices.

 

Between now and 2012, California and Texas will install millions of advanced meters designed to continuously track and report energy use in homes and small businesses, at a cost of more than $6 billion.

 

Soon, the makers of the meters will be making them available not just through utilities but online and at some retail outlets, hoping to speed their adoption.

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