Changes in the way consumers use energy will drive the transition to a low-carbon economy, helping governments and energy companies to meet their carbon-reduction commitments and to secure energy supplies. Smart meters connected to a Smart Grid (such as the one being rolled out to all households in the UK by 2020) will play a key role in this transition. They will give consumers a better understanding of their energy consumption and help them to increase home energy efficiency. However, these changes will only reduce energy consumption if consumers make the right energy management choices.
A number of initiatives to increase home energy efficiency introduced by governments and energy companies across the world have sought to change consumer behaviour through communication and awareness programmes. However, PA Consulting Group believes these programmes must be accompanied by incentivised pricing to deliver lasting change.
Time of Use (ToU) pricing is a popular form of incentivised pricing which aims to reduce energy consumption, but energy providers face significant challenges in its roll-out because:
PA Consulting Group believes that to address these challenges, successful smart energy programmes will need to:
PA's skilled teams continue to help clients realise the benefits of smart meters and Smart Grid. For example, in the US we have worked with Pepco Holdings Inc. to support their Smart Grid planning and in the UK, we supported the scoping phase of the roll-out of smart meters in Great Britain by 2020.
To find out how your organisation can drive down carbon emissions by encouraging consumers to reduce energy consumption, please contact us now.