There is a growing need for convergence with the Internet of Energy as energy devices and appliances are installed into homes….
There is a growing need for convergence within Internet of Energy (IoE) as energy devices and appliances are installed into homes. These devices, such as solar panels, energy storage systems and energy monitoring solutions need to be modernised with the necessary sensors and communication modules to enable integration with the outside energy market.
This upgrade aims to unleash their full potential and allow interaction with utilities’ grids, IoE technologies will need to converge onto a common energy management system within a home. Establishing a common energy management environment will be fundamental to coordinating the tasks and activities of the various and often unstructured IoE technologies being deployed within the home. As a starting point for integration, single function home energy management solutions, such as smart thermostats, have emerged. IDC estimates there are 7.9 million homes equipped with some form of single function home energy management (HEM) solution across Europe today.
Uptake of such solutions is forecast to grow by 22% a year to reach close to 40 million homes by 2025, theoretically enabling them to deliver an element of demand management. Thus far, within testing or piloting environments, HEM solutions have proved to optimise consumption within the home by 15%–20%. This clear gain for consumers could promote further uptake of IoE technologies. Additionally, extensive piloting by energy suppliers has demonstrated the potential for HEM solutions to transform the customer relationship. Specifically, energy suppliers’ net promoter scores improved significantly, increasing up to 30 points (from negative values, common across the board for utilities, to a neutral score of 0).
Energy suppliers trialing HEM solutions also experience reductions in churn, in some case by over 50%. Notably, the adoption of HEM solutions could grow 30% more than forecast if interoperability hurdles are addressed by IoE stakeholders, by collaborating through an IoE subsystem.
This blog has been extracted from the whitepaper “The Internet of Energy – Enabling Residential Demand Management” produced independently by the IDC (International Data Corporation). You can download a full version of the whitepaper here.
If you would like to explore the topics discussed in this white paper in more detail, please contact geo by phone on +44(0)1223 850 210 or by email at firstname.lastname@example.org.
Uptake of such solutions is forecast to grow by 22% a year to reach close to 40 million homes by 2025!