2. Technological, social and digital shifts
are creating new and exciting
opportunities for the energy market
3. Great innovation is being developed,
helping people and businesses bypass
many market barriers. For example, peer-
to-peer energy trading, community energy
platforms, smart homes products, grid
assisted PV.
There is real value in the transactive grid,
where every day people buy and share
electricity with each other, dynamically
changing behaviours to meet their
personal goals.
However, for this to be a success, everyone
must be across the grid’s vision and value.
5. Components of a
transactive grid
experience include:
The Sharing and
Social Economy
TheInternet
ofEnergy
Big Data and
Analytics
ConsumerEnergy
Assets
6. Many are innovating to find the sweet spot:
PV/ESU Sale
PV/ESU
Lease
IHD/ Smarts
Securitise
Peer-to-Peer
Community
Schemes
ESU/DR
Services
Mobile Bills
(EV, PV)
Energy
Advising
Integrated
Billing
Seeking Opportunity From Technologies
Consumer Energy Assets | IOT | Analytics |
Social | Digital
Innovating to Meet Business Constraints
Lower cost to service | Reduced churn |
Agile | Low/flexible investment
Deepening Consumer Relationships
Differentiating from price | Driving
acquisition/retention.
Creating Value
Create and capture value for consumers |
Cutting risk profiles
Examplesofservice/productinnovationthatishelpingtofindthe‘sweetspot’
7. Whilst others are holding back until they see the value:
“The market is healthy.”
“New tech take up is tiny.”
“Its too early to invest.”
80% renewables in New Zealand –
technically and economically
does more investment
make sense?
11% more
consumers
on TOU
Record
switching
1.7% Retail
Price Fall,
1st In 15
Years
77%
growth in
installed PV
Innovation
in players
& offers
2105 EA KPIs
8. Transactive grids are
where we all come
together to create
value, but…
They mean different
things to different
parties who speak
different languages:
Micro-grids
Distributed Energy Resources
Peer-to-Peer
Community Energy
Distributed Systems Operators
Mobile Power Bills
Virtual Power Plants
9. The starting point is the consumer
telling us things aren’t right…
• Prosumers become very engaged
consumers
• Retail prices drive frustration, which
drives self-use of PV (60-70%)
• For incumbents this is volume ‘lost’
(25-33%)
The result…
• Prosumers bear more ‘costs’
• The system ‘pushes’ up prices
Supplied
kWh
PV Kwh
11. When someone has a surplus of
something – space (Airbnb),
underused car and time (Uber) –
this can be ‘shared’ with and used
by people who need or want these
things at a lower price point and
more conveniently.
‘Sharing’ can also apply to energy…
With a few changes in
people’s habits, 88% of
PV from one home can
be consumed instantly
across 3 homes*. Gridmates
*Research homes, EEA Conference 2106
12. The sharing economy works because…
Everyone is different
• Habits
• Flexibility
• Motivators
• Physical environment
People’s ability to change
their use of energy is a
factor of their material
environment, learned
energy practices and
learned habits.
Material
Culture
‘Be frugal’
Energy
Practices
Material
Culture
‘Make it
happen’
Energy
Practices
Material
Culture
‘Be
efficient’
Energy
Practices
Material
Culture
‘Make it
easy’
Energy
Practices
Energy Economic Energy Extravagant
Energy Efficient Energy Easy
Energy consumers’ habits can be grouped into 4 groups:
Energy extravagantEnergy poor
Energy efficient Energy easy
13. Sharing creates value through…
Least cost
to change
Social
connections
Incidental
demand
Productive
sites
Efficient
use
• Matching prosumers’ solar PV generation to consumers (sharesumers) who have the least
cost to change energy use to use that generation
• Sharing surplus solar PV with someone’s demand that already matches your production
• Creating incentives for investing in solar PV at productive sites rather than simply at home
• Finding the best use for generation
• Connecting with people who want to achieve the same goals as you
14. Connecting people in networks
around technology can:
• Make customers sticky
(i.e. mobiles)
• Turn customers to advocates
• Create a multiply effect (i.e. one
engaged prosumer can draw in two to
three sharesumers)
• Open doors to new conversations
Sharing on networks spreads costs
of fixed assets (i.e. reducing
everyone’s prices).
15. But how do you engage
1000s of people on potentially
millions of devices?
16. A Chain Reaction?
Sharing needs trust. In reference to the transactive grid,
trust needs a meter.
For now…
blockchain offers a distributed database technology that
can securely log every transaction or event in real time,
with instant access for automated decision, reconciliation
or settlement…
…anywhere, to any device.
For example:
2 Nov 2016
18. Frank and other AI apps
start relevant, low cost
dialogues
A conversation that is automated
Frank – one of the next generation
of intelligent personal assistants -
looks at what is known about us
and starts a relevant conversation
at a time when we are likely to be
interested.
20. Frank and other AI apps
start relevant, low cost
dialogues
Scenario 1: Frank knows from past behaviours I like
‘green’ stuff so am likely to be interested in solar PV.
Frank uses the weather to wait for several sunny
days when I will have seen lots of solar PV
producing ‘free’ energy for others and starts a
conversation.
A conversation that is automated
21. Frank and other AI apps
start relevant, low cost
dialogues
Scenario 2: Frank knows solar PV can’t go on my
roof (might know I rent etc.) but still like ‘green’
stuff, so after several sunny days Frank asks if I want
to share in other peoples solar PV.
A conversation that is automated
22. Frank and other AI apps
start relevant, low cost
dialogues
Scenario 3: Frank sees when I have had a
very big power bill so targets a ‘can I help
you’ question when it comes through.
A conversation that is automated
23. A conversation that is
informed and relevant
Smart meter data and analytics
enable a relevant, targeted dialogue.
Underlying (estimated) activity can
include:
• Morning showers
• Day time load
• Peaky discretionary load
• Peaky winter heating
• Sustained winter heating
… add personal history and local
context, and offer real help.
Chart Source: Piclo
24. A conversation that is
digitally targeted to business
or consumer value
A data analytics model can link
back to value drivers,
including:
• Network constraints and prices
• Energy market price peaks
• Reserves
• Renewable or low GHG
generation
• Surplus PV
… connecting markets,
consumers and appliances.
Source: Enphase
Source: EA
Source: Orion
25. Sharesumers can be offered
specific choices tailored to:
• Their load analysis
• Known preferences
• Physical appliances
… the Internet of Things (IoT)
extends convenience, choice
and trust.
Hi, care to share some
load and save on your
bill? Select options
Scheduled appliance
Managed water
Get text prompts
Hi, there is local PV
available, want to share
in it? Select options
A conversation that
is personalised
Scheduled appliance
Managed water
Get text prompts
26. A conversation connecting people
Prosumers and sharesumers can be
engaged to share by inviting other
consumers to use the system and
drive behaviour change.
Source: Gridmates
Hi, find your friends
and neighbours.
Invite to share.
Peter H
The kids
Local suggestions
27. A conversation that can help to
do some good in the community
For example:
“Don’t get angry at feed in prices,
donate and feel good!”
“Rent a roof from the school or a
neighbour in need.”
28. Relevant, intelligently targeted
services can be shared between
many participants, including:
• Solar city (i.e. PV, ESU, self use)
• First gas and supply chains
• Mitre 10 – smart thermostats,
appliances, insulation
• Share PV in town - where your
EV is parked
A conversation that creates value
through a transactive ecosystem
Hi, we think we can
meet your needs
better.
Hi, your heating
energy use looks high.
Our friends can help.
Off peak bonuses
Better solar use
Check out PV
EV Extras
Battery Payout
Cut my bill
Using plug in heaters
Need comfort
Cut my impact
33. DISCLAIMER
This presentation has been prepared by a representative of Advisian.
The presentation contains the professional and personal opinions of the presenter, which are given in good faith. As such, opinions presented
herein may not always necessarily reflect the position of Advisian as a whole, its officers or executive.
Any forward-looking statements included in this presentation will involve subjective judgment and analysis and are subject to uncertainties, risks and
contingencies—many of which are outside the control of, and may be unknown to, Advisian.
Advisian and all associated entities and representatives make no representation or warranty as to the accuracy, reliability or completeness of
information in this document and do not take responsibility for updating any information or correcting any error or omission that may become
apparent after this document has been issued.
To the extent permitted by law, Advisian and its officers, employees, related bodies and agents disclaim all liability—direct, indirect or consequential
(and whether or not arising out of the negligence, default or lack of care of Advisian and/or any of its agents)—for any loss or damage suffered by a
recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.
