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Smart Meters and Behavior:
                Precourt Energy Efficiency
                       Center’s Programs

       Annika Todd, PhD
Precourt Energy Efficiency Center
      Stanford University
           September2010
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  •   Smart Incentives
  •   Games
  •   Feedback
  •   Other
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  •   Smart Incentives
  •   Games
  •   Feedback
  •   Other
The Problem                The Opportunity

             Procrastination

                   Biases
                       Bounded
 Current      Information
               Overload Rationality
Energy Use

                                        BiasesProbability
               Energy Use           Social         Bias
                                  Tendencies



                                       Optimal
                                      Energy Use
                                                            .
The Problem                  The Opportunity

             Procrastination
             Eliminate biases working
                   Biases
              against energy savings
 Current       Information Bounded
                Overload
Energy Use
                                         Activate biases that can
                                             Biases
                                         work for energy savings
                                                              Prob
               Energy Use               Social ncies            B




                                           Optimal
                                          Energy Use
                                                                     .
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  •   Smart Incentives
  •   Games
  •   Feedback
  •   Other
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  • Smart Incentives
    • Motivation
    • Implementation
  • Games
  • Feedback
  • Other
Smart Incentives Project

Goal

Design an incentive mechanism to get
households to reduce energy use
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  • Smart Incentives
     • Motivation
     • Implementation
  • Games
  • Feedback
  • Other
Smart Incentives Project:
                        Motivation
Turn off              Fixed Reward: 1 cent

 lights
Smart Incentives Project:
                                   Motivation
Turn off                               Fixed Reward: 1 cent

 lights
                Research: small
                monetary rewards
                are not motivating

                 Small rewards
                   bias works
                 against energy
                    savings

     Eliminate small rewards bias: pool the $
Smart Incentives Project:
                             Motivation
Bias: people tend to overestimate small
  probabilities
                                   Probability
                                  bias can work
                                    for energy
                                      savings



                                       Use small
                                     probabilities
Smart Incentives Project:
                                 Motivation
Turn off                                  Fixed Reward: 1 cent

 lights                 OR




                        Random Reward: 1 in 100,000 chance at $1000
           Same
       expected cost,
      more motivating

      More KWh savings
            per $
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  • Smart Incentives
     • Motivation
     • Implementation
  • Games
  • Feedback
  • Other
Smart Incentives Project:
                                      Implementation
                                                                  Every
                                                                   day




Each household’s      Online Interface: Energy
smart meter data      use and energy savings




              POINTS
                                                                    $0

     fxn(energy savings)   Points                Redeem points in online
                                                  random rewards game
Smart Incentives Project:
                     Implementation
                                                       Social
                                                    tendencies
                                                   can work for
Alan Timber Just installed CFLs in all my lights – I energy
won $1000!                                            savings
April 10, 2010 at 1:14pm Delete
Sarah Lake Nice! Which brand of CFLs did you get?
April 10, 2010 at 1:14pm Delete
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  •   Smart Incentives
  •   Games
  •   Feedback
  •   Other
Massive Multiplayer
                            Online Game

                                           +15




Turn off
lights in
the real
  world
               Gaming, goal      Get points in the game
                setting, and
            competition can be
              used in favor of
              energy savings
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  •   Smart Incentives
  •   Games
  •   Feedback
  •   Other
Feedback with PowerMeter:
               which elements matter?
Randomized, controlled study
Summary

• The Problem ↔ The Opportunity
• Stanford Energy Programs
  •   Smart Incentives
  •   Games
  •   Feedback
  •   Other
Other



• Plugload specific feedback

• Automation and control of household energy
• Specific appliance upgrade and retrofit
  recommendations
Behavior, Energy & Climate
               Change Conference (BECC)
• www.beccConference.org
• Nov 14-17 in Sacramento, CA
• The focus: practical applications of social and
  behavioral research to achieve viable
  solutions to energy/climate challenges
• People: senior-level policymakers, social
  scientists, program implementers, media,
  energy experts
Annika Todd
annika.todd@stanford.edu

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Annika todd smart meters, smart grid and the future of energy use

  • 1. Smart Meters and Behavior: Precourt Energy Efficiency Center’s Programs Annika Todd, PhD Precourt Energy Efficiency Center Stanford University September2010
  • 2. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Games • Feedback • Other
  • 3. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Games • Feedback • Other
  • 4. The Problem The Opportunity Procrastination Biases Bounded Current Information Overload Rationality Energy Use BiasesProbability Energy Use Social Bias Tendencies Optimal Energy Use .
  • 5. The Problem The Opportunity Procrastination Eliminate biases working Biases against energy savings Current Information Bounded Overload Energy Use Activate biases that can Biases work for energy savings Prob Energy Use Social ncies B Optimal Energy Use .
  • 6. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Games • Feedback • Other
  • 7. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Motivation • Implementation • Games • Feedback • Other
  • 8. Smart Incentives Project Goal Design an incentive mechanism to get households to reduce energy use
  • 9. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Motivation • Implementation • Games • Feedback • Other
  • 10. Smart Incentives Project: Motivation Turn off Fixed Reward: 1 cent lights
  • 11. Smart Incentives Project: Motivation Turn off Fixed Reward: 1 cent lights Research: small monetary rewards are not motivating Small rewards bias works against energy savings Eliminate small rewards bias: pool the $
  • 12. Smart Incentives Project: Motivation Bias: people tend to overestimate small probabilities Probability bias can work for energy savings Use small probabilities
  • 13. Smart Incentives Project: Motivation Turn off Fixed Reward: 1 cent lights OR Random Reward: 1 in 100,000 chance at $1000 Same expected cost, more motivating More KWh savings per $
  • 14. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Motivation • Implementation • Games • Feedback • Other
  • 15. Smart Incentives Project: Implementation Every day Each household’s Online Interface: Energy smart meter data use and energy savings POINTS $0 fxn(energy savings) Points Redeem points in online random rewards game
  • 16. Smart Incentives Project: Implementation Social tendencies can work for Alan Timber Just installed CFLs in all my lights – I energy won $1000! savings April 10, 2010 at 1:14pm Delete Sarah Lake Nice! Which brand of CFLs did you get? April 10, 2010 at 1:14pm Delete
  • 17. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Games • Feedback • Other
  • 18. Massive Multiplayer Online Game +15 Turn off lights in the real world Gaming, goal Get points in the game setting, and competition can be used in favor of energy savings
  • 19. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Games • Feedback • Other
  • 20. Feedback with PowerMeter: which elements matter? Randomized, controlled study
  • 21. Summary • The Problem ↔ The Opportunity • Stanford Energy Programs • Smart Incentives • Games • Feedback • Other
  • 22. Other • Plugload specific feedback • Automation and control of household energy • Specific appliance upgrade and retrofit recommendations
  • 23. Behavior, Energy & Climate Change Conference (BECC) • www.beccConference.org • Nov 14-17 in Sacramento, CA • The focus: practical applications of social and behavioral research to achieve viable solutions to energy/climate challenges • People: senior-level policymakers, social scientists, program implementers, media, energy experts