Casey Talon, 15 October 2012 (Renew Grid)
“Home energy management (HEM) is an integral system of advanced, digital technologies and services that enable utilities to connect with their residential end users as envisioned in the smart grid concept. These technologies and services direct changes in consumer behavior to shift or shave the electricity load profile.
“Fundamentally, electric utilities must weigh the costs and benefits of investing in HEM technologies and services relative to investment alternatives that can also promote consumption changes…Investment in HEM has been growing as North American electric utilities move ahead with their smart grid development plans. However, smart grid stimulus funding (e.g., the American Recovery and Reinvestment Act of 2009) is winding down in the U.S…”
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“Utilities are now focused on developing the business case for investment in technologies and services that can further advance their smart grid objectives. HEM has been down the line after smart meter and infrastructure investments, but IDC Energy Insights projects North American electric utility spending on HEM solutions to reach $577.8 million by 2016…Regulatory mandates for home area network development and increasing consumer awareness of HEM benefits will together promote the growth of the market.
“Smart grid investments in North America have widely focused on advanced metering infrastructure (AMI) and smart meter deployment because of the financial incentives generated by U.S. federal stimulus funds…[E]lectric utilities in North America face a difficult challenge to develop a clear business case for HEM…The business case leans on a mix of benefits that include improvements in the grid's reliability, security and stability, which are shared challenges in the broader focus on the development of the smart grid…”
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