Customer Energy in Relationships

All companies have a portfolio of customer relationships. From a managerial standpoint the value of these customer relationships is a key issue. The aim of the paper is to introduce a conceptual framework for customers’ energy towards a service provider. Customer energy is defined as the cognitive, affective and behavioural effort a customer puts into the purchase of an offering. It is based on two dimensions: life theme involvement and relationship commitment. Data from a survey study of 425 customers of an online gambling site was combined with data about their individual purchases and activity. Analysis showed that involvement and commitment influence both customer behaviour and attitudes. Customer involvement was found to be strongly related to overall spending within a consumption area, whereas relationship commitment is a better predictor of the amount of money spent at a particular company. Dividing the customers into four different involvement / commitment segments revealed differences in churn rates, word-of-mouth, brand attitude, switching propensity and the use of the service for socializing. The framework provides a tool for customer management by revealing differences in fundamental drivers of customer behaviour resulting in completely new customer portfolios. Knowledge of customer energy allows companies to manage their communication and offering development better and provides insight into the risk of losing a customer.

Modular ESS with second life batteries operating in grid independent mode

This work is part of a bigger project which aims to research the potential development of commercial opportunities for the re-use of batteries after their use in low carbon vehicles on an electricity grid or microgrid system. There are three main revenue streams (peak load lopping on the distribution Network to allow for network re-enforcement deferral, National Grid primary/ secondary/ high frequency response, customer energy management optimization). These incomes streams are dependent on the grid system being present. However, there is additional opportunity to be gained from also using these batteries to provide UPS backup when the grid is no longer present. Most UPS or ESS on the market use new batteries in conjunction with a two level converter interface. This produces a reliable backup solution in the case of loss of mains power, but may be expensive to implement. This paper introduces a modular multilevel cascade converter (MMCC) based ESS using second-life batteries for use on a grid independent industrial plant without any additional onsite generator as a potentially cheaper alternative. The number of modules has been designed for a given reliability target and these modules could be used to minimize/eliminate the output filter. An appropriate strategy to provide voltage and frequency control in a grid independent system is described and simulated under different disturbance conditions such as load switching, fault conditions or a large motor starting. A comparison of the results from the modular topology against a traditional two level converter is provided to prove similar performance criteria. The proposed ESS and control strategy is an acceptable way of providing backup power in the event of loss of grid. Additional financial benefit to the customer may be obtained by using a second life battery in this way.

Chronological categorization and decomposition of customer loads

The majority of distribution utilities do not have accurate information on the constituents of their loads. This information is very useful in managing and planning the network, adequately and economically. Customer loads are normally categorized in three main sectors: 1) residential; 2) industrial; and 3) commercial. In this paper, penalized least-squares regression and Euclidean distance methods are developed for this application to identify and quantify the makeup of a feeder load with unknown sectors/subsectors. This process is done on a monthly basis to account for seasonal and other load changes. The error between the actual and estimated load profiles are used as a benchmark of accuracy. This approach has shown to be accurate in identifying customer types in unknown load profiles, and is used in cross-validation of the results and initial assumptions.

The effectiveness of energy feedback for conservation and peak demand : a literature review

This paper reviews electricity consumption feedback literature to explore the potential of electricity feedback to affect residential consumers’ electricity usage patterns. The review highlights a substantial amount of literature covering the debate over the effectiveness of different feedback criteria to residential customer acceptance and overall conservation and peak demand reduction. Researchers studying the effects of feedback on everyday energy use have observed substantial variation in effect size, both within and between studies. Although researchers still continue to question the types of feedback that are most effective in encouraging conservation and peak load reduction, some trends have emerged. These include that feedback be received as quickly as possible to the time of consumption; be related to a standard; be clear and meaningful and where possible both direct and indirect feedback be customised to the customer. In general, the literature finds that feedback can reduce electricity consumption in homes by 5 to 20 per cent, but that significant gaps remain in our knowledge of the effectiveness and cost benefit of feedback.

Overvoltage prevention in LV smart grid using customer resources coordination

Voltage rise is one of the main factors which limits the capacity of Low Voltage (LV) network to accommodate more Renewable Energy (RE) sources. This paper proposes a robust and effective approach to coordinate customers’ resources and manage voltage rise in residential LV networks. PV is considered as the customer RE source. The suggested coordination approach in this paper includes both localized control strategy, based on local measurement, and distributed control strategy based on consensus algorithm. This approach can completely avoid maximum permissible voltage limit violation. A typical residential LV network is used as the case study where the simulated results are shown to verify the effectiveness of the proposed approach.

Demand response for residential appliances via Customer Reward Scheme

This paper proposes a reward based demand response algorithm for residential customers to shave network peaks. Customer survey information is used to calculate various criteria indices reflecting their priority and flexibility. Criteria indices and sensitivity based house ranking is used for appropriate load selection in the feeder for demand response. Customer Rewards (CR) are paid based on load shift and voltage improvement due to load adjustment. The proposed algorithm can be deployed in residential distribution networks using a two-level hierarchical control scheme. Realistic residential load model consisting of non-controllable and controllable appliances is considered in this study. The effectiveness of the proposed demand response scheme on the annual load growth of the feeder is also investigated. Simulation results show that reduced peak demand, improved network voltage performance, and customer satisfaction can be achieved.

Demand Response for Residential Appliances in a Smart Electricity Distribution Network: Utility and Customer Perspectives

This thesis introduces advanced Demand Response algorithms for residential appliances to provide benefits for both utility and customers. The algorithms are engaged in scheduling appliances appropriately in a critical peak day to alleviate network peak, adverse voltage conditions and wholesale price spikes also reducing the cost of residential energy consumption. Initially, a demand response technique via customer reward is proposed, where the utility controls appliances to achieve network improvement. Then, an improved real-time pricing scheme is introduced and customers are supported by energy management schedulers to actively participate in it. Finally, the demand response algorithm is improved to provide frequency regulation services.

The psychological and economic factors that influence energy consumption habits of low-income earners

Social marketers and governments have often targeted hard to reach or vulnerable groups (Gordon et al., 2006) such as young adults and low income earners. Past research has shown that low-income earners are often at risk of poor health outcomes and diminished lifestyle (Hampson et al., 2009; Scott et al., 2012). Young adults (aged 18 to 35) are in a transition phase of their life where lifestyle preferences are still being formed and are thus a useful target for long-term sustainable change. An area of focus for all levels of government is the use of energy with an aim to reduce consumption. There is little research to date that combines both of these groups and in particular in the context of household energy usage. Research into financially disadvantaged consumers is challenging the notion that that low income consumer purchasing and usage of products and services is based upon economic status (Sharma et al., 2012). Prior research shows higher income earners view items such as televisions and computers as necessities rather than non-essential (Karlsson et al., 2004). Consistent with this is growing evidence that low income earners purchase non-essential, energy intensive electronic appliances such as multiple big screen TV sets and additional refrigerators. With this in mind, there is a need for knowledge about how psychological and economic factors influence the energy consumption habits (e.g. appliances on standby power, leaving appliances turned on, running multiple devices at one time) of low income earners. Thus, our study sought to address the research question of: What are the factors that influence young adult low-income earners energy habits?

Power quality improvements in low voltage distribution networks containing distributed energy resources

In this thesis various schemes using custom power devices for power quality improvement in low voltage distribution network are studied. Customer operated distributed generators makes a typical network non-radial and affect the power quality. A scheme considering different algorithm of DSTATCOM is proposed for power circulation and islanded operation of the system. To compensate reactive power overflow and facilitate unity power factor, a UPQC is introduced. Stochastic analysis is carried out for different scenarios to get a comprehensive idea about a real life distribution network. Combined operation of static compensator and voltage regulator is tested for the optimum quality and stability of the system.

Energy efficient home with price sensitive stochastically programmable TCAs

Introduction of dynamic pricing in present retail market, considerably affects customers with an increased cost of energy consumption. Therefore, customers are enforced to control their loads according to price variation. This paper proposes a new technique of Home Energy Management, which helps customers to minimize their cost of energy consumption by appropriately controlling their loads. Thermostatically Controllable Appliances (TCAs) such as air conditioner and water heater are focused in this study, as they consume more than 50% of the total household energy consumption. The control process includes stochastic dynamic programming, which incorporated uncertainties in price and demand variation. It leads to an accurate selection of appliance settings. It is followed by a real time control of selected appliances with its optimal settings. Temperature set points of TCAs are adjusted based on price droop which is a reflection of actual cost of energy consumption. Customer satisfaction is maintained within limits using constraint optimization. It is showed that considerable energy savings is achieved.

Improved residential electricity demand management through analysis of the customer perspective

Peak electricity demand requires substantial investment to update transmission, distribution and generation infrastructure. A successful community peak demand reduction project was examined to identify residential consumer motivational and contextual factors involved in their decision to adopt/not adopt interventions. Energy professionals actively worked to achieve community 'peer' membership and by becoming a trusted information source, facilitated voluntary home energy assessment requests from over 80% of the residential community. By combining and tailoring interventions to the specific needs and motivations of individual householders and the community, interventions promoting energy conservation and efficiency can be effective in achieving sustained reduction in peak demand.

A design approach to innovation in the Australian energy industry

Electricity businesses across Australia are facing many market disruptions, such as the increasing demand from the rapid uptake of domestic air conditioners and the contrasting problematic generation from solar power connections to the grid. In this context, the opportunity to proactively leverage forthcoming technological advances in battery storage and electric vehicles to address the steeply rising cost of electricity supply has emerged. This research explores a design approach to support a business to navigate such disruptions in the current market.This study examines a design-led approach to innovation conducted over a ten month action research study within a large, risk-averse firm in the Australian energy sector. This article presents results describing a current foresight gap within the business; the response of the business to using design-led innovation to address this issue; and the tools, approaches and processes used. The business responses indicate their perception of the value of qualitative customer engagement as a path to addressing, and potentially benefiting from, disruptive innovation. It is anticipated that these results will further business model development within the company, and assist in leveraging disruptive innovations for this industry participant, thus limiting future increases in the cost of electricity supply for customers in Australia.

Low-Cost Cloud-Based Design of Smart Rural Energy Device in Microgrid: Perspective India An Energy-On-Demand Service for Rural India

In this paper we present a combination of technologies to provide an Energy-on-Demand (EoD) service to enable low cost innovation suitable for microgrid networks. The system is designed around the low cost and simple Rural Energy Device (RED) Box which in combination with Short Message Service (SMS) communication methodology serves as an elementary proxy for Smart meters which are typically used in urban settings. Further, customer behavior and familiarity in using such devices based on mobile experience has been incorporated into the design philosophy. Customers are incentivized to interact with the system thus providing valuable behavioral and usage data to the Utility Service Provider (USP). Data that is collected over time can be used by the USP for analytics envisioned by using remote computing services known as cloud computing service. Cloud computing allows for a sharing of computational resources at the virtual level across several networks. The customer-system interaction is facilitated by a third party Telecom Service provider (TSP). The approximate cost of the RED Box is envisaged to be under USD 10 on production scale.

Assessing the potential of yield improvements, through process scrap reduction, for energy and CO2 abatement in the steel and aluminium sectors

Targets to cut 2050 CO2 emissions in the steel and aluminium sectors by 50%, whilst demand is expected to double, cannot be met by energy efficiency measures alone, so options that reduce total demand for liquid metal production must also be considered. Such reductions could occur through reduced demand for final goods (for instance by life extension), reduced demand for material use in each product (for instance by lightweight design) or reduced demand for material to make existing products. The last option, improving the yield of manufacturing processes from liquid metal to final product, is attractive in being invisible to the final customer, but has had little attention to date. Accordingly this paper aims to provide an estimate of the potential to make existing products with less liquid metal production. Yield ratios have been measured for five case study products, through a series of detailed factory visits, along each supply chain. The results of these studies, presented on graphs of cumulative energy against yield, demonstrate how the embodied energy in final products may be up to 15 times greater than the energy required to make liquid metal, due to yield losses. A top-down evaluation of the global flows of steel and aluminium showed that 26% of liquid steel and 41% of liquid aluminium produced does not make it into final products, but is diverted as process scrap and recycled. Reducing scrap substitutes production by recycling and could reduce total energy use by 17% and 6% and total CO 2 emissions by 16% and 7% for the steel and aluminium industries respectively, using forming and fabrication energy values from the case studies. The abatement potential of process scrap elimination is similar in magnitude to worldwide implementation of best available standards of energy efficiency and demonstrates how decreasing the recycled content may sometimes result in emission reductions. Evidence from the case studies suggests that whilst most companies are aware of their own yield ratios, few, if any, are fully aware of cumulative losses along their whole supply chain. Addressing yield losses requires this awareness to motivate collaborative approaches to improvement. © 2011 Elsevier B.V. All rights reserved.

Product scheduling for thermal energy reduction in papermaking industries

Papermaking is considered as an energy-intensive industry partly due to the fact that the machinery and procedures have been designed at the time when energy was both cheap and plentiful. A typical paper machine manufactures a variety of different products (grades) which impose variable per-unit raw material and energy costs to the mill. It is known that during a grade change operation the products are not market-worthy. Therefore, two different production regimes, i.e. steady state and grade transition can be recognised in papermaking practice. Among the costs associated with paper manufacture, the energy cost is 'more variable' due to (usually) day-to-day variations of the energy prices. Moreover, the production of a grade is often constrained by customer delivery time requirements. Given the above constraints and production modes, the product scheduling technique proposed in this paper aims at optimising the sequence of orders in a single machine so that the cost of production (mainly determined by the energy) is minimised. Simulation results obtained from a commercial board machine in the UK confirm the effectiveness of the proposed method. © 2011 IFAC.