It's hot out in D.C. And surely power companies will see an increase today in energy usage as people pump up the AC. So it's with strategic timing that D.C.-area startup OPOWER announced on a more-than-90-degree-day the launch of its Behavioral Demand Response (BDR) program, which enables utility companies to manage peak energy usage and costs across their entire customer bases.
Using smart meter data analytics and behavioral science to send insights to customers and encourage them to limit usage on days like today, OPOWER believes by teaming with utility companies it can help save $3 billion in energy costs annually. In its press release, it said it's as simple as convincing energy users to lower their usage by five percent during the peak 80-100 hours of energy usage each year. So now, instead of demand response programs being limited to energy-conscious users with specialized devices in their homes (which is estimated to be only five percent of the nation, but not surprisingly because they cost so much), OPOWER's BDR insights will be shared with every one of its clients' customers. Currently, OPOWER has implemented this program with Baltimore Gas and Electric and Pacific Gas and Electric.
Not only is the program a positive change for the greater good, but it also incentivizes customer participation with cost savings. For example, with the Behavioral Demand Response program, companies will simply recommend small changes to customers through specified channels like texts or emails to cut down on usage. Those changes will not only limit energy over-usage, but will also result in significant savings for customers faced with dynamic pricing programs by simply turning up the thermostat a few degrees or delaying tasks like doing laundry or washing dishes until after the peak demand times. Do you really need your AC set to 68 degrees when its almost triple digits outside and anything below 80 degrees feels like a visit to a walk-in fridge?
And in general, the BDR program is a cost-effective learning experience. According to a 2009 Federal Energy Regulatory Commision report, the lack of consumer participation in a demand response program came down to two things: a lack of customer awareness and the cost of having to install devices in their homes. OPOWER will solve both of those problems with this new program by sending messages to all of its clients' utility customers with no need for a costly separate device. Not only will your conscience feel better for not wasting energy, but your wallet will feel better, too, with lower bills. Everybody wins.
