Threats to energy savings

Published: Mon 16 Sep 2013
A blog entry by Sasha Bermann

Contributed by:

Sasha Bermann
Chief Dissemination Officer

Sasha Bermann's Blog

Written by Anna Bogacka, Analyst


According to the latest research the best smart grid projects facilitate savings ranging between $300 to $500 per year per customer unit (Smart Grid Global Impact report, 2013).


Besides financial savings there are other benefits to customers. Among those benefits are increased system reliability, increased customer awareness, reduced environmental impact and energy savings. Energy savings are the cornerstone target of many smart grid programs, in particular peak clipping, which costs a lot for utilities.


The best financial results were achieved by the companies, which empowered demand response and consequently saved energy, which led to lower electricity bills.


Is it good or bad? It depends from, which point of view you look at it. On one hand, it is possible to conclude that if you want financially successful projects the best way to achieve that is to convince people that they have to adjust their behavior. On the other hand, there is an issue, once you convinced people to consume less why not exercise you power and charge them the same amount for less? So, who (and how to) will guarantee that energy savings in the long run can lead to the reduction of electricity bill?


Another question is equally relevant ot the matter: Are energy companies really interested in energy savings since they are paid for the amount they produce? While these questions remain open, utilities’ calls for being “environmental” and to save energy may sound suspicious.