While the smart grid promises to improve lives, conserve resources and save consumers money, how is this vision going to become a reality? The installation of smart meters is just the beginning, even if utilities can overcome any issues integrating the two-way communication links with each meter.

How will consumers know when they should reduce consumption versus when it is okay to crank up the power? Can a smart grid help consumers in less obvious ways, and more importantly for utilities, can they convert those opportunities into additional revenue?

 

For the smart grid to deliver on this promise, utilities will need to embrace new communications strategies that connect with their customers in new, personalized ways. Rather than develop these communications capabilities from the ground up, utilities can outsource a wide range of integrated communications services that take advantage of emerging voice and multimedia features delivered over hosted IP networks.

 

Let’s start with the basic premise. Once the utilities install smart meters, they gain a completely new level of insight into when each consumer uses power or even water, allowing them to raise rates for high-demand times and reduce rates when demand is lower.

 

Great, so we understand how this works for the utility, but how will consumers understand what they need to do? How will they know when to cut back and when it is okay to do their laundry? Somehow, the utility needs a way to tell consumers how to reduce their utility bill while helping to reduce the strain on the grid.

 

Remember ’ while considering special portals and online dashboards and other fancy widgets ’ that anything complex will likely fail. It is not that consumers are incapable, but they do not have lots of time or patience for navigating online menus, consoles and dashboards. Messages need to reach them where they are, rather than forcing them to find the message.

 

Here is a basic example:

 

The local power company determines the high usage days for the next two weeks along with times when the demand on the grid is light. That information is pushed out via email and text message blast to each consumer and business customer.

 

The e-mail might provide more detail, such as a list of high-demand dates and times when power use will include a high-demand surcharge, along with a list of off-peak times when power use will cost less ’ much like the type of information cell phone users receive from their wireless carrier.

 

The text message might include a link to a Web site optimized for mobile browsers, or alert the consumer to check the Web site for details on high-cost power days. Through effective communications, the utility can help consumers save money while preventing potential outages resulting from on demand spikes that can exceed the grid’s capacity.

 

Here is a more sophisticated example:

 

Once the smart meter is in place, the utility should be able to generate standard usage pattern for how each home consumes power. Once a standard pattern is in place, the smart meter should be able to identify anything out of the ordinary.

 

If someone leaves the outdoor floodlights on or anything else that consumes a lot of power, the smart meter may alert the utility of the unusual power spike. In turn, the utility sends a text message, email or voicemail to the customer noting the power spike. As homes become more sophisticated, the consumer might eventually be able to log online to access a remote dashboard that allows them to turn off the offending appliance or light. For most of us today, though, a trip home or a call to a trusted neighbor, is necessary to stop the wasted use of power.

 

Advanced smart grid communications might also help parents identify when their teenage children decide to ditch class for a video game tournament at home. Any unusually high spike in power can trigger an automatic email, text message or even automated voicemail, alerting parents that something is going on at home. 

 

The smart meter and smart grid can even apply beyond power consumption, particularly as clean water becomes an increasingly limited resource. Just as electricity patterns can be monitored, water usage cycles can be tracked and watched. In the event a pipe bursts or a toilet or faucet leaks, the smart meter can trigger a text message, email or call from the utility to alert the homeowner or renter of a potential leak and related crisis.

 

Well-networked utilities might even direct consumers to appropriate plumbers, electricians or home appliance repair services to fix potential problems, while earning a reference fee.

 

The fastest way for utilities to embrace this advanced level of customer communications is by outsourcing communications through a service provider who offers hosted voice and rich media services. A number of IP telephony infrastructure providers have emerged to offer Communications as a Service hosted platforms, providing utilities with a wide range of options to connect directly with consumers. The hosted, Communications as a Service model eliminates most of the up-front costs and risks of deploying these new voice capabilities, while the pay-as-you-go delivery model ensures the utility pays only for the services used.

 

By embracing this hosted communications model, utilities can take full advantage of all the insights they gain from smart meters, allowing their customers to fully participate in the promise and the cost and quality benefits of the smart grid, while protecting against usage spikes and reducing their carbon footprint ’ and effective way to embrace a bright and promising future.