Why Ontario is Adopting Behavioral Energy Efficiency and Perhaps Rhode Island Should Too

Energyefficiencymarkets.com
Jan. 6, 2016
By Elisa Wood

Opower will deliver Ontario’s first behavioral energy efficiency program under the Minister of Energy’s Conservation First Framework.

The framework calls for Ontario to invest in energy efficiency, when it’s cost-effective, before pursuing new generation. Behavioral energy efficiency takes into account human psychology to encourage energy savings.

Opower was selected by PowerStream and Collus PowerStream, community-owned energy companies in greater Toronto and central Ontario. The program will offer targeted messaging and personalized energy use advice.

“These new tools that empower our customers to save money and energy demonstrate PowerStream and Collus PowerStream’s commitment to provide a high quality service experience,” said Maurizio Bevilacqua, PowerStream board dhair and Mayor of the City of Vaughan. “Opower’s behavioral energy efficiency program will help us lead the way in supporting the new Conservation First Framework.”

Opower’s Home Energy Reports (HERs) offer a series of customized tips to help customers identify easy ways to lower their consumption and save money. The reports pair behavioral science with Big Data analytics to provide useful information about whether a household’s energy use is in line with similar-sized homes, the time of year, and local weather patterns.

Bring your own thermostat (BYOT) programs are sometimes part of behavioral energy efficiency…and their use is on the rise.

About 50,000 U.S. utility customers have joined BYOT demand response programs since 2012, according to a new report by Navigant Research. This represents a $12.5 million market, far less than the potential $3 billion market Navigant estimates will exist when and if 20 million customers participate in BYOT demand response.

BYOT refers to utility programs that let customers buy their own device from multiple potential vendors for use in utility demand response. BYOT appeals to utilities because it reduces acquisition costs for load curtailment programs and creates more customer choice.

The downside for utilities? BYOT demand response lowers electricity sales. This is yet another reason the utility business model is being re-examined in places like New York.