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Tuesday, December 2, 2008
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RE: How SOA could change the way you buy electricity

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To achieve the benefit, you need a smart appliance that can interface with the gateway controller receiving the 5-minute updated price signals. And you need to be willing to change your usage habits. For example, you can define that your house temperature should normally be 72 degrees in the summer, but that when electricity prices are high, you are willing to raise your temperature to 78 degrees. The thermostat will automatically adjust itself based on the price signal and will hold the temperature to what you have defined. By raising the temperature in the house when prices are high, you are reducing your cooling requirement and thus reducing your energy consumption and bill. You are also having a beneficial effect on the price itself since that is directly related to overall consumption and transmission system capacity (known as congestion). Other smart devices in your house might turn off the appliance for short periods of time such that it would not be noticeable. For example, if you have an electric hot water heater set at 120 degrees, the heating element might be turned off for perhaps 15 minutes or so each hour, allowing the temperature to drop a couple of degrees. Same with your refrigerator. The compressor might be turned off for 15 minutes without harm to your food.

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