community smart grids october 2013 [email protected]

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Community Smart Grids October 2013 [email protected] www.redskiesgroup.com

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Page 2: Community Smart Grids October 2013 info@redskiesgroup.com

www.redskiesgroup.com 2

Community Smart Grids – a new kind of gridCommunity Smart Grids are smart grids owned

and operated by local authorities and community

groups rather than by utilities.

Running on SODA, Community Smart Grids

securely gathers and stores meter readings which

are auctioned to energy generators, suppliers and

traders on a quarterly basis. This means no lock-

ins to a single supplier and the cheapest deals

every day from across the whole industry.

Revenue is also raised through the platform for

local authorities to use in community projects.

Page 3: Community Smart Grids October 2013 info@redskiesgroup.com

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Community Smart Grid Process

DECC & Energy

Switching3% commission on top of each bill

paid back to community operator

Almost 20 local authorities so far

Register

• Consumer signs up. SODA smart meter installation

• Consumer log in and choose package

Data

• Data gathered from SODA smart meter• Data secured end to end

Package

• Package demand profile generated• Package auctioned. i.e. 75% renewables, OAP.

Bid

• Energy suppliers log in and bid on packages.• Winner supplies to meet profile

Billing

• Bills dispatched• Money collected

Page 4: Community Smart Grids October 2013 info@redskiesgroup.com

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The auction

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46

-500

0

500

1000

1500

2000

2500

48 slots every 24 hours for accurate billing

Predicted Actual Difference

Each quarter, the AI demand prediction engine creates a 3 month energy demand profile in 30 minute blocks with the profile sent to auction. This ensures a close match between energy supply and demand.

Page 5: Community Smart Grids October 2013 info@redskiesgroup.com

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Community Smart Grid comparison

Energy Switching Scheme

Community Smart Grids

Real usage data No Yes

Regular auctions No Yes

Avoid contract lock in No Yes

Specify personal drivers No Yes

Enable councils and researchers to query what consumers want

No Yes

Encourage innovation around green tariffs

No Yes

Raise regular funds for community projects

No Yes

SODA community extensions

No Yes

Page 6: Community Smart Grids October 2013 info@redskiesgroup.com

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SODA community extensionsSince community smart grids run on SODA,

the capacity exists to incorporate SODA

extensions including the following.

• Consumer educational gaming to educate

users about their impacts on the

environment and the changes they can

make to reduce those impacts and their

bills.

• Demand and availability prediction systems

• Home leakage detection system / price

calculators for energy used to keep devices

in standby mode in the home

• Mobile, web and postal reports and

management

Page 7: Community Smart Grids October 2013 info@redskiesgroup.com

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Community Smart Grid Scale

• Average UK annual energy bill is £1,127

• UK census predicts there will be 28 million homes in UK

by 2016

• 3% commission on each bill would generate £950 million

back to community projects

• If 10% of UK market subscribed it would raise £95 million

back to community projects

Page 8: Community Smart Grids October 2013 info@redskiesgroup.com

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Lancashire profile

• Average UK annual energy bill is £1,127

• 656,770 homes in March 2013

• 3% commission on each bill would generate £22 million for

community projects

• If 10% of market subscribed it would raise £2.2 million for

community projects

Figures taken from Lancashire council website.

http://www.lancashire.gov.uk/corporate/web/?siteid=6118&pageid=35435

Page 9: Community Smart Grids October 2013 info@redskiesgroup.com

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Oxfordshire profile

• Average UK annual energy bill is £1,127

• 271,310 homes in March 2012

• 3% commission on each bill would generate £9 million for

community projects

• If 10% of market subscribed it would raise £0.9 million for

community projects

Figures taken from government website.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/192169/LiveTable100.xls

Page 10: Community Smart Grids October 2013 info@redskiesgroup.com

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Develop a strong partnership network

> Reduced bills> Opportunity to

use collective buying power to

encourage utilities to

provide greener deals

> Take ownership of

personal data managed by new

smart grids> No lock in to a

single energy supplier

> No complex tariffs

> No running up debt over longer

periods since entire bill is

settled monthly

Consumer

> 3% return on every bill each

month> Opportunity to

help people to get our of debt

by lowering bills> Money

returned to invest in new

community projects

> Visibility of what people are

looking for when choosing an

energy supplier> Private

community grid connects the

authority with the community

Local Authority

> No need to invest in or run

smart grid> Simplified

process, bid on bulk orders with

no billing> Clear visibility

of the drivers each month from customers when

choosing a supplier

> Encouraged to innovate around tariffs including

greener deals

Utility

Page 11: Community Smart Grids October 2013 info@redskiesgroup.com

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Who pays for the meter?

•Company supplies meter

•Authority pays low rental fee for meter with contract

•Company pays for meter

•Authority uses 3% earnings initially to pay for meter plus interest

•Authority owns the meter

•Authority can move the meter

•Consumer buys and owns meter

•Consumer can keep and move meter

Consumer buys

Authority buys

Rental

Buy, Operate, Transfer contract

Page 12: Community Smart Grids October 2013 info@redskiesgroup.com

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Further benefits

• Extendible architecture to add more functions over time

• Consumers switch every day with no need to worry about

complex tariffs, being locked in to a single tariff or supplier

• Support for whitespace communications to provide low

cost of free rural Internet access via smart meter network

• Consumers own their data, not an energy supplier

• Extend to gas, electricity and water. Extend from

consumers to business users later