Energy experts from the public and private sector appeared in browsers worldwide this week at an entirely online conference. The Virtual Energy Forum, explored the consumer role in smart grid infrastructure.

On the first day, Allan Schurr, VP of Strategy and Development at IBM, spoke on how consumer trends are being affected by the prospect of an intelligent electric grid. Schurr spoke on the need for utilities to adopt new business models in light of changing consumer opinions in the face of smart grid. In a study performed in mid-2008, 70 percent of consumers would be willing to experiment with new ways of interacting with their energy providers.

The study, Lighting the Way, found that small business and residential customers were split nearly into quarters—with the majority being passive ratepayers (individuals who are uninterested and uninvolved or unable to be involved). Shortly following would be the “energy epicures,” high-usage consumers who are not constrained by budget concerns, but have little to no interest in conservation.

More than 80 percent of consumers were interested in having smart meters, but there was no consensus as to use. Opinions from 18-34 were spread nearly evenly across wanting a dedicated wall panel, using their existing home computer or having a device that automatically controls usage.

Many advanced meter infrastructure projects are centered around displaying usage data, however this might not be what consumers desire. “This is not the most desirable trait, people are looking more for management tools than consumption information,” Schurr explained.

Though utilities currently don’t involve consumers, utility companies remain the most accepted primary source of education about providers and options. Traditional internet sources followed, as the age bias entered into the study again with younger consumers are more willing to do independent research.

“There is a strong age bias around the innovativeness that consumers pursue, the millennial generation is much more interested in these products and services, and is willing to pay a premium,” said Schurr. “Our research shows that consumers are more interested in setting preferences and parameters and having service providers automate processes.”

What kind of market should utilities expect to satisfy? “The destination is a participatory network,” Schurr said. Customers are looking for control through customizability, just like an iPod playlist, but “Utilities don’t follow this model,” Schurr explained.

Schurr emphasized the need for utility companies to invest in customer analytics to identify consumer needs and segmentation. Utilities have to work towards integrating the “consumer voice” in strategic planning -- the historical view of residential and small commercial customers as uniform and like-minded is not sustainable in the long run, and already outdated in most places.”

The next day, Bracken Darrell, President of Whirlpool Europe, spoke on the evolving state of appliances, and sustainability. “Passive energy reduction is what consumers are looking for,” Darrell explained, through innovations like the European Carisma dishwasher that will use a unique “hot fill” feature.

Since the seventies, appliances have increased exponentially in efficiency, though now as technology has achieved significant evolution, future efficient gains will become costly for consumers. Darrell elaborated, "The potential return on further improvement in absolute product efficiency is declining. Any additional gains will likely lead to significant customer performance and product cost implications.”

Darrell also painted a picture of an integrated ‘green’ kitchen, where appliances manage demand and intelligently reduce power consumption when a demand response signal is recognized. “Each individual solution is the most energy efficient option, but collectively they are even more efficient due to smart logistics,” he explained.

Widespread deployment of smart appliances will also increase the value of renewable energy sources, like solar or wind, by establishing variable demand and energy storage opportunities, according to Darrell. “Everyone in the industry needs to work together to develop global standards for communication protocols and create the proper incentive structures to make the grid cleaner and more efficient.”

Matthew Appelbaum, Mayor of Boulder, CO, also spoke at the conference, shedding light on what could be the first smart grid city in the U.S. For Boulder, a smart grid solution was not only a way to cut municipal costs, but additionally, work towards their Kyoto goal as electricity (from coal burning plants) led to 61 percent of total local greenhouse gas.

“The smart grid program is a key component of our Climate Action Plan [towards our targeted emissions goal]… the smart grid will help us meet our greenhouse gas reduction goals,” Appelbaum added.

Smart grid issues have been raised this week from White House sources, such as outreach by new Obama administration advisor Van Jones. Consumers are excited at the prospect of retrofitting and smart meters. However, utility company business models will have to change to accommodate new consumer roles brought about by new levels of power management.

The conference claimed to by green by being held online, thus avoiding millions of pounds of CO2 emissions that would result from travel and accommodations.