Smart, energy-saving homes utilise network connectivity, big data and powerful data processing. They can manage and automate services such as lighting, heating/cooling and washing in order to reduce energy consumption and provide load flexibility to the grid. Despite recent gains in building envelope and appliance efficiency, further opportunities remain to improve whole-building system efficiency through smart homes. However, there are significant barriers: • High costs and unclear benefits: smart devices cost more and suffer from a lack of consumer confidence about their benefits. • Privacy, trust and security: consumers are concerned about misuse of data in the cloud, and hacking of data and devices. • Complexity and technology risk: smart homes involve new and complex technologies which many consumers fear may not work as intended and are difficult to operate. Problems of interoperability between new and legacy devices are common and this tends to increase consumer concerns. This webinar will examine these barriers and suggest a number of policy solutions. It is presented by the EDNA Annex (Electronic Devices and Networks Annex - https://edna.iea-4e.org) of the IEA’s 4E Technology Collaboration Programme.

1. Smart, Energy-Saving Homes:
What's Stopping Us?
Steven Beletich, Operating Agent for IEA-4E/EDNA
Users TCP Webinar, 21 May 2020

2. 2
With Thanks to
nUsers TCP, in particular Hans De Keulenaer
nVida Rozite, author of Smart Homes Case Study
n As consultant to EDNA in 2017

3. 3
Contents
nIntroduction to the topic
nBarriers and potential policy solutions
nConclusion

4. 4
Introduction to the Topic

5. 5
IEA-4E / EDNA
Annex
of IEA-
4E TCP
Technical
analysis &
policy
guidance
Efficiency of
connected
devices &
systems
Austria, Australia,
Canada, Denmark,
European Comm,
France, Japan,
Korea,
Netherlands, New
Zealand, Sweden,
Switzerland, UK,
USA
Operating
Agent =
Steven
Beletich

6. 6
Energy Implications of Connectivity
Energy Savings
• Intelligent efficiency
• Demand flexibility
Energy Cost
• Network standby

7. 7
Intelligent Efficiency
Operation of a system of devices so that they
respond to changing conditions of the external
environment, in order to maximise energy savings

8. 8
Opportunity: Intelligent Efficiency
nOpportunities in Residential Buildings
Technologies Benefit Savings range
Smart thermostats Heating and cooling can be controlled
remotely
5-20% of heating/cooling energy use
Smart zoning Allows individual rooms or zones to be
heated/cooled to specific temperatures at
specific times
10% of heating/cooling energy use
Smart lighting Adjusts in accordance to occupancy
and/or light levels
1-10% of whole home energy use
Smart window control Controls the amount of light and can block
heat or cold
10-20% heating/cooling energy use +
lighting energy use savings
Home energy monitoring system Provides users with information about how
energy is used and provides
recommendations or prompts
4-7% of whole home energy use
Smart HEMS (Home energy
management system)
Provides ability to control energy use (incl.
remotely) and can optimise energy use on
basis of behaviour
8-20% of whole home energy use
Smart home Combination of smart home technologies
that provide measurement, monitoring,
displays, management, control automation,
zoning etc.
Up to 30% of whole home energy use
IEA presentation - Digitalisation Opportunities for Energy Efficiency, 23 May 2019

9. 9
Demand Flexibility
Changes in electricity usage by end-use customers
from their normal consumption patterns in
response to changing market conditions
Source: Navigant Consulting aka Guidehouse LLP

10. 10
Opportunity: Demand FlexibilityThe Future of Cooling in China Recommendations to unlock energy-efficient cooling
Delivering on action plans for sustainable air conditioning
Figure 45. Illustrative profile of a July weekday cooling load in China in 2030 using responsive devices
IEA 2019.All rightsreserved.
Notes: GWh =gigawatt-hours. Electricityload profilesarederived using informationfromdailyprofiles estimatedwithbuildingsurveydata
from TsinghuaUniversityBERC. Additionalcooling energydemand isa result oflowerACperformanceandoperationimprovementsto 2050,
weakerbuilding envelopeimprovementsand differenttemperatureprofilesbecauseofhigherenergysectoremissionsasintheBaseline
0
50
100
150
200
250
300
00:00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00
GWh
Additional cooling in
the Baseline Scenario
Non-residential
Residential
Cooling demand with
smart devices
https://webstore.iea.org/the-future-of-cooling-in-china

11. 11
What is a Smart, Energy-Saving Home?

12. 12
Need Other Infrastructure
nSensors
nHEMS / hub
nUser interface
nSmart meter
nConnection to the outside world
nCloud services / big data / AI

13. 13
Barriers and
Potential Policy Solutions

14. 14
Barriers
nHigh Costs
nUnclear benefits
nComplexity & technology risk
nPrivacy, trust & security

15. 15
High Costs
n Smart devices cost more (USD)
n Dumb vs smart thermostat: $25 vs $250
n Dumb vs smart lamp: $5 vs $25
n Smart home infrastructure costs $
n Comms links, HEMS, etc.
n Potential policy solutions
n Subsidies
n Regulate/facilitate market conditions which can deliver
subsidies
n E.g. via demand flexibility

16. 16
Unclear Benefits
nEnergy costs not significant for some households
nUncertainty / mistrust regarding benefits
n Lack of understanding of how energy savings occur
n Energy savings can be over-stated by vendors
n Distrust of these claims
n Lack of independent verification
n This also applies to the benefits of also comfort,
security, etc.

17. 17
Potential Policy Solutions
nStandards & methodologies
n Measure benefits
n Transparent & comparable info
n Independent verification
nDemonstration projects
nConsumer promotion & labels

18. 18
Complexity and Technology Risk
nInvolve new & inherently
complex technologies
nDifficult to operate
nLack of interoperability
n“Vendor lock-in”
nPace of evolution
nVendors going out of business

19. 19
Complexity and Technology Risk (cont)
nWireless setup is complex & unstable
nUnstable internet connection
nSoftware glitches
n UK 2017, software update caused smart TVs to stop
working for several days
nUnending firmware/software updates

20. 20
nOpen protocols for interoperability
n e.g. ISO/IEC 21823: Interoperability for IoT Systems
nStandards for comms reliability
nBe transparent about issues, solutions & results
nEncourage good design of user interfaces, etc.
Potential Policy Solutions

21. 21
Privacy, Trust and Security
n Consumer concerns
n Misuse of data
n Aggregation of data from multiple sources
n Hacking of data and devices
n Potential policy solutions:
n Cybersecurity protocols, e.g. (North America)
n NIST reliability and cybersecurity protocols
n North American Electric Reliability Corporation’s Critical Infrastructure
Protection standards
n Effective regulations for privacy
n Ensure privacy policies clearly stated & understood

22. 22
Conclusion

23. 23
Conclusions
nSmart, energy-saving homes can provide
significant benefits for households and the grid
n Early days for demand response programmes
n4 groups of barriers
n High costs
n Unclear benefits
n Complexity & technology risk
n Privacy, trust & security

24. 24
Conclusions (cont)
nPolicy makers could be active in this area
nPolicy responses need to be multi-dimensional
n Need an over-arching vision & engagement of
stakeholders
n e.g. standards and approaches that ensure relevant
devices are “demand response ready” as well as “smart
home ready” (these should ideally be the same thing)
nStrong case for international cooperation

25. 25
Thank You
n Contact steve@beletich.com.au
n EDNA publications edna.iea-4e.org/library
n Smart homes case study & policy brief
n www.iea-4e.org/document/413/intelligent-efficiency-a-case-study-of-barriers-and-solutions-smart-homes
n www.iea-4e.org/document/418/policy-brief-intelligent-efficiency-smart-homes
n Webinar 2 June: Smart, Energy-Saving Consumer Devices
n www.iea.org/events/modernisation-of-energy-efficiency-through-digitalisation-webinar-6-smart-energy-saving-consumer-devices
n Related study: https://edna.iea-4e.org/library
n Upcoming studies
n Roadmap for Consumer Devices to Participate in Demand Flexibility
n Energy Applications Within IoT and Digitalisation Strategies
n “Plug and Play” Devices (under consideration)