New generation of appliances give consumers more choices and greater control over home energy costs, while reducing the need for more power plants
LOUISVILLE, Ky.--(BUSINESS WIRE)--Imagine if your power company offered lower electricity rates at certain times of day, similar to what's offered by most cell phone companies. Now, imagine having smart appliances and other devices in the home that can help you save money by automatically adjusting electricity consumption in response to pricing signals from the utility.
This scenario is quickly becoming a reality, as many utilities are actively piloting rate structures that more closely mirror their actual cost to produce power -- with lower prices during periods of lower electricity demand and higher prices during peaks. These rates are then communicated to consumers in near real-time through "smart" electricity meters and in-home displays to help consumers make smarter energy choices and help utilities manage skyrocketing "peak" demand.
In response to this smart grid movement, GE has developed a line of "smart" appliances that automatically react to pricing signals from the utility and delay or reduce wattage of high-consumption tasks until lower-cost, off-peak periods. In addition to helping consumers manage their bills, these appliances also help utilities manage peak demand and reduce the need for building more power plants.
Home appliances -- including heating and cooling -- account for a combined 85 percent of total energy consumption in the home, making appliances an attractive target for improved energy management, especially during high-demand periods.
Visualize: a refrigerator that automatically delays the defrost cycle until utility rates are at their lowest, a clothes dryer that reduces its wattage when operating during peak hours, and a water heater that operates only in its highest efficiency mode during periods of high demand. These are just a few examples of the next generation of consumer home appliances in production at GE.
GE's new "smart" appliances are a key to the success of a smarter grid, which will not only help utilities deliver electricity more efficiently and reliably, but that will provide information to help consumers and utilities more wisely manage our existing electrical resources.
Why smart grid, why now?
The answers to these questions are found in the increasing challenges confronting the United States' energy future. Reliability and weather issues affecting the nation's current electric grid cost U.S. businesses more than $150 billion per year from power disruptions and outages, according to the U.S. Department of Energy. [1] Compounding these problems: the U.S. Energy Information Administration predicts that global energy consumption will triple by 2050. [2] Additionally, these and other strains are adding costs to the price of electricity for consumers -- with average residential rates increasing 44 percent between 2000 and 2008, according to the Energy Information Administration.
The good news -- a year-long study by the U.S. Department of Energy showed that real-time pricing information provided by a smart meter helped consumers reduce their electricity costs 10 percent on average and helped reduce their peak consumption by 15 percent. [3]
How do smart appliances work?
Through enhanced communications delivered through "smart" electrical meters on the home, the utility can communicate price signals to GE's smart appliances. During high-cost periods, the appliances, which are set to customer preferences, will avoid energy usage or operate on a lower wattage, potentially reducing a consumer's electricity bill. Without denying customers control, GE has programmed appliances so participants can override any of the smart appliance functionalities at any time. This element of consumer control separates GE's in-home solutions from other offerings in the past.
"Smart appliances provide consumers with additional choice and control in how they manage their energy usage* without compromising their lifestyles," said Kevin Nolan, VP of Technology, GE Appliances & Lighting. "With smart appliances, consumers can set their preferences and walk away, letting the technology work for them. This 'set-it-and forget it' functionality is good for both the utility and the customer and will be critical for ensuring long-term engagement and smart grid success."
Several utilities are currently working with GE on residential smart appliance pilots to test energy savings potential. Among the pilot programs underway are:
- Reliant Energy -- As one of the largest competitive retail electric providers serving customers across Texas, Reliant Energy has chosen to test GE's smart appliances as part of a home-based smart energy program.
- The Vineyard Energy Project -- As part of this project, GE's smart appliances will be piloted on Martha's Vineyard.
- Masdar City -- GE designed and manufactured the appliances and networks for a pilot in Masdar City, which is targeted to be the world's first carbon-neutral, zero-waste city being built in the UAE's capital of Abu Dhabi. The first building to be completed will be the Masdar Institute of Science and Technology.
- Louisville Gas & Electric (LG&E) -- GE has had a smart appliance pilot program in place with LG&E for more than a year. Program participants, also GE employees, have reported that by slightly modifying their behavior and using smart appliance features, they've saved on their utility bills during peak pricing periods, including a report of as much as a 20 percent savings.
"Most pilot program participants in the LG&E pilot liked the control provided by their 'smart' appliances," explained Nolan. "They noticed little need to change their everyday routines when using their refrigerators, microwave ovens or ranges."
How will you save?
GE's "smart" refrigerators, ranges, microwaves, dishwashers, clothes washers and dryers, and the new GE GeoSpring™ hybrid water heater provide many opportunities for saving:
- The refrigerator delays the defrost cycle from occurring during peak hours and goes into energy-saving mode. One LG&E participant's energy-efficiency efforts with refrigerator usage over 10 weekdays showed more than a 20 percent reduction of energy usage during peak hours.
- Microwave ovens power down slightly by reducing wattage during peak hours.
- The "smart" dishwasher can delay starting the cycle to off peak times.
- Delaying laundry to off-peak time can help consumers meet their own energy-efficiency targets.
- The new GE GeoSpring hybrid water heater operates only in heat pump mode during periods of peak costs, reducing wattage by over 80 percent compared to a standard electric tank water heater.
Through industry collaborations, GE will deliver one of the broadest portfolio offerings of carbon-smart technologies in the industry to modernize electrical systems from the power plant to the consumer. From smarter appliances and technologies for plug-in hybrid vehicles, to providing renewable technologies and smart meters, GE's innovation and leadership is delivering integrated, large-scale smart grid deployments, leveraging technology synergies and delivering results. www.itsyoursmartgrid.com.
GE Appliances & Lighting spans the globe as an industry leader in major appliances, lighting, systems and services. Providing solutions for commercial, industrial and residential use, GE Appliances & Lighting uses innovative technologies and ecomaginationSM, a GE initiative to aggressively bring to market new technologies that help customers and consumers meet pressing environmental challenges, to deliver comfort and convenience. General Electric (NYSE: GE), imagination at work, sells products under the Monogram®, Profile™, GE®, Hotpoint®, Reveal® and Energy Smart® consumer brands, and Tetra®, Vio™ and Immersion® commercial brands. For more information, consumers may visit www.ge.com.
* In areas where dynamic pricing rates apply. Dynamic pricing and time-of-use (TOU) programs provide for variable pricing of energy based on the time of day. Dynamic pricing and TOU programs are provided by the utility and may or may not be available in your area. Availability of dynamic pricing programs in a particular market is dependent upon the utility serving that market.
Sources:
1. www.energy.gov/news2009/8216.htm (01/06/2010)
2. U.S. Army Corp of Engineers, 2005 (www.itsyoursmartgrid.com)
3. DOE Pacific Northwest Laboratory, GridWise project. "Department of Energy Putting Power in the Hands of Consumers Through Technology." January 9, 2008.
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Allison Gatta