A residential
energy management system (EMS) is a suite of hardware and software that works with the electricity meter (or behind the meter) to monitor and control home electricity consumption. An EMS tracks individual loads and appliances and makes information viewable through a display. The system includes an energy display, a web portal, a smart thermostat, and smart plugs to manage individual appliances.
Standalone EMS applications are available off-the-shelf at various retailers. These EMS bypass the utility altogether. They connect to the service panel behind the meter, monitor electricity flows, and send data wirelessly to an IHD. Some go a step further by connecting to the LAN, using the broadband connection to support a web portal. Some also add water metering to the mix.
We focus on EMS' designed to use the grid overlay network to connect with the utility EMS and its demand response applications. The full value of residential EMS comes from the utility and consumer working together in ways that promote energy efficiency and allow the utility to shave peak demand by reducing nonessential loads. Residential housing consumes more than one-third of all electricity in the US. Within a typical home, HVAC, appliances, and lighting represent more than 80 percent of electricity use. Equipping these electrical loads with demand response controls saves money for homeowners and the utility. Since electric utilities may also be in the water and gas business, EMS' may provide water and gas monitoring and reporting through the same application.
All components of the EMS communicate through the home area network (HAN) operating wirelessly or through power lines. Depending on its design and functionality, the EMS may or may not interconnect with the home LAN. Below, we profile some of the residential applications that take advantage of the capabilities of the smart grid and the home area network.

Residential EMS Applications
In-Home Display (IHD). Knowledge is power. The flip side of the smart grid is the smart consumer. In-Home Displays (IHDs) let consumers make informed decisions about their home energy consumption. They help consumers reduce their energy bills and do good things for the environment.
IHDs are connected to a smart meter (with AMI) to access realtime energy data. This allows utility customers to track their energy usage on a realtime basis and for past periods such as days, months, and years. Formats range from digital text to graphical charts to colorful high/low efficiency indicators. These displays also accept energy control messages from the utility. Messages from the utility can cover energy pricing, demand response events, billing, and more.
The display itself can vary from a tiny screen on a smart thermostat to a larger countertop or wall-mounted unit. Most operate on batteries to make them fully portable. Some have remote controls to move around the house. They use push buttons and/or touch screens to display information and allow control of all functions tied to the EMS. A key success factor for these devices is offering a simple user interface and a stylish appearance. They also need to be inexpensive. Cost-control is important for the entire suite of EMS devices because utilities may need to purchase quantities that will scale into the millions.
Web Portal. Web portals are popular in the residential environment because they let consumers adjust their energy usage while away from home. This can be convenient when you've rushed off to work without turning off the lights or you've left for vacation and forgot to adjust the thermostat.
Using standardized internet protocols, web access also means smartphone access. The smartphone market now exceeds 100 million consumers in the US and is growing rapidly. More and more people are relying on their phone for basic web functionality. With some EMS products, the same portal is used on the PC and on the mobile phone. In more advanced designs, the EMS includes a mobile portal customized for its small screen size.
Smart Thermostat. US consumers spend about $2,000 per year on energy bills. Heating and cooling accounts for about half of total household energy consumption and about one-third of electricity consumption.
Smart thermostats often appear to be positioned at the center of residential EMS because of their potentially high impact on energy efficiency. Even though most US homes are heated with natural gas or other fossil fuels, about one-third are heated electrically. In these homes, heat consumes more than 50% of total household electricity. Most homes in the US are air conditioned with electrical power. Air conditioning consumes about 16% of total household electricity. It accounts for a significant percentage of peak demand on hot summer afternoons.
Most digital thermostats are programmable to provide night time set-backs, day-of-week scheduling, and vacation mode. That may be one definition of smart, but it is not what we are talking about. What we refer to as a smart thermostat is one that is connected to the smart grid through the utility's AMI network. It communicates across the network with the utility's demand response application. An example can illustrate.
On a hot summer afternoon with millions of homes air conditioned at 72 degrees, the local utility can run low on power. To avoid a brownout, it will be forced to buy the needed power at peak prices. Smart thermostats work with the utility's demand response (DR) application to accept electronic requests to reduce electrical demand. For example, the utility DR application might ask the thermostat to change its set-point from 72 degrees to 76 degrees. Yes, it gets a little warmer in the house after an hour, but this may be acceptable if it puts money back into the household budget. If grandma is visiting, she can override the DR signal right on the thermostat (or IHD) using its remote opt-out capability. Most demand response events last only a hour or so. The DR application will reset the thermostat to its original set-point as soon as the utility sees its peak demand safely dropping off.
(Smart) Hot Water. Resistance heating is a major user of residential electricity. You see resistance heating in toasters and electric stovetops when the heating elements get red hot. Devices such as electric ranges, ovens, hot-water heaters, and space heaters are part of the long list of resistance heating equipment. Compared to air, water stores a lot of energy. So heating water requires a lot of electricity. This makes electric hot water tanks and dishwashers major users of household users of electricity. Dishwashers preheat their water and heat up the air afterwords to dry the dishes.
Water heating presents a significant electrical load. It makes up almost ten percent of total residential electrical demand. When tied to the utility demand response application, the temperature for hot water heating appliances can be turned down for short periods. This keeps the heating element from turning on and sheds an important part of the utility's electrical load. Hot water tanks are ideal candidates for dispatchable demand response because in most cases, turning down the temperature a few degrees won't ever be noticed in the household. Smart hot water water tanks will be very high-efficiency and connected to the smart grid with a demand-response controller.
There are about 60 Million U.S. homes with electric hot water heaters, if just 10 percent are converted to high-efficiency models, it would save billions of kilowatt-hours annually. If they also have demand-response control, the cost savings will far greater to higher peak pricing.
Other (Smart) Appliances. Although there are a number of smart-plug products that can endow legacy appliances with the networking and monitoring abilities required for the smart grid, these don't provide the fine-tuned capabilities that can be offered when the controller is fully integrated into the appliance. A new generation of appliances will be coming out in 2010 and 2011 that are designed to work with smart grid applications.
GE and Whirlpool, for example, are planning a full line of appliances designed to be connected to the home EMS and the smart grid. These include refrigerators, washers, dryers, ranges, dishwashers, and microwaves. All of these appliances will report usage to the EMS and coordinate with utility DR applications.
For example, GE's demand-response refrigerator can make adjustments to its settings based on time-of-use (TOU) price signals from the utility. It can also reduce its consumption significantly by deciding when to run the defrost cycle. Refrigerators normally defrost themselves based on how often the door is opened and closed. They start the defrost cycle as its sensors indicate, whatever the time of day. Energy costs can be reduced by running the defrost cycle and making ice, in the middle of the night when electricity demand and prices are low. GE has said that these capabilities only add $10 to the cost of the appliance but cut electrical use by 20 percent. That's a small premium for the typical $1,000 refrigerator and results in a payback period under two years.
Smart Plugs. Since smart appliances are still more of a thing of the future, consumers need a way to make legacy appliances work with their EMS. Smart plugs are simple devices that insert between an electrical appliance and a standard wall outlet. They come in different sizes to handle small or large loads. These plugs measure and control whatever is plugged into them. At minimum, they report power usage to the EMS. At best they communicate with utility DR applications through the smart grid to help shed loads during peak periods. Essentially these plugs turn legacy appliances into smart appliances.
EV Charging and V2G Storage. With tight budgets, energy security, and climate mitigation on their mind, consumers are gravitating towards high-efficiency vehicles. If automotive analysts are correct, we will put tens of millions of plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) on the road in the next two decades. This makes the batteries in these vehicles potentially available for buffering peak electrical demand using vehicle-to-grid (V2G) storage. Most EVs will be charged at night and will store enough power to let the utilities draw on battery power during peak demand. A DOE study found that the idle capacity of today’s electric power grid could supply 70% of the energy needs of today’s cars and light trucks without adding to generation or transmission capacity—IF the vehicles are charged during off-peak times.” DOE estimates the potential benefits to include: 1) displacement of about half of U.S. net oil imports, 2) reduction in U.S. carbon emissions by about 25 percent, and 3) reductions in emissions of urban air pollutants of 40 percent to 90 percent.
These benefits won't be achieved unless EVs are supplied with smart charging stations to ensure that daily charging is done at night at the lowest cost power. A challenge will be the development of smart charging stations that balance the customer's need for driving range with the utility's desire to borrow power during peak periods. It may seem futuristic but by next year, Nissan's Leaf will have many of the components needed for connection to the smart grid. This car includes network connectivity so that drivers can use their smart phones to modify charging preferences, reset the air conditioning temperature, or ask Nissan to run remote diagnostics.
What difference can a car battery can make? A lot. There is a lot of power packed into electric cars. We're not talking about today's car batteries. By 2020, EV battery packs should be able to store 100kWh. That's enough juice to power the electrical needs of several of your neighbors' homes for 24 hours. Since the utilities will draw power only to cover peak demand, the power stored in one EV can go a long ways.
Distributed Generation. Distributed generation is the opposite of centralized generation via gigantic power plants. It implies generation of small amounts of power close to the point of use. It employs small-scale power generation technologies typically in the range of 3-10 kW for residential applications and up to 10,000 kW for commercial applications. The power generated is used to provide a supplement to the electric power from the grid. Distributed generation reduces the amount of electricity lost during transmission because the power is generated very near where it is used, usually in the same building. For the utility, this reduces the size and number of power lines that must be financed and constructed.
Distributed generation has experienced high costs in the past. Technology breakthroughs for wind, solar, and small gas turbines make these sources more cost competitive every year. Government subsidies help make up the difference. Well-intentioned consumers use solar and wind as part of their sustainability and carbon-reduction efforts. Although payback periods can exceed 10 years, they make economic sense for anyone committed to long-term energy reduction and long-term savings. Homeowners can essentially lock-in part of their energy costs for 20-30 years. A well-designed distributed generation system has low maintenance costs. Manufacturer warranties on solar panels typically run for 25 years.
Within the residential segment, grid-tied, roof-top solar PV is growing rapidly in sunny regions of the US. Small wind turbines are gaining ground on farms and ranches. Solar thermal is also popular, but is used to generate heat or hot water rather than electricity.
In grid-tied systems, utilities use a net meter to track surplus electricity not consumed by the home. The surplus power feeds into the grid distribution system where it is used by neighboring homeowners. Depending on contract terms with the utility, the net meter is set up so that the utility gives full retail price credits to the homeowner. A future point of contention will be whether utilities should pay for power based on TOU pricing. If so, it would give a big edge to solar PV since it generates at peak capacity during the day when the utility experiences intermediate and peak demand.
While the most common rooftop solar applications today use silicon-based PV panels. Thin-film technologies are rapidly catching up. They lower up-front investment costs but also offer lower efficiency (requiring more space on the rooftop). But costs for thin-film are dropping rapidly and efficiencies are going up. One advantage is that thin-film can be more easily integrated into roofing products. That allows it to be integral with the building architecture rather than just bolted on.
DOE analyses have shown that in a best case scenario, the US could see installed rooftop solar generation rising from about 2,000 MW in 2008 to almost 25,000 MW in 2015. Utilities will need smart grid technologies in the sensor network to make sure this electricity gets used as efficiently as possible. 