WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 90
Customer engagement matters
Customer Choices Add Complexity
The energy transition is transforming traditional power systems.
Electricity demand is rising as customers adopt electric vehicles
(EVs), electric heating, and other electric devices. Data center
consumption further contributes to a significant increase in
electricity demand. Simultaneously, customers are enhancing
energy efficiency in their homes and businesses and investing
in distributed energy resources (DERs) like rooftop solar and
battery storage to reduce bills and improve resilience. This shift
creates a more intricate system with greater load flexibility
and more pronounced peaks. To manage this increasingly
complex system, electricity providers must rethink their
planning and operations. New tools are required to balance
supply and demand in real-time, with flexible resources and
non-wires alternatives (NWAs) complementing traditional
infrastructure solutions.
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However, customers commonly invest in smart energy devices or
energy efficiency for their own benefits—to lower their energy
bills, increase the comfort of their homes, or reduce their carbon
footprint—rather than benefits for the grid.
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customers that make it easy and attractive for them to
participate. At the same time, utilities must trust customers
as active participants or “prosumers” for these benefits to
materialize and to keep customer costs low. It’s essential
to empower everyone, regardless of economic means, to
participate in a fair and just energy transition.
To unlock the grid value of these customer investments,
electricity providers need to find new ways of engaging
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The need for a demand
side energy transition
FIGURE 2
EV Sales Forecast | by region | 2019-2030
10.1
9.6
8.3
8.1
All Figures in Million Units
6.0
4.7
Consumers Hold the Key to Unlocking Grid Value
3.3
3.4
3.2
2.7
2.3
1.4
1.1
0.3
0.6
2019
1.0
0.6
0.3
2020
2021
2022
USA
Source: IEA, EVAdoption, USB
1.7
1.4
1.1
2023
Europe
China
2024F
2025-2029
2030F
WEMO 2024
Customers across all segments are increasingly investing in
smart devices that monitor and control energy usage, such as
smart thermostats, battery storage systems, and programmable
EV chargers. These devices offer significant grid benefits when
energy providers actively engage customers and incentivize
participation in demand response programs. By leveraging
customer-owned controllable devices, utilities can reduce peak
demand and build flexible resources, like virtual power plants
(VPPs), which help defer or avoid capital investments.
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