REDUCE: Reshaping Energy Demand of Users by Communication Technology and Economic Incentives (Part 2 of the call)

Extensive work has been carried out on the technological, economic and societal potential for better management of energy demand. Huge potential of demand side management can only be exploited by exploring new ways to induce shifts of demand during peaks and hence reduce marginal costs. Digital communication technology can play a vital role in inducing this shift by enabling communication between the devices and the users. A holistic view of the interaction of all key-players - energy devices, energy supplier and energy users - is missing and this project aims at investigating this interaction using a multidisciplinary research team. The overall objective of this research is to evaluate the feasibility of using network technologies and sensor devices now being used in telecommunications, to create a Persuasive Energy-conscious Network (PEN) in a real life pilot setting and then study the potential impact on user behaviour leading to reductions in, and shifts in patterns of, loads of electricity. The project will aim to quantify the savings in carbon footprint (and operational energy cost) of the pilot test-bed when digital technologies (PEN) are deployed. It will also study the response of the users of the proposed monitoring and control system. As part of this research project, we will establish an autonomous self learning network of the sensors, energy consuming devices and users of energy. Self descriptive devices will be enabled to send meta-data describing relevant details of their energy consumption and context (time, task urgency etc.). The network will collect the data and create an energy consumption knowledge-base. The novel middleware will be incorporated that will run the modules of self learning and decision making to trigger actions that will shape the energy demand using specified goals. For this purpose, we will use the University of Surrey campus as initial test-bed.Technological interventions are more likely to achieve the intended energy savings if the interventions are designed with an understanding of how users view and interact with their energy systems. Within psychology, a wealth of research is available which shows that the type and format of information given to users can have a strong influence on their response. We know very little about how individuals may respond to flexible intelligent systems. We aim to examine the behavioural responses to the implementation of intelligent technologies that aim to reduce energy use in buildings.There are various ways of incentivising consumers to change load patterns. One of them is through financial models aimed at fostering the demand responsiveness of consumers. Those consumers who proactively engage in reducing or shifting their loads and significantly react to price signals should be rewarded by paying less for their electricity consumption. Part of this research will focus on the development of a financial model for an incentive/payment scheme and testing such financial models on the campus test-bed.As an outcome of the research we will deliver a pilot test bed for the autonomous and self learning Persuasive Energy-conscious Network. The psychological studies will be reported on likely expected behavioural responses of the users to the proposed technologies. A financial model will be implemented and its impact on energy demand transformation will be provided with quantified results of savings in terms of energy cost and CO2 emissions.The research will have targeted collaboration with the users of research such as the industrial researchers (e.g. Thales Research and Technologies), individual energy users (University students and staff) and corporate users of energy (University of Surrey's Estates and Facilities) and government bodies (Woking Borough Council) to highlight the potential of using the digital technology in meeting the requirements of these players in this research.

The impacts of REDUCE will fall into four areas; - General public as consumers of energy who will benefit via reduced energy bills and a feeling of more personalised control over their energy usage. - Energy supply companies who will increase the efficiency of their operations and thus costs and overheads aiding reduced energy costs. - The environmental lobby and hence Government Policy who will benefit by reduced national carbon footprints aiding compliance with international protocols. - Specific recommendations for the HE sector which is currently consuming 5.2 billion kWh of energy at a cost of more than 200 million pa. The benefits will be captured in terms of; - Reduction of energy usage by measurements from trials in the University and the community. - Generation of innovative applications of sensor networks to increase their penetration in everyday life. - User perceptions, reactions and potential institutional responses to incentives evaluated from the trails. - National models of carbon savings validated by the trials and national roll out guidelines for implementation. The management of impact will be via the Surrey Knowledge Transfer Account (KTA) and the details are provided in the attached Impact Plan. Engagement mechanisms have commenced in other specific areas under KTA from which REDUCE will benefit. For example; - Platform advisory boards - formation of sector/community groups - show cases to sectors-'show and tell' events - follow-up's on a one-to one basis to discuss involvement - regional SME events - sector needs analyses - flexible inward and outbound secondments For REDUCE we will set up a dedicated impact board and a community group with whom we will consult regularly. This will comprise technologists, economists, psychologists, economists and policy makers. Engagement will be focussed on; - users and the energy managers- University of Surrey's Estates and Facilities department has pledged its support. - energy companies and distributers via the trials and community groups. - industry, telecoms operators, manufacturers and software producers via existing KTA platform. Thales Research and Technology has pledged support. - local authorities via the trail with Woking Borough Council (WBC) and hence the association of local authorities - Government via the appropriate Business, Innovation and Skills (BIS) committees. Awareness for REDUCE outcomes will be created more generally in the press, trade literature and in policy arena. This will be managed within the KTA by the dedicated communications with the personnel associated with the Platforms. One important role of the KTA is exploitation and the knowledge exchange Directors act as discoverers of Intellectual Property (IP) and connectors to the external needs and requirements. They match the needs of industry to the research outputs in the University and shape research accordingly-open innovation. An important outcome of REDUCE will be its take up and roll out in the community. We see this being done via local authority housing institutions as well as the private sector in terms of the workplaces. Higher education institutes and their campuses can benefit in particular from the University of Surrey's pilot example. Partnerships with the researchers in industry and energy companies and distributors will be essential in generating a business model. For specific elements we see exploitation in the communications networks and sensor/equipment manufacture as well as the middleware production. These will be handled by the existing KTA platform in Communication and Signal Processing (CSP). The KTA will use mechanisms to accelerate exploitation including; - flexible inwards and outwards personnel exchange/consultancy - funding early stage prototypes - funding demonstrators for use by industry to develop and test products - connecting researchers with key external partners. - management of IP issues within the networ