25 April 2012: The International Energy Agency (IEA) Implementing Agreement for a Co-operative Programme on Smart Grids (ISGAN) has published a white paper, titled “Managing Consumer Benefits and Costs,” that describes the benefits consumers derive from smart grids, as well as draws attention to consumer engagement best practices in achieving systemwide benefits.

On the benefits of smart grids generally, the paper details that they, inter alia: support economic growth and promote international competitiveness while minimizing energy costs; provide consumers with greater choice and increased transparency; provide increased reliability and resilience to weather events through multiple generation sources and self-healing network capabilities; and enable consumers to sell their generation on the grid.

The paper also describes specific consumer benefits of smart grids, including: attracting new businesses; the ability to see details of electricity consumption in real time and change usage behaviour accordingly; and improving peak demand management. It also discusses the various costs required to implement the technologies and market structures required to provide consumers with the benefits, noting that smart grid implementation costs should be borne fairly by utilities, governments, and consumers.

Under the consumer engagement best practices, the paper recommends that influential organizations and institutions engage their consumers by, among others, undertaking extensive pre-planning and review by stakeholders; tailoring the campaign to the target audience; communicating simple messages effectively through choice of themes and mediums; and engaging the community and encouraging two-way communication, and not just raising awareness or selling imposed solutions.

The paper concludes with a summary table covering consumer cost items, impacts, benefits, and cost allocations. [Publication: Managing Consumer Benefits and Costs]