21-05-2014, 11:47 AM
The Home Appliance Industry’s Principles & Requirements for Achieving a Widely Accepted Smart Grid
SmartGridwhitepaper.pdf (Size: 1.19 MB / Downloads: 22)
SCOPE OF PAPER
As the trade association that represents the home appliance industry, the Association of Home
Appliance Manufacturers (AHAM) is committed to providing innovative and sustainable
products that improve the lives of consumers. Because home appliances are an integral part
of the Smart Grid, AHAM has drafted this White Paper to communicate the home appliance
industry’s principles and requirements for the development and implementation of a successful
Smart Grid.
It is beyond the scope of this paper to fully describe the Smart Grid. More specifically, this
paper does not attempt to promote any particular communications technology or standards,
e.g., wireless or wired. However, the industry does advocate for the need for common
communication protocols and standards. If interested, the reader should review the
Department of Energy’s Smart Grid web site for additional background information regarding
the modernization of the nation’s electrical system.
ABOUT THE ASSOCIATION OF HOME APPLIANCE MANUFACTURERS
AHAM represents manufacturers of major, portable and floor care home appliances, and
suppliers to the industry. AHAM’s membership includes over 150 companies throughout the
world. In the United States, AHAM members employ tens of thousands of people in the United
States and produce more than 95% of the household appliances shipped for sale within the
United States. The factory shipment value of these products is more than $30 billion annually.
The home appliance industry, through its products and innovation, is essential to U.S. consumer
lifestyle, health, safety and convenience. Through its technology, employees and productivity,
the industry contributes significantly to the U.S. job market and the nation’s economic security.
Home appliances also are a success story in terms of energy efficiency and environmental
protection. The purchase of new appliances often represents the most effective choice a
consumer can make to reduce home energy use and costs.
EXECUTIVE SUMMARY
The Association of Home Appliance Manufacturers (AHAM) is interested and involved in the
development of the Smart Grid and the policies surrounding a Smart Grid in the United States.
The objective of the Smart Grid is to provide technology and systems (integrated into
appliances and consumer devices used in everyday activities) that will allow consumers to
automatically control their energy use and costs.
AHAM provides a unique perspective to the Smart Grid Vision because many of the products
AHAM members manufacture must be part of our nation’s future Smart Grid. AHAM
represents manufacturers of major, portable and floor care home appliances, and suppliers to
the industry. Home appliances are a success story in terms of energy efficiency and
environmental protection. AHAM is also a standards development organization, accredited by
the American National Standards Institute (ANSI).
In establishing policy on the development of a Smart Grid, the Energy Independence and
Security Act of 2007 requires integration of Smart Appliances and consumer devices that can
interact with the Smart Grid. This law also requires that consumers be provided with timely
information and options for controlling energy use. The U.S. government’s Smart Grid Vision is
that these goals can and should be met without causing significant disruption or lifestyle
changes for the consumer. AHAM fully supports this Vision. Consumers should receive
valuable and understandable information about their energy use and costs, thus enabling them
to make intelligent and informed choices about how and when to use energy.
PRICING RATE STRUCTURE AND INCENTIVES TO CONSUMERS
Ideally, the usage of electricity should be based on dynamic pricing. As the price changes, the
consumer can decide whether or not usage should be adjusted. The Smart Grid and Smart
Appliances will not mean much if the consumer is not motivated to participate. According to
the National Energy Technology Laboratory’s study on how to enable active participation by
consumers, “Innovative rate structures that provide economic benefits to both the consumer
and the utility are integral to these systems."14 A report released by the European Intelligent
Energy Europe project also endorses the use of economic incentives.
CONCLUSION
The goal of a Smart Grid, as it relates to consumers, is to manage energy use more efficiently,
save money on electricity, and provide technology and processes that are integrated into the
appliances and devices consumers use in their everyday lives – all without causing significant
disruption. A successful Smart Grid will allow consumers to receive valuable and
understandable information that enables them to make intelligent and informed choices about
how they use energy, all while minimizing consumer cost and out-of-pocket expenses that
could arise with the implementation of the Smart Grid. The willingness of consumers to accept
and participate in the Smart Grid could be severely impaired if the cost outweighs the benefits.
Based on AHAM’s observations and participation in the Smart Grid architecture development
activities, there are many requirements, which left unaddressed, will result in a Smart Grid that
falls well short of the stated objectives. However, in stating the requirements and concerns
above, AHAM remains optimistic and enthusiastic about the Smart Grid and the opportunity to
contribute. None of the requirements and concerns are insurmountable or technically
intimidating. The largest challenge is in facilitating an open exchange of information, ideas,
perspectives, and experiences with a multitude of organizations. But even this challenge is
within the capabilities of a committed appliance industry working with the Smart Grid
community.