Dynamic Pricing Case Studies. Digi International.
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Transcript of Dynamic Pricing Case Studies. Digi International.
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Dynamic Pricing Case Studies
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Global M2M Solution Expert
650 Employees Worldwide
Founded in 1985Based in Minnetonka, MN
Revenue 191 m$No debt, 120m$+ in Cash,
39 quarters of profit
Track record of acquisitions, Public since
1989
Digi International
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Agenda
• Two case studies (Gulf, Tampa)• The « choice » of the customers• The scaling issue
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ProgramsEnergy Select Program:• Initiated in 2000• Largest CPP program in US• Energy Select = TOU-CPP• Automated Program
Energy Planner Program:• Legacy Direct Load Control: closed in 2005• Residential Variable Pricing approved• Pilots in 2004, Permanent Offer since 2005
Program Goal: Offer a Residential advanced Energy management system that delivers Increased value to customers while providing Peak reduction benefits to utility system. Key components: - Variable price rate - Ability to pre-program devices to automatically respond to variable prices - “Set it and forget it”
Program Goal: Develop a DR consumer offer fitting with Tampa smart grid implementation Strategy (act before AMI); Key components: - Utilization of smart meters on a smaller scale prior to large scale implementation (scalability) - Strong Customer interest on Variable Pricing - DR Network as source for data to compare with MDM data for verification of accurancy prior to AMI roll-out
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Average results
Pilot : - 250 customers were selected along with corresponding control group: - Half new customers never used DLC - Half existing DLC customer switched
Energy Planner program updgradeFall 2011 New technology using broadband Communication Facilitate achievement of enrollment utility goals
Price Responsive Load Management•Demand reductions:
- 3.1 Kw (winter)- 2.0 Kw (summer)
• Modest energy reductions: 1,154 kWh
Energy consumers with enough level of consumption seems required, innovative and drop-in technology facilitate adoption
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Residential Variable Pricing Rate
prices in the tiers reflect cost of producing and delivering electricity (“Tampa”)
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Customer Selection & Segmentation ?
Voluntary programs, promotion of Control, Savings & Free installations
Most effective way to reach customers is direct MAIL (Gulf)
Bottom line: Customers are saving8% to 15% on electricity bill.
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Who’s the subscribers?
• household 230 m² (average)• 2000(winter)-3000(summer) kWh/Month• energy bill 300-400$ / month• Live in specific areas (weather, hvac penetration, etc)
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Surveys results
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The 1m$ QuestionsIs it possible to « activate » the same pattern in EU and have high-end energy consumers in Residential & small commercial business engaged in a DR program with TOU-CPP? (regulatory & market issues?)
Is it then possible to go from « small » to « big » without waiting full AMI roll-out? (scaling issue)
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Automated Dynamic Pricing Solution leveraging cloud technology to accelerate consumer adoption
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Cloud Device Management• Growing Global Cloud Device Management Platform
– 2 million devices* – 2,200 transactions*
per second and growing
• Data Access– Protocol Translation– Direct or Cached– Data Streams Storage
• Console for …– Configuration and Firmware– Grouping– Alarming– Commissioning
*Tested and verified
ISO 27001 controlled systemContinuous security monitoring
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Processor Modules
Wireless and M2M
Wireless Gateways
Design Services and Custom Applications
Device Cloud
Core Competencies
More than 200 engineers on 3 continents
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THANK YOU!