Customer Engagement: A tool for Utility driven for Utility Demand Side Management
The consequences of climate change are no longer just predictions, but are already becoming evident. At the same time, energy demand, driven by population growth, urbanization, and development, continues to increase, leading to significant environmental and grid impacts. In light of this, utilities face unprecedented pressure to decarbonize. In India, the rapidly growing economy, demographic changes, and technological advancements are transforming market dynamics in many sectors, including the power sector. Today’s customers are well-informed and have the power to choose, and they expect better service from their providers. In the past, monopolies in industries such as telecom, airline, and broadband and cable television have transitioned to competitive markets, bringing innovation and better products to customers. The power sector, which has also been monopolistic, is now transitioning to a transactive model due to policy reforms and enabling technologies. The intersection of these two developments – the pressure to decarbonize the power sector and the transition to a transactive model – provides a great opportunity for customer engagement in utilities’ decarbonization efforts. This report provides the context for why customer engagement is crucial for utilities today and argues that engaging and empowering customers can serve as a powerful means of promoting energy efficiency through changes in behavior, resulting in energy savings and reduction in peak demand.