IoT and Behavioral Billing to Optimize Use of Energy

With energy producers, distributers and consumers focused on optimizing the use of energy whether it be electric, oil or gas, technology can make a difference through the use of behavioral billing. Behavioral billing uses methods of billing that can alter the behavior of end consumers to optimize their use of energy to reduce their cost. When you throw into the mix the use of Internet of Things (IoT), real time behavioral monitoring plays a role in optimizing energy usage.

The benefits of behavioral billing utilizing IoT technology are highlighted in the following hypothetical use case. Several energy producing companies have a coalition that provides electric power distribution to a wide area of a state that includes cities of significant size as well as rural population. The power generation comes from several sources that are best optimized by having a steady consumption of electricity. The coalition utilizes smart meters that allows real time access to energy consumption and is set up with a robust billing system to monitor electrical usage on a near real time basis. Several cities in the service area have negotiated consolidated rates for the residences and businesses within their city. They use the same intelligent utility billing system as the power coalition such that it is an integrated billing system. In addition to electrical power, these cities consolidate the gas, water and waste treatment usage into one bill for their constituents where the constituent can elect to have a flat rate monthly payment that is trued up and reset each year for estimated usage. These cities also have a progressive energy conservation program where the use of Internet of Things is prevalent to make the communities be smart cities. Not only are smart sensors being used to detect power usage, but they also have smart Internet controlled system allowing the systems to be turned on and off through the Internet. High power usage industrial complexes have implemented such controls. As part of the power optimization program, the power coalition can turn non-critical system on and off during peak usage times to best balance and maintain energy production optimizing their power production resources. The cost savings for the optimization of energy production is passed on to the end users through the use of real time intelligent billing provided by the technology. Those consumers that participate in the energy optimization program gain the benefits of the cost savings. Continue reading…