The customer-led transition

The energy transition is a topic that is talked about regularly today within the energy industry. It is a fact we are moving away from a century-old energy system and toward one that is more consistent with a world contending with climate change, changing values, and technological innovation.

We have more difficulty agreeing on what the transition will look like and how we can ensure it is sustainable. We all have our opinions, preferred solutions, technologies, and approaches, but we have yet to find the answer.

At NRG, we sit at the intersection of where the market, technology, and consumer connect giving us a bird’s-eye view of the transition. It is a unique position that allows me to see the transition from within. So, I will dare to throw my hat into the ring and share the strategies I think will help us navigate the future of energy.

Net-zero is the goal, but the path to achieving it is complicated. Despite best-laid plans, the energy transition will take longer than we hope and will involve some quick turns and bumpy roads. We are faced with an extremely complex problem with no single clear solution. If we don’t get it right the transition will be unsustainable and that will impact the grid, the energy economy, and most importantly our customers.

With all this to contend with, where do we start?

Market indicators are a key driver for every business and the same can be said for the energy industry. For us at NRG, there is no clearer driver than our customers. From development to strategy, customers are crucial in helping us navigate and find success in an ever-evolving sector.

So, what are they looking for and how can we help them move the needle towards net-zero?

• They want energy to be safe. No one wants an unsafe product and as an industry we work every day to keep our employees, our customers, and our communities safe.
• They want it to be affordable. To ensure consumers have access to electricity it needs to be affordable and that is something we understand is a crucial priority for customers and for our success.
• It needs to be reliable. Consumers want electricity to be a commodity they can “set and forget.” You don’t have to go back too far to see how power outages can affect people’s lives.
• Customers want sustainable solutions. We are all experiencing the never-before-seen disruption and strains caused by stronger winter storms, hotter drier summers, and more. The value that sustainable energy resources can bring now and, in the future, is top of mind for most customers.

These four priorities are what customers demand from their energy service, but we need them to want just a bit more to drive us closer to a clean transition.

Smart home solutions are AN answer for the energy transition. With the help of smart home technology, not only can you control the lights, washing machine, HVAC, and pool pump, but customers can dramatically lower their power usage with a simple tap on a phone app. Lower power usage can mean lower bills, less strain on the grid, and less environmental impact. It can put affordable, safe, reliable, and sustainable energy use in the palm of a customer’s hands. If you expand that capability to 50 million homes, imagine the impact.

The cleanest and cheapest form of energy is the energy that you don’t use. Demand response programs are highly sought after by C&I customers, who understand the value they receive from turning off compressors, large equipment, smelters, and more when a request to reduce power comes in. However, these programs are often difficult to access for most homeowners, but smart home technology can bridge the gap.

We are seeing the benefit these technologies can have on homeowners’ energy experience in real-time. We have this technology deployed in homes across the country and we are making people's lives simpler. And for those who let us, we are learning and making their homes smarter than they have ever been, improving their experience in a way that benefits and complements their lives and goals without any added difficulty.

In no way is smart home technology the whole answer to our incredibly complex problem. We will still need the traditional backbone energy system; more solar, wind, and other renewable energy resources; more storage; and the next and newest technologies. However, mobilizing consumers to be part of the solution is a powerful step toward mitigating climate change and advancing a successful transition.

There is a lot of work to be done, but I think that the opportunities match up with the challenges. The energy industry is ready to bear this dramatic change. It is the only industry in the world that has gone from nothing to something. We seem to do it in every environment, on every continent, in every scenario, and that's because we have smart people leading the way and customers who are excited and ready for the industry to change.