North American utilities to invest $577.8M on home energy management, says IDC

North American utility companies, according to a new IDC report, will spend about $577.8 million on home energy management (HEM) solutions by 2016.

With much of the North American utility investment in HEM being mainly spent on pilot programs and testing, the report said that investment in HEM solutions will be more conservative than other areas in the smart grid.

By 2016, IDC Energy Insight said, adoption of HEM solutions will expand "as consumers become increasingly engaged and as utilities comply with regulatory mandates for home area network development as a critical component of the emerging smart grid."

However, North American electric utilities have to deal with a number of near-term challenges in deploying HEM solutions, including developing sound business cases, meeting HEM costs, and changing consumer behavior around fixed electricity rate structures.

When HEM is eventually adopted by more consumers, utilities will develop their businesses cases and engage customers to change their usage behavior through demand response and other programs, the report said.

"In the next five years, electric utilities will expand investment in technologies and services that enable home energy management because these solutions support the initiatives and goals of the emerging smart grid," said Casey Talon, research analyst, Smart Grid Strategies, IDC Energy Insights.

For more:
- see the release

Commentary: AT&T's Digital Life could make its wireline broadband base even stickier

On the Hot Seat: Verizon's Mike Ritter on building a foundation for broadband needs with 300 Mbps

Related articles:
Consortium for Smart Energy Profile Interoperability becomes formally incorporated
Alcatel-Lucent lights up Opelika, Ala.'s new FTTH network, smart grid initiative
Week in research: Routers and switches set global records; smart energy gains in U.S.

Suggested Articles

Like most telcos, there are challenges ahead for CenturyLink, but one area it can bank on is its fiber network both here and abroad.

With the surge of data-hungry gamers battling for the best experience, how will your network rise to the challenge?

Listen now.

It's going to be fun watching the epic battle unfolding between hedge fund giant Elliott Management and massive conglomerate AT&T.