Customer-side energy management: What role should utilities play?

Decarbonization of the electricity grid implies more intermittent renewable generation. Intermittency motivates customer-side energy management (CSEM)—that is, technology that allows a third party to monitor electricity availability and adjusts use to balance supply and demand. The question is the role of utilities in providing CSEM. Risks of utilities’ involvement in CSEM can probably be mitigated through vigilance and safeguards. Moreover, adverse selection may inhibit a direct-to consumer CSEM market from developing.