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Consumption unbundling: what it is, how it is applied and why it is key to the energy transition in the home.

If you are not yet familiar with the fashionable term "consumption unbundling" we tell you what it is and why you should start implementing it.
consumption breakdown
Written by
Energy Management
Energy Efficiency

The unbundling of energy consumption is a concept that is gaining more and more relevance within energy management, as it is a powerful ally for both end consumers and energy retailers.

At Smarkia we know that a thorough understanding of how and where energy is consumed is key to making informed energy efficiency decisions. Consumption disaggregation plays a central role in this regard, so we have developed a solution that helps you know precisely how and where energy is used.

In this article we explain what consumption unbundling is, how it is applied and the benefits it offers for both consumers and suppliers.

What is consumption unbundling.

In essence, consumption disaggregation is the ability to break down the total energy consumption of a household or business into its individual components. This makes it possible to identify how much energy each device uses, whether it is a household appliance, lighting or HVAC system.

This consumption disaggregation may also be known as load disaggregation or non-intrusive load monitoring (NILM). In any case, the idea is the same: to discriminate the individual consumptions of each device from a single consumption measurement.

How consumption unbundling is applied.

Smarkia 's consumption unbundling technology is based on artificial intelligence (AI), and is a further step in our commitment to innovation in energy management for businesses, retailers and households.

The AI algorithms developed by Smarkia are able to analyze and identify energy consumption without the need to install individual meters on each device.

To illustrate how this technology is applied, let us consider the consumption of a typical home. The consumption of this house varies as the devices are used: refrigerator, lighting, washing machine, etc. The meter of the house is only able to collect the total consumption data, but each device has a behavior curve that can be identified with the appropriate algorithms.

energy consumption disaggregation tool

The information obtained by disaggregating consumption is particularly useful for both retailers and end customers.

  • The marketers will obtain very valuable information for the management and control of the electricity network, a better understanding of the needs and consumption patterns of customers, and therefore, a greater facility for the customization of services and offers.
  • It will help consumers to manage their consumption and reduce electricity costs by providing them with a very detailed view of their energy usage. They will also be able to control their devices (thermostats, appliances, blinds, solar panels, etc.) from their mobile device.

This solution also allows the incorporation of self-consumption installations, providing information on the degree of solar generation or the number of people belonging to a solar community.

Benefits of consumption unbundling.

Benefits for marketers.

Increased customer knowledge.

Unbundling provides deep insight into how energy is used. This is valuable information that allows marketers to create more accurate consumption profiles, more personalized offers and energy plans tailored to the real needs of their customers.

This improves customer retention and satisfaction, as they will receive a service tailored to their consumption patterns.

More efficient management and operations.

Unbundling makes it possible to identify consumption patterns, facilitating network management, especially at times of peak demand. Operations and resource allocation become more efficient, helping to reduce costs while planning supply and demand more effectively.

Detection of anomalies and fraud.

The detection of unusual patterns may indicate problems such as meter tampering or some kind of technical incident in the network. Early detection of these irregularities ensures service to customers and protects the interests of the utility.

Commercial differentiation.

In a market as competitive as the energy market, customers increasingly value clarity, transparency and customization of services. Offering tariffs that are more competitive and allow customers to reduce their consumption is an interesting way to differentiate yourself from your competitors.

Benefits for end customers.

Energy and economic savings.

A solution of this type makes it possible to offer recommendations to customers to reduce their consumption (and therefore their bill) by improving the efficiency of household consumption. For example, it can issue a warning if a washing machine is placed in the most expensive bracket, or if the tariff is not the one that best fits the consumption pattern.

Problem detection.

Higher than usual consumption or consumption outside the normal pattern may indicate a malfunction. Early detection of these problems avoids more costly repairs or even the need to replace devices.

Greater transparency and control.

Many customers perceive electricity consumption as complex and opaque. Unbundling makes it possible to provide more transparent, easier to understand and real-time information directly to their mobile devices, increasing their confidence and decision-making ability.

Increased efficiency and sustainability.

All the information obtained from unbundling makes it easier for customers to make small changes in their daily lives to encourage more responsible and sustainable consumption. And less consumption means a smaller carbon footprint and, therefore, a positive contribution to the environment.

Integration with renewable energies.

Customers with self-consumption facilities can maximize the use of their renewable generation thanks to unbundling, thus minimizing their dependence on the conventional power grid.

Future trends in consumption unbundling.

In order for the energy transition of households to progress, the involvement of both retailers and end customers is necessary.

Users are increasingly concerned about both energy costs and environmental impact, so they are demanding clearer and more transparent information in order to be able to make better decisions.

In this sense, electricity companies must provide their customers with the means to make this happen, and solutions that include energy unbundling systems have proven to be very efficient.

Therefore, these unbundling systems will be increasingly present in homes and businesses, providing accurate information on consumption, including renewable self-consumption and energy storage systems.

Discover consumption unbundling with Smarkia.

Technological innovation is fundamental to a sustainable energy transition, and this breakthrough from Smarkia is revolutionizing the way consumers and marketers interact with energy.

Consumption unbundling is a powerful tool that empowers consumers and optimizes energy management. It is now within everyone's reach to make informed decisions to reduce their energy costs, lower their carbon footprint and contribute to a more sustainable future.

At Smarkia we believe that technology enables us to drive a more sustainable and efficient future. If you are interested in taking advantage of energy unbundling and discovering how AI can transform your energy management, don't hesitate to contact us.