5.1 Advantages of the REACT system compared to competition

The realm of energy saving is currently a heated issue as the scarcity of energy is increasingly becoming a major concern for the sustainability of resources and the environment. As the price of energy resources continues to rise, consumers will be forced to take energy-saving measures into their everyday decisions. While some home systems currently available in the market help consumers save energy, our system will have an advantage over competitor products in the following ways (8) (10):

1. 1.The REACT system incorporates real-time price signals which promote electricity market efficiency by:
   

1. 1.Inducing consumers to shift their consumption away from peak periods
   

2. 2.Providing price signals that drive the market towards its equilibrium position via negative feedback
   

2. 2.The REACT system automatically manages energy consumption for time-flexible appliances while giving users free choice over priority appliances, a capability that is currently absent from competitor technologies
   

3. 3.The REACT system is a comprehensive system that integrates smart meter, remote control and automation. It is a one-stop, hassle-free solution for home energy management rather than being only a single part of an overall solution that consumers’ need to gather themselves
   

5.2 Conclusion

This report has shown that growing power consumption and a reliance on the old method of increasing capacity has resulted in an inefficient market for electricity and high electricity prices. It was proposed that the REACT system, an adaptive and comprehensive solution that facilitates the Smart Grid on the consumer end, would have the ability to dramatically lower the peaks in energy consumption. This would result in significant cost savings for both consumers and producers. Although the initial cost of developing and installing such a system can be high, the potential for long-run benefits clearly outweigh the costs. In the future, as the REACT system and similar products become popular and perhaps even standardised, the argument for autonomous household power management systems will continue to become stronger as costs go down due to mass production and a higher level of integration ensure increased control over appliances. Ultimately, we envision that the REACT system will be installed in every household, making sure that consumers pay an economically efficient price for their electricity and therefore ensuring the electricity market is run as efficiently as possible.