Google’s Nest May Profit While Saving Everyone Money
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) may find a surprise source of income through its Nest acquisition that almost seems counter-intuitive. Though the purpose of Nest is to help consumers use less electricity, there may a hefty chunk of change in it for energy providers, and Nest would get a share of what the sum providers save.
Nest offers smart thermostats that are tasked with learning users’ schedules, habits, and preferences to optimize the heating and air conditioning use and reduce energy bills. The benefit for consumers is obvious: less money going to energy companies, more money staying in the bank. On its website, Nest claims that it can save as much as 20 percent on heating and cooling bills with auto-scheduling feature, which turns heating or cooling on and off through out the day depends on when users tend to be in or out of the house.
The question is how Nest can benefit electricity providers. According to Forbes, Nest has the ability to make work a lot easier for energy providers when it comes to high-demand times, like a blazing summer afternoon when everyone decides to kick on the air conditioning at the same time. If providers work with Nest, they can see thermostats turned down during the peak demand times to decrease the burden of supplying all that energy.
By reducing the overwhelming demand, energy providers aren’t forced to rely on extra, less efficient power plants to boost the supply and meet demand. If they could rely only on their most efficient power plants, it would not only be beneficial in terms of power generation, but could also reduce overhead, as the extra plants could eventually be closed.