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MED Programme Priority-Objective 2-2: Promotion and renewable energy and improvement of energy efficiency Contract n. IS-MED10-029 Project co-financed by European Regional Development Fund - ERDF Projet co-financé par le Fonds Européen de Développement Régional - FEDER Analysis of current projects of multi-energies smart metering in low-income housing in the MED area Work package: D 6.1.1 - Intelligent energy management systems Submission date: September 2011 Status: Final

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Page 1: Analysis of current projects of multi-energies smart metering in … · 2017-10-05 · devices installed in every supply. Smart Metering should add value to the service, giving better

MED Programme Priority-Objective 2-2:

Promotion and renewable energy and improvement of

energy efficiency Contract n. IS-MED10-029

Project co-financed by European Regional Development Fund - ERDF

Projet co-financé par le Fonds Européen de Développement Régional - FEDER

Analysis of current projects of multi-energies smart metering in low-income housing in the MED area

Work package: D 6.1.1 - Intelligent energy management systems Submission date: September 2011

Status: Final

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Project co-financed by European Regional Development Fund - ERDF

Projet co-financé par le Fonds Européen de Développement Régional - FEDER

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FOREWORD

ELIH‐MED (Energy efficiency in Low Income Housing in the Mediterranean) is a strategic project co‐financed under the MED Programme. Its attention is focused on energy efficiency in low income housing (LIH) in the Mediterranean area and on the involvement of residents in energy retrofit in LIH in order to help LED area to reach EU2020 objectives.

The Med Programme is an EU Transnational Cooperation Programme among the “Territorial Cooperation objective” of the EU Cohesion Policy. Project ELIH‐Med (Energy Efficiency in Low Income Housing in the Mediterranean) is one of projects supported by the European Commission under the frame work of the Med Programme – Objective 2.2.

ELIH‐Med partners come from 7 countries (Cyprus, France, Greece, Italy, Malta, Spain and Slovenia), covering the whole Northern Mediterranean (MED) seacoast are working together to improve energy efficiency and promote energy saving in low income housing (LIH) in MED area.

Although the concept of Low Income Housing (LIH) varies from one country to another, it can be defined taking into account a representative sample of the target population which includes three different segments:

owner occupiers and tenants of private housing with low income

households suffering energy poverty

tenants of traditional 'social houses'

The main objective of the ELIH‐Med is to identify and test, through large scale actions, the feasibility of cost efficient innovative technical solutions and financial mechanisms backed with ERDF (European Regional Development Fund) which could then be extended to all Mediterranean territories, taking into consideration the differences of the region in comparison to the rest of Europe.

ELIH‐MED main actions consist of:

development of integrated policies to promote energy efficiency in LIH in the Mediterranean through project result capitalisation

implementation of a large scale pilot experimentation of technical and financial solutions in 1004 low incoming dwellings to improve building energy efficiency

promotion of intelligent energy management systems at local and regional level through the experimentation of multi‐energy smart meters in 243 low incoming dwellings

with the following results:

development of strategies and policies that address energy efficiency in LIH

elaboration of an Operational Plan for a coordinated policy in the application of structural funds for energy efficiency in LIH

identification of financial and technical mechanisms adopted to LIH, to be deployed in the Mediterranean area to improve energy consumption habits and reduce energy bills thanks to smart metering

For further information about the project results and partners visit the web site: www.elih‐med.eu

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Work package coordinator

Participating partners

Malaga City Council

Valencia Institute of Building Foundation

Cyprus Energy Agency

CRES ‐ Centre for Renewable Energy

Sources and saving

MIEMA ‐ Malta Intelligent Energy

management Agency

Languedoc Roussillon Regional council

GERES – Renewable energies,

environment and solidarity group

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Disclaimer The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union.

Neither the MED JTS nor the European Commission is responsible for any use that may be made of the information contained therein.

Copyright

This document may not be copied, reproduced, or modified in whole or in part for any purpose without written permission from the ELIH MED Consortium. In addition, an acknowledgement of the authors of the document and all applicable portions of the copyright notice must be clearly referenced.

All rights reserved.

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CONTENTS

Acronym List .................................................................................................................................. 6

1. Introduction .......................................................................................................................... 7

2. Relevant experiences on mono and multi energy smart metering systems in Europe ........ 8

3. Impacts on energy consumption ......................................................................................... 11

3.1. Benefits related to energy savings ................................................................................... 12

Demand response ............................................................................................................... 12

Consumption feedback ....................................................................................................... 16

3.2. Other benefits of Smart metering systems ...................................................................... 23

4. Barriers to Smart Metering ................................................................................................. 27

5. Legislation and specifics of local energy supply .................................................................. 31

SWOT ........................................................................................................................................... 35

Strengths ............................................................................................................................. 35

Weaknesses ......................................................................................................................... 36

Opportunities ....................................................................................................................... 37

Threats................................................................................................................................. 38

GAP .............................................................................................................................................. 39

ANNEX I - Questionnaire ............................................................................................................. 43

ANNEX II – Project catalogue ...................................................................................................... 46

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ACRONYM LIST

AMI Advanced Metering Infrastructure

AMM Automatic Meter Management

AMR Automated Meter Reading

CHP Combined Heat and Power

CPP Critical Peak Pricing

CPR Critical Peak Rebate

DER Distributed Energy Resources

DHW Domestic hot water

DSM Demand Side management

DSO Distribution System Operator

EAS Energy Awareness

ELIH Med Energy Efficiency in Low – Income Housing in the Mediterranean

EMS Energy Management Services

ESCO Energy Service Company

ESMA European Smart Metering Alliance

ESMIG European Smart Metering Industry Group

HAN Home Automation Network

ICT Information and Communications technology

IHD In-Home Display

JRC Joint Research Centre

LIH Low – Income Housing

MDMS Meter Data Management System

NGO Non-Government Organisation

PLC Power line communication

RES Reusable Energy Source

RESC Retail Energy Supply Company (electricity retailer)

RTP Real-Time Pricing

TOU Time-Of-Use

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1. INTRODUCTION

One of the ELIH Med project aims is to identify the possibilities of energy Smart Metering systems to boost the energy efficiency in LIH. Smart Metering is a technology where end-use energy efficiency can particularly be encouraged through its impact on tenants’ behaviour. Smart Meters can give consumers, at an affordable cost, clear and comprehensive information about their energy consumption and, giving them better information, can help consumers become more energy efficient. Smart Metering is often called Advanced Metering and term “Advanced Metering Infrastructure (AMI)” is widely used as a synonym for a system that records customer consumption and other parameters with bidirectional communication between utility and its clients. Such system gives support for functions like management of contracts and control of the demanded power. Smart Metering is basically the remote and automatic operation of meters and other devices to improve the efficiency of the power system and quality of service. It implies a new relation model between the utility and its clients, using telecommunications to interchange information between the utility and the devices installed in every supply. Smart Metering should add value to the service, giving better information to the customers and optimizing the use of the demanded power and consumed energy. Analysis of current multi-energies Smart Metering projects in LIH in the MED area is focused on elaboration of past and present experiences. These experiences show the possibilities and also limitations at Smart Metering systems implementation in LIH. In the scope of LIH objective with the emphasis on local/regional and present Smart Metering conditions, 12 Smart Metering projects have been identified and analysed. This analysis clearly shows the leading role of Electricity in Smart Metering. Such outcome is expected as Electrical smart-grids are the backbone of the future energy grids. Thus the Smart grids and electricity smart meters are also expected to carry out the “data concentrator” role for other energy sources (Heat, Gas and water). Another common point of analysed projects are their main topics regarding consumers and supply side. Interest and benefits for the final consumers are usually not a priority of these projects, as exploring the benefits for the supply side is preferred. The main goal of this analysis is therefore to extract functions and services of energy Smart Metering systems with the best possible impact on final consumer in LIH to achieve measurable energy savings and increase overall energy efficiency. SWOT Analysis of Smart Metering enabled Services gives an overview of gathered experiences and impacts on individual behaviour. This is backed by Gap analysis of existing pilots and smart metering systems versus potential requirements in LIH in the Med area.

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2. RELEVANT EXPERIENCES ON MONO AND MULTI ENERGY SMART

METERING SYSTEMS IN EUROPE

Up to date information on relevant Smart metering projects and regional peculiarities in ELIH Med area was collected through comprehensive questionnaire, completed by each involved Med country (presented in the ANNEX I - Questionnaire). The questionnaire was divided in three sections and included the following:

A. Information on past and ongoing smart metering projects, (best practices, barriers) including tools and methodologies used for evaluation of energy efficiency and energy savings;

B. Legislation and specific technical conditions of local energy supply, which will have important impact during implementation;

C. Database of local/regional suppliers and manufacturers of metering equipment, including energy retailers, vendors, DSO and Service providers.

Returned questionnaires for Analysis of current projects of multi-energies smart metering in LIH in the MED area resulted in 12 relevant projects (presented in the ANNEX II – Project catalogue) carried in ELIH Med territory. Although Italy was excluded from this scope, it is included in other EU projects (OPENMeter, eSESH). Short summary of reviewed projects is presented in Table 1.

Table 1: Smart Metering projects in LIH in the MED area

Project name

and period Country Short description

1 OPENmeter 2009 - 2011

Spain, France, Italy, UK, Swiss, Germany, Netherlands

The main objective of the OPENmeter project is to specify a comprehensive set of open and public standards for AMI, supporting electricity, gas, water and heat metering, based on the agreement of all the relevant stakeholders in this area, and taking into account the real conditions of the utility networks so as to allow for full implementation.

2 eSESH – Saving Energy in Social Housing 2010 – 2013

France, Spain, Italy, Germany, Austria, Belgium

eSESH project aims to design, develop and pilot new solutions to enable sustained reductions in energy consumption across European social housing. This is to be accomplished by providing usable ICT-based services for Energy Management (EMS) and Energy Awareness (EAS) directly to tenants, by providing effective ICT monitoring and control of local generation of power and heat and by providing social housing providers, regional and national government with the data they need to optimize their energy-related policy and investment decisions at national, regional and organizational level.

3 Smart City Málaga 2009 - 2013

Spain The main objective of this project is to demonstrate the possibility of achieving a reduction in energy consumption of 20%. As part of the project, new smart meters will be introduced in order to promote more sustainable energy consumption. This new service will let the client consult their consumption in an instant, allowing them to subsequently choose energy tariffs that better suit their specific needs. It will also facilitate various processes such as registering with the company, cancellations, changing tariffs etc.

4 Suivi et évaluation énergétiques du Plan Soleil 2003 - 2006

France As part of its “Plan Soleil” programme, ADEME (French Agency for Environment and Energy Management) has allocated subsidies for solar domestic hot water (DHW) systems from 2000 to 2004 with objective to improve knowledge on user behaviour (hot water needs, hot water tapping profiles) and fix new sizing rules for this kind of system.

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5 PREMIO-PULSSi 2007 -

France PREMIO-PULSSi main focus and the first objective is DSM and peak load limitation. The customer is also informed on a real-time consumption of electric heating and electric warm water production.

6 LINKY 2010 - 2011

France Pilot project to evaluate performance of open- standard PLC technologies on ERDF distribution network.

7 SEPEMO 2009 - 2012

France The project "SEasonal PErformance factor and MOnitoring for heat pump systems in the building sector (SEPEMO-Build)" aims at overcoming market barriers to a wider application of heat pumps by developing a universal methodology for field measurement of heat pump systems Seasonal Performance Factor (SPF) including a monitoring programme for 46 heat pump installations in six European countries.

8 Cyprus 3000 Smart meter Project Not started

Cyprus Deployment of 3000 smart meters from 3 different suppliers which will be connected to a Meter Data Management System (MDMS) via 3 different telecommunication paths. The MDMS, along with existing EAC Meter Collection Systems, will collect metering data from residential, commercial and industrial customers. The project will also include ten existing multi-energy/ multifunction 3-phase meters (commercial and industrial customers), as well as ten water meters for recording water consumption only.

9 Malta Smart Metering Project 2010 - 2013

Malta A number of smart meters have already been installed in the Maltese households. By the year 2012 all Enemalta Corporation customers shall be provided with the installation of these smart meters which are installed without costs for customers. The objective of the installation of these smart meters is to provide the customer with a meter that gives a digital reading of the electricity consumption as well as facilitating reading and billing for the service provider.

10 Larissa PPC Smart Grid Pilot Project 2007 - 2008

Greece The first smart grid system installed on the medium voltage level covers more than 100 km of MV network with applications ranging from load management to fault detection and automatic meter reading. 200 switching devices are connected at customers and are remotely monitored from the control center. Apart from the switching equipment, 45 remotely operated meters are installed at the consumers’ in the villages of Halki and Mellia in order for PPC to evaluate the Automated Meter Reading (AMR).

11 LV telemetering /

Greece The scope of this project was the telemetering of some LV consumers, using PLC communication. Both single and three phase meters were installed. 3 pilot projects were done for evaluating interoperability and functional requirements.

12 AMI system for the Elektro Gorenjska 2010 - 2013

Slovenia The purpose of this pilot project is the introduction of remote meter reading, control and demand management of the electricity and also water, gas and heat consumption in the area of Gorenjska and will serve as Site Acceptance Test phase for full scale roll-out.

Additionally to evaluated projects, three Smart Metering / Smart Grids reports were taken into account. Two in the scope of European Union’s Intelligent Energy programme and European commission and one by European Smart Metering Industry Group:

- European Smart Metering Alliance (ESMA) report1 - JRC Reference Report2

- European Smart Metering Industry Group (ESMIG), Empower Demand report3

1 ESMA, Annual Report on the Progress in Smart Metering, January 2010

2 Joint Research Centre - Institute for Energy (JRC – IE), Reference Report, Smart Grid projects in Europe: Lessons

learned and current development, 2011 3 ESMIG, The potential of smart meter enabled programs to increase energy and systems efficiency: mass pilot

comparison, J. Stromback, C. Dromacque, M. H. Yassin, VaasaETT, Global Energy Think Tank, 2011

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Evaluation of different energy types covered by analysed projects is presented in Table 2, where the presence of individual energy-related metering is shown. Results clearly show the leading role of Electricity in Smart Metering. Such outcome is expected as Electrical smart-grids are the backbone of the future energy grids. Thus the Smart grids and electricity smart meters are also expected to carry out the “data concentrator” role for other energy sources (Heat, Gas and Water).

Table 2: Energy-related metering as supported by evaluated projects

Type No. of Projects

Electricity 12

Heat 6

Gas 2

Water 4

Evaluated projects were further segmented by 9 different topics. Those topics present different benefits of smart metering for final consumers on one side and supply side on the other. As shown in Table 2, interest and benefits for the final consumers are limited, while benefits for the supply side are currently preferred.

Table 3: Topics segmentation of evaluated projects

Topic No. of Projects Benefits

1 Customer feedback / change of behaviour 8

2 Advanced tariff systems 3 Consumer

3 Other / new Customer services (ESCO) 4

4 Demand response / DSM 5

5 Utilization of RES 6

6 Standardization 1 Supply

7 Interoperability 7

8 Equipment testing 11

9 System services (distribution, supplier) 8

Segmentation by named topics clearly shows the need to push for bigger emphasis on consumer benefits in upcoming Smart metering projects and roll outs. Without deliberate focus on final consumers, the tenants of LIH will be pushed even further from expected benefits of smart metering systems. eSESH project is one of a few examples that deliberately tackles this important topic.

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3. IMPACTS ON ENERGY CONSUMPTION

ESMA and JRC reports indicate the potential benefits of smart metering systems for different

stakeholders:

- Final customers to increase energy awareness and decrease energy use and energy cost;

- Energy suppliers who want to introduce new, customer made services and reduce call

center cost;

- Metering companies or DSOs to decrease meter operation costs;

- Grid operators who want to prepare their grid for the future;

- Governments to reach energy saving & efficiency targets and to improve free market

processes.

From above perspective, the investment in smart meters is currently mainly justified on the

basis of the expected reduction of DSO’s operational expenditures, typically resulting from:

- Elimination of meter reading costs;

- Reduction of frauds;

- Remote activation and deactivation of service;

- Faster detection of power outages;

- Improved management of bad-payers.

This investment is also likely to yield additional benefits arising from the provision of dynamic

pricing for consumers. These benefits are usually not considered in the business case for

deployment of smart meters, as they depend on the development of future functionalities and

applications (e.g. in-home displays, smart appliances).

As Smart Meters are a building block of Smart Grids it is essential to identify the final applications of Smart Grids which are:

- Safe integration of Distributed Energy Resources (Distributed Generation, Storage, Electric

Vehicles);

- Possibility for consumers to respond to prices (Demand Response and dynamic pricing);

- Safe integration of large-scale renewables.

From Smart Meters perspective and consumer benefits, the ability to correctly respond to

prices is most important. On the other hand, the deployment of Distributed Energy Resources

(DER) is useful to offer alternatives to large centralized production. It also exploits the

potential of dispersed Renewable Energy Sources (RES) and includes prosumers in the

electricity market. The trend toward decentralization is also encouraged by consumers’ push

for more control over energy consumption. The potential and impact of RES on energy

consumption is also the focal point of “Plan Solei” programme and SEPEMO project.

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3.1. Benefits related to energy savings

Smart Metering is a technology where end-use energy efficiency can be encouraged. Smart

Meters can give consumers clear and comprehensive information about their energy

consumption and, giving them better information, can help consumers become more energy

efficient. However, installing Smart meter without consumer participation and additional

services will, by itself, do nothing to save energy since the meter itself is simply an “enabler”.

Energy savings will only be achieved if installing the meters results in consumers actually

changing their behaviour.

There are basically two possibilities for consumers in LIH to respond to prices and become

more energy efficient and both ways can complement each other for best results:

- Demand response;

- Consumption feedback.

To achieve energy savings through the change of consumer behaviour the following activities

have to accompany the Smart meter installation:

- Well-targeted information campaigns and the introduction of additional stimulation which

will incite consumers to take the desired actions. Promoting “Green” attitude – doing the

“right thing”.

- Experience suggests that the motivation towards energy savings must be refreshed on a

permanent basis otherwise the effect of more cautious energy use may erode over time.

- In order for energy savings to be realized, financial incentives will also have to be

introduced to make energy saving measures more attractive in economic terms.

Demand response

The target of Demand Response is to enable active participation of final consumers in the market through the provision of consumption flexibility services to different players in the power system. This is achieved by aggregating consumers’ reduced load into larger amounts for participation in market sales. This meaning the aggregators will be the key players to mediate between consumers and the market.

Particularly challenging is the integration of domestic consumers who are less motivated by

purely economic concerns (minimal gains). When targeting consumer in LIH, this becomes

even more distinct as the occupants are sometimes not the final bill payer (social support).

Furthermore domestic consumers are generally unable to make precise predictions on their

available load flexibilities; therefore it is difficult for them to offer services in the classical

sense. Therefore the typical demand response is a voluntary reaction by the final consumer to

a price signal. Typical response is load shifting where electricity demand is delayed. Another

demand response is peak clipping where extreme price peak is avoided. The introduction of

time varying and dynamic pricing can be accompanied by the installation of remote or

automatic load control devices and programs. This can maximize the desired load reductions

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and avoid the need for the consumer to take any action. Remote and automatic control is

especially important in rented dwellings, where tenants can change frequently and will not be

fully motivated for participation.

Typical end uses for demand response are:

- Space heating (PREMIO-PULSSi project) and cooling systems;

- Electrical boilers for water heating (accompanied by solar DHW systems as in “Plan Solei”

Programme);

- Regulating the lighting sources and more intensive electric appliances with adjustable

time of operation (washing machines, dishwashers …).

Apart from areas where there are severe supply constraints, the benefits of demand response are in general not enough to justify large scale smart metering investments alone. However demand response can be an important part of the business model combined with operating benefits, energy efficiency and other elements.

Key elements and expected savings

The deployment of smart meters is a key enabler for the increase of Demand Response

initiatives. But gaining consumers trust and participation remains the main challenge in this

field. Potentially, consumers’ benefits are significant. They range from energy savings (up to

10-15%) to a more favourable business case for the purchase of home energy resources

through a direct participation in the electricity market (selling power and/or load flexibility). As

later is not of much interest for consumers in LIH, the introduction of home energy resources

in the form of heat pumps or combined heat and power generators (CHP) can offer a good

business case for LIH. However, in order to capture most of these benefits the whole system

(infrastructure and market) needs to be in place. Therefore the participation of Utilities in the

Smart metering projects is essential.

A key component of such system is an Information and Communications Technology (ICT)

infrastructure to share information, price and control signals among distributed users and

producers. Smart meters and Energy management devices (which enable smart home energy

services) then represent grid users’ gateways to the ICT infrastructure. Evaluated PREMIO-

PULSSi project tackles exactly this objective. With the physical layer in place, consumers,

producers and prosumers are interconnected with two way power and information flows

which is a basis for market activities. Transactions of a wide range of electricity services among

them then become possible.

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Consumer involvement through dynamic pricing

Dynamic pricing should encourage consumers to shift consumption away from peak

consumption periods to lower consumption periods, lowering distribution and supply costs.

This is achieved through dynamic pricing mechanisms which better reflect the cost of

supplying electricity. The prices are raised at peak times and lowered (compared to single or

flat tariffs) the rest of the time. There are several methods and degrees of dynamic pricing. The

most commonly pricing schemes are:

- Time-Of-Use (TOU);

- Critical Peak Pricing (CPP);

- Critical Peak Rebate (CPR);

- Real-Time Pricing (RTP).

Time-of-Use

TOU tariffs induce people into using electricity during times when consumption is lower. Prices

are therefore set higher during high consumption periods. TOU usually includes one long peak

daily period or two shorter daily peak periods and can have two or three level of prices per

day. The peak hours are known in advance by the customers and the prices may also vary

according to the season. TOU Metering also better reflect the true cost of supplying electricity

at different times of day.

Consumer participation:

- Defer certain household activities to off-peak periods (typically laundry, dishwashers,

lower electric heating and Air Conditioning usage, etc…).

Enablers:

- Smart metering technologies and automation of selected loads (AC/Electric

heating/Electric water heater).

- Feedback on energy use and price.

Consumer reward:

- Reduced energy bill due to shifting activities to lower price periods.

- Reduced cross subsidies as the price of electricity better reflects its cost.

Critical Peak Pricing and Critical Peak Rebate

CPP pricing schemes involve substantially increased electricity prices during times of

heightened wholesale prices caused by heightened consumption or when the stability of the

system is threatened and black-outs may occur. In exchange for a lower tariff during non-peak

hours (compared to customers on single tariffs), participants agree to have substantially higher

tariffs during critical peak hours. The number and length of critical peak periods which the

utility is allowed to call is often agreed upon in advance in order to lower participant risk.

Residential customers are usually notified the day before that the next day will be a critical day

(for example using ambient displays). CPR pricing schemes are inverse forms of CPP tariffs.

Participants are paid for the amounts that they reduce consumption below their predicted

consumption levels during critical peak hours.

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Customer participation:

- Turn off selected appliances and delay certain household activities when notified of a

critical peak period (typically laundry, dishwashers, lower electric heating and Air

Conditioning usage, etc…).

Enablers:

- Smart metering technologies and automation of selected loads (AC/Electric

heating/Electric water heater).

- Feedback on energy use and price.

- Notification of critical peak periods.

Customer reward:

- Reduced energy bill due to shifting activities to off peak periods (CPP) / Receive

payment for lowering electricity usage during critical peak periods (CPR).

- Reduced cross subsidies as the price of electricity better reflects its cost.

Real-Time Pricing

In order to encourage reductions during high price periods and reduce risk of high bill,

participants are warned when wholesale prices reach a certain threshold decided upon in

advance. This reflects the true cost of electricity and enhances its price signal.

Customer participation:

- Turn off selected appliances and delay certain household activities when notified of a

period of high prices (typically laundry, dishwashers, lower electric heating and Air

Conditioning usage, etc…).

Enablers:

- Smart metering technologies and automation of selected loads (AC/Electric

heating/Electric water heater).

- Real-time feedback on energy use and price.

- Notification of high price periods.

Customer reward:

- Reduced energy bill due to shifting activities to lower price periods.

- Reduced cross subsidies as the price of electricity reflects its cost.

Dynamic pricing potential for consumer financial savings is highest for Participants to RTP trials

as savings are on average 13% on their electricity bill. CPP and TOU savings are 6% and 5%

respectively. While the lowest consumer savings of 3% on energy bill are achieved with CPR.

Energy savings through dynamic pricing is not achieved at final consumer as he only shifts the

time of usage. Energy savings in this case are achieved on supply side because of levering the

losses during peak hours.

As was shown in eSHES project, the main obstacle for Demand response potential in LIH can be

lack of knowledge on dynamic pricing principle and benefits of timing equipment. To overcome

individual tenants’ disinterest, the Demand response options on building level could be

explored in multi-dwelling housings.

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Demand Response example

An example, how the smart meters can lead to Demand response market can be seen on the

roll-out of 32 million smart meters by Enel (leading Italian DSO) in Italy (finished in 2006). With

the Energy@Home project (started in 2009), Enel aims to demonstrate the integration of the

information provided by Smart Meter with the Energy Management device which performs

automatic energy management in the household and represents the consumer’s gateway

toward the electricity market. The ADDRESS project (2008-2012) goes a step further and

focuses on the establishment of a market services for Demand Response. It assumes the

presence of a smart meter (for billing purposes) and of an Energy Management Device to act

as a consumer interface for the aggregator. The Demand Response platform analysed in the

ADDRESS project is a multi-sided platform (led by an aggregator) where platform participants

can interact with each other to buy and sell load flexibility. The profitability of the platform is

linked to the number of participating consumers. One of the project’s focuses is in fact the

engagement of consumers.

Consumption feedback

The role of feedback is to make energy visible and to make the consumption of energy visible.

Residential consumers can see how and how much energy circulates in the household,

including appliance specific consumption. Feedback provides an opportunity to offer

consumers a more direct, detailed, comparable and comprehensive information about their

household’s energy consumption pattern. There are two distinct characteristics involved when

talking about consumption feedback. Final consumer can be presented with indirect or direct

feedback.

Indirect feedback

Important characteristics for indirect feedback are that end-consumers:

- Have no direct access to actual consumption data;

- Respond to previous consumption behaviour (which may have a lower information value);

- Need to switch to another medium channel (e.g. bill, website etc.);

- Need a level of commitment regarding regular use and interaction;

- Have to rely on processed information.

Examples of indirect feedback are through an interactive webpage, e-mail, SMS, smart phone

application or frequent periodic informative billing. These types of feedback are based on

smart meter readings with a combination of:

- Historical feedback;

- Comparative feedback;

- Normative feedback;

- Disaggregated feedback (e.g. the heating load at different times of year);

- Detailed annual or two-monthly energy reports.

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There are indications that indirect feedback is more suitable than direct feedback for

demonstrating effects on consumption of changes in space heating, household composition

and the impact of investments in efficiency measures or high-consuming appliances. In other

words, indirect feedback will show up longer term effects best, such as investment in

insulation, use of new appliances, replacement of heating systems and appliances, home

extensions, new members of the household.

Direct feedback

The main characteristic for direct feedback is that consumers have an immediate and easily

accessible display monitor, associated to the smart meter. The role of the meter is to provide a

clearly-understood point of reference for improved feedback in combination with a separate,

free-standing or hanging easy to understand display monitor in the building. The consumption

information displayed can either be in kWh, in currency (€) or CO2 and be presented at a total

level or at a more disaggregated level.

Recent developments in domestic communications provide new paths for the data and

destinations creating a Home Automation Network (HAN). For instance, the data can be

transmitted via WiFi, Bluetooth, PLC and Ethernet to a stand-alone display, the TV or a home

PC. New products that control inform and automate the delivery and use of energy can also

use Wireless M-Bus, ZigBee, HomePlug or other proprietary protocol like Z-Wave. All of these

destinations allow the data to be brought somewhere convenient for the consumer. This area

is showing the greatest growth as developers recognize the opportunities presented by the

major national smart meter roll outs and develop links to meter vendors and energy suppliers.

There are indications consumers with a high energy use may respond more to direct feedback

than consumers with a low energy use, because direct displays best show up the significance

of moment-to-moment behaviour.

Feedback type

Depending on the direct or indirect feedback, the consumption can be presented through

different means and can be categorized into one of the following:

- Informative billing;

- In-house displays;

- Web pages, e-mail, SMS and smart phone application;

- Ambient displays;

More than one feedback type (or mixture of different feedback types) can be offered to final

consumers. This can significantly enhance effect on consumers’ behaviour.

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Informative billing

Informative billing is an example of indirect feedback. Besides invoice for the actual

consumption, Informative billing will also provide either historical information comparing what

the customer used this month to last month or to last year during the same period. The bill

may also provide information on how much the household consumed in comparison to other

dwellings of the same description.

As indicated in eSESH project, Monthly Bulletin with energy savings options regarding the

received monthly bill is a favourable feedback option for tenants in social housings. Additional

information on correlation with influential factors (room temperature ...) were regarded as

positive and benchmarking with past consumption on dwelling (privacy issues) and building

level had positive results.

In-house displays (IHD)

IHDs are displays which hang on the wall or sit on a counter and provide close to real time and

historical information about household electricity consumption and costs. They also provide a

variety of other data. For example the display can:

- Allow consumers to set daily budgets for how much they want to spend;

- Informs them of their success;

- Provide current price of electricity;

- Provide monthly consumption in currency;

- Peer comparisons (showing the consumption rate of neighbours or consumers with

similar conditions);

- Appliance specific consumption (breaking down the energy usage of individual appliances

in the home).

Main focus of the IHD is the home screen. This is the key screen for the dynamic display unit

that the customer always sees when the device is switched on, while further information can

be gained if desired through navigating to other screens.

Ambient displays

Ambient displays differ from IHDs in that they do not provide specific consumption

information but rather signal to the consumer messages about their general level of

consumption and/or a change in electricity prices. Many ambient displays have the attributes

of being attractive and intuitive which adds to their customer acceptance potential. An

example of this is the Energy Orb sold by PG&E in the USA. Originally designed to track stock

market prices, the Energy Orb can also be programmed to change from green to yellow to red

depending on the current electricity price in real-time. For example the orb is blue during off

peak periods, green during daily peaks and red during super peak times. In addition, it can also

flash as a warning for four hours before each critical peak price period. Such ambient displays

have the advantage of being a constant reminder to reduce electricity consumption and if well

designed can also be seen as trendy addition to ambient and deserving a visible and central

spot in the living room for everyone to see.

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Web and mobile services

Web pages, e-mail, SMS alarms and smart phone/tab applications offer an alternative and

cheap way to provide the consumer with information about their electricity consumption. As

indicated in eSESH project, web services can reach a wider group of tenants also in social

housings. By projects survey 85% of tenants own a PC and 77% have access to Internet.

Tenants who participated in survey considered web services and SMS messaging as second

favourable feedback option following Monthly Bulletin with energy savings options regarding

the received monthly bill.

Energy suppliers are starting to provide web sites to allow consumers a consumption feedback

of remotely read data. This can at best be day behind data and present an indirect feedback.

Examples of direct feedback through internet are the consumption feedback web applications

by Microsoft and Google. These can in fact present data collected from local, real time meters,

but they do require access to a computer to view. Unfortunately due to lack of utilities

support, both web applications will cease to continue.

Google PowerMeter

Google PowerMeter was launched in 2009 as a free energy monitoring tool to raise awareness

about the importance of giving people access to their energy information. PowerMeter could

be used as the front end for data provided remotely from an energy supplier's meter data or as

a local real time display. It included key features like visualizations of consumers’ energy usage,

the ability to share information with others, and personalized recommendations to save

energy. It was supported with device manufacturers and utilities around the world. The

significance of the PowerMeter was mainly related to the reach of Google, making it available

to everyone with an internet connection and Google's expertise with computer based data

presentation. Google PowerMeter service was retired on September 16, 2011 and has

demonstrated the importance of access to energy information, and created a model for future

web based monitoring tools.

Figure 1: Google PowerMeter presentation of used Electricity

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Microsoft Hohm Service

Microsoft has developed the Hohm web application, a product similar in many ways to the

Google. It was launched in 2009 but only available to US based users. Microsoft Hohm has

helped demonstrate the critical role of information in helping people and organizations

improve how energy is generated, distributed and ultimately consumed. Microsoft is

discontinuing the Microsoft Hohm service effective May 31, 2012. The service will continue to

operate until that time.

Figure 2: Microsoft My Hohm Center home screen

Information about consumption presented in the different web and mobile feedback programs

typically includes one or several of the following content subtypes:

- Peer comparison;

- Price of electricity;

- Historical comparison;

- Appliance specific consumption;

- Up-to-date consumption;

- Cost of energy (bill);

- Savings compared to previous periods;

- Environment (CO2 emission).

Peer comparison:

Peer comparison consists of comparison of household energy consumption levels between

participants and similar-sized households. This information may include neighbours within

near vicinities or households of similar size. It enables participants to see if they use more or

less electricity than their peers. For LIH purposes a comparison on Multi-dwelling Building level

may be practiced to stimulate energy efficiency competition between similar buildings in

settlement bloc.

Price of electricity:

Price of electricity Indicate the current price of electricity per kWh. This does not include the

up-to-date electricity bill.

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Historical comparison:

Historical comparison shows the household's current electricity consumption levels in

comparison to pre-pilot consumption levels. Participants can know if they reduced or

increased their consumption compared to the same period last year for instance.

Disaggregation of consumption:

The household's electricity consumption is broken down as per household electrical

appliances. The depth and degree of the breakdown can vary but in most cases the

consumption of the oven, the fridge, the TV, and the lighting are measured. It enables

participants to see how much electricity individual appliances use and act upon it (and maybe

buy more energy efficient ones).

Up-to-date consumption level:

Presentation of current up-to-date consumption level of the household in kWh. In itself, it

does not include the cost of electricity or the current level of the bill. However, if coupled with

consumption goals or targets not to exceed, it can be a powerful incentive to reduce

consumption.

Up-to-date Cost (bill):

Presents the up-to-date bill which enables households to gauge their current costs for their

electricity and act upon it.

Savings compared to previous periods:

Comparing the energy savings of households to previous periods. Households would have a

certain target for their energy consumptions which would be a percentage savings on previous

energy consumptions. It is important to compare equivalent periods (e.g. yearly seasons,

summer or Christmas vacations …).

Environment (CO2 emissions):

This shows the amount of CO2 the households emits due to electricity consumption.

Key elements and expected savings

Feedback pilots are designed to help consumers at reducing their overall energy consumption,

lowering distribution and supply costs. In comparison with the other feedback channels, IHD

resulted in the highest energy savings. The remaining channels for feedback; webpage, and

informative billing; produced almost equal consumption reduction levels (in some cases they

were used together in combination). Quite possibly, the key advantage the IHD offers over the

remaining forms of feedback is the almost real-time aspect which enables participants to link

their actions to their energy usage practically in real-time.

In 2006 Dr. Sarah Darby from Oxford’s Environmental Change institute conducted a major

review of feedback research in North America and the EU. Those studies consistently

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demonstrated that real time feedback helps residents effectively control electrical

consumption. It was concluded that the norm for savings from immediate direct feedback is to

range from 5 – 15%, whereas the savings from indirect feedback have ranged from 0% - 10%.

Indirect feedback has usually been processed before reaching the end-customer and mediated

through another channel.

Studies also pointed out that smart meters roll out will be less effective without stand-alone

in-house display monitor. Recommended set of minimum functionalities for stand-alone in-

house display monitor is:

- Default mode in money and power;

- Clear analogue indicator of current consumption;

- Current rate of consumption as a rate of spend in currency (€) per day;

- Cumulative daily spend in currency (€).

As pointed out in eSESH project, especially interesting functions of direct and indirect feedback

from LIH tenants’ point of view are:

- Visible and detailed consumption by equipment;

- Electricity savings and CO2 reductions;

- Visualization of consumption changes;

- Behaviour impact on consumptions;

- Manage expenses and anticipate the amount of the bill,

- Comparison to average consumption.

eSESH project focuses on Advanced Energy Awareness Services (EAS) to provide direct, timely and comprehensible feedback on energy consumption, enabling tenants to adapt their energy consumption behaviour. An EAS will graphically visualize the energy (heating, electricity, water) consumptions through a web-based platform.

Enabling the aggregating feature of feedback is the main objective of the OPENmeter project. The goal is to specify a comprehensive set of open and public standards for AMI, supporting electricity, gas, water and heat metering, based on the agreement of all the relevant stakeholders in this area, and taking into account the real conditions of the utility networks so as to allow for full implementation. This will also enable a 3td party devices access (e.g. individual appliance consumption metering) which will enhance the feedback experience. As shown in AMI system for Elektro Gorenjska, this is already achievable. Remote reading of different meters (electricity, heat and water) is a step forward in terms of changing business models for charging according to actual consumption of energy and is offered as superior service for customers. Tenants pay the actual consumption for electricity and other energy sources (heat, water).

It should be noted that any developments in the advanced metering infrastructure should be guided by the quality and quantity of feedback provided to households. Direct feedback (displays or internet based) combined with improved billing shows most promise for electricity and carbon reduction, through relatively low cost demand side management. And all these activities together will lay a solid basis for persistent savings through improved consumer education. Better billing can - when combined with an in-house display - contribute to final customer awareness of energy and environment and help them to make reduction decisions.

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3.2. Other benefits of Smart metering systems Smart metering systems may benefit final consumers in many other ways. The most important are: - More accurate meter reading and billing and fewer customer complaints because with

smart meters bills are based on real rather than estimated consumption. Remote

collection of meter data should reduce the cost of data collection, eliminate estimated bills

and provide accurate data for usage information on bills.

- Better service quality as the availability of individual service quality measurements allows

regulators to design new penalties/incentives to improve the performance of distribution

network.

- Easier to change supplier because, as meters can be read at any time on request, it

reduces delays for switching to take effect.

- Increased competition among suppliers as they are able to offer customized contracts and

added-value services.

- Ability to manage consumption as smart metering systems allows consumers to remotely

control devices that are able to communicate with the meters.

- The ability to install micro generation measures without new metering arrangements.

- The possibility for prepaid or postpaid schemes and easier credit, either by phone or

internet for pay as you go meters.

- The possibility for Third-Party Access, where smart metering system can be used to permit

gas, district heating and water utilities, contract meter readers, aggregators and other

third parties to read electrical meters, read gas, thermal and water meters, or control

third-party equipment on consumer premises. Multi utility metering enables cost savings

both for smart metering and services based on it.

Smart metering data integration

Data mining combining smart metering results with the contents of other data bases (such as

customer data bases and data bases on building properties) enables retail energy suppliers to

better understand their customers. Products can be designed and targeted more individually.

Detailed information on consumer behaviour can be a threat on confidentiality and privacy.

Thus rules for data mining need to be set in dialogue with consumer bodies.

Benefits to multi fuel and water supply applications and actors

There are distribution networks also for water, heat and gas besides electricity. All of them

need consumption metering. Smart metering brings benefits for all of them. Often

communication with these other meters is done via a smart electricity meter as electricity

meter can provide the power supply for the communication. Sharing the remote

communication channel can also greatly reduce the combined costs of communication.

Metering of all energy forms is needed to offer a complete view of the energy consumption to

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final consumer through comprehensive feedback. It is important to bring together the

measurement results for all the energy forms used by consumers for analysing and improving

energy efficiency.

As already mentioned in previous chapter (Consumption feedback - Key elements and expected savings), the main objective of the OPENmeter project is to specify a comprehensive set of open and public standards for AMI, supporting electricity, gas, water and heat metering, to enable full implementation. AMI System of Elektro Gorenjska has already gone one step further, as their pilot AMR system is fully functional. Remote reading of meters (electricity, heat and water) is a major step forward in terms of changing business models for charging according to actual consumption of energy and can be seen as superior service for customers. Their pilot project will soon expand to the widespread use of remote meter reading of energy and water consumption.

Table 4: Consumer Benefits of different Smart Metering applications4 and ESCO involvement

Applications of smart metering Consumer ESCO

Settlement and billing ✔ ✔✔✔

State estimation of power distribution networks ✘ ✘

Monitoring of power quality and reliability ✔✔ ✘

Customer service by DSO, RESC and ESCO ✔ ✔

Load analysis, modelling and forecasting (for energy markets, network operation and planning, energy saving etc.)

✔ ✔✔✔

Demand response for electricity market and for network operation support, peak load limitation

✔ ✔✔

Ancillary services such as frequency controlled reserve, voltage and reactive power control

✔ ✘

Services for monitoring and improving energy efficiency of end use and dispersed generation, Consumer information feedback

✔✔ ✔✔

Providing information for authorities and researchers ✔ ✔✔

End use energy management ✔✔✔ ✔✔✔

Energy Saving ✔✔✔ ✔✔

Smart homes, home automation, remote control of appliances by consumer ✔✔✔ ✔✔✔

Virtual Power Plant, embedded renewables and cogeneration ✔✔ ✔✔

Preventive maintenance ✔ ✔

Analysis of failures ✔ ✔

Safety, security, telemedicine, social alarm services ✔✔ ✘

Prepayment ✔ ✘

Meter management ✔ ✘

Connect, disconnect, limit load remotely ✔ ✔✔

Fraud detection ✔ ✔✔

Improving competition and efficiency in energy markets ✔✔✔ ✔✔✔

Legend: ✔= some benefit, ✔✔ = significant benefit, ✔✔✔ = much benefit

4 ESMA, Definition of Smart Metering and Applications and Identification of Benefits, May 2008

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Table 5: Consumer Benefits and Key Performance Indicators5

Benefits Potential key performance indicators

Enhanced consumer awareness and participation in the market by new players

• Demand side participation in electricity markets and in energy efficiency measures

• Percentage of consumers on (opt-in) time-of-use / critical peak / real time dynamic pricing

• Measured modifications of electricity consumption patterns after new (op-tin) pricing schemes.

• Percentage of users available to behave as interruptible load. • Percentage of load demand participating in market-like schemes for

demand flexibility. • Percentage participation of users connected to lower voltage levels

to ancillary services

Enable consumers to make informed decisions

• related to their energy to meet the EU Energy Efficiency targets • Base to peak load ratio • Relation between power demand and market price for electricity • Consumers can comprehend their actual energy consumption and

receive, understand and act on free information they need / ask for • Consumers are able to access their historic energy consumption

information for free in a format that enables them to make like for like comparisons with deals available on the market.

• Ability to participate in relevant energy market to purchase and/or sell electricity

• Coherent link is established between the energy prices and consumer behaviour

Create a market mechanism for new energy services such as energy efficiency or energy consulting for customers

• ‘Simple’ and/or automated changes to consumers’ energy consumption in reply to demand/response signals, are enabled

• Data ownership is clearly defined and data processes in place to allow for service providers to be active with customer consent

• Physical grid related data are available in an accessible form • Transparency of physical connection authorization, requirements

and charges • Effective consumer complaint handling and redress. This includes

clear lines of responsibility should things go wrong

Consumer bills are either reduced or upward pressure on them is mitigated

• Transparent, robust processes to assess whether the benefits of implementation exceed the costs in each area where roll-out is considered are in place, and a commitment to act on the findings is ensured by all involved parties

• Regulatory mechanisms exist, that ensure that these benefits are appropriately reflected in consumer bills and do not simply result in windfall profits for the industry

• New smart tariffs (energy prices) deliver tangible benefits to consumers or society in a progressive way

• Market design is compatible with the way the consumers use the grid

5 JRC, Reference Report, Smart Grid projects in Europe: Lessons learned and current development,

Annex III Smart Grid Benefits and Key Performance Indicators, 2011

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Benefits for consumers - examples6

The deployment of 32 million smart meters in Italy provides a first example of the potential

outcomes of a national roll-out. The large market test carried out at the beginning of 2008

shows that the deployment of smart meters and home displays encouraged 57% of the

involved customers to change their behaviours (29.3% delayed the use of domestic

appliances to the evening; 11.9% avoided the simultaneous use of different appliances;

7.5% switched off appliances instead of leaving them in standby; 6.6% used less the white-

goods) (Telegestore);

In the Storstad Smart Metering project in Sweden, the deployment of about 370,000 smart

meters contributed to a significant change in customer interest in their electricity

consumption. Customer contacts regarding meter readings or estimated reads has

decreased significantly (approx. 60%) and was replaced by contacts more related to energy

consumption or energy usage;

The introduction of time-based rates is expected to reduce energy consumption by 5-10%

and shift 1% of the energy demand to low peak load times (Telegestore).

With the roll-out of smart meters, the time to correct the billing and settlement was

shortened from 13 months to 2 months. Lead time for exporting meter readings to

suppliers was shortened from 30 days to 5 days (Vattenfall Project AMR).

6 Joint Research Centre - Institute for Energy (JRC – IE), Reference Report, Smart Grid projects in Europe:

Lessons learned and current development, 2011

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4. BARRIERS TO SMART METERING

The most significant barriers that hinder the general introduction of smart metering through

mass roll-outs are (also indicated in ERDF experiment with LINKY meters):

- There remains much uncertainty about the quantification of benefits, especially related to

energy savings, because practical experience and historical data are lacking.

- Many parties are involved, and the benefits of smart metering may accrue to other parties

than the ones that bear the costs. The effectiveness of savings for the final consumer

whereas energy providers have a clear interest in it.

- The cost of installation. Large scale roll outs of smart metering are very long and costly

processes, requiring considerable capital expenditures from the responsible market

actors.

- The safety and anonymousness of the data transfer.

- There is still insufficient modularity and flexibility of present mass market smart metering

products and lack of full interoperability among available commercial AMI systems. This

leads to high extra costs when customizing systems to meet the local requirements of

demand response, consumer information, energy efficiency automation and services,

distributed generation and power quality.

It is very crucial to stress that smart metering initiatives come mostly from governments so the

future of smart metering will depend heavily on the policy and decisiveness of the

governmental bodies involved.

Risk of negative consumer reaction

It is necessary to establish a careful and properly orchestrated communication and education

plan to final consumers and a well thought out installation process, clearly communicated to

consumers to minimize their inconvenience during the smart meters installation phase.

Awareness and knowledge related barriers (negative consumer reaction) present high

potential risk to hamper the introduction of smart metering due to different factors:

- Consumers may be unaware of smart metering initiative.

- Consumers may be concerned about privacy of data (safety of the data transfer) and will

refuse to participate to show disagreement with the initiative.

- Consumers may consider smart metering implementation as a way to increase their bills.

The importance of guarantying a free access to consumption information for the final

consumer.

- Consumers will complain if after the implementation the expected benefits do not

materialize.

- Consumers may not be satisfied with the implementation plan.

- Consumers do not understand rate structures (multiplication of specific tariffs and

possible lack of visibility) and think that smart metering will not help them to reduce their

energy bills.

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- Consumers think that they cannot decrease their energy consumption without

compromising their living standard.

It is necessary to offer clear tangible benefits of Smart Metering to engage consumers.

However, the whole system needs to be in place to deliver most of the benefits, and to this

end, full consumer participation is necessary.

Consumer Segmentation

Up to now, energy players have made little distinction among small consumers - prices,

services and communication have been the same. Through energy management devices and

smart meters (with consumer’s consent) it is now possible to segment consumers and target

different consumers in different ways. For example, segmentation of consumers according to

consumption of electricity in view of offering tailored tariffs and/or conservation advice to

increase consumers’ efficiency.

Consumer segmentation is useful to contribute to an open and competitive retail market, as it

offers more tailored electricity services to meet consumers’ needs with possibly a higher rate

of acceptance of new products and services. Although the consumer segmentation gives better

possibility to target energy-savvy and wealthy consumers as early adopters of new

technologies, it also gives a chance for tailored services to consumers in LIH (on household and

building level). As part of the Smart City Málaga project, new smart meters will also be used in

order to promote more sustainable energy consumption through tailored services. This new

service will let the client consult their consumption in an instant, allowing them to

subsequently choose energy tariffs that better suit their specific needs.

Segmentation of consumers is also necessary at targeting the proper consumer interactions

and age dependent behaviours when offering historical and real-time consumption data on

their electricity consumption via meter display, IHD, smart phone/tab devices or web pages.

According to IBM study7, over 55 year-old people consider their governments a trusted

information source on energy matters, while 18-24 year-old see internet collaborative

platforms and social networking as important sources. This generational gap should also be

taken into account to protect vulnerable consumers. For instance, using prices to control

demand might be especially hard on less technically savvy people, like the elderly. The impact

of higher energy prices is often overlooked in relation to the most vulnerable members of

society.

7 Valocchi M., Juliano J., Schurr A., Lighting the way, Understanding the smart energy consumer,

February 2009, IBM Global Services

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Consumer acceptance

There are several key elements needed for final consumers to fully participate in Smart

metering systems. If the utilities want to be successful in engaging consumers to reduce

energy usage, smart metering has to be accompanied by8:

- Information and advice must be specific. Energy usage data relating to a “typical”

customer is far less informative than data that is specific to a household. Likewise, generic

energy-saving tips will bring about lower savings than advice that is tailored to a specific

home. Verbal advice can be valuable in reinforcing messages provided by other means,

particularly as it provides the scope for any advice to be made more specific.

- Information and advice needs to be geared towards creating an understanding of how

energy is currently being consumed, and, vitally, an appreciation of what actions can be

taken to reduce usage and/or achieve cost savings. There are likely to be benefits in

providing information on electricity consumption at an appliance level in real time, so that

users can create a strong association between their behaviour and its effects on usage.

- Detailed segmentation is paramount, based on various factors, including type of dwelling,

size of household, electricity usage, income levels, and lifestyles. A “one size fits all”

approach is doomed to failure. Multiple approaches are needed for energy savings to be

achieved on a wide scale. At the same time, utilities cannot address all their customers

cost-effectively, and need to focus their efforts on those customers and approaches that

will have the biggest impact. There is no point in wasting time and resources on initiatives

or customers that will have only a minimal effect. Utilities will need to find the sweet-spot

where the balance between investment in home energy management and energy savings

is optimal.

- Giving the consumer a sense of control over changing their energy usage is an important

lesson for home energy management. Some trials indicate that householders are more

responsive and feel more at ease if they can set their own targets for energy reduction,

rather than these being pre-set by the utility. Behavioural science comes into play here,

and can provide guidance for designing home energy management programs.

Consumer data security

Current focus in energy industry is on system adequacy and reliability. With the introduction of

Smart grids and additional consumer specific services a more directly consumer-oriented view

of security must be highlighted. Customer privacy issues need to be addressed to protect

confidential or otherwise sensitive data. But in spite of cyber threats the reliable supply of

energy to customers must be ensured.

8 C. Viola, Home energy management needs a cross-disciplinary approach, SmartGridOpinions article,

June 2011

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In the OPENmeter project9, minimum security requirements for Smart Metering are set to:

- Authenticate and authorize users, groups and devices on all interfaces (such as graphical

user interface and other IT systems);

- Guarantee the integrity and confidentiality of data exchanged and data storage;

- Recommend the use of certificates to enable application level security;

- Strongly encrypt the data in transit.

All of these requirements are satisfied by using already existing proven technologies and it is

likely that further developments in ICT make the implementation even more feasible.

Because interoperability and affordability will be key challenges in the transition to Smart

Metering and Smart Grids, it will be difficult to resist the broad use of IP and commercial off-

the-shelf hardware and software in the future networks. A wealth of proven security standards

and implementations exist on all layers of the TCP/IP protocol stack and choosing not to utilize

this common accumulated knowledge seems hardly possible. OPENmeter project recommends

using proven standards and industry best practices used for ICT systems in other domains.

Additionally they recommend not reinventing security measures. The vast market potential of

Smart Metering and Smart Grid devices and experience with other recent developments

makes it very likely that commercial off-the-shelf hardware and software are extensively and

pervasively deployed. In this perspective, open standards are necessary for updating and

upgrading the security mechanisms of these devices as threats and risks evolve.

9 OpenMeter Deliverable D1.1 (2010), Report on the Identification and Specification of Functional,

Technical, Economical and General Requirements of Advanced Multi- Metering Infrastructure, Including Security Requirements, OPEN Meter Energy Project No 226369. Funded by EC

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5. LEGISLATION AND SPECIFICS OF LOCAL ENERGY SUPPLY

Smart metering implementation depends heavily on the legislation boundaries of energy

sector and specific technical conditions of local energy supply. All this have to be taken into

account during smart metering implementation. Each participating country has some specific

legal and technical boundaries that will have to be considered during Smart metering

experimentation within the ELIH Med project. Italy and Slovenia are excluded as Smart meters

installation within the ELIH Med project is not planned there.

Spain

- General rules or obligations for energy framework (Electricity, Gas and Water) are set

by Ministry of Industry.

- Utilities need to develop their own smart meter specifications with much more detail.

- Municipalities are also involved in developing rules for water usage.

- Utilities are responsible for reading, installing and maintenance of the meters,

including management of the metering data.

- Utilities are the owners of the electricity meters, but in the case of Gas and Water

meters, the Spanish law protects the customer right to have the meter ownership.

Smart meters roll-out:

For Electricity, the Ministry has developed smart meter mandatory requirements only for

residential customers called metering point type 5, which are customers with contracted

power up to 15 kW. In Spain there are 24 million of metering points type 5 affected by the roll-

out.

The Act from 28 December 2007: ITC 3860/2007: Electric Tariff approval explains the effective implementation of the AMM (Automatic Meter Management) system, which must be ready before first of January 2014. Metering equipment roll-out has a time schedule of eleven years, from 1st of January of 2008 until 31st of December of 2018.

DSM / remote disconnection:

Remote disconnection by supplier and load limitation are allowed both. The electricity supply

can be remotely disconnected by authorized companies in case of suspected faults, tempering

with the electricity meter or failure to pay bills within the specified period of time. The power

load limits can be set and changed.

Prepayment options: ✘

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France

- In case of apartment building with common heating system (including district heating),

each dwelling is equipped with a heat meter or similar device (with some exceptions).

- The metering equipment is owned by the utilities (electricity, gas, district heating).

Smart meters roll-out:

Décret n° 2010-1022 du 31 août 2010 relatif aux dispositifs de comptage sur les réseaux

publics d'électricité (metering devices on the public electricity grids) is setting the obligation to

implement "communicating" (smart) metering devices for electricity:

- status of metering data;

- implementation of an experiment and conditions of the widespread rollout of

“communicating” metering;

- financial support by the tariffs for using public electricity grids;

- timetable for widespread rollout of "communicating" metering (2012 to 2021)

From 1 January 2012 every new electric meter in low voltage and up to 36 kVA will be smart.

On 31 December 2014, at least half of metering devices of low voltage and up to 120 kVA will

be smart. On 31 December 2016, 95 % of metering devices of low voltage and up to 120 kVA

will be smart. On 31 December 2016, all metering devices of low voltage > 120 kVA will be

smart. On 31 December 2020, 95 % of metering devices will be smart (low voltage or high

voltage).

DSM / remote disconnection:

Remote disconnection and/or load limitation by supplier (in case of smart metering) require

the user agreement.

Prepayment options: ✘

Greece

Public Power Company (PPC) is a sole electricity company responsible for the DSO network,

but also acts in the roles of a Retail Energy Supply Company (electricity retailer), Energy Service

Company and Demand Side management. So with PPC being responsible for the distribution of

electricity to practical all Greek consumers connected to the low and medium voltage, the

meter used is the standard electricity meter in the ownership of PPC and there is no provision

for this status to change in the upcoming years. Also, the latest operation of a private energy

company (ENERGA) acting as an electricity retailer to end – users competitive to PPC , uses the

DSO network of PPC and it is obliged to use the PPC meters as well having no right to change

them with smart – bidirectional meters.

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There are two different energy grids operative in Greece:

- The electricity grid controlled by PPC (on medium and low voltage - DSO)

- The natural gas grid controlled by EPA (Attica gas company, which is also public

controlled company).

There is no relationship between the two companies. They use completely different registers

of metering, completely different metering points and meters and completely separate data

collection centers and infrastructure.

Smart meters roll-out:

There are no plans for “Smart Meters” rollout yet.

DSM / remote disconnection:

Remote disconnection by supplier or load limitation is generally not allowed. Load shedding

and limitation can only be performed in the pilot projects.

Prepayment options:

Prepayment is possible as PPC issues energy bills every 4 months and one of them corresponds

to prepayment, others are the settlement payment bills.

Cyprus

- The Electricity Authority of Cyprus is the only Electricity Supplier in Cyprus.

- The Electricity Authority of Cyprus is the owner of the installed metering equipment as

well as the owner of electricity grid in Cyprus.

- Heat or hot water suppliers do not exist in Cyprus.

- Other electricity producers, especially from renewable sources (biogas, wind and

photovoltaic) are connected directly to the grid and sell the electricity produced to the

Electricity Authority of Cyprus.

- Currently in Cyprus there is no direct relation of the consumer with any electricity

producer except from the Electricity Authority.

Smart meters roll-out:

There is a provision in the legislation (draft version) for the preparation of a study to examine if

the smart meters rollout is feasible in Cyprus.

DSM / remote disconnection: ✘

Prepayment options:

Prepayment is possible.

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Malta

- The owner off all the installed metering equipment is Enemalta Corporation.

- There are no suppliers of heat or hot water. Heat and hot water are generated locally

in residential buildings as well as commercial/industrial buildings through the use of

electricity, gas or fuel.

Malta Resources Authority is responsible for Electricity Market Regulations. Malta Resources

Authority Act L.N. 166 of 2011 (CAP. 423) describes the installation of an intelligent metering

system:

“Enemalta shall ensure the implementation of an intelligent metering system that shall assist

the active participation of consumers in the electricity supply market. The implementation of

those metering systems may be subject to an economic assessment of all the long-term costs

and benefits to the market and the individual consumer or which form of intelligent metering is

economically reasonable and cost effective and which timeframe is feasible for their

distribution.

Enemalta shall ensure the interoperability of that metering systems and shall have due regard

to the use of appropriate standards and best practice and the importance of the development

of the internal market in electricity.”

Smart meters roll-out:

Smart Meters are currently being installed in Maltese households. By the year 2012 all

Enemalta Corporation Customers shall be provided with a smart meter.

DSM / remote disconnection: ✘

Prepayment options:

Prepayment for electricity is legally possible when there is an agreement with the electricity

supplier and consumer. Prepayment is not available immediately upon installation of the smart

meter.

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SWOT

SWOT Analysis of Smart Metering Systems gives an overview of gathered experiences and

impacts on individual(s) behaviour. The SWOT analysis covers the smart metering impact on

final domestic consumer (LIH tenants) and other participants in the business are treated as

influential factor.

Strengths

1. Available feedback mediums:

- Internet and existing mobile networks;

- Utilities billing system.

2. Demand response technologies:

- Existing time varying and dynamic pricing algorithms

- Available end uses for demand response:

Space heating and cooling systems;

Electrical boilers for DHW;

Regulating the lighting sources

Electric appliances with adjustable time of operation (washing machines,

dishwashers etc.)

- Available remote and automatic load control devices.

3. Available commercial off-the-shelf hardware and software for customizable feedback

option on individual appliances monitoring and consumption data aggregation. Smart

appliances are emerging on the market.

4. Available domestic communications (WiFi, Bluetooth, Wireless M-Bus, ZigBee, PLC/

HomePlug, and Ethernet) for data exchange between different Smart Metering elements

inside individual household (Energy Meters, Appliances, IHD, PC, Load control devices) for

feedback and demand response purposes.

5. Existing electricity grid infrastructure. It can be used in multi energy consumption

metering as power supply and channel for the remote communication

Upgrading the utilities billing with comprehensive consumption feedback data analysis is the

most promising and feasible. Combining this with the advantages of other feedback options

using existing mobile and internet infrastructure is the next logical step. Commercial off-the-

shelf hardware and domestic communications for collecting additional feedback data is also

available. The specific of LIH in Med area limits the possibilities to use strengths in full. As LIH

are targeted, sophisticated energy management systems are not foreseen. The characteristics

of Med area on the other hand hinder some uses of Demand response (space heating and

lightning needs are not high) but can concentrate on air conditioning systems which are

perfect for DSM. Another specific of Med area is mostly lack of gas and district heating grids.

Therefore electricity utilities must be involved as much as possible to take advantages of

existing electricity grid and utilities infrastructure.

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Weaknesses

1. Demand response options: - Integration of domestic consumers who are less motivated by purely economic

concerns (minimal gains);

- Domestic consumers are generally unable to make precise predictions on their

available load flexibilities; therefore it is difficult for them to offer services in the

classical sense;

- The benefits of demand response are in general not enough to justify large scale

smart metering investments alone.

2. Frequent change of tenants in targeted dwellings (LIH) waters down effect of information campaigns and analysis of long term savings.

3. Remote or automatic load control devices and programs are not fully integrated (interoperability) to take full advantage of time varying and dynamic pricing algorithms including available end uses of demand response.

4. Available data (Utilities): - Historical data for past comparison (Historical feedback);

- Data for comparative benchmarking (Normative feedback).

5. Insufficient modularity and flexibility of present mass market smart metering products and lack of full interoperability among available commercial AMI systems.

6. Compatibility and costs of emerging and available commercial off-the-shelf hardware and software for different Smart Metering elements inside individual household (Energy Meters, individual appliances consumption monitoring, IHDs, PC, Load control devices) used for feedback and demand response purposes.

7. Interoperability issues for Third-party participation in offering remote or automatic load control devices and programs (Energy management devices).

8. In order to capitalize Smart Metering benefits the whole system (infrastructure and market) needs to be in place.

9. Benefits for the supply side are mostly explored in ongoing Smart Metering projects.

10. The cost of installation.

11. Savings opportunities of dynamic pricing for consumers are not achievable without

utilities cooperation.

Because of possible frequent change of tenants in targeted dwellings (LIH), it is essential to

concentrate on automation of additional smart metering services (demand response) and

constant information campaigns. The side benefit of tenants change can be derived from

comparison of different tenants’ consumption and savings in the same dwelling. As already

noted in Strengths, Med area mostly lacks gas and district heating grids. Therefore electricity

utilities must be particularly involved in the experiment to gather historical data on electricity

consumption. The same goes for additional services on the time varying and dynamic pricing

schemes. The availability of historical data is also essential to compare equivalent periods of

consumption (e.g. yearly seasons, summer or Christmas vacations …).

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Opportunities

1. Smart Metering is first and essential building brick of Smart Grids.

2. Obligatory installation of Smart Meters by 2020.

3. National plans for Smart Meters roll-out.

4. Many ongoing Smart Metering projects and running (or in planning) pilots on AMI systems. These pilots can be used for consumer feedback experimentation.

5. Leading role of Electricity in Smart Metering – Electricity meter can have “data concentrator” role for other energy metering.

6. Energy suppliers can introduce new, customer made services (time varying and dynamic pricing) for different consumers – LIH segment.

7. Third-party participation in information campaigns accompanying Smart metering installation and the introduction of additional stimulation which will incite consumers to take the desired actions - Promoting “Green” attitude.

8. Use of existing billing to upgrade towards informative billing.

9. Savings opportunities

- Dynamic pricing for consumers;

- Elimination of meter reading costs;

- Reduction of power frauds (thefts);

- Remote activation and deactivation of service;

10. Use of multi fuel (electricity, heat, gas) and water supply applications offer a complete view of the energy consumption to final consumer through comprehensive feedback.

11. Introduction of aggregators (Third-party access) of consumers loads for participation in market sales.

12. Integration of DER and RES.

13. Emerging feedback technologies (new web and mobile applications, IHDs etc.)

14. Consumption feedback processing by Third-party (ESCO).

15. Gaining consumers trust and participation.

Almost all distributions and utilities are already preparing, planning and in some cases already

executing smart meter roll-outs. This is a great opportunity to take advantage of utilities smart

metering programs. ELIH Med’s Smart metering experiment can cooperate with utilities on

preparing and evaluating customer made services on LIH segment and optimization of those

services. Another opportunity specifically for Med area is integration of RES in the form of

solar DHW systems (combined with existing electric boilers) where Smart metering is used as

consumption feedback source.

As consumption feedback will be specific to LIH, this is an opportunity for different social

programs (at municipal level) to act through Third-party companies (for example backed by

NGOs) in providing additional information and programs on Smart metering feedback medium.

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Threats

1. Leading role of Electricity in Smart Metering can lead to neglect of other energy (heat, gas) and water feedback options.

2. Interest and benefits for domestic consumers have the second priority as benefits for the supply side are mostly explored in ongoing Smart Metering projects. Utilities may see investments in consumer feedback programs non-profitable.

3. Covering too many different topics (Smart Grids, RES integration, Energy efficiency, Energy savings, integration of EV ...) in one project/experiment.

4. To high expectations of Smart meters - without consumer participation and additional services the meter itself is simply an “enabler” of energy savings.

5. The effect of more cautious energy use may erode over time without constant motivation.

6. Gaining or loosing consumers trust and participation.

7. Security of personal information (safety and anonymousness of the data transfer).

8. Monopoly on metering data by utilities (limited Third-party access).

9. Monopoly on metering equipment selection by Utilities (limited Third-party upgrades with IHDs, appliances consumption monitoring etc.).

10. Partial implementation will not return anticipated results.

11. Benefits of smart metering may accrue to other parties than the ones that bear the costs of implementation.

12. National plans for Smart Meters roll-out (beyond 2013).

13. Financial incentives will probably have to be introduced to make energy saving measures more attractive in economic terms.

14. Evaluation of goals (energy savings) regarding the situation before experiment implementation.

Cooperation with the distribution and utilities will be essential for ELIH Med Smart Metering

experiment to guard against most of the threats. It is necessary to enrich household

consumption data (monthly meter readouts) with additional services described in this

document (peak uses, individual appliances consumption etc.).

As already pointed out in Opportunities, it may be needed to include different social programs

(at state and municipal level) to act through Third-party companies in providing additional

information and programs on Smart metering feedback medium to share expenses of feedback

programs with utilities. These LIH targeted social programs can also be used to “refresh”

energy efficiency awareness and keep the consumers constantly motivated.

One of the last but still significant threats in the Smart metering projects is the lack of any

previous knowledge of the actual situation of energy supply and consumption in experiment

location. This may pose a significant problem in evaluating the achieved results.

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GAP

Evaluated projects and presented SWOT analysis were used for the Gap analysis of existing

products and systems versus potential requirements in LIH in the Med area. Goal is to

determine the gap between the user’s needs and technology available. The focus is on

technologies and services with the significant impact on tenants energy consumption and

energy bills through feedback to reach for estimated 10% (indirect feedback) to 20% (direct

feedback) saving potential.

Practically all consumption feedback mechanisms are built on the premise of informative user

interface that will aid the conservation efforts by reducing or shifting energy consumption and

raising knowledge on energy efficient behaviour through the provision of electricity, heat, gas

or DHW usage information to the user. The current available technology is either consumption

meters for specific appliances or utility meters that measure overall household consumption.

In some cases those meters are coupled with the IHD, but most of the households do not own

software and hardware tools to analyse its energy consumption. The standard form of energy

usage feedback is the indirect feedback through billing that doesn’t provide real-time data,

thus not taking advantage of the combined features of the Smart Meters and TOU information

for electricity. Monthly bill based on automatic readouts of Smart meters (overall electricity

consumption of dwelling) can be considered as standard feedback feature of any current AMR

or AMI system.

In order to fully exploit the potential of strengths and opportunities of Smart metering systems

and available feedback methods in LIH, the following topics should be further developed to

ward off weaknesses and threats of inadequate implementation:

User needs Existing products and systems Gap

Monthly billing with easy to

understand information on all

consumption aspects -

including individual appliances

consumption (electricity) and

other energy consumers (gas,

DHW etc.). Energy efficiency

and savings advices and tips

accompanying the bill are

tailored to actual household

consumption. Short term and

inexpensive saving tips will

most likely be followed.

If possible, informative billing

should include season aspects

(correlation to indoor and

outdoor temperature etc.).

Monthly bill based on automatic

readouts of Smart meters (overall

electricity consumption of

dwelling) - Current AMI systems on

electricity grid are capable of

combining with other energy

systems (gas, DHW, heat).

Short generic interpretation of

consumption data is provided with

the bill (present/past consumption

etc.)

Generic advices on energy

efficiency and energy savings are

given with the bill (usually in the

form of bulletin or brochure).

Individual appliances consumption

must be included in consumption data

interpretation.

Suggested energy efficiency and

savings advices must be in tune with

actual consumption of bill recipient –

targeting the recipients’ change of

behaviour. Consumption data

interpretation and presentation must

also be tailored to support suggested

energy efficiency and savings advices.

All influential factors are taken into

account (e.g. number of household

members and their age, level of

comfort, outside temperature -

seasons etc.)

Possible short term and inexpensive

savings must be specially exposed.

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User needs Existing products and systems Gap

Simple, easy to use, see

and understandable

information system which

seamlessly interconnects

(Plug & Play) different

electrical appliances and

other energy consumers

(gas, DHW etc.).

Additionally the individual

appliances consumption

monitoring should be

appliance independent

(frequent change of

tenants and no smart

appliances expected in

LIH).

Proprietary IHDs and various HAN systems used by

smart appliances and monitoring equipment:

- WiFi,

- Bluetooth,

- PLC or HomePlug,

- Ethernet,

- Wireless M-Bus,

- ZigBee,

- Z-Wave

- etc.

This brings interconnectivity issues on the relation

between:

Although these systems usually use common

communication protocols, it is difficult to make use

of compatible off-the-shelf products.

E.g. for IHD installation, it is best to use proprietary

equipment recommended by Smart Meter or smart

appliance producers (may not be the same in both

cases).

True Plug & Play option for

these devices through

standardization on all

levels.

Possibility to easily adjust

the interpretation and

presentation of

consumption data on IHDs

either by templates or by

entering additional data

(e.g. number of household

members and their age,

number of rooms etc.) –

current systems often

present too many

information irrelevant to

final consumer.

Smart Meter (gateway to

utility services)

(Smart) appliances and

Monitoring

IHD

Other Meters (gas, DHW,

heat)

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User needs Existing products and systems Gap

No extra or minimal in

house installations for third

party access. ESCO services

should be available through

smart meters (data access)

without additional

hardware installations.

A similar case can be found

in telecommunications,

where different Internet

services can be offered on

existing telecommunication

lines

Current AMI systems on electricity grid are

capable of combining with other energy systems

(gas, DHW, heat) and providing this data to other

companies (building managers for billing

purposes). Third party access is still limited to

indirect data processed and delivered by utility –

real-time data is usually not available for third

party:

Standardization of Smart meter data exchange is

ongoing process and example of such

standardized model is pursued by IDIS10

association where COSEM data objects are used

also for description of transferred data.

Enabled and allowed third

party (ESCO) access to

Smart meters real-time

data through contracted

data access.

Data interpretation should

be unambiguous, either

through XML format or

other standardized format

(e.g. COSEM objects).

Clustering of Smart meters

on building level (multi-

dwelling buildings) would

enable third party demand

response services through

better aggregation features

of such Smart meters.

User needs Existing products and systems Gap

No direct extra costs of

installation for final

consumers. Cost/benefit of

implementing Smart

metering system is crucial

for final consumer in LIH.

In the case of Smart meters mass roll-out,

the installation costs are usually included

indirectly through electricity network

tariff.

Some utilities offer upgrade to Smart

meters and additional web and other

feedback services for certain fee (grid fee

or annual lease).

Upgrades to additional home automation,

advanced feedback (IHD, appliances

monitoring etc.) and demand response

services are provided by utilities for

individual fee.

Smart meters mass roll-outs are in

progress and the installation costs

of Smart meters will be financed

through electricity network tariff.

Appropriate business models must

be developed and offered by

utilities and ESCOs where

investments into additional home

automation, advanced feedback

and demand response services are

paid through achieved energy

savings - energy performance

contracting.

10

The Interoperable Device Interface Specifications (IDIS) Industry Association is a non-profit, association established to maintain and promote publicly available technical interoperability specifications based on open standards and supports their implementation in interoperable products. IDIS is an association for smart metering companies which are committed to providing interoperable products based on open standards. The current members are Iskraemeco, Itron and Landis+Gyr.

Smart Meter

(real time data)

Utility Third party

Third party

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For almost all additional services and feedback options, a push for real-time communications is

needed. Common communications methods must be employed by the various organizations

involved in the smart metering. This real-time information must then be made available to the

final consumer, the utility, and the energy provider alike, in order to allow informed decisions

to be made on the timely use of energy and to establish improved behavioural practices of

final consumers. Choosing when and how to use power, however, will be irrelevant without

the incentive of dynamic demand-based pricing.

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ANNEX I - QUESTIONNAIRE

A. Information on past and ongoing smart metering projects, including tools and methodologies used for evaluation of energy efficiency and energy savings

Please list past and current smart metering projects you are aware of in your region and country, providing the following information:

Name of the project: Start (duration) of the project: Web page/ dissemination/Contact person: Country or Region: Mono or Multi energy: (were meters of different energy sources used) Distributor/Supplier: Equipment:

- Manufacturer - Type - Interoperability (different equipment used)

Size/Scale: (number of installed units/connected clients) Short description and objectives:

Objectives such as: - Customer information feedback - Settlement and billing based on accurate and up to date consumption data (actual

consumption data) - Savings in energy costs

o Energy consumption o Energy efficiency o Energy savings possibilities

- End use energy management (with the use of billing meters – no in-house automation is expected in LIH)

- Other Customer services (by DSO11, RESC12 or ESCO13) - DSM14 and peak load limitation

Identified obstacles and barriers encountered during implementation:

Assessment of results: - Analytical tools used - Methodologies (regarding smart metering):

o evaluation of energy efficiency o evaluation of energy savings

Note: Regardless of the listed projects, please fill in the “Assessment of results” topic if you are aware of any analytical tools and methodologies used in conjunction with data provided by smart meters for evaluation of energy efficiency and energy savings.

11

Distribution System Operator 12

Retail Energy Supply Company (electricity retailer) 13

Energy Service Company 14

Demand Side management

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B. Legislation and specific technical conditions of local energy supply, which will have to be taken into account during implementation The aim of this section is to form legal and technical boundaries for smart metering implementation plan. This section will also serve as one of inputs for Gap analysis of existing products and systems (which are also limited by current legislation) versus potential requirements.

1. Please list legislation and acts governing the connection of consumer to the power grid and district heating

Country or Region: Name of the act: Implementing body: Short description:

2. Please list legislation and acts governing the connection of metering equipment (not limited only to electricity meters)

Country or Region: Name of the act: Implementing body: Short description:

3. Other Who is owner of metering (installed) equipment? Relationship between different energy suppliers (electricity, heat, hot water): Are there any cases of such relationship and how does the data collection center operate in this case? Are there data protection issues?

Is prepayment for electricity legally possible?

Describe state plans for full or partial rollout of “Smart Meters” on national level (EU directive): Describe the electricity pricing scheme (electricity tariff):

- Provide a short description of currently used or planed tariff schemes. - Are there cases where different tariff options are offered to the consumer (i.e.

special tariff for use of heat pumps)? - Are there some limitations set to tariff schemes by national/regional legislation

(prescribed) or is it freely set by DSO/supplier? Is remote disconnection by supplier and/or load limitation allowed?

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C. Database of local/regional suppliers and manufacturers of metering equipment, including energy retailers, vendors, DSO and Service providers. The aim of this section is to form a brief profile (list) of the potential suppliers of multi-energy smart meters. 1. Please list equipment manufacturers currently present

Name of the manufacturer: Energy type: Mono or multi meters: Country or Region of implementation: (not the origin of manufacturer) Local support: (besides sales branch, is manufacturer present locally with technical facilities – directly or through subcontractor)

2. Please list local metering equipment subcontractors – equipment adaptation for local needs

Name of the company: Country or Region: Energy type: Hardware and/or Software adaptation: (e.g. Metrega for Software adaptation of Iskraemeco electricity meters in Spain)

3 Please list regional/local DSO, RESC (responsible for providing energy to its customers) and ESCO

Name of the company: Size of the company: (i.e. present on national level or operates only locally) Country or Region: Energy type: Short description:

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ANNEX II – PROJECT CATALOGUE

1. OPENmeter

Description The main objective of the OPENmeter project is to specify a comprehensive set of open and public standards for AMI, supporting electricity, gas, water and heat metering, based on the agreement of all the relevant stakeholders in this area, and taking into account the real conditions of the utility networks so as to allow for full implementation. The Scope of the project is to address knowledge gaps for the adoption of open-standards for smart multi-metering equipment and all relevant aspects – regulatory environments, smart metering functions, communication media, protocols, and data formats – are considered within the project. http://www.openmeter.com/

Duration 2009 - 2011

Country/Region Spain, France, Italy, UK, Swiss, Germany, Netherlands

Focus Customer feedback / change of behavior Demand response / DSM Advanced tariff systems Utilization of RES Other / new Customer services (ESCO)

✔✔Standardization

✔ Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✔ Heat

✔ Gas

✔ Water

Number of installed meters

Distribution / Supplier

IBERDROLA, EDF, Enel

Lessons learned The result of the project will be a set of draft standards, based on already existing and accepted standards wherever possible. These standards include the IEC 61334 series PLC standards, the IEC 62056 DLMS/COSEM standards for electricity metering, the EN 13757 series of standards for utility metering other than electricity using M-Bus and other media. These existing standards will be complemented with new standards, based on innovative solutions developed within the project, to form the new body of AM / smart metering standards. The resulting draft standards will be fed into the European and International standardization process.

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2. eSESH (Saving Energy in Social Housing)

Description As part of the ICT PSP programme of the European Commission Competitiveness and Innovation Programme the eSESH project aims to design, develop and pilot new solutions to enable sustained reductions in energy consumption across European social housing. This is to be accomplished by providing usable ICT-based services for Energy Management (EMS) and Energy Awareness (EAS) directly to tenants, by providing effective ICT monitoring and control of local generation of power and heat and by providing social housing providers, regional and national government with the data they need to optimize their energy-related policy and investment decisions at national, regional and organizational level. eSESH Advanced Energy Awareness Services (EAS) provide direct, timely and comprehensible feedback on energy consumption, enabling tenants to adapt their energy consumption behavior. An EAS will graphically visualize the energy (heating, electricity, water) consumptions which will enable tenants to easily grasp this information and evaluate it in terms of whether their consumption is to be judged as high or not and in comparison to other consumers and over longer periods of time. The tenants will get access to these services (EAS) through a web-based platform which will allow them to quickly and easily obtain consumption information at monthly, daily or even shorter time-intervals and by comparing their consumption to those of other tenants or an 'average' tenant, energy consumption by square meter, comparisons of consumption in the past and present year and month etc. The information will be provided in a way showing the developments over the years and allow tenants to take appropriate action should they judge their consumption figures to be too high. Some of the EAS services to be implemented in pilot sites will also automatically and based on the observed consumption patterns and figures generate tips for tenants on how energy consumption and costs can be saved. http://www.esesh.eu/

Duration 2010 – 2013

Country/Region Angers and Moulins in France, Catalonia and Extremadura in Spain, Brescia, Piacenza and Pesaro in Italy, Frankfurt, Karlsruhe and Solingen in Germany, Linz in Austria, Westerlo in Belgium.

Focus ✔✔Customer feedback / change of behavior

✔ Demand response / DSM

✔ Advanced tariff systems Utilization of RES

✔ Other / new Customer services (ESCO) Standardization Interoperability Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✔ Heat

✘ Gas

✔ Water

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Number of installed meters

More than 5.000 social housing tenants are to be given access to eSESH Energy Awareness and/or Energy Management Service.

Distribution / Supplier

Public and private energy service companies (ESCO), utility providers and monitoring equipment providers.

Lessons learned The ESCO companies are generally interested in providing EAS and EMS in social housing. They do not see any important difficulties in the implementing of such services, except the small energy consumption of the dwellings and the little expectations for saving. The possible services in which they are interested are:

Remote energy consumption monitoring

Remote energy management

Overall measures for energy efficiency The utility providers are only moderately interested in providing EAS and EMS, but do not see any big difficulties in implementing such services. Utility providers are very interested in offering services of installation of energy monitoring and management systems and are interested in services like:

Energy monitoring and management systems

ESCO

Aggregate buying/selling of energy

Consumption monitoring Service providing companies’ requirements can be summarized as:

High energy consumption users

Energy saving potential users From the customers side, the following observations have already been made:

85% of tenants own a PC and 77% have access to Internet,

Monthly Bulletin with energy savings options regarding the received monthly bill is a favourable feedback option for tenants, followed by Internet service and SMS messaging,

Additional info on correlation with influential factors (room temperature ...) were regarded as positive,

Benchmarking with past consumption on dwelling (privacy issues) and building level has positive results,

More than 52% of tenants does not know the principle of timing equipment to off-peak hours,

Options for DSM on building level. Interesting functions from tenants point of view are:

See detailed consumption by equipment,

Electricity savings and CO2 reductions,

See the changes in consumption,

Behaviour impact on consumptions,

Manage expenses and anticipate the amount of the bill,

Comparison to average consumption.

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3. Smart City Málaga

Description The main objective of this project is to demonstrate the possibility of achieving a reduction in energy consumption of 20% which will result in a reduction in CO2 emissions (6.000 tons/year). All through the development and use of specific technologies. As part of the project, new smart meters will be introduced in order to promote more sustainable energy consumption. This new service will let the client consult their consumption in an instant, allowing them to subsequently choose energy tariffs that better suit their specific needs. It will also facilitate various processes such as registering with the company, cancellations, changing tariffs etc. Other aspects of the project include smart mobility, smart energy storage, smart buildings, smart energy generation, and smart and informed customers. http://www.smartcitymalaga.es/

Duration 2009 - 2013

Country/Region Malaga - the smart meter part of the initiative has been extended to other regions Seville, Barcelona, Las Palmas (Gran Canaria), Palma de Mallorca and Extremadura

Focus ✔ Customer feedback / change of behavior

✔ Demand response / DSM Advanced tariff systems

✔ Utilization of RES

✔ Other / new Customer services (ESCO)

Standardization Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity Heat Gas Water

Number of installed meters

More than 150.000 (2011) smart meters have been installed in Malaga, Seville, Barcelona, Las Palmas (Gran Canaria), Palma de Mallorca and Extremadura. Objective is to reach 13 million by 2015

Distribution / Supplier

ENDESA, Enel

Lessons learned The project is still in the implementation phase. The assessment of results will take place from 2012 onwards.

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4. Suivi et évaluation énergétiques du plan soleil

Description As part of its “Plan Soleil” programme, ADEME (French Agency for Environment and Energy Management) has allocated subsidies for solar domestic hot water (DHW) systems from 2000 to 2004. In order to analyse the program’s impact on energy consumption and the environment, 120 solar DHW systems were monitored for a minimum period of 12 months. This experimental campaign, run on a large scale, under the responsibility of the CSTB, had the following objectives:

Measurement of in situ thermal performance of operated solar water heaters in dwellings.

Evaluation (in quantitative terms) of energy benefits as well as the environmental impact of the “Plan Soleil” programme.

Improving knowledge on user behaviour (hot water needs, hot water tapping profiles), fixing new sizing rules for this kind of system.

http://enr.cstb.fr (section 'Solaire thermique')

Duration 2003 - 2006

Country/Region France

Focus ✔ Customer feedback / change of behaviour Demand response / DSM Advanced tariff system

✔✔Utilization of RES Other / new Customer services (ESCO) Standardization Interoperability

✔ Equipment testing System services (distribution, supplier)

Type ✔ Electricity

✔ Heat

✘ Gas Water

Number of installed meters

120 solar systems with heat and electrical meters including 20 systems with tele monitoring equipment.

Distribution / Supplier

CSTB

Lessons learned The energy savings were defined as the difference between the energy consumption of a reference system and the energy consumption of a solar system. For systems with integrated back-up, the back-up energy consumption is measured. For solar preheat systems, it is estimated.

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5. PREMIO-PULSSi

Description PREMIO-PULSSi main focus and the first objective is DSM and peak load limitation. It is foreseen to reduce the consumption during winter power peaks. The principal objective is to adapt the Watteco – Kit evolution tool to be managed from an external place. The customer is also informed on a real-time consumption of electric heating and electric warm water production; a side project has been implemented on this topic but without feedback from the Watteco tools. http://www.capenergies.fr/index.php?2011/06/14/259-premio http://www.projetpremio.fr

Duration 2007 -

Country/Region France - Provence Alpes Côte d’Azur

Focus ✔ Customer feedback / change of behavior

✔✔Demand response / DSM Advanced tariff systems Utilization of RES Other / new Customer services (ESCO) Standardization Interoperability

✔ Equipment testing System services (distribution, supplier)

Type ✔ Electricity

✔ Heat

✘ Gas

✘ Water

Number of installed meters

Distribution / Supplier

VIA DESIGN (France) / MATRIX ELECTRONICA (Spain)

Lessons learned ✘

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6. LINKY

Description Pilot project to evaluate performance of open- standard PLC technologies on ERDF distribution network . http://linky.erdfdistribution.fr/

Duration 2010 - 2011

Country/Region France - Touraine and Rhône

Focus ✔ Customer feedback / change of behavior Demand response / DSM Advanced tariff systems Utilization of RES Other / new Customer services (ESCO) Standardization

✔✔Interoperability

✔✔Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✘ Heat

✘ Gas

✘ Water

Number of installed meters

Touraine: 100.000 meters Lyon: 200.000 meters

Distribution / Supplier

ERDF

Lessons learned Analysis done by ADEME March 2011

Reduction of CO2 emissions thanks to an easier integration of renewable energy production and a better management of the peak load

Development of decentralized renewable energy production thanks to new tax incentives

Energy savings for Distribution System Providers

Development of new energy services and offers adapted to consumers’ needs

Raising awareness and increase of consumers’ energy savings A series of debate and oppositions rose up when ERDF decided to experiment LINKY meters. Among them, it is possible to identify several kinds of obstacles:

The cost of installation

The effectiveness of savings for the final consumer whereas energy providers have a clear interest in it.

The safety and anonymousness of the data transfer

The importance of guarantying a free access to consumption information for the final consumer

The multiplication of specific tariffs and possible lack of visibility for the consumer

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7. SEPEMO

Description The project "SEasonal PErformance factor and MOnitoring for heat pump systems in the building sector (SEPEMO-Build)" aims at overcoming market barriers to a wider application of heat pumps by developing a universal methodology for field measurement of heat pump systems Seasonal Performance Factor (SPF) including a monitoring program for 46 heat pump installations in six European countries. The objective is a broader acceptance and improved quality assurance for heat pump systems. Energy meters (heating and cooling), temperature sensors, electricity meters, humidity sensors and pressure sensors are used and all equipment is centralized via Modbus to a monitoring PC connected to internet and sending measured data to a server at each time step. All the measured data and performances figures can be thus supervised from internet in real time. www.sepemo.eu

Duration (June) 2009 - 2012

Country/Region France

Focus Customer feedback / change of behaviour Demand response / DSM Advanced tariff systems

✔✔Utilization of RES Other / new Customer services (ESCO) Standardization

✔ Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✔ Heat

✘ Gas

✘ Water

Number of installed meters

20

Distribution / Supplier

CSTB

Lessons learned ✘

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8. Cyprus 3000 Smart meter Project

Description Deployment of 3000 smart meters from 3 different suppliers which will be connected to a Meter Data Management System (MDMS) system via 3 different telecommunication paths. The MDMS, along with existing EAC Meter Collection Systems, will collect metering data from residential, commercial and industrial customers. The project will also include ten existing multi-energy/ multifunction 3-phase meters (commercial and industrial customers), as well as ten water meters for recording water consumption only. The MDMS system will be interfaced with existing IT systems, such as Billing, SCADA, GIS and the Call Centre. In the pilot project use will be made of the architecture adopted by ESMIG that uses the industry standard IEC 61968, which facilitates inter-application integration of the various distributed software applications systems supporting the management of EAC’s electrical distribution networks. The objectives of the pilot project are:

- To evaluate different communications technologies and to use this experience and knowledge to optimize the technical design of the Full Scale AMI System.

- To verify interoperability between equipment supplied by at least three different manufacturers, and to validate proper integration with the MDMS.

- To obtain knowledge and experience from planning, implementing and operating an AMI System in order to optimize and standardize the implementation of the FSS.

- To gain first-hand experience with respect to the integration of an AMI system into EAC’s systems & business processes, to inform on the change management that will be required for the FSS.

Duration 201x -

Country/Region Cyprus

Focus ✔ Customer feedback / change of behaviour

✔ Demand response / DSM

✔ Advanced tariff systems Utilization of RES

✔ Other / new Customer services (ESCO) Standardization

✔ Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity Heat Gas

✔ Water

Number of installed meters

3000

Distribution / Supplier

Electricity Authority of Cyprus

Lessons learned ✘

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9. Malta Smart Metering Project

Description A number of smart meters have already been installed in the Maltese households. By the year 2012 all Enemalta Corporation customers shall be provided with the installation of these smart meters which are installed without costs for customers. The objective of the installation of these smart meters is to provide the customer with a meter that gives a digital reading of the electricity consumption as well as facilitating reading and billing for the service provider. The new smart meters being installed give 3 readings to the user: amount of units consumed since the installation of the meter, amount of units consumed each day and the power factor. The smart meters are also active meters i.e. they give load information to the service provider. Smart meters have also the function of two-way metering and can thus be used with the installation of photovoltaic panels. The meter registers both import and export of energy, therefore it will allow the electricity supplier to register both what you are consuming and producing. www.enemalta.com.mt

Duration 2010 - 2013

Country/Region Malta

Focus ✔ Customer feedback / change of behaviour

✔ Demand response / DSM Advanced tariff systems

✔ Utilization of RES Other / new Customer services (ESCO) Standardization

✔ Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✘ Heat

✘ Gas

✘ Water

Number of installed meters

240.000 5.000 meters were initially installed in selected households as a pilot project in order to identify any problems which might arise before implementing the full scale project. 80.000 smart meters to be installed each year for three years.

Distribution / Supplier

Enemalta Corporation

Lessons learned ✘

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10. Larissa PPC Smart Grid Pilot Project

Description The first smart grid system installed on the medium voltage level covers more than 100 km of MV network with applications ranging from load management to fault detection and automatic meter reading. Siemens and Amperion designed and implemented this smart grid network solution featuring embedded telecommunications on the medium voltage lines based on the Amperion patented Broadband Power Lines (BPL) technology and a vast array of end devices including switches and power quality measuring sensors. 200 switching devices are connected (and remotely monitored from the control center) at customers. Apart from the switching equipment, 45 remotely operated meters are installed at the consumers’ in the villages of Halki and Mellia in order for PPC to evaluate the Automated Meter Reading (AMR) opportunity over BPL. The applications delivered in the context of the Larisa pilot project include:

Load management (remote control switches that control the agricultural loads within milliseconds)

AMI (automatic meter infrastructure)

RF noise level measurements (fault prediction)

Wireless cameras surveillance

Measurement on the LV grid (voltage, current, and temperature)

Telecom applications (VoIP, Internet etc.)

Duration 2007 - 2008

Country/Region Greece, Municipality of Larisa

Focus Customer feedback / change of behaviour

✔ Demand response / DSM Advanced tariff systems Utilization of RES

✔ Other / new Customer services (ESCO) Standardization Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✘ Heat

✘ Gas

✘ Water

Number of installed meters

200 switching devices 45 remotely operated meters at the consumers

Distribution / Supplier

Public Power Company (PPC)

Lessons learned A few problems came up concerning the transmission of the data from the meters to the control center as data was being transferred at lower speed than the nominal one because the high noise that exists in the MV lines. The increased level of harmonic distortion in the MV lines limits the maximum speed of data transfer. In some other rare occasions, loss of information was noticed due to communication failures. Fuse failures to the BPL communication resulted in losing the continuity of the communication between the metering devices and the control center and that was the reason for losing data.

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11. LV telemetering by Greece Public Power Company (PPC)

Description The scope of this project was the telemetering of some LV consumers, using PLC communication. Both single and three phase meters were installed. 3 pilot projects were done for evaluating interoperability and functional requirements.

Duration ✘

Country/Region Greece - Attica:

Neo Faliro and Rentis municipalities, Attica

Corydalos municipality

Kalithea municipality

Focus Customer feedback / change of behaviour Demand response / DSM Advanced tariff systems Utilization of RES Other / new Customer services (ESCO) Standardization

✔ Interoperability

✔ Equipment testing

✔ System services (distribution, supplier)

Type ✔ Electricity

✘ Heat

✘ Gas

✘ Water

Number of installed meters

Distribution / Supplier

Public Power Company (PPC)

Lessons learned The pilot projects are done only for seeing interoperability and functional reasons. No business interaction with customers is foreseen. Settlement and billing is continued to be implemented by the standard meters. PPC is not using the pilot project for new business billing approaches bases on smart metering.

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12. AMI system for the Elektro Gorenjska

Description The purpose of the pilot project “AMI system for the Elektro Gorenjska” is the introduction of remote meter reading, control and demand management of the electricity and also water, gas and heat consumption in the area of Gorenjska and will serve as Site Acceptance Test phase for full scale roll-out. Project started as AMR system in new multi dwelling building using heat, electricity and water meters, but has already been upgraded to AMI by adding gas meters and is upgradeable to AMM (Automated meter management) and can have various user interfaces to present data to end users. Pilot is implemented in series of new multi-dwelling buildings.

Duration 2010 - 2013

Country/Region Slovenia – Kranj

Focus ✔ Customer feedback / change of behaviour

Demand response / DSM

✔ Advanced tariff systems Utilization of RES

✔ Other / new Customer services (ESCO) Standardization

✔ Interoperability

✔ Equipment testing System services (distribution, supplier)

Type ✔ Electricity

✔ Heat

✔ Gas

✔ Water

Number of installed meters

86 metering points with 245 meters (electricity, heat and water) Full scale roll-out of 85.000 metering points after the Site Acceptance Test phase in next 5 years.

Distribution / Supplier

Distribution company “Elektro Gorenjska”

Lessons learned Remote reading of meters (electricity, heat and water) is a major step forward in terms of changing business models for charging according to actual consumption of energy and can be seen as superior service for customers. The pilot project will soon expand to the widespread use of remote meter reading of energy and water consumption. The AMR system operates from the first day, when the first residents moved in. Tenants thus pay the actual consumption, without having to separately communicate any data to the suppliers. "Elektro Gorenjska" monitors all the data in its Control Centre and use it for the purposes of billing and planning of electricity distribution. Information on the use of other energy sources (heat, water) is forwarded to building manager, thus separate billing is prepared for those uses.

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Contact for information

Author organization: Jozef Stefan Institute - Energy Efficiency Centre Corresponding author: Ales Podgornik Jamova 39, 1000 Ljubljana, Slovenia Tel: +386 01 5885 300 Mail: [email protected] www.rcp.ijs.si/ceu

Project contact details

ENEA Anna Moreno Casaccia – 301 Via Anguillarese, 00123 Rome, Italy Tel: +39 06 30 48 47 13 Mail: [email protected] / [email protected] www.enea.it AVITEM 5 place de la Joliette – CS 90113, 13567 MARSEILLE Cedex 02 Tel : +33 426 84 57 27 Mail : [email protected] / [email protected] www.avitem.org