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Smart Gas Meter Deployment and

Customer Value in the Netherlands Smarter gas meters add more customer value

Gerrit Rentier Senior Business Process Analyst

DELTA Energy & Multimedia

Amsterdam, the Netherlands

November 6th, 2014

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Presentation outline

Introduction: DELTA N.V.

Mandated Roll-Out: rolling out at scale

DNO Tenders for Smart Gas Meters

Smart metering in the Netherlands

Smart meters: mono-utility vs. multi-utility:

Dual fuel roll out, better national business case

Dutch Smart Meter Requirements for Gas meters

No remote on/off (no prepay)

All wireless; Firmware upgrades

Customer value: more frequent information

Frequency of customer info From conventional meters to smart homes

Smarter Gas meters: 5 minute updates

Customer value vs. battery life time

Questions

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Introduction: DELTA N.V.

• DELTA N.V. is a municipal multi-utility company.

Shareholders: Province of Zeeland & local municipalities.

• Production, Trade, Supply B2B of Electricity and Gas

• Largest Dutch player in renewable energy (PPA Gemini

wind turbines, 600 MW) + several power plants (bio mass,

nuclear & natural gas);

• Waste management services (“Indaver”), Water (“Evides”)

• Locally; internet, (digital) TV, retail energy and water;

• DELTA Netwerkgroep (“DNWG”); maintenance of

infrastructure water, gas, electricity & cable, incorporating a

Distribution Network Operator (“DNO”).

• DNWG Metering and utility services (nationally)

As a municipal multi-utility it is in the nature of

DELTA to focus on added stakeholder value

including sustainability in a multi-utility approach

Multi-utility, synergy; “Connect” (“verbindt”)!

After delay about legislation concerning privacy/opt out and after a 2

year trial period (to examine effects), June 2014 Dutch government

decides on a mandated smart meter roll-out, in line with EU Directives

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Mandated roll-out: rolling out at scale

Source: roll-out plan Netbeheer Nederland (NBNL), Dutch Distribution Network Operators

2013 & 2014 600.000 DSMR 2.2 Currently DSMR 4.0 2016: DSMR 5 Target: 8,4 mln homes

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DNO tenders for smart meters

Distribution Network Operators in the Netherlands are

united: interest group “Netbeheer Nederland” (“NBNL”).

NBNL jointly developed “Dutch Smart Meter

Requirements” (“DSMR”) versions 2.2 and 4.0.

However, for the definitive version (includes all

requirements demanded by Parliament, including e.g.

full interaction logs readable from display, modularity)

there are two major tenders;

1: Alliander, Stedin, DNWG: joint tender based

on CDMA telecommunications (point-to-point)

2: Enexis et al: tender based on 3G PLC (Power Line Carrier)

Smart Metering in the Netherlands

“P1- device”(Energy management

display, APP, tablet etc)

P1

G-meter

W-meter

Heatmeter

P2

Central system

GSM network

P3

P2

Energy

suppliers

ODA’s

Water companies

P4

P2 = Local connection (“LAN”); Smart Gas meter

(or other slave meter) to Smart Electricity meter,

which acts as a communication hub

P1= Consumer port information in the home

(“HAN”), updated every 10 seconds for

Electricity, every 60 minutes for Gas

Distribution Network Operator (DNO) rolls out

smart E and G meters, facilitates markets

P3= Wide Area Network (“WAN”)

P4= market interface for ESCO’s, Energy

Suppliers, aggregators; updated every 24 hours

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Smart meters: mono-utility vs. multi-utility/Cost Benefit Analysis

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Meters Roll out ICT Energysaving

BetterProcesses

DynamicTariffs

Rough Cost benefit analysis for Smart meter roll out

Mono-utility roll out: no synergy effects; each appointment in the field, each truck roll, each telecommunication cost (WAN) associated with 1 utility service (often: Electricity)

Multi-utility roll out: synergy effects; each appointment in the field, truck roll, tele-communication cost associated with 2 utility services better Cost Benefit Analysis

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Few EU member states roll out smart gas meters

Roll-out commitments for European Union investment about €45 billion by 2020 for the installation of close to 200 million smart meters for Electricity (about 72% of all European consumers) and 45 million meters for Gas (around 40% of consumers)

"Benchmarking Smart Metering Deployment in the EU-27 with a focus on electricity” (adopted June 17th, 2014)

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Less attention to smart gas meters; but why?

However, Smart Meter Program Key Success Factor Number 1 (© Accenture) is

“Design and deploy with the consumer at the heart of the solution…” and the biggest impact on the energy bill of many consumers is their gas use.. shouldn’t we pay full attention to how we design & roll out Smart Gas Meters?

From the report “Benchmarking Smart Metering Deployment in the EU-27” (page 8): - Five Member States (Ireland, Italy, Luxembourg, the Netherlands and the UK) have decided to roll-out smart gas meters by 2020 or earlier; - Two Member States (France and Austria) have plans to proceed with a large-scale roll-out but have yet to take official decisions; (Note: after June, in September 2014, France has decided to roll out smart gas meters..) - In 12 Member States (Belgium, the Czech Republic, Denmark, Finland, Germany, Greece, Latvia, Portugal, Romania, Slovakia, Spain and Sweden), the results of the Cost Benefit Analysis were negative.

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Gas; by far the largest item on Dutch consumer’s energy bill

Average Dutch Household Energy Bill (about € 1800 a year)

wash & dry Electricity

lighting Electricity

fridge & freezer Electricity

heating Water Electricity

other uses Electricity

space heating Gas

bathroom heating Gas

cooking Gas

LAN (local “P2” interface to E-meter):

Gas meters battery powered concern battery life time: past anxiety

after research in 2012 by Tadiran & NBNL http://goo.gl/xTzyga

All wireless; MBUS 868 MHz; no wired connections:

Installation & maintenance faster, simpler, cheaper

No remote on/off No integrated valve, Less T2 (two-way)

Concerns of cyber security with DNO’s no remote on/off

Hardly any two way T2 merely for time sync once per day and

for firmware upgrades; Mode “T1/T2” sufficient for utility’s processes;

No possibility for prepay, fraud prevention, emergency shut off

WAN (through P2); firmware upgrades

DSMR specifies DLMS CoSEM for WAN (“P3”)

HAN (through P2): consumer interface “P1”

Mode C (“Compact Mode”) will suffice for P1 events

updates every 5 minutes instead of every 60 minutes …

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Dutch Smart Meter Requirements for Gas meters

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Energy transition & “always on” means new roles for meters

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Behavioral Energy Efficiency = First Fuel

With a proper behavioral approach we can have smart meters help customers save money (and the environment). ACEEE: “Combined natural gas and electric utility energy efficiency programs score expanded savings” http://goo.gl/v5JRJV Energy efficiency programs covering Electricity as well as Gas (“Dual Fuel”) prove to be more effective!

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Potential of smart meters for conservation: feedback types

ACEEE report shows up to 9 or even 12 percent conservation for energy if the information is near real time.

ACEEE report shows up to 9 or even 12 percent conservation for energy if the information is near real time…

Smart meters can technically enable the first four categories of feedback loops…

“Advanced meter reading initiatives and residential feedback programs: A Meta-Review for Household Electricity-saving Opportunities”, American Council for Energy-Efficient Economy (ACEEE), Washington, June 2010

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Psychological basis: experiential learning

If we present actionable information (“concrete experience”) based on recent smart meter data that tells consumers where they are spending energy (and money), leading to observation and comprehension, then they are enabled to try and save energy (“active experimentation”), in heating, hot water and appliances.

(A) Meters Regulatory; Energy Efficiency Directive

Bills

(B) Smart meters Regulatory; Energy Efficiency Directive

Home Reports

(C) Smart meter remote (WAN) Web portals

(D) Smart meter with device in the home (HAN) In Home Displays

(E) ” Smart meters with device in the home and near real time data, also from slave meters (DSMR 5: 2016,..) Home Area Network

“Niche”

(F) Smart thermostats/ remote control HAN & WAN (Nest, GEO, Honeywell etc) Smart home

E Year Monthly (bi-monthly)

Daily 10 seconds 1 second (DSMR 5: 2016)

Real time

G Year Monthly (bi-monthly)

Daily 60 minutes (DSMR 2, 4)

5 minutes (DSMR 5: 2016)

Real time

€ Free Free Free or Cheap

Medium price (+/- 100, 150)

Plain read only customer devices

Pricey Device +/- 250/350

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Frequency of customer info; from meters to smart homes

If we upgrade the frequency by which smart gas meters inform consumers of their energy use, the smart meter functionality closes in on more expensive smart home solutions

Dutch consumer groups, energy sector & government agencies:

make smart gas meter information available consumer interface (“P1”)

with a higher frequency than every 60 minutes.

Evaluation of the 2 year trial period for smart meter roll out early 2014;

agreed among Distribution Network Operators (responsible for roll out) &

all other stakeholders:

DSMR 5 features 5 minute updates from smart gas meters to consumers.

This was confirmed

by Minister of

Economic Affairs

Henk Kamp

in answers to the

Dutch parliament

(April 7th, 2014,

question 29)

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DSMR 5 (2016); consumers get 5 minute updates on Gas use

[A] NBNL “Battery research study”, October 10, 2012, Metering &

Billing, By Machiel Joosse (DNWB) & Horst Reuning (Tadiran)

modern day batteries’ life time is a lot better than some fear.

http://goo.gl/xTzyga

[B] DSMR 5 smart meters for E & G without the remote (dis)connect

No need for hourly two-way (T2) communication between G-meter

and E-meter to check for connect/disconnect commands.

Simple one-way T1 communication will suffice we move towards

“C1”, Compact Mode (NL Smart Meter Requirements version 5, 2016).

[C] Also/alternatively; rationalize communication design between local

meters. E.g., in the middle of the night, either move to 2-hour P2-

updates or even stop local RF updates altogether during night time(*)

((*) they don’t add any value; customers won’t be awake to be

informed, utility processes don’t need those updates for Gas either). 18

Implications gas meter battery life time

DSMR 5 (2016) Gas meters deliver more customer value

DSMR 5 P1 “Consumer port”

information in the Home Area Network

will be

updated every second for Electricity

updated every 5 minutes for Gas

customers get much more frequent

information on the cause

of the bigger part of

their energy bill

more information

means more choices

more customer

value from smart

meters through

making the architecture

for smart gas meters even smarter..

“P1- device”(Energy management

display, APP, tablet etc)

P1

G-meter

W-meter

Heatmeter

P2

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Questions?