The Rollout of Smart Metering Systems in Germany - Enabling the Turnaround in Energy Policy European Utility Week Amsterdam, 16 October 2013
Preliminary remarks
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Particularities of the German electricity market
The market: ► Highly fragmented market structure: Roughly 900 DSOs, 4 TSOs ► Liberalized metering business, but still dominated by regulated DSOs ► Mandatory rollout of smart metering systems for specific customers is already in place Energy consumption: ► High degree of energy efficiency compared to other markets ► Low proportion of electric heating systems ► Average electricity consumption 3.500 kWh/year per household Energy policy: ► “Energiewende” (Turnaround): Fast growing share of renewable energies and decentralized generation (micro CHP) ► Integration of renewables into the energy system is a significant issue Page 3
The Rollout of Metering Systems in Germany
Findings and recommendations of the CBA
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Four key drivers to drive an economically favorable rollout for Germany
Exemplary benefits
Beneficiary
Energy savings
Process improvements
Grid efficiency
Value added services
► Reducing
energy costs by energy conservation, load shifting and new tariff models ► Avoided investments into generation and grids
► Meter
► Avoided
► Smart
End customer
Metering company, DSO, supplier
reading
► Billing ► Call-Center/
customer care ► Balancing
investment into grids by selective reducing feed-in of renewable energies ► Network management, planning and operation DSO, and very limited TSO
Home ► Security and health care services ► Combined rollout of other utilities (Gas, heat, etc.) ► And many other applications End customer, service companies
An economically beneficial rollout for Germany requires a segmented and tailored approach which combines a mandatory with a market driven approach and distinguishes technologically between smart metering system and intelligent meter. Page 5
The Rollout of Metering Systems in Germany
Recommending a segmented and tailored approach for Germany Consumer group
% of total meter points
Description
1
Consumers that use more than 6,000 kWh of energy per year
2
Those consumers that produce combined heat and power (CHP), solar and wind renewable energy
3
Consumers in new and renovated buildings – about 500,000 customers each year
4
Consumers using heat pumps, storage heating systems, electric vehicles etc. according to § 14a EnWG
5
The majority of German consumers – including smaller businesses and households who are not part of 1 to 4
Recommendation
15* 5* Smart metering system - mandatory 10* 5*
70*
Intelligent meter (upgradable to smart)
The four mandatory consumer groups implementing smart metering systems cover roughly 75% of the electricity consumption within the household and SME segment. Those groups include all customers who influence or could influence the energy system most heavily. * Total sum is greater than 100 due to the fact that some consumers fulfill more than one criteria for a mandatory implementation of a smart metering system.
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The Rollout of Metering Systems in Germany
Smart metering system vs. intelligent meter Both, smart metering system as well intelligent meter reflect actual energy consumption and actual average usage time Smart metering unit ► Consisting
of:
►
a meter
►
a communication unit, the Smart Meter Gateway (SMGW), and
►
Intelligent meters ► Are
not initially integrated into the external communication network.
► Must
have the ability to be upgraded through integration with a communication network that complies with the BSI Protection Profile
a security module
► Fulfills
the requirements of the BSI Protection Profile
► Should
have an external display
Source: Ernst & Young in conformity with BSI
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The Rollout of Metering Systems in Germany
Next steps
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Next steps of implementation Required steps in legislation and regulation
Status /date
Stakeholder hearings about the findings and recommendations of the CBA organized by BMWi (Federal Ministry of Economics and Technology)
4 out of 5 (planned)
Notification of MsysV (Messsystemverordnung) by the EU
21. September 2013
Report concerning the financing mechanism by EY
WIP
Development of ordinances (“Verordnungen”) implementing the rollout related to: • Rollout (targets, timeframes, obligations etc.) • Data-Communication and • Load-Management
1st half of 2014
Stakeholder hearings, legislation process, publishing of required ordinances
2014?
Eventual adaptation of ARegV (“Anreizregulierungsverordnung”) for implementing a new financing mechanism
2014/2015?
Redesign of market communication process (e.g. WiM) by the regulatory authority and the industry
2014/2015?
Adaptation of the EEG (Renewable Energy Act)
2014?
The mass rollout will not start before 2015, most likely not before 2016
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The Rollout of Metering Systems in Germany
A possible German roadmap of the rollout
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Pilot projects Right of continuance § 21e (5) EnWG
Extended where required
Existing mandatory cases § 21c (1) EnWG Existing new, additional mandatory cases Additional, new mandatory cases Installation of an intelligent meter
Review of rollout
Review of pilot projects Review of the intermediate goals of the rollout strategy
Number of smart metering systems and intelligent meters in Mio. / No. of smart metering systems
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12.5/ 4.8
The Rollout of Metering Systems in Germany
26.0 10.0
Driving successful Smart Metering projects Based on our global SMART METERING experiences, we outline our clients key focus areas to successfully deliver their programmes Added green power sources
Plug-in hybrid electric cars (storage device) Smart Meter Tele-health Services Real-time & green pricing signals (portal/stats)
Smart appliances (e.g. thermostats, dynamic controls,
What is the Cost/Benefit model?
How to change the business to be Smart enabled?
How to build a positive experience for the Customer and drive future revenue?
Smart strategic considerations
What is the optimum Supply Chain to roll-out Smart Meters efficiently and reliably?
Impact on Processes Jobs per day 0
7.5 UK plc
3.5 4.5 UK plc UK plc
Procurement
9 EU
8-15 Australia
Logistics
11-20 EU country
20
Installation & Maintenance Customer Service (Appointment Booking)
Planning and Order Management
Other MAPs
Asset Manuf acturer (Supplier)
Central warehouse (Hub)
Local warehouse (Sub -Hub)
Utility suppliers / Recycling / disposal Shared Services (i.e. IT / HR / Finance)
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The Rollout of Metering Systems in Germany
Field Operative (Van)
Customer (house)
Contact information
Dr. Helmut Edelmann Director Utilities Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Graf-Adolf-Platz 15 40213 Düsseldorf + 49 211 9352 11476 + 49 160 939 11476
[email protected] Dr. Helmut Edelmann Page 12
The Rollout of Metering Systems in Germany
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