Smart meter enable new business models … meter enable new business models experiences from the UK...
Transcript of Smart meter enable new business models … meter enable new business models experiences from the UK...
Smart meter enable new business models
experiences from the UK and German market
Lars Weber 3.11.2015
The roll-out of smart meter in the UK is well on its way
Set up the
infrastructure
Train installers
Test and trials
SMETS1 standard
Supplier read meters
In-home displays
mandatory
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Foundation stage
Start in 2016
~ 20m meters
Peak 2019
SMETS2 standard
(SMICOP)
DCC provides meter
data
Physical in-home
displays still
mandatory
Installation stage
After 2020
Post roll-out
? The main benefit for the customer will be the transparency of consumption
Germany started moving towards this approach
The current draft of the law “Gesetz zur Digitalisierung der Energiewende”
changed the approach
Longer time scale for the roll out
Competitive meter operator, unbundled from distribution
Customers should have access to their ¼ h meter data one day in arrears
Tools can be e.g. in-home displays or online sites
Law (draft) is still under consultation and discussion and likely to change
The overall approach shows a stronger emphasis on customer engagement
and competition
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This new regulation would move the German residential and SME market
nearer to the UK model and in some issues even beyond
Lessons learned can be transferred
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Competitive meter operator
created a market for SME
customers for energy efficiency
and forecast optimisation
EEG created demand for local
interruptible solutions and
demand side management
Shift focus also to the customer,
not only distribution grid
Germany
New products for SME multi-sites
and PV portfolios
Better forecasts
The competitive roll-out inspired
attractive
visualisation solutions
New energy propositions (e.g.
SPAYG)
Smart home propositions
Roll-out will enable time of day
tariffs
Regulations like settlement are similar, time frame and competition are
different
UK
The idea to visualise meter data to change behaviour is
common
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Visualizing of ¼ h
meter data online
Change of customers
behaviour
Reduce consumption
Aspire time-of-use-
tariffs
Meter operations as a
separate market
Local serial interface
Germany
Visualizing of 5s
meter data on the IHD
Change of customers
behaviour
Reduce consumption
Aspire time-of-use-
tariffs
Meter operation as
part of supply
Local radio interface
UK
Can this be achieved by
½ or ¼ hourly data one
day in arrears or in-
home displays?
The approaches differs mostly in the technical solution
In the UK consultation about the way to visualise are
ongoing
The installation of a physical in-home device currently is mandatory
In August 2015 DECC consulted the industry abut new ways to provide
consumption data to customers, e.g. on smart phones
Supplier can apply for derogation from the mandate for trials by end January
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Meaningful information to customers have to be
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Relevant for call to action
Clear about possible
actions to take
In common language, not
in tech talk
In (near) real-time
Actions as
automated as
possible
Accessible real time data in the home can be the answer
Some suppliers have already started or announced pilots,
regulatory consultation is ongoing
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20 mio. customers
1.7 mio. Smart
meters installed
pilot with 500
households
Smart Energy
reports based on
AlertMe platform
Integration of
smart meter data
into Hive
84% of Smart
customers opted
in to half hourly
data
9.6 mio.
customers
40k smart meters
installed; further
210k expected by
May 2016
Bundle tariff with
Tado smart
thermostat;
customers receive
free Tado care
(remote boiler
health check)
0.4 mio.
customers
90k Smart meters
installed
Sell Salus iT500
Smart thermostat
Will move into
Smart Home
Stated: a third of
their IHDs have
been switched off
by customers
after a year
5.7 mio.
customers
35k smart meters
installed
Sells Netatmo
smart thermostat
(HeatSmart)
Prefer to offer a
phone services
5.3 mio.
Customers
Smart meters with
geo Duett II SED
Phone data
offering on the
roadmap
Smart thermostat
partnership with
Google/Nest in
bundling with a 3-
year tariff
Want to engage in
the connected
homes arena
5.2 mio.
customers
Aiming to install 6
mn Smart meters
Prefer metering
data on smart
phone
Sells Climote
smart thermostat
(Scottish Power
Connect)
Consumption data
also integrated in
the Connect app
Giving customers control over their consumption looks promissing
0.8 mio.
customers
10% of customers
have smart
meters
Started trial for
metering data on
phone in 12/2013
Sell Cosy Smart
thermostat (Green
Energy options)
Offer a basic
Smart Home
solution with
smart plugs
VSED and Connected Homes strategy / LW 19th Oct 2015
In-home solutions can push energy savings further
Studies have shown that customers are unlikely to actively change their
behaviour massively if comfort is reduced
The spread has to be 30-50 ct/kWh to actively shift load
Automated services that enable the customers to have their energy
consumption optimised without any activity is key
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Home
Control
Home
Energy
Home
Security
Home
Care
PV
Heating Sensors
Heat
pumps
Storage
Appliance
eMobility Lighting
Smart
Thermostat cloud
Smart Meter Supplier
Customers need additional incentives to change behaviour
The large lever is in load shifting assisted by time-of-day
tariffs
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Supplier’s
purchase
Customer’s
consumption Settlement
Actual load profiles create the chance to reduce losses (and cost) due to
variances to standard load profiles
Higher quality forecasts for their customers (as a group) will help reduce
risks, differences and associated cost in energy procurement for suppliers
UK and Germany have very similar settlement rules
The UK has started the P272 project for SME customers to use actual load
This approach could be used for Res customers In UK and Germany, too
Does this has impact?
The lever is there
Technologies to control consumption have to differ from the ones used for
larger customers
This massive number of metering points need standards, project oriented
business can’t be sustainable
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non half-hourly half-hourly
Type Number Annual energy Number Annual energy
Import metered (energy used) 29,730,762 163.7 TWh 120,541 130 TWh
Export metered 3,457 0.01 TWh 3,982 26.7 TWh
unmetered supplies 28,233 1.4 TWh 268 2.7 TWh
Source: ELEXON, UK figures of 2012
Players from different industries are likely to enter the
arena
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Internet giants
Energy
supplier
Smart Home player
Integrate ZigBee SEP or serial interface in their
gateways
Provide energy insights, analytics based on
real-time data
Provide products & services that combine
Energy Efficiency & Comfort Control
HEM domain
specialists
Energy
insights
Startups
The current energy industry faces the risk to be reduced to the pure
commodity service and lose their customer contact
VSED and Connected Homes strategy / LW 19th Oct 2015
Changes normally come disruptively after a slow start
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Internet traffic is an example on the change from slow start to
sudden rapid growth in a market
Sourc
e: W
ikip
edia
: N
o o
f w
eb h
osts
Logarith
mic
scale
What next
Changes that need adoption normally start slow and peak at some point
The point when this happens is difficult to predict
Energy suppliers and the whole industry can prepare for this
Competitors that manage data are already starting
Examples from the German and UK market show concrete approaches for
in-home solutions
The energy industry can make use of its deep knowledge of energy market
now and transfer this to the digital age
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