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SMART METERING IN THE CZECH REPUBLIC, VIEWED BY EZ DISTRIBUCE

April 2017

Pavel ŠolcBoard Member, EZ Distribuce, a.s.

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SMART METERING STRATEGY IN THE CZECH REPUBLIC

2009 – 2nd unbundling packet – smart metering for 80% of the consumers

2012 – smart metering study on the national level• smart metering are economically unsound (NPV<0)

therefore, no wide smart metering deployment until 2020. Instead, a detailed smart grid concept study will be made by 2019, including smart metering

• the 2012 study will be updated in 2017

2015 – National Action Plan SG & National Energ. Concept• specify the objective of defining, designing and building

the smart grid infrastructure on HV, MV and SV levels• 2015 – 2019: preparation phase

- definitions, business model, rules, legislation- pilot projects - regulation (NTS/VTS)

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SMART METERING STRATEGY IN THE CZECH REPUBLIC

Citation from chapter 7.1 – Final conclusion:Based on the qualitative and economic analysis of smart metering implementation in theCzech Republic and taking into account experiences and results made so far in domesticand other European countries pilot projects, the recommended future actions for theCzech Republic are:

Do not start complete smart metering implementation until 2018 and continue withtechnology developments in pilot projectsContinuously follow up technological progress in smart grid technologies, especiallyprogress of technical parameters and costs of the key components, which are crucial fordecision making for the project preparation and implementation of the smart meteringRepeatedly evaluate the suitability and more importantly the effectiveness of smartmetering implementation at least every 5 years, i.e. next time in 2017

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SMART METERING STRATEGY IN THE CZECH REPUBLIC

„Czech Republic will implement smart metering system in scope and time, when it becomes economically effective and will not cause disproportionate negative effects for consumers.Smart metering must be part of a wider concept of smart grid technologies and must be implemented together with infrastructural changes.“

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SMART METERING IN THE „CLEAN ENERGY FOR ALL EUROPEANS“ REPORT OF THE EU COMMISSION: SMART METERING IMPLEMENTATIONNew suggestions: • in case of a positive economical evaluation smart metering roll out for 80% customers during

a 8 years period• in case of a negative economical evaluation periodical economical evaluation

EU states, which are already deploying smart metering systems, must ensure that final customers pay for it in a transparent and nondiscriminatory way and must regularly control their implementation. EU states also have to closely watch and evaluate the progress of costs and benefits in the whole price chain, including the price for the final consumers.

Annex III: specifies rules for already implemented smart metering systems:Member States that have initiated the deployment of the new systems, should finish it by 2020 under the current rules. What is not yet clear, is whether or not the new rules for smart metering functionalities, as stated in article 20, will be applied to those already deployed systems. If the national roll-out analysis has shown an negative outcome, the consumers have nevertheless the right to ask for and have installed the smart metering system within a three months period.

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SMART METERING IN THE „CLEAN ENERGY FOR ALL EUROPEANS“ REPORT OF THE EC: SMART METERING REQUIREMENTS – ARTICLE 20

(a) the metering systems accurately measure actual electricity consumption and provideto final customers information on actual time of use. That information shall be madeeasily available and visualized to final customers at no additional cost;

(b) the security of the smart metering systems and data communication is ensured incompliance with relevant Union security legislation having due regard of the bestavailable techniques for ensuring the highest level of cybersecurity protection;

(c) the privacy and data protection of final customers is ensured in compliance withrelevant Union data protection and privacy legislation;

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SMART METERING IN THE „CLEAN ENERGY FOR ALL EUROPEANS“ REPORT OF THE EC: SMART METERING REQUIREMENTS – ARTICLE 20(d) meter operators shall ensure that the meter or meters of active customers who self-generate electricity can account for electricity put into the grid;

(e) if final customers request it, metering data on their electricity input and off-take shallbe made available to them, via a local standardized communication interface and/orremote access;

(f) appropriate advice and information shall be given to final customers at the time ofinstallation of smart meters, in particular about their full potential with regard tometer reading management and the monitoring of energy consumption;

(g) smart metering systems shall enable final customers to be metered and settled at thesame time resolution as the imbalance period in the national market

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RESULT:

The EU has taken a more thoughtful approach towards the deployment of AMM:

- the roll-out and its scope is a matter of the Member States, while their only obligation is to repeat the economical analysis- requires minimal standards (deadlines, functionalities, data security) for the deployed systems- requires the possibility for consumers to install a standard AMM- in case of a roll-out, requires the distribution of the cost among all consumers

This approach fully legitimize the strategy of the Czech Republic in this field:- verify the characteristics and define standards based on the experiences from the pilot projects- deploy the new system, when it becomes efficient and in the most efficient range- AMM „on demand“ with a certain cost

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SMART METERING PILOT PROJECTS

EZ DISTRIBUCE

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PROJECT OBJECTIVES

• Verification of the characteristics of new generation communications and metering systems with pilot projects and creation of requirements/projects for AMM deployment (whether complete or gradual, i.e. selective at first and complete later) – standards and legislation definition

• Verification of the impact of the requirement level of security in the field of technology, their usage and personal data protection and the definition of data protection requirements

• Fulfillment of the NAP SG objectives, including the output sharing (cooperation with the Ministry of Industry and Trade)

• Verification of the tested technical and economical hypotheses

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PROJECT OBJECTIVES

• Grant inputs for the actualization of NAP SG. NS II as well if possible • Create the proposal for effective operations of the new systems after the termination of

the pilot projects• Documentation for strategies in the fields of metering and load management for

the period until 2030• Documentation for a reliable cost-benefit analysis of the AMM roll-out in the Czech

Republic environment• Documentation from the projects will serve to make changes in the legislation for

distribution grid operations in the fields of connection, metering and active/reactive power management

• Documentation from the projects will also be used to formulate demand for a change in the consumers tariffs and their application in the field of active and reactive power and support services in the distribution grid

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DESIGN SGRP AMM

Acquisition of up to 16 500 electric meters and integration of 31 000 AMM fromthe WPP pilot projects summary: over 47 500 smart meters in 4 regions of various characteristics

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complete deployment selective deployment

Verification of technologies, technological hypotheses, impacts on operations

Verification of technologies, technological hypotheses, impacts on operations

Effective usage of 26 100 supply points (SP) from the WPP AMM / ~500distribution transformers

Effective usage of 4.900 SP fromthe WPP AMM (over 6MWh)

Newly deployed 12.500 SP / 140-200 transformer substations (DTS)

Newly deployed 3.000 SP with the LTE technology (up to 4000 if IoT(500) and WiFi (500) are taken into account –laboratory tests need to be successful)

Laboratory simulations Laboratory simulations

New deployment in two regionsNew deployment in two regions, with the possibility for consumers to apply for an AMM

Total: 38.600 SP Total: 7.900 SP (8 900 SP)

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TESTED HYPOTHESES 1/2

1. Gather data about distributed energy sources and reactive power flows on the LV level and assess them in order to set the monitoring and control systems

2. Verify the correctness and effectiveness of the monitoring method for voltage ratios in the LV level and detection of non-standard condition in the network. Based on this, the voltage regulation in the LV network will be set

3. Verify that using current AMM technology, it is possible to detect/predict the real level of supplied power to each SP and, possibly, motivate/reward according to these real values. Based on this, the aim is to define how to use this regulating power for load control on the distribution network nodes and for the storage of distributed regulating powers, their control and legislation.

4. Verify the new consumer information support methods leading to a change in the consumer behavior, with an effect of decreasing the amount of consumed energy and its distribution in time and an evaluation of these methods. In the verification scope of this hypothesis, it will be necessary to test the impacts of the EMS system deployment, on the consumers side, on the power flows and distribution network nodes load balance. Based on this, the bounding requirements for EMS system will be set.

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TESTED HYPOTHESES 2/3

5. Verify the quality of the currently used support for load balance calculations and evaluation of non-technical and technical losses of the new technologies, and the settings of losses and detection localization systems.

6. Verify the possibilities of technical solutions and operation impacts during their deployment, during the fulfillment of the EU recommendations, without forgetting consumer services in the field of data sharing in the supply point of the consumer, including the setting of the correct solution for specified consumer support segments.

7. Evaluate the impacts of the new AMM technology deployments for both roll-out methods (complete and selective) in the fields of implementation process and later impacts on the operation process during their usage as well. The evaluation will provide an option to correctly supply input data for the NS II in terms of both CAPEX and OPEX. Later on, these inputs will be used for the preparation of the technology deployment and its respective legislation requirements.

8. Verify the level of deployment of the required security standards and their impact on the implementation and usage of the AMM technology. Security standards for data transfer and storage will need to determined as well.

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TESTED HYPOTHESES 3/3

9. Verify the communication tools and standards from their performance parameters, quality of operation support and operation requirements point of view.

10.Verify the option of foreseeable reliability and performance improvement of the whole AMM solution, using correct communication control technics over the whole infrastructure and confirm the option of a complete roll-out, while maintaining the required security.

11.Verify the assumption that the current level of remote management, including its automatization, will decrease the number of operation activities in the network and the overall complexity on the human sources for AMM technology support as well.

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NEW LOCATIONS FOR SGRP AMM

Choice characteristics:4 topologically different locations

Possible deployment in 4 regions –

know-how sharing with highly

qualified AMM specialists

2 voltage levels for transformer

substation (DTS - 22kV, 35kV)

Various topographies, climatic

conditions and LV topologies

Covers most distribution networks

conditions – demand, DTS

solutions, MV and LV topologies

and solutions

Optimal accessibility of the location

from the test centers LAB HK and

Skute

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Location AFoothills 35 kV

Distributed urban areas

Location DLowlands 22 kV

Mixed urbanization,Significant potential for sources of

renewable energy

Location CFlatland 35 kV

City agglomeration (region capital) with subburbs

Location B Highlands 22 kV

Distributed urban areas,underdeveloped region

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SGRP AMM – ENERGY SOURCESSUMMARY OF TOTAL POWER FLOWS (KW) IN THE LOCATIONS (PHV 37 %)

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Location Power area BioG Solar CHP Gas Coal Wind Hydro Total

CHK_HKSE 2 627 576 2 180 5 383

32 545HK_VSES 2848 21 429 386 2 499 27 162

AJC_NOPA 3096 2 970 2 293 4 900 1 776 15 035

22 472SM_SEMI 42 1 962 974 4 459 7 437

DNB_PMK_ 330 771 1 101

31 158KO_KOL_ 7 092 2 576 350 16 000 4 039 30 057

BSU_HANU 113,4 4 610 2 502 7 225

14 134UO_JABL 998 4 733 81 1 097 6 908

Total 14 406 37 180 4 660 4 900 16 000 4 610 18 552 100 308

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WPP AMM LOCATIONS26 100 SUPPLY POINTS

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WPP AMM LOCATIONS – SELECTIVE INSTALLATIONSSUPPLY POINTS WITH ANNUAL CONSUMPTION > 6 MWH; TOTAL 4 909 SP

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* Green points represent SP with a demand > 6 MWh – village of Pardubice-Polabiny

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RELATED PROJECTS AND ACTIVITIES

In order to test all the different functionalities and its behavior it is crucial, in the pilot projects locations, to install other smart grid technologies, whether in the pilot phase or during the full deployment:

• metering in transformer substations ( EZdr oll-out project of – 2018 to 2021)• U/Q regulations on MV level ( EZd roll-out project – 2018 to 2020)• Installation of remotely controlled pole switches ( EZd roll-out project – 2018 to 2020)• Failure detection and quality oriented maintenance systems• Tools for load control

• OLTC tranformators• U/Q regulations of renewable energy sources on the MV level

• Derogation and regulating power prediction system• Rules for storage, creation of virtual blocks and regulation energy supply• Rules for frequency supply of support services from the virtual blocks to the transmission

network• Rules for the supply of non-frequency support services for the distribution network • Installation of high-speed charging stations for vehicles• Installation of storage infrastructure on the HV and MV levels for regulation energy supply

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REQUIREMENTS COMPLETION STAGE FOR THE DEPLOYMENT OF AMMEconomic benefit and/or consumer interest

- no interest for a smart metering system from the consumers- no massive deployment of distributed renewable sources of energy- marginal costs for metering are superior to the marginal gains

An improvement on behalf of the metering security and reliability:- if the new systems fulfill this purpose would be tested in the pilot projects

Resolve the ability of AMM to overtake the functions of load management:- equipment with a limiter and breaker makes it possible, but there is a need to set new rules for the tariffs

Integration with the development of smart grid technologies:- most technologies will be widely installed only after 2020

National standards (metering, communication) will be completed by 2018/2019

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REQUIRED FUNCTIONS AND CHARACTERISTICS

Supply and demand of real power metering – class A precision

Supply and demand of reactive power metering

15 minutes interval values

Limiters and breakers functions

Consumer data environment

Minimal encryption on level AES128

Flexibility (parametrization, SW upgrade, communication interface)

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CONCLUSION

The pilot project SGRP AMM is the last pilot project before the roll-out after 2020. The necessary steps are:- finish the testing of all hypotheses and the setting of rules for the consumers and traders (storage, data sharing, …) - creation and offer of new trade products- finish the national standards (meters, communication,data sharing, …)- new tariffs system- equipment price decline and miniaturization- relation to other smart grid technologies (transformer substation metering, UQ regulation, remotely controlled pole switchers)

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Thank you for your attention