Agrion smart meter conference 11 december 2013 slideshare version

Vlaamse Regulator van de Elektriciteits- en GasmarktDirk Van Evercooren, Director Markets VREG, 11 December 2013

AGRION ConferenceDevelopments in National Smart Metering Programmes

The future of smart metering in Flanders/Belgium: Does a negative CBA mean the end?

Can I ask you a question?What percentage of families in Flanders do you

think feel that the installation of a smart meter would be an invasion of their privacy?

18%59% of respondents say they would save money by adjusting their energy consumption to take into account low and high price periods if Time of Use tariffs would be extended

(VREG Survey July 2013)

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Willingness to pay

What percentage of families in Flanders wants to pay to have a smart meter installed? •64% does not want to pay•Of those interested in having a smart meter, still 56% does not want to pay for a smart meter

(VREG Survey July 2013)3

Overview

• Is there support for smart metering within the general public?

• The result of the Belgian CBAs• Stakeholder dialogue on smart meters

and smart grids• What is going on within the pilot projects?• How is the retail energy market model

evolving?• Next steps at the legislative level

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THE RESULTS OF THE BELGIAN COST-BENEFIT ANALYSIS

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How did the CBA(s) come about?• Electricity and gas are (partly) regionalised

matters in Belgium

• Retail markets are regulated at regional level:

Brussels BrugelFlanders VREGWallonia CWaPE

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BELGIUM

Smart Meters are under the responsibility of the Regional authorities

The three Regions have separately conducted a cost-benefit analysis as intended in directive 2009/72/EC and 2009/73/EC

Why separately? Because of the different realities of the Regions. For example, Brussels-Capital is a purely urban Region, unlike the two others

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COST-BENEFIT ANALYSIS (1)

Outcomes of the baseline scenario (80 to 100% roll out):

•Flanders: INCONCLUSIVE (NPV ranging from -300 M€ to +700 M€)•Brussels: NEGATIVE (NPV = -80 M€ in the least negative scenario, "advanced scenario")•Wallonia: NEGATIVE (NPV = -186 M€)

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COST-BENEFIT ANALYSIS (4)

Critical variables in the sensitivity analysis•Flanders:

• Lifespan of the meter hardware and communication module

• % of consumers that will subscribe to TOU• Energy saving for gas customers

•Brussels: • Valorisation of the CO2 emissions

• Energy saving• Subscription communication • Number of meter installations per day

•Wallonia: • Energy saving for electricity customers• Demand side management • Installations per day per full time equivalent

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ROLL-OUT IN THE CBAs (1)Metering points and associated investment

:•Flanders: 3,4 million metering points electricity and 2,1 million metering points gas; 2000 M€•Brussels: 620.378 electricity metering points electricity and 417.298 gas metering points; 460 M€ (for the least negative scenario: advanced scenario)•Wallonia: 1,9 million metering points electricity and 0,7 million metering points gas (assumed metering points for 2020); 2200 M€Please note that the ratio between the number of metering points and the associated investment is meaninglessTimeline•Flanders: 5 years•Brussels: 2015-2018 (4 years) •Wallonia: 2015-2019 (5 years)

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ROLL-OUT IN THE CBAs (2)Assumed overall electricity savings (%)

•Flanders: 1% (indirect feedback) - 3% (direct feedback - IHD)•Brussels: 3,38%•Wallonia: 0% as a baseline parameterAssumed average peak shaving or load shifting (%)•Flanders: 5%•Brussels: 0,47% of the total benefits (for the least negative scenario: advanced scenario)•Wallonia: additional demand flexibility due to smart meters is 12% of total load

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ROLL-OUT IN THE CBAs (3)Communication infrastructure

• Flanders:• 80% PLC broadband to gateway with cable modem• 20% of which 60% MUC via cable and 40% GPRS

• Brussels :• UMTS (for the least negative scenario: advanced

scenario)• Considered Options for all scenarios:

• PLC technology• Mobile network technologies: GSM/GPRS, UMTS, etc.• Radio network technologies: WiMAX, Wi-Fi or Mesh

• Wallonia:• PLC and GPRS • Technology mix will be further tested and evaluated

by DSOs in the near future

Conclusions of Belgian CBA• The assessment was done according to the

EC recommendations/guidelines• The result is that the conditions for a roll

out of at least 80% of Smart meters are not met

• Hence, the obligation of the 3rd Package has been fulfilled, with a negative outcome

• Does this mean the smart meter is not an issue in Belgium any more?

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STAKEHOLDER DIALOGUE IN FLANDERS/BELGIUM

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Policy platform smart grids

• Flemish governement created a long term vision• 1 area of action is ‘Smart cities’• VREG – Flemish Regulator of Electricity and Gas

markets was assigned as leader for this project• A stakeholder platform ‘Beleidsplatform slimme

netten’ was created as a forum for discussion• Several organisations participate and express

their opinions

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Policy platform smart grids (2)Participants:•Representatives of industrial, household and vulnerable clients (energy poor)•Social-economic Council and Environmental Council•Sector representatives: DSOs, TSO, suppliers, ESCOs, aggregators,…•Other government agencies, interest groups,…

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Next steps

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NEXT STEPS – WALLOON REGION (1)

A “smart meter friendly” scenario is proposed

In this case, the smart meters are rolled-out:● On demand (the client pays for the installation)● Bad payers households● Replacement of a defective meter● New connection

Outcomes :● 15% smart meters in 2020, 35% en 2030 (estimation)● NPV = + 585 M€● Total cost: 947 M€

No decision yet

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NEXT STEPS – BRUSSELS (1)

Roll-out of “advanced” meters•For some specific clients; essentially big consumers and industrials

• AMR (Automated Meter Reading) meters for clients connected to the grid on high voltage => load curves reading on a day+1 basis

• “REMI” meters for clients with a big consumption but connected on low voltage => reading on a monthly basis

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NEXT STEPS – FLEMISH REGION

• DSOs in Flanders finished a first pilot project, called “proof of concept”, which was mostly concerned with technical aspects of smart metering

• Second phase, started up now is the “pilot project”: • On a larger scale than the proof of concept (45.000

meters)• Smart meters with different functionalities• In order to test required logistics for roll-out process• Ambition to go further: with smart meters market

processes have to be re-analysed• First analysis of costs and benefits in real life situations

• Integration with Linear project

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NEXT STEPS – FEDERAL LEVEL

Towards an adaptation of the market model?•Project to create a new “Central Market System” in 2016: a common platform for the exchange of data for market processes•Two main goals of the new Central Market System:

• To have more efficient and simpler market processes

• To be Smart Meters Ready•Market participants and regulatorsRespect of privacy•Privacy Commission participating in the reflections

Pilot projects in Flanders

State of play October 2013

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Pilot: Firmware upgrade

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1. Masters SCM2. Slaves SCM3. Flonidan FW - 19964. Hexing FW - 220

1. Masters SCM2. Slaves SCM3. Flonidan FW - 19964. Hexing FW - 220 IMDMSIMDMS

SAPSAPMDMMDMIPT/AMMIPT/AMM

MobileMobile

PLC

verbruiksfeedback

MOC

SMTSMT

Release ERelease E

MS7 MS8MS7 MS8

MS7 MS8MS7 MS8

Belgacom

Telenet

Study EE - Pilot - planning

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Nu

Naïeve periode

Design van het onderzoek

12/2013 Nieuwe KBA VREG

01/2016 Rapport jaar 1

10/2014 Start testperiode

Testperiode jaar 1 Testperiode jaar 2

Verwer-king resultaten jaar 2




2013 Go live verbruiks overzicht Infrax

10/2013 Eindrapport PoC deel 2 01/2017 Rapport jaar 2

10/13 Go live verbruiksoverzicht Eandis => Verschuift => volledige studie schuift gelijkmatig mee

New Central Market System

Central Market System• Start of operations planned mid 2016• The roles of data hub and market

facilitator will be both incorporated within Atrias, the Central Market System

• Atrias was created in 2011 by the Belgian DSOs

• Operation of Atrias will cover the whole of Belgium

• Hence, the regional regulators cooperate intensively preparing the CMS and MIG 6

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VAN

VAN

Supplier 1Supplier 1




Supplier nSupplier n

Fluxys / ELIAFluxys / ELIAShipper / Balance

ResponsibleShipper / Balance

Responsible

Indexis

Indexis

Publi-

clear

Publi-

clear

CHCH

Wal- ClearWal- Clear

Atrias

FederalClearing House (CH)

Atrias

FederalClearing House (CH)





Supplier nSupplier n

EandisEandis

OresOres

InfraxInfrax

SibelgaSibelga

TecteoTecteo

Fluxys / ELIAFluxys / ELIAShipper / Balance

ResponsibleShipper / Balance

Responsible

EandisEandis

OresOres

InfraxInfrax

SibelgaSibelga

TecteoTecteo

As-IsAs-Is To-BeTo-Be

Atrias will be the only platform for the exchange of market data between energy suppliers, grid operators and other market participants

Infosessie - MIG6 Pre-Processing – Session d’information 28

Atrias as Central Market System

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GO-live

MIG 6

July ’16Jan’12 Mar ‘14

Build

July’14

Translation of MIG6 interactions between DSOs and CMS

End to end market processes => messages

CMS

CMS

Operation

MIG DSO

Data extraction, data transformation en data migration

Migration

Transition

Sept ‘12 Mar ‘13 July ’15June ‘13 Jan ‘14

Purchase

Testing

Infosessie - MIG6 Pre-Processing – Session d’information 2929

Which customers might be rolled out first?

Which customers might be rolled out first?Some segments of the market clearly show more potential:•Big customers (on the Distribution grid)•Prosumers (?)•Bad payers (who now have ‘closed’ system pre-payment meters)•On demand

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Experiences with PPM for bad payersA survey found that:•Customers appreciate that PPMs help them balance their (energy) budget•Organisations speaking for the poor don’t like the PPM, especially not the Gas PPM•90% of the users is satisfied with the existing charging options

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Conclusions

Smart metering is not dead in Belgium• All regional regulators are involved in on-

going discussions• Pilot projects are being executed• A new market model, including flexibility

and smart meter ready market processes is being prepared

• A Central Market System will facilitate the market supported by smart meters

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Thank you for your attention!

[email protected]@DEvercooren on Twitter

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Agrion smart meter conference 11 december 2013 slideshare version

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