Perspective on New Zealand Smart Meter rollout
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Transcript of Perspective on New Zealand Smart Meter rollout
![Page 1: Perspective on New Zealand Smart Meter rollout](https://reader031.fdocuments.net/reader031/viewer/2022020110/55c14cc4bb61ebe2438b4672/html5/thumbnails/1.jpg)
Perspective on
New Zealand Smart Meter rollout
Smart Energy Forum
27 November 2014, Newcastle, Australia
Ron Beatty
Principal Adviser Market Services
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Smart meters or AMI
• New technology is providing large amounts of accurate and timely data
• Smart meters are just complex, programmable, measuring and recording devices • New Zealand Electricity Market (NZEM) defined as advanced metering infrastructure – AMI –
includes comms and back office systems where information is collected by users
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Smart technology transformation
• The real “Smart” we are seeing in the NZEM is
• new customer pricing offers and availability of time of use tariffs
• development of rapid and reliable two way communications
• internet of things
• smart phones
• developing communication protocols
• promise of “Smarter” appliances that may integrate with other systems
• mining of useful information from the extra data collected by the new technology
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NZEM is a mix of contestable market
arrangements
Hedge
market
Wholesale
market
Customer
market
Approved
test
houses
Ancillary
market
Retail
market
Networks
Metering
market
Smart
home
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NZEM competitive metering
• Since 1 April 1999 metering has been a workable competitive market
• metering services are independent of distributor and retailers
• commercial arrangements required
• guidelines available at
http://www.ea.govt.nz/operations/retail/metering/metering-installation/
• The participant responsible for the electricity flow through a point of connection must ensure there is an MEP
• trader (retailer) for customer connections to networks
• grid owner for GXPs
• generator for GIPs
• network owners for network interconnection points
• Voluntary roll out of AMI has resulted in no discernible cost increase to customers as costs and benefits currently accruing to the trader
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Smart meters are part of wider market facilitation
including
• AMI policy and guidelines
• Set out expectations, recommended functionality and arrangements
• http://www.ea.govt.nz/operations/retail/metering/advanced-metering/
• Settlement of secondary networks (customer, network extension and embedded)
• Global reconciliation implemented (UFE)
• Integration of distributed generation into the electricity market for seamless market settlement and customer switching
• Default process for connecting smaller generators to distribution networks
• Centralised data hub
• High speed customer switching
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Smart meters are part of wider market facilitation
including
• New metering rules
• regulated some AMI issues
• dealt with programming changes to AMI
• centralised metering records
• establishment of MEP role
• security and data access
• MEP responsible for AMI meter reading
• guidelines available at http://www.ea.govt.nz/operations/retail/metering/metering-installation/
• Regulated business to business file exchanges
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1 – First industry led data clean-up process completed
2 – Regulator signalled intent to enforce switching regulation, use of estimates commenced
3 – Global reconciliation and monitoring became effective
4 – Regulator required 50% within 5 business days and 100% within 10 business days
5 – Regulator put in place new metering rules and data cleanup – no impact to switch period
3 4 5 2 1
Smart customer switching
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AMI installations as at 31 October 2014
-
500,000
1,000,000
1,500,000
2,000,000
Jan-0
8
Apr-
08
Jul-08
Oct
-08
Jan-0
9
Apr-
09
Jul-09
Oct
-09
Jan-1
0
Apr-
10
Jul-10
Oct
-10
Jan-1
1
Apr-
11
Jul-11
Oct
-11
Jan-1
2
Apr-
12
Jul-12
Oct
-12
Jan-1
3
Apr-
13
Jul-13
Oct
-13
Jan-1
4
Apr-
14
Jul-14
Oct
-14
Jan-1
5
Apr-
15
Nu
mb
er
of
ICP
s
Year and month
AMI installations
Actual installed Current trend Number of ICP identifiers
Trend based on last 6 months installs of 17,043 ICPs/month
• NZEM rollout • signalled regulatory requirements and
expectations early to market
• costs and benefits initially realised by traders
• AMI takes a long time to roll out
• regulated agreements
• opt out/in and customer customers
• process changes have been disruptive
• Either rolling out AMI or intending to roll out AMI • 8 MEPs owned by networks
• 3 MEPs owned by retailers
• AMI being used in customer settlement • 21 retail brands
• most still use NHH meter readings
• only 2 retailers use HHR AMI meter readings for invoicing and market settlement
55% of customer installations have AMI (communicating) installations operational
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Reconciliation and distributed generation
• NZEM uses full global reconciliation • traders provide consumption information
• identifies unaccounted for electricity (UFE)
• All buyers and sellers to NZEM do so on same terms
• monthly revisions to 14 months
• Reconciliation model solves for 378 NSPs by trading period and allows for • grid connected generation
• any amount of embedded generation
• grid connections to local networks
• interconnections between local networks
• interconnections to secondary networks
• customer networks
• network extensions
• embedded networks
UFE decreasing markedly as AMI is being installed
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AMI has already enhanced market outcomes
• Integration of consumers into the electricity market using innovative tariffs – indirect load control
• Improved consumer information using web portals
• Accurate monthly customer invoicing – no estimates
• Reduction in network losses
• More accurate monthly wholesale market settlements
• Retailers able to manage vacant consumption
• New retailers entering the electricity market with innovative competitive service offerings to customers
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• Flick is a new entrant retailer that uses 30 minute AMI information to invoice customers at wholesale cost (48 different prices per day, every day)
• Flick provides web browser access to customers to keep track of their expenditure and the savings made on Flicks tariff
• Customers receive incentives from the pricing to shift consumption to low cost weekend and night periods
AMI enabled retail competition
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13
Retail competition is working
HHI refers to the Herfindahl-Hirschman Index. This index is the sum of the squares of the market shares of every retailer in a market. For example, if there are two retailers and one has 80% market share and the other has 20% then the HHI = 80x80 + 20x20 = 6,800. If they each had 50% market share then HHI=5000
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• Number of customers choosing a new retailer steadily increasing since 2006
• Last 12 months about 20% of customers switched
• Number of new entrant retailers entering market with new products
Retail competition is working
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Future smart developments
• Around the world, the energy industry is facing fundamental change • change is disruptive to current processes
• digital consumer technologies are creating new opportunities for utilities and others
• “internet of things” evolving – consumer choice with smart products
• Networks may become balancing systems • development of microgrids
• economic battery storage
• Smart use of “Big Data” - AMI and SCADA information • safety
• asset maintenance improvements
• capital deferral
• integration of renewable generation
• Consumers are becoming more • connected
• expectations are increasing
• self sufficient
• energy efficient
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Ron Beatty Principal Adviser Market Services
DDI: +64 4 462 0609 Mobile: +64 21 618 048 Email: [email protected]
Electricity Authority - Te Mana Hiko Level 7, ASB Bank Tower, 2 Hunter Street PO Box 10041 Wellington 6143 New Zealand
www.ea.govt.nz