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    Supergen III: Highly Distributed Energy Futures

    Assessment of Smart Metering for

    Control of Micro-generation and Cells

    Reference Date: EPSRC/HiDEF/TR/2010-09

    Distribution: Public

    K. Samarakoon, J. Wu, J. Ekanakaye, A. Burchill, N. Jenkins

    Cardiff University

    Version: 2010-V5

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    Executive Summary

    A network cell, as defined in HDPS, is an area of network in which a collection of

    distributed resources can be controlled in response to a number of defined objectives.

    The combination of the cell concept and demand-side integration (DSI) initiatives

    provide a promising way to address the emerging challenges of contemporary power

    systems such as infrastructure aging and large penetrations of distributed generation

    and renewables. The implementation of cells and DSI needs an advanced information

    and communication infrastructure. Smart metering is seen as essential to facilitate the

    cell and DSI through providing real-time or near-real-time information exchange and

    advanced control capabilities. The functional specifications of smart metering vary by

    country/region and with variations in the technical, economic, social and political

    objectives. Typical functions of smart metering are discussed and illustrated. In thisreport, existing metering technologies are categorised as Automated Meter Reading,

    Automated Meter Management, Interval metering with Automated Meter Management,

    Prepayment Meters, and Smart Metering, in increasing order of sophistication. The

    typical functionalities and benefits of different metering technologies are compared.

    International initiatives, policies and experience in and plans for smart metering are

    reviewed. Progress in standardization of smart metering in the UK is discussed. Smart

    metering though DSI programs is capable of providing strong support to power system

    operation and planning, and facilitates the advanced control of micro-generation and the

    overall cell. The support provided by smart metering to various DSI programs is

    discussed. This report is intended to inform regional and UK decision makers regarding

    the near-term implementation of smart metering in the UK.

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    Table of ContentsTable of Contents .........................................................................................................31 Introduction..........................................................................................................4

    2 Smart Metering.....................................................................................................5

    3 Initiatives in the UK to deploy smart meters .........................................................8

    4 Worldwide initiatives and policies to deploy smart meters .................................... 94.1 Italy................................................................................................................9

    4.2 United States ................................................................................................10

    4.3 Sweden.........................................................................................................114.4 Canada..........................................................................................................11

    4.5 Northern Ireland ...........................................................................................12

    4.6 Netherlands...................................................................................................124.7 Australia (Victoria).......................................................................................13

    5 Smart metering technologies and demand side integration (DSI)......................... 13

    5.1 Retrofitting existing meters...........................................................................13

    5.2 AMR with usage information through the Internet ........................................ 145.3 Use of AMR Interval maters with AMI expansion capabilities... ................... 14

    5.4 AMR Interval meters with wireless smart displays............................ ............ 15

    5.5 Smart meter with embedded intelligence.......................................................155.6 PriceLight .................................................................................................15

    6 DSI through demand response management (DRM) ........................................... 16

    6.1 DRM through management companies .........................................................166.2 Smart devices for DRM................................................................................16

    7 Standardisation of smart metering in the UK....................................................... 17

    8 System Support from smart metering through DSI.................................. ............ 189 Conclusions........................................................................................................20

    10 References....................................................................................................20

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    1 Introduction

    In many regions around the world, the electric power infrastructure is aging and

    becoming overstressed with increasing demand. This situation will become worse if a

    large amount of micro-generation, plug-in electric vehicles and heat pumps are

    connected to the power system. Obtaining planning permission for new power system

    assets is becoming increasingly difficult. Therefore new strategies, e.g. cell and

    demand-side integration (DSI), are needed to make better use of existing infrastructure

    and to improve energy efficiency.

    With the targets for reducing CO2 emissions and improving energy security, there is an

    increasing trend to connect distributed generation (DG) and renewable energy sources

    to the power system. However the connection of a large amount of intermittent DG and

    renewable generation will cause serious system operation problems (at both

    transmission levels and local distribution levels). One solution to problems caused by

    intermittency is to add large-scale energy storage into the power system. This is not

    practical currently due to technical limitations and cost. Therefore the introduction of

    the cell concept and increased flexibility in the demand side with support from micro-

    generation are being considered as a promising way to address these challenges.

    The implementation of DSI and the cell concept needs an advanced information and

    communication infrastructure. However the presently installed electro-mechanical

    meters without or with very limited communication channels, particularly in domesticpremises, do not support these initiatives. Smart metering refers to systems that

    measure, collect, analyse, and manage energy usage. It includes two-way

    communication networks between smart meters and various parties. Smart metering is

    seen as a key technology that facilitates the cell and DSI through providing real-time or

    near-real-time information exchange and advanced control capabilities.

    The term cell, as defined in HDPS, is used to define an area of network in which a

    collection of distributed resources can be controlled in response to a number of defined

    objectives. These can be defined with a scope that is either external or internal, and are

    specified at both the time of the cell definition and by an external parent entity when

    operational.

    As an ICT solution, the benefits of installing smart meters have being discussed in

    various forums. The installation of smart meters has been mandated in Norway [1],

    USA [2], Canada [3] and the European Union (EU) [4]. In the UK, pilot programmes

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    and a series of policy making activities are taking place. In some other countries pilot

    programmes have already been conducted.

    DSI based on smart metering is expected to be effective in three ways.

    Consumer behaviour changes through feedback [5] of accurate information ofenergy consumption with flexible tariffs schemes (e.g. time of use) thus promoting

    efficient use of energy.

    Demand control during critical peak events.

    Consumer participation in energy supply through domestic micro-generation.

    In addition, Utilities can use accurate, online information obtained through smart

    metering for better network planning, operation and management including cell control.

    In order to provide these facilities, a smart meter system should be capable of two-way

    communication, preferably with a high data rate and associated functionalities. If such acommunication network is available, additional facilities and services can be provided

    to the consumers as well as suppliers.

    2 Smart Metering

    The functions of smart metering vary by region and requirements from technical,

    economical, social and political aspects. Smart Metering solutions need to provide

    several of the following functions shown in Figure 1.

    Metering technologies can be broadly categorised in an increasing order of

    sophistication as follows [6][7]:

    Automated Meter Reading (AMR)

    Automated Meter Management (AMM)

    Interval metering with Automated Meter Management (AMM)

    Prepayment Meters (PPM)

    Smart Metering or Advanced metering infrastructure (AMI)

    Commercially available meters have overlapping functionalities, but in general, the

    functionalities can be broadly grouped as Table 1, and the benefits are listed in Table 2.

    Formatted: No underlin

    Formatted: No underlinCheck spelling and gram

    Deleted: Figure 1

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    MetrologyCommunications

    and Data Processing

    Human-Manchine

    InterfaceMeter Management Control

    Power System

    Operation an

    Planning Suppo

    Major Functions of Smart Metering

    Meets all statutory &

    legislative metrology

    requirements

    Four quadrant

    measuring unit, i.e.

    record kWh & kVarh

    input & export

    separately

    Provide on demand

    reading, i.e. provide

    timed & stored meter

    readings when the

    metering system is

    polled

    Send data periodically

    as scheduled

    Resilient 2-way

    communication

    Timing function

    Calculate values from

    measured quantities

    Last grasp

    communication

    (outage alarms) for

    outage management

    Display of

    measurements and

    calculated quantities

    Display and

    configuration of

    metering / account

    seetings

    Display and response

    to messages /

    instructions

    Remote / local

    calibration

    Remote / local

    software / firmware

    configuration and

    upgrades

    Account management,

    e.g. credit / debit or

    rate settings

    Theft / tamper

    management

    Diagnostics

    Event logs, e.g. fault,

    tamper and diagostics

    Remote disablement /

    enablement of supply

    Load limiting

    Distributed generation

    control

    Advanced home-area

    energy management

    Provide rele

    information

    network per

    assessemnt

    Provide rea

    near-real-tim

    voltage con

    current contfrequency c

    the system i

    in islanded

    Provide out

    and system

    outage man

    Prompt outa

    verification

    restoration

    verification

    Figure 1. Main functions of smart metering

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    Functions AMR AMM

    Intervalmetering with

    AMM PPM AMI

    Has a communication link from meter to supplier toread meter remotely

    Has a communication link from supplier to meter Network operator can remotely limit energy supply anddisconnect if required

    Tariffs can be changed remotely

    Real time data can be displayed to user

    Fraud and tamper protection Measure energy consumption and related informationat shorter intervals (half hourly or less) and store andsend to the supplier

    Can have multiple tariffs structures (Time-of-use tariffs) Supplier can switch the meter between credit orprepayment

    Remote calibration facility Can provide detailed information such as historical costand credit remaining

    Allow for changes of tenancy

    Credit entry through keypad

    Can add credit remotely

    Can control appliances remotely Provide facilities for network design, operation,management

    Table 1. Comparison of functions of different metering technologies

    Benefits AMR AMM

    Intervalmetering

    withAMM PPM AMI

    Manual meter reading is not required thus reducing thecost and practical difficulties of meter reading Allows the production of bills based on actual readingsrather than inaccurate estimated bills Customer can change the supplier quickly as accuratemeter readings are available Detect and notify fraud when a meter has beentampered with

    Visits and manual re-setting of meter are not necessarywhen price and tariff changes Make the customer energy, cost and efficiency aware,so that consumption is adjusted to reduce the cost

    Improved facilities for pre-paid customers Could help to avert large scale black-outs throughcontrolled load shedding during critical peak events

    Table 2. Comparison of benefits of different metering technologies

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    3 Initiatives in the UK to deploy smart meters

    History and Progress:

    o The UK has thirty years of advanced metering history. This started in the

    mid 1980s but with energy-industry re-structuring, and the introduction

    of retail competition within meter development, no significant progress

    had been taken place from 1990-98 [6].

    o From 2000 onwards, four significant policy reports were produced.

    Despite the efforts, consultations, reviews and policy initiatives, the

    policy-push on smart meters stalled [6].

    o In December 2005, the European Parliament issued the directive [4] on

    energy end-user efficiency improvement. It requires member countries

    to provide meters that give actual energy consumption and actual time of

    use to improve the efficiency of demand side behaviour.o Between 2005 and 2007 EnergyWatch proposed the introduction of

    smart meters to benefit energy suppliers, consumers, energy distributors

    and finally the environment. From the perspective of consumers, it

    anticipated a behavioural change resulting from the updated information

    provided via a smart meter [8][9]. It also analysed the cost benefits of

    smart meters [10].

    o In February 2006 Ofgem began a consultation [7] to explore the strategy

    needed to introduce smart meters in the context of the UKs competitive

    domestic metering services market and also to realise the benefits of

    smart meters.

    o In November 2006, the DTI issued the Energy Review consultation [11]

    regarding the provision of detailed consumer billing and smart meters.

    The response was issued in July 2007.

    o In April 2007, BERR issued a report [12] identifying the costs and

    benefits of the various smart meter roll out options, and discussing

    issues such as displays and communication options.

    o In May 2007, the DTI issued the White Paper on Energy [13] which

    proposed the introduction of smart meters within the next decade. In

    August 2007 BERR issued a consultation [14] on policies presented inthe White Paper and in April 2008 issued the Government's response to

    the consultation.

    o The Energy Demand Research Project (EDRP) managed by Ofgem

    began conducting trials in 2007 Final reports on these trials are expected

    at the end of 2010. Out of four trials two have been conducted by

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    installing visual displays for 8,500 households and smart meters for

    18,000 households [15].

    o The UK Government decided upon a roll-out of smart meters from

    January 2009 for large scale, non-half hourly metered customers whose

    annual consumption is above 732 MWh and to complete installation by2013 [16]. BERR issued the final consultation on the above in January

    2008 [17].

    o BERR issued a consultation on smart meters for small and medium scale

    commercial customers in July 2008 [18].

    o In May 2009, DECC issued a consultation seeking views on the

    proposals for the roll-out of smart metering to all domestic customers

    and at small and medium non-domestic sites in the UK [19].

    o In May 2009, DECC also issued impact assessments examining the

    impact of a smart meter roll-out on domestic customers [20] and small

    and medium sized commercial customers [21]

    o In July 2010, DECC and Ofgem issued the Smart Metering

    Implementation Programme: Prospectus, a series of consultation

    documents concerning smart metering in the context of domestic

    consumers in the UK [22]

    Motivators:

    o CO2 emission reduction and to meet the 20% energy saving expected by

    2020.

    o Energy saving by providing information through accurate bills and real

    time displays.

    Technology:

    o The reports imply that the meters to be installed will be AMM Interval

    meters. The White Paper proposes import-export tariffs and EDRP trails

    have used combined electricity and gas meters.

    4 Worldwide initiatives and policies to deploy smart meters

    4.1 Italy

    History and Progress [7][23]:

    o From the early 1990s Enel had implemented AMR and AMM for energy

    intensive customers.

    o A pilot of 70,000 installations confirmed the technical viability of

    Distribution Line Carrier on the low voltage grid, and also confirmed

    that retrofitted meters are not cost effective.

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    o In 2001, Enel started to replace electromechanical meters with AMM

    meters. By 2005, 27 million meters had been replaced.

    o In 2006, the Italian regulatory authority (AEEG) mandated the full

    introduction of smart meters for all the consumers by 2011

    o The Italian governments timetable is for 95% of customers to be onsmart meters by by 2011

    Motivators [7][23]:

    o Italy sees a large number of visits to consumer premises per year as a

    result of fraud, theft and changing power entitlements. Outstanding debts

    were difficult to collect due to a number of hard to access areas which

    necessitated AMR technology.

    o They faced blackouts due to insufficient generation and expected

    efficiency improvements through smart meters to alleviate the situation.

    Technology: (See section 5.3 for details)

    o AMM Interval Meter

    PLC (over Distribution circuit) between meters and transformers and then GSM/fixed

    lines to data centres with IP communication.

    4.2 United States

    History and Progress [2][7]:

    o USA consumers have had access to AMR for some time.

    o The Energy Policy Act of 2005 required all public electricity utilities tooffer AMM Interval meters to customers upon request.

    o The act allowed three tariffs to be specified, namely time-of-use prices

    that are allowed to change twice a year, critical-peak-prices as an

    exception to time-of-use price (for certain days) and real time prices that

    can be changed every hour.

    o In the USA, the states of California, Tennessee, Illinois, New Jersey, and

    Washington DC are at the forefront of smart meter initiative

    o The California Public Utilities Commission approved a request by

    Southern California Edison to install 5.3 million smart electricity meters

    into houses and small-business sites by 2012. At the end of 2010,

    around 1.8 million had been installed. It is expected that at least 40% of

    customers in the US will have smart meters installed by 2012.

    Motivators [2][7]:

    o It is particularly challenging to ensure a reliable supply during the

    summer peak demand period when air conditioners are used extensively.

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    Technology [2][7]:

    o AMR Interval Meter and AMI

    o Most systems use radio as the communication medium

    o All utilities are now aiming for AMI

    4.3 Sweden

    History and Progress [1][7][27]:

    o Studies were started in 2001

    o In 2003 a bill was passed to mandate new metering regulation requiring

    all energy meters to be read monthly by July 2009.

    o Meter installation of over 5 million users is now complete, permitting

    automatic monthly readings nationwide

    o The Swedish regulators are now considering mandating hourly readings

    Motivators [1][7][27]:

    o Higher energy prices and unclear and inaccurate bills

    o Need of energy conservation

    Technology [1][7][27]:

    o From AMR to AMM Interval Meter

    4.4 Canada

    History and Progress [7][24][25][26]:

    Ontarioo Installed 1 million smart meters by 2007 and has now achieved almost

    complete coverage.

    o The Energy Conservation Responsibility Act of 2006, sets out the broad

    purposes and objectives for Meter Data Management and Repository

    (MDM/R)

    o Acts were changed to accommodate AMI specifications, released after

    several consultations, in order to allow them to access the latest

    technologies

    o The project has been heavily criticised by consumer groups, with many

    customers already placed on time of use tariffs complaining of increased

    bills.

    Motivators:

    o To reduce needle peak time (a few hours every day in summer)

    Technology [7][24][25][26]:

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    o AMM Interval Meter with two way communication

    o Distributors should comply with the AMI functional specifications and

    should be able to connect to the proposed Meter Data Management and

    Repository (MDM/R) system.

    4.5 Northern Ireland

    Progress [1][7][27]:

    o Started in 2000

    o Installation of keypad type prepayment meters is now complete

    Motivators [1][7][27]:

    o Consumers had been using Power Cards (a magnetic prepayment

    card). Due to operational and servicing costs, and concerns about

    security and fraud, an alternative payment solution was required.

    o Poor customer satisfaction due to self-disconnection and additional

    surcharges.

    Technology [1][7][27]:

    o Prepaid meter (PPM)

    o New trials for using time-of-use tariff have been undertaken since 2005

    4.6 Netherlands

    Progress [1][7]:

    o Conducted detailed cost-benefit analysis

    o The grid operator (Continuon) started a pilot project in 2006 proposing

    the installation of 50,000 smart meters.

    o Some suppliers (Oxxio) offered combined smart meters for electricity

    and gas from 2006

    o The Government proposed in September 2007 that all 7 million

    household should have a smart meter by 2013

    o In April 2009, following concerns from consumer groups about privacy,

    the government was forced to revise its mandate on the installation of

    smart meters in favour of a voluntary scheme

    Technology [1][7]

    o AMR meters

    o Continuon meters read electricity and gas and communicate through

    power line carrier (PLC)

    o Oxxio meters communicate through GSM/GPRS

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    o Customers can access energy consumption information through the

    Internet

    4.7 Australia (Victoria)

    Expectations [1][7][27]:

    o In the case of new and replacement meters, installation commenced from

    2006

    o It was proposed that all customers consuming greater than 160

    MWh/year would have have a smart meter installed by 2008

    o and that all customers consuming less than 160 MWh/year and more

    than 20MWh/year by 2011

    o As of March 2010, the state government has placed an indefinite

    moratorium on the smart metering rollout

    Motivators:

    o To reduce the summer needle peaks through information provided to

    customers

    o To eliminate manual meter readings

    Technology [1][7][27]:

    o AMM Interval Metering facilitating future innovation

    5 Smart metering technologies and demand side integration (DSI)

    As shown in Figure 1, smart metering solutions are available with different

    functionalities and employing different technologies. The following examples are

    selected as representative cases.

    5.1 Retrofitting existing meters

    Conventional electro-mechanical meters and digital meters without pulse output cannot

    be used to provide any feedback to the consumer or to the supplier. Some technologies

    facilitate retrofitting such analogue and digital meters through non-invasive equipment

    such that those meters are converted to AMR. Techniques such as introducing optical

    position sensors [29] or optical character recognition (OCR) based readers [30] are

    commercially available. However, most smart meter initiatives do not consider

    retrofitting as a feasible solution due to the cost and the limited capability for future

    expansion and instead opt for digital smart meters.

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    5.2 AMR with usage information through the Internet

    This option does not give the full flexibility of interval metering, but collects meter

    readings remotely and provides information to the customer through the Internet.

    As an example, Energy Controls [31] has smart meters that can be fitted in

    standalone installations or as part of a comprehensive metering system that comes with

    a module slot for simple Plug & Play connection of a communications unit. It permits

    direct connection or a CT based installation. The Plug & Play communications

    module offers universal connection for high-speed reliable data transmission including

    RS232/485, PSTN, GSM/GPRS and Ethernet. It reads meters automatically through

    these communication lines. Collected consumption data is stored on the company's

    secure server which can be backed up daily.

    Customers can access their meter readings using a standard internet browser. The datacan be manipulated to produce reports in a graphical format to identify consumption

    trends.

    5.3 Use of AMR Interval maters with AMI expansion capabilities

    The use of AMR Interval meters is the most common approach in smart meter

    deployment and the principal implementation expected to expand to AMI in the future.

    As an example, theTelegestore smart meter system used by Enel of Italy [23] is

    shown in Figure 2.

    Figure 2. Telegestore System Architecture [23]

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    The Central Management System communicates via public telecommunication

    networks (GSM, GPRS, PSTN & satellite) with LV concentrators installed in every

    MV substation (one concentrator per transformer), as shown in Figure 2. LV

    Concentrators have two-way communication with the Central Management System and

    meters through PLC half-duplex with net speed of 2400 bits/sec. Electronic meters areintegrated ones (equipped with breakers or disconnectors) providing metering, contract

    management and PLC communication functions.

    5.4 AMR Interval meters with wireless smart displays

    Some smart meter solutions [32] provide AMR Interval meters with wireless smart

    displays. These displays mostly use the ZigBee communication protocol and provide

    detailed information to the user through remote displays.

    5.5 Smart meter with embedded intelligence

    A smart metering device developed by Oxford University [33] claims it identifies the

    type of appliance based on the time of use, period of use and the current waveforms and

    accurately measures the amount of energy being used by the individual appliance. It

    uses acquired data and probabilistically determines what the appliance is. It

    incorporates a learning mode and can independently identify appliances when they are

    used for the first time. It also identifies appliances operating outside of their normal

    modes of electricity consumption and can detect malfunctions and 'energy-guzzling'

    devices.

    It does not use monitoring devices on each plug, rather using a single-point

    interrogation of the mains supply providing building-wide information on appliance

    use. It can be used to identify opportunities for short and long term savings by

    analysing the captured data. The device is capable of providing captured information to

    a home PC or a mobile phone.

    5.6 PriceLight

    In 2007 American Illinois Utilities (AIU) started a pilot, real time pricing programme

    called the Energy PriceLight Program [34]. The PriceLight is a small orb that glows in

    different colours based on the current estimated price of electricity. The PriceLight

    receives a wireless radio signal and glows different colours to reflect advisory hourly

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    market prices of electricity. It has a colour spectrum that ranges form blue to red. The

    best time to use is when the colour is cooler, whilst warmer colours remind participants

    that prices are high and to use their energy more sparingly.

    The programme was intended to study whether customers would modify theirelectricity consumption behaviour in response to the PriceLight display. The study

    showed these customers did have a higher elasticity than customers without the

    PriceLight.

    6 DSI through demand response management (DRM)

    6.1 DRM through management companies

    In the USA, there have been small scale initiatives of demand response managementthrough management companies. Comverge (with over 500 utility clients, 4.5 million

    devices and 495 MW) [35] and EnerNOC (cumulative participation of 1.5 GW) [36] are

    such two companies.

    The initiatives use prior agreements with electricity utilities and with commercial and

    domestic customers to reduce the consumption when required by the utilities.

    Comverge installs equipment in consumer premises (with whom they already have an

    agreement) such as smart thermostats capable of reducing power on request. In an

    emergency, suppliers can communicate directly with these devices and reduce their

    consumption.

    EnerNOC operates a 24 hour Demand Response Control Centre (DRCC) which

    monitors utilities load balance and intervenes during an emergency to bring down the

    power consumption of contracted customers. In an emergency the DRCC informs

    contracted consumers to reduce their consumption manually or it can control equipment

    directly through communication links. In addition to the load reduction contracted

    consumers can start backup generation in anticipation of an impending critical event.

    6.2 Smart devices for DRM

    Smart devices such as Smart Thermostats [37] can be programmed locally by the user,

    or remotely over the Internet to operate on a time based or tariff based schedule such

    that they are responsive to real-time and critical peak pricing. They use adaptive

    algorithms to save energy and one can control multiple appliances such as electric

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    water heaters, pool pumps, and hot-tubs. The thermostats display information such as

    energy usage, monthly bill data, and current energy price etc. During a critical peak

    event they change their settings automatically to reduce electricity consumption. Some

    of the smart devices communicate with the smart meter so that energy demand response

    companies or the supplier can control devices remotely by changing the settings torespond to critical peak events. The users are given the option to override in a non-

    critical event and if it is a critical event, the thermostats settings will be changed or

    devices will be switched off according to the instructions given from the network

    operating centre or the supplier without the immediate consent of the contracted user.

    With the use of a flexible tariff, manufacturers expect to include indicators for the

    equipment which cannot be controlled directly, such as dish-washers and washing

    machines, to warn the customer about the higher tariff.

    7 Standardisation of smart metering in the UK

    An interoperable platform for smart metering is required in order to provide an energy

    supplier with protection for the smart metering systems they choose to install. Without

    this guarantee of interoperability, energy suppliers may need to replace a proprietary

    smart meter when a customer changes gas or electricity supplier, leaving the previous

    supplier at risk of bearing the outstanding costs for the replaced meter. The requirement

    to replace the meter after stranding a supplier highly influences the cost-benefit analysis

    which decides the future of smart meter deployment.

    The Energy Retail Association (ERA) has started the Supplier Requirements for Smart

    Metering (SRSM) project to present Smart Metering Operational Framework Proposals

    [OFP]. The purpose of the OFP is to provide the expected interoperability

    [38][39][40][41][42]. To meet this objective, the OFP has defined a number of non-

    functional elements as well as functional elements relating to:

    Data transfer protocol definitions and communication solution options

    Metering System definitions and solution options

    Business process definitions

    Local device definitions

    In the OFP, functionalities are specified as M - Mandatory or as P - Potential, where

    potential functionalities are the desired features that will be considered for cost/benefit

    in future specification development.

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    The OFP specifies all basic functionality that is required by a smart meter such as two-

    way communication, remote meter management, flexible tariff structures, and import

    export metering, credit and debit payment methods as mandatory requirements. These

    functions are essential for DSI as well. It proposes a modular design allowing plug and

    play replacement of components which could facilitate the future addition of DSIfunctions. Load limiting, load switching and remote interruption functions are

    identified as potential functions for DSI.

    The OFP mentions that the requirement for possible future applications of demand side

    management such as home control solutions for intelligent load shedding, the next

    generation of home appliances and signalling to micro-generation could all be included.

    It specifies potential measurements such as maximum demand kW, kVA, kVAR and

    power quality information which will generate notifications upon deviation from

    standard limits. In addition to the above, more metering parameters would be needed in

    future DSI. In order to accommodate future micro-generation, the specification

    indicates that reactive power measurement and the measurement of gross and net

    values of micro-generation could be included.

    Even though the OFP specifies the basic functions required for DSI, it may be

    necessary to make some of the potential features mandatory and add more features to

    support future DSI applications.

    8 System Support from smart metering through DSI

    Smart metering though DSI programs is capable of providing support to the power

    system operation and planning, and facilitates the advanced control of micro-generation

    and cell. DSI initiatives are implemented to provide supports to TSOs/DSOs or non-

    TSOs/DSOs participants. In a deregulated environment most of this support will be

    provided through a market. The support provided by smart metering through various

    DSI programs are briefly discussed in Table 3.

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    Load reduction in

    case of frequency

    drop

    Supports Description

    Load shedding has been widely used as a Demand Side Management measure implemented to maintain power system security,

    which is triggered when the frequency drops under a certain threshold, for example 49 Hz in Europe. In particular, it consists of

    tripping (usually automatically) of the whole distribution feeder. Load shedding is planned by the TSOs but is implemented by

    the DNOs with regard to the tripping of distribution feeders (and the choice of the feeders to trip).

    DSI programs are able to provide load reduction instead of load shedding in this case in a much smarter and more efficient waywhile reducing inconvenience to the customers.

    Frequency control

    Frequency control is mainly the responsibility of the TSO, which consists of primary frequency response, secondary frequency

    control, tertiary frequency control and ba lancing mechanism.

    DSI has already participated into primary frequency response through the self-regulating effect of frequency sensitive loads

    such as induction motors or the action of frequency sensitive relays that disconnect or connect loads at given frequency

    thresholds. However the self-regulating effect of loads is not controllable. Further utilisation of demand side resources will be

    able to improve the reliability of the primary frequency response.

    Large industrial loads can contribute to secondary frequency control, however the involvement of medium and small loads is

    more complicated and will require some sort of load aggregation along with appropriate control strategies.

    Tertiary frequency control is generally associated with the balancing mechanism. The TSO calls for bids and offers from power

    system participants to actively manage either their load or their generation in particular locations at particular times. In some

    countries, industrial loads are used to contribute to tertiary frequency control or to the balancing mechanism. DSI programs are

    able to facilitate the possible contribution from medium and small loads. Load aggregation has to be implemented to collect

    enough load to reach the minimum size limit.

    With the large penetration of DG and the development of DSI in distribution networks, DNOs will also be requested to

    contribute to frequency response.

    Volt/Var control

    Customers have already contributed to voltage control at the transmission level through power factor correction.

    Industrial customers often have to compensate reactive power at their own installations in order to avoid penalty.

    The control of reactive power by customers improves the voltage profile on the network.DSI is able to contribute to voltage control in the distribution network but appropriate monitoring in order to avoid adverse

    effects is necessary.

    Relief of network

    congestion

    DSI programs can be used to mitigate congestions on the distribution network through load modification (therefore modify the

    power flow on the network).

    Regarding congestions on the transmission system, the TSO may request the DNOs to reduce loads and DSI programs on

    distribution networks are able to provide solutions.

    Supply restoration

    DSI is capable of contributing to supply restoration after a partial or complete loss of power supply on part of the distribution

    or transmission network or after a blackout.

    Limiting consumption will help generation units or substations to restore the network segments and then reconnect the whole

    network.

    Many large industrial customers have contractual commitments with the TSO to contribute to supply restoration.

    DSI programs can help medium and small customers to contribute to supply restoration.

    Load limitation

    DNOs may have contracts with the TSOs for the access to the transmission network and the power delivered at the substations

    between the transmission and the distribution networks. DSI can be used to limit the load so that DNOs can meet the

    contractual commitments at the delivery points.

    DSI programs can also reduce system peak load levels therefore defer investments from DNOs and TSOs.

    Maintain system

    voltage stability

    Loads play a crucial role in maintaining power system voltage stability, which is mainly the responsibility of TSOs.DSI programs can be used to provide complementary solutions provided that they can be coordinated with other measures, e.g.

    increasing reactive power injection, and starting standby generation units.

    Islanded operation

    If some section of a power system is operated in islanded mode, the real-time balance between load and generation must be

    maintained.

    DSI programs can to be used to provide cost-effective solutions.

    Reduction of CO2

    emissionDSI programs can be used to reduce the use of fossil-fuel based generation units and therefore provide a way to reduce the

    CO2 emissions.

    Reducing the energy

    price

    For a retailer, by shifting the customer load from high-price periods to low-price periods through DSI initiatives, the cost of

    sourcing and the customer bills can be reduced.

    If DSI programs are deployed at a large scale, the peak prices in the energy markets can be reduced.

    Management of load and

    generation variability

    For a balancing responsible party (other than a TSO) or an electricity company with a portfolio of generation and load, DSI

    programs can be used to compensate the variability of both load and generation, which will help to firm up the net generation

    and consumption declared to the TSO, as well as the offers made on the balancing market.In particular, DSI programs can contribute to compensate the intermittency of renewable energy resources such as wind energy.

    Provision of ancillary

    services

    DSI can be used to provide ancillary services to the system operators, e.g. active and/or reactive power reserves, frequency

    response, and voltage control.

    Therefore depending on the regulatory constraints, DSI programs can be used by the power system participants to access the

    ancillary service market.

    Table 3. System supports from smart metering through DSI

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    9 Conclusions

    Smart meters and associated control technologies have huge potential to contribute to

    real time control and operation of low-carbon power systems. This potential goes a long

    way beyond the current trials of automatic meter reading, improved billing information,living-room displays, multi-band tariffs and high-resolution (e.g. half-hourly) logging.

    The report provides a review of international experience in and plans for the use of

    smart meters for local control and system-wide operation. The typical functionalities of

    smart metering and its capabilities to support system operation are discussed. The

    information provided will be able to inform the UK decision makers regarding the near-

    term implementation of smart metering in the UK.

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    Journal of the European Union L 114. (April 2006)

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