The Rollout of Smart Metering Systems in Germany - Enabling the Turnaround in Energy Policy

Transkript

1 The Rollout of Smart Metering Systems in Germany - Enabling the Turnaround in Energy Policy European Utility Week Amsterdam, 16 October 2013

2 Preliminary remarks Page 2

3 Particularities of the German electricity market The market: Highly fragmented market structure: Roughly 900 DSOs, 4 TSOs Liberalized metering business, but still dominated by regulated DSOs Mandatory rollout of smart metering systems for specific customers is already in place Energy consumption: High degree of energy efficiency compared to other markets Low proportion of electric heating systems Average electricity consumption kwh/year per household Energy policy: Energiewende (Turnaround): Fast growing share of renewable energies and decentralized generation (micro CHP) Integration of renewables into the energy system is a significant issue Page 3

4 Findings and recommendations of the CBA Page 4

5 Four key drivers to drive an economically favorable rollout for Germany Energy savings Process improvements Grid efficiency Value added services Exemplary benefits Reducing energy costs by energy conservation, load shifting and new tariff models Avoided investments into generation and grids Meter reading Billing Call-Center/ customer care Balancing Avoided investment into grids by selective reducing feed-in of renewable energies Network management, planning and operation Smart Home Security and health care services Combined rollout of other utilities (Gas, heat, etc.) And many other applications Beneficiary End customer Metering company, DSO, supplier DSO, and very limited TSO End customer, service companies An economically beneficial rollout for Germany requires a segmented and tailored approach which combines a mandatory with a market driven approach and distinguishes technologically between smart metering system and intelligent meter. Page 5

6 Recommending a segmented and tailored approach for Germany Consumer group Description % of total meter points Recommendation 1 Consumers that use more than 6,000 kwh of energy per year 15* 2 3 Those consumers that produce combined heat and power (CHP), solar and wind renewable energy Consumers in new and renovated buildings about 500,000 customers each year 5* 10* Smart metering system - mandatory 4 Consumers using heat pumps, storage heating systems, electric vehicles etc. according to 14a EnWG 5* 5 The majority of German consumers including smaller businesses and households who are not part of 1 to 4 70* Intelligent meter (upgradable to smart) The four mandatory consumer groups implementing smart metering systems cover roughly 75% of the electricity consumption within the household and SME segment. Those groups include all customers who influence or could influence the energy system most heavily. * Total sum is greater than 100 due to the fact that some consumers fulfill more than one criteria for a mandatory implementation of a smart metering system. Page 6

7 Smart metering system vs. intelligent meter Both, smart metering system as well intelligent meter reflect actual energy consumption and actual average usage time Smart metering unit Consisting of: a meter a communication unit, the Smart Meter Gateway (SMGW), and a security module Fulfills the requirements of the BSI Protection Profile Intelligent meters Are not initially integrated into the external communication network. Must have the ability to be upgraded through integration with a communication network that complies with the BSI Protection Profile Should have an external display Source: Ernst & Young in conformity with BSI Page 7

8 Next steps Page 8

9 Next steps of implementation Required steps in legislation and regulation Stakeholder hearings about the findings and recommendations of the CBA organized by BMWi (Federal Ministry of Economics and Technology) Notification of MsysV (Messsystemverordnung) by the EU Report concerning the financing mechanism by EY Development of ordinances ( Verordnungen ) implementing the rollout related to: Rollout (targets, timeframes, obligations etc.) Data-Communication and Load-Management Status /date 4 out of 5 (planned) 21. September 2013 WIP 1st half of 2014 Stakeholder hearings, legislation process, publishing of required ordinances 2014? Eventual adaptation of ARegV ( Anreizregulierungsverordnung ) for implementing a new financing mechanism 2014/2015? Redesign of market communication process (e.g. WiM) by the regulatory authority and the industry 2014/2015? Adaptation of the EEG (Renewable Energy Act) 2014? The mass rollout will not start before 2015, most likely not before 2016 Page 9

10 A possible German roadmap of the rollout Pilot projects Right of continuance 21e (5) EnWG Extended where required Existing mandatory cases 21c (1) EnWG Existing new, additional mandatory cases Additional, new mandatory cases Installation of an intelligent meter Review of rollout Review of pilot projects Review of the intermediate goals of the rollout strategy Number of smart metering systems and intelligent meters in Mio. / No. of smart metering systems 12.5/ Page 10

11 Driving successful Smart Metering projects Based on our global SMART METERING experiences, we outline our clients key focus areas to successfully deliver their programmes Added green power sources Plug-in hybrid electric cars (storage device) Tele-health Services Smart appliances (e.g. thermostats, dynamic controls, Smart Meter Real-time & green pricing signals (portal/stats) What is the Cost/Benefit model? How to change the business to be Smart enabled? Impact on Processes Smart strategic considerations How to build a positive experience for the Customer and drive future revenue? What is the optimum Supply Chain to roll-out Smart Meters efficiently and reliably? UK plc UK UK EU Australia EU country plc plc Jobs per day 0 20 Procurement Logistics Installation & Maintenance Planning and Order Management Customer Service (Appointment Booking) Other MAPs Asset Manuf acturer (Supplier) Central warehouse (Hub) Local warehouse (Sub -Hub) Field Operative (Van) Customer (house) Utility suppliers / Recycling / disposal Shared Services (i.e. IT / HR / Finance) Page 11

12 Contact information Dr. Helmut Edelmann Director Utilities Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Graf-Adolf-Platz Düsseldorf helmut.edelmann@de.ey.com Dr. Helmut Edelmann Page 12

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