1Ispra 7.3.2005

Energy and Environmental Challenges for the Metering Industry

Paolo BertoldiEuropean Commission DG JRC

Ispra 7 March 2005

2Ispra 7.3.2005

The EU Energy Policy Key Areas

security of supply

climate change and sustainable development

effective competition and creation of an internal market

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Two Neglected Energy Sources

To improve the security of supply and meet the international climate change obligation there is the need :

– To foster the penetration of renewable energy sources;

– This shall be accompanied by a prompt action on the demand of energy through a sharp increase of the end-use energy efficiency;

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The draft Energy Service Directive

• EU security of supply and Kyoto Commitment.

• EU savings potential >20%; 1%/yr target possible in all M.S.

• Demand-side not addressed in Internal Market Directives.

• Need for umbrella for existing & proposed energy efficiency legislation (EPBD, CHP, Eco-design, etc).

• Also need for harmonisation of energy efficiency & energy services in internal market.

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The draft Energy Service Directive - Content 1

• 1 % annual overall target (Article 4):

- cumulative to 2012; 6 years (6-yr target discussion).- target amount fixed for period; independent of GDP. - early actions (1991) allowed; (discussion on start date). -allows impacts of information, building codes, tax changes; (double-counting an issue ). - annexes: guidelines on M&V (standards? committee?).

• “white certificates” later. (need harmonised M&V!).

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The draft Energy Service Directive - Content 2

• 1,5 % annual public sector target (Article 5):- a sub-target of the overall 1 % target (PS=10%).

- uses same methodology as overall target.

- uses aggregated public procurement to increase demand for energy efficiency & energy services.

• Precise definition of ”public sector” important.

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The draft Energy Service Directive - Content 3

• Obligation for some energy distribution and/or retail energy sales companies (Article 6): - to offer energy services or energy audits (electricity, gas, district heating and heating oil).

• Enterprises to help remove market barriers. • If 5 % of customers not covered by services, free

energy audits (under discussion; likely to change).

• Information from enterprises to public authorities to promote energy services & energy efficiency.

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The draft Energy Service Directive - Content 4

• Qualification, certification and accreditation of energy service providers (Article 8):- ensures technical competence & mutual recognition.

• Financial instruments (Article 9):- third-party financing, energy performance contracting & similar instruments promoted.

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The draft Energy Service Directive - Content 5

• Tariffs & regulations net-bound energy (Article 10).- tariff structures to weaken volume incentive link.

• Cost recovery for distribution companies, if reasonable, fair & if competition ensured. (Possible market distortion effects under discussion.)

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The draft Energy Service Directive - Content 6

• Financing of energy efficiency programmes, measures, ESCOs etc. allowed (Article 11).

• Opens funds to all providers of energy services, energy efficiency programmes & measures, without prejudice to State Aid rules.

• Energy audits (Article 12):Member States to ensure the wide availability of independent energy audit schemes.

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The draft Energy Service Directive - Content 7

• Metering & informative billing (Article 13):

- Ensures accurate metering of net-bound energy, actual consumption & time of use. (Small customer coverage discussion.)

• Member States to ensure frequent & informative billing from all energy suppliers; information on benchmarks, available energy services & measures. (Branch organisations helpful.)

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The draft Energy Service Directive - Content 8

• Reporting (Article 14):-M. S. report not later than 2 years after adoption of Directive & then every 3 years up to 2012.

(Discussion on interim and final reports only.)

-Commission to report on progress toward achieving national targets.

• Transposition (Article 16):- by June 2006.

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Current Status of Discussions

• Discussions on-going in Council & E. P. Mixed but mainly positive reactions. Concern with targets & measurement.

• Luxemburg's Presidency will give proposal appropriate attention. Possible political agreement in 2005.

• May form committee to harmonise measurement & verification.

• Metering and billing important to provide accurate and timely

information on energy end-use. These are vital sources of information that promote energy efficiency and energy services.

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The Challenges for Metering and Demand Response Initiatives

Advanced Metering and Demand Response Initiatives have the capacities to meet all three the energy policy goals of the Union, however there is the need to make sure that Regulation and Policy direct the technology potential in the right direction.

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The role for ICT and Meters

Good examples of the available technologies are:

real time meters which would allow the users to know the price and environmental impact of the electricity the are using;

intelligent appliances and equipment which would allow to maximise the energy savings;

building control systems designed to minimise energy use and the maximise wellness of the occupants;

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Advanced Meters

The evolution of Power Line Communication, Internet, and ADC technology for Energy Management have permitted the AMR (Automatic Meter Reading) solutions to reach high competitiveness capable of guaranteeing not only automatic reading of consumption but also the ability to offer the domestic user new services necessary for optimising energy consumption and respecting the environment.

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The ENEL “Digital Meters”

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The “Digital Meters”

What the end-user should be able to do:

• check the total consumption (KWh) over a period

• check the instant absorbed power (KW)

• have the possibility to compare the last week/month consumption, with other period and check if it is increasing/decreasing

• understand the consumption of individual appliances;

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Additional desirable features

• To indicate the type of electricity used ( to serve for the full disclosure and Guarantee of Origin, Tradable Green Certificates, etc.);

• To guide the user to save energy, power and maximise the use of renewable energies by providing first of all information;

• To receive and sell White Green certificates, if they exist;• To allow to participate in real time demand side bidding;

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What should an advanced meter able to do ?

• In the home, the meter could become an “intelligent home gateway”. It can act as the two way interface between the external service centre and home appliances or systems and generate related graphic or aural feedback to the user through a dedicated display or the television receiver or the PC monitor. An immediate low cost solution for millions of homes in many European Nations would be the use of the subscription satellite or cable Digital TV interactive network

• The meter can readily supply data to the display of energy usage which profiles, lighting, heating, wet appliances and cold appliances. The careful presentation of this information can reduce energy consumption.

• A small scale UK project, in which homes were fitted with a display screen giving a clever presentation of total energy usage, recorded a sustained 10% average energy requirement reduction for all homes (Source: Bob Harrison).

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Basic Design of the Scheme

SUPPLY: Renewable Electricity Generator

DEMAND: lights, office equipment, electric car

Electricity Grid

kWh-Cerificates in Internet Database

kWh Monitor

kWh Monitor

100 kWh100

kWh100 kWh100

kWh100 kWh100

kWh100 kWh

Real Time Trading of Certificates

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Using the Digital Television Platform and Network for a “Quick Solution” to Intelligent Metering

BROADCASTER(TV PROGS.)

UTILITY(ELECTRICITY

& GAS)

SERVICEPROVIDERNETWORKCONTROLCENTER

INTERACTIVEDIGITAL TV SET TOP

BOX

TRUNK DATA TRUNK DATA

CABLE

GO

AND

RETURN D

ATA

COMMUNICATIONINTERFACE

APPLIANCE APPLIANCE APPLIANCE INTERFACE

UTILITY METER ORCONSUMER UNIT(FUSE / SWITCH)

RS232 ORINFRA-REDDATA LINK

OR

POWER WIRINGDATA LINK

KEY:

WIRELESSDATA LINK

SATELL

ITE G

O D

ATA

TELE

PHO

NE N

ETW

ORK

RETURN D

ATA P

ATH

HOUSEHOLDTVs

FIG.1. SCHEMATIC OVERVIEW DIGITAL TV“SMART METERING”

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Using the Digital Television Platform and Network for a “Quick Solution” to Intelligent Metering

UTILITY METER

LIVE OR NEUTRALRISER

BLOCK AClip-on current transformer & battery powered

transmitter

SHORT RANGERF (WIRELESS)

LINK

BLOCK BReceiver (Mains

Powered)

BLOCK BKonnex Mains Line

Protocol DataTransmitte r

Inject to housering main via

integral imainsplug

BLOCK CKonnex MainsLine Protocol

Data Receiver

BLOCK CData translatorand set top box

interface

Data from housering main (via

powering plug)

Link to set top box(digital TV platform)via serial connector

cable or aerialcablel

Figure 2. User Installed InterfaceKit (Block schematic)

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Conclusions - 1

• The environmental and energy challenges requires a new ways of using in the most intelligent way the limited energy sources (in particular RES);

• The economic efficiency and increased demand for green electricity and its efficient use requires more advanced control systems and meters to optimise the energy services (lighting, cooling, heating, washing, entertainement, etc.) to the the limited energy sources;

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Conclusions - 2

Regulations and Technology Deployment Programme shall foster the develop of new, cheap and reliable technologies and systems to allow the efficient and cost-effective decentralized control and management of the energy demand for the services and the environmental conditions (indoor temperature, lighting) which we need.

Today we are here to discuss:• the technologies;• the R&D needs;• the user and utilities expectation from the advanced meters;• the present barriers to their large deployements; and • the best solutions to remove these barriers

Ispra 7.3.2005

Thank you

For more information look at:

http://energyefficiency.jrc.cec.eu.int

or

contact me at paolo.bertoldi@cec.eu.int