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Centre for Distributed Generation and Sustainable
Electrical Energy
Development of Technical Concepts of DSPinto Smart Meters
K. Samarakoon, J.Ekanayake, N.Jenkins
December 2008
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Development of Technical Concepts of DSP into
Smart Meters
Introduction and world-wide initiatives
ContentsContents ........................................................................................................................... 1
Introduction...................................................................................................................... 2
Smart Meter [6][7] ........................................................................................................... 2
Initiatives in the UK to deploy smart meters ................................................................... 4
Worldwide initiatives and policies to deploy smart meters ............................................. 5
Italy [7][19].................................................................................................................. 5
United States [2][7][39] ............................................................................................... 6
Sweden [1][7][23]........................................................................................................ 6
Canada [7][20][21][22]............................................................................................... 7
Northern Ireland [1][7][23].......................................................................................... 7
Netherlands [1][7]........................................................................................................ 7Australia (Victoria) [1][7] [23].................................................................................... 8
Smart meter technologies and demand side participation (DSP)..................................... 8
Retrofitting existing meters.......................................................................................... 8
AMR with usage information through the Internet...................................................... 9
Use of AMR Interval maters with AMI expansion capabilities .................................. 9
AMR Interval meters with wireless smart displays ................................................... 10
Smart meter with embedded intelligence [29]........................................................... 10
PriceLight [30] ...................................................................................................... 10
DSP through demand response management [DRM].................................................... 10
Demand response [DR] through peak load reduction programs................................ 10
DRM through management companies ..................................................................... 11
Smart devices for DRM ............................................................................................. 11
Standardisation of smart meters functionality for DSP................................................ 11
ERAs Supplier Requirements for Smart Metering (SRSM) Project ........................ 12
References...................................................................................................................... 13
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Introduction
The interest for demand side participation (DSP) through efficient use of energy has
recently increased as an attempt to reduce green house gas emissions and to reduce the
increasing dependence of imported fossil fuels. However the presently installed electro-mechanical meters, particularly at the household consumer premises, do not support
DSP initiatives. As a solution, the benefits of installing smart meters have been
discussed in various forums. The provisions to install smart meters are mandated at
legislative levels in Sweden [1], USA [2], Canada [3] and European Union (EU) [4]. In
the UK, pilot programs and a series of policy initiatives are taking place. In some other
countries pilot programs have been started.
The DSP through smart meters is expected in three ways.
Consumer behaviour changes through feedback [5] of accurate information ofenergy consumption with flexible tariffs schemes (Time of the Day, Time of Use
etc.) thus allowing efficient use of energy.
Demand control during critical peak events.
Consumer participation in energy supply through domestic micro-generation.
In addition, suppliers can use accurate online information obtained through smart
meters for better network planning, operation and management.
In order to provide these facilities, a smart meter system should have a two-way
communication preferably with higher data rate and associated functionalities. If such a
communication network is available, additional facilities and services can be provided
to the consumers as well as suppliers.
Smart Meter [6][7]
Although currently there is no universal definition for a smart meter, a meter that can
perform additional duties other than accurately measuring consumption and displaying
the consumption can be considered as a smart meter.
Smart meter technology can be broadly categorised in the increasing order of
sophistication as follows:
Automated Meter Reading (AMR)
Automated Meter Management (AMM)
Interval metering with Automated Meter Management (AMM)
Prepayment Meters (PPM) Advanced metering infrastructure (AMI)
Commercially available meters have overlapping functionalities, but in general, the
functionalities can be broadly grouped as given below.
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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 could be changed remotely
Real time data can be displayed to user
Fraud and temper protection Measure energy consumption and more information atshorter intervals (half hourly or less) and store and sendto the supplier
Can have multiple tariffs structures (Time-of-use tariffs) Supplier can switch the meter between credit or
prepayment
Remote calibration facility Can provide detailed information such as historic costand credit remaining
Allow to change the tenancy
Credit entry through keypad
Can add credit remotely
Can control appliances remotely Provide facilities for network design, operation,management
Table1. Comparison of functions of different smart meter technology
Benefits AMR AMM
Intervalmetering
withAMM PPM AMI
Manual meter reading is not required hence reduce thecost and practical difficulties of meter reading Allow to produce bills on actual readings rather thaninaccurate 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 is not necessarywhen price and tariff changes Make customer energy, cost and efficient aware so thatconsumption 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
Table2. Comparison of benefits of different smart meter technology
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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. However, with the energy-industry re-structuring and the
introduction of retail competition of meter development, no significant
progress had been taken place from 1990-98 except for a few attempts[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 a directive [4] onenergy 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.
o Between 2005 to 2007 Energy Watch proposed to introduce smartmeters to benefit energy suppliers, consumers, energy distributors and
finally the environment. From the consumers, it is expected to have a
behavioural change using the updated information provided via a smart
meter [8][9]. Also it analysed the cost benefits of smart meters [10].
o In February 2006, Ofgem issued a consultancy [7] to find out theactions to be taken 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]to mandate and consult the provisions on detailed bills and smart meters.
The response was issued in July 2007.
o In April 2007, the BERR issued a report [12] on the costs and benefits ofroll out options of smart meter and discussed various technology options
of meters, displays, communications and roll out scenarios.o In May 2007, the DTI issued the White Paper on Energy [13] which
expected to introduce smart meters for saving energy within the next
decade. In August 2007 BERR issued a consultation [14] on policies
presented in the White Paper and in April 2008 issued the Government
response to the consultation.
o The Energy Demand Research Project (EDRP) managed by Ofgemhas been conducting trials since 2007 and is expected to be completed in
2010. Out of four trials, two are being conducted by installing visual
displays for 8,500 households and smart meters for 18,000 households
[15].
o The Government has decided to roll out smart meters from January
2009 for the large scale non-half hourly metered customers whoseannual consumption is above 732 MWh and is expected to complete
installation by 2013 [16]. The BERR issued the final consultation on the
above in January 2008[17].
o The BERR issued a consultation on smart meters for medium scalecustomers in July 2008. Decisions will be made after the second report
from EDRP which is due in November 2008 [18].
o Even though the White Paper expected to mandate the real-timeelectricity display devices to all new and replacement electricity meters,
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after the consultation on policies of the White Paper [14], the
Government has decided not to proceed with the mandated requirements,
but intend to work with suppliers to reach a volunteer agreement to
provide displays in short and medium terms [16].
Motivators:
o CO2 emission reduction and to meet 20% energy saving expected in2020.
o Energy saving by providing information through accurate bills and realtime displays.
Technology:o The reports imply that the meters to be installed will be AMM Interval
meter. The White Paper wants to have import-export tariffs and EDRP
trails are using combined electricity and gas meters.
Worldwide initiatives and policies to deploy smart meters
Italy [7][19]
History and Progress:o From early 1990s Enel had AMR and AMM for energy intensive
customers.
o A pilot of 70,000 installations confirmed the technical viability ofDistributed Line Carries on low voltage grid, and also confirmed that the
retrofitted meters are not cost effective.
o In 2001 the replacement of electromechanical meters with AMM metersstarted. By 2005, 27 million meters had been replaced.
o In 2006, the Italian regulatory authority (AEEG) has mandated the fullintroduction of smart meters for all the consumers by 2011
o The Italian governments timetable is for 65% of customers to be onsmart meters by 2009, 90% by 2010 and 95% by 2011
Motivators:o They have a large number of visits to consumer premises per year as a
result of fraud, theft and changing power entitlements. Bad debts were
difficult to collect due to a number of no go areas which necessitate
AMR technology.
o They faced blackouts due to insufficient generation and expectedefficiency improvement through smart meters to alleviate the situation.
Technology: (See section 0 for details)o AMM Interval Metero Use PLC between meters and transformers and then GSM/fixed lines to
data centreso Improvements to make AMI is in progress
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United States [2][7][39]
History and Progress:o USA consumers have been using AMRs for quite sometimeo The Energy Policy Act of 2005 need to offer AMM Interval meters to
customer who want such meters to be installed within 18 months to
provide time-of-day-tariff.
o The act allows specifying three tariffs namely time-of-use prices that isallowed to change twice a year, critical-peak-prices as exception to time-
of-use price (for certain days) and real time prices that can be changed in
every hour.
o Present penetration of smart meters in different states varying from 1%to 53%. The states such as Pennsylvania (53%) and Wisconsin (40%)
have higher penetration.
o The states with low penetration such as California (0.3%), Tennessee(0%), Illinois (1.5%), New Jersey (0.4%), and Washington DC (1.4%)
have taken steps and in the forefront of smart meter (AMI) initiative.
o The California Public Utilities Commission recently approved theSouthern California Edisons request to replace 5.3 million meters,
virtually all existing meters, by smart electricity meters in houses andsmall-business sites from 2009 until 2012.
o At present 6% US customers have Smart Meters and it is projected thatit will rise to 89% by 2012. One study estimates that U.S utilities will
install 30 million smart meters within next three to four years, a quarter
of all U.S meters.
Motivators:o It is challenging to ensure reliable supply during summer peak demand
periods (due to air conditioners).
Technology:o AMR Interval Meter and AMIo
Most of the technologies use radio signals as the communicationmedium
o All utilities aiming AMI
Sweden [1][7][23]
History and Progress:o Studies were started in 2001o In 2003 a bill was passed to mandate new metering regulation requiring
all energy meters to be read monthly by July 2009 which indirectly
mandated the introduction of smart meters.
o Meter installation of over 5 million users is in progress to meet the targetto become the first country with 100% penetration of AMR.
Motivators:
o Higher energy prices and unclear and inaccurate billso Need of energy conservation
Technology:o From AMR to AMM Interval Meter
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Canada [7][20][21][22]
History and Progress:
Ontario
o Installed 1 million smart meters by 2007 and expected to install to allOntario customers by 2010
o The Energy Conservation Responsibility Act of 2006, sets out the broadpurposes and objectives for Meter Data Management and Repository
(MDM/R)
o Acts were changed to accommodate AMI specifications released afterseveral consultations in order to allow them to access the latest
technologies
Toronto
o In Toronto 500,000 smart meters were installed by 2007 which was halfof the government's target of smart meter installations province-wide by
December 31, 2007. All homes and businesses across the province will
have a smart meter by 2010
Motivators:o To reduce needle peek time (a few hours every day in summer)o To reduce projected peak demand by 5% by 2007 through time-of-use
prices.
Technology:o AMM Interval Meter with two way communicationo 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.
Northern Ireland [1][7][23]
Progress:o Started in 2000o 155,000 meters installed by 2005 covering 22% of customers
Motivators:o Consumers had been using Power Cards (magnetic type of prepayment
meters). Due to operational and servicing cost and concerns about
security and frauds, alternative payment solution was required.
o Poor customer satisfaction due to self-disconnection and additionalsurcharge.
Technology:
o Prepaid meter (PPM)o New trails for using time-of-use tariff have been undertaken since 2005
Netherlands [1][7]
Progress:o Conducted detailed cost-benefit analysiso Grid operator (Continuon) started a pilot project in 2006 and 50,000
meters to be installed
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o Some suppliers (Oxxio) offer combine smart meters for electricity andgas from 2006
o The Government proposed in September 2007 that all 7 millionhousehold should have a smart meter by 2013
Technology
o AMR meterso Continuon meters read electricity and gas and communicate through
power line carrier (PLC)
o Oxxio meters communicate through GSM/GPRSo Customers can access energy consumption information through the
Internet
Australia (Victoria) [1][7] [23]
Expectations:o With new and replacements, installation commenced from 2006o To be installed in all customers consuming greater than 160 MWh/year
by 2008o To be installed in all customers consuming less than 160 MWh/year and
more than 20MWh/year by 2011
o To be installed for small business and three-phase residential customersby 2013
o One million customers will be upgraded by 2013
Motivators:o To reduce the summer needle peeks through information provided to
customers
o To eliminate manual meter readings
Technology:o
AMM Interval Meter which should allow more innovation in future
Smart meter technologies and demand side participation (DSP)
Smart meters are available with different functionalities and use different technologies.
The following examples are selected as representative cases.
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 equipmentsuch that those meters are converted to AMR. The techniques such as introducing
optical position sensors [25] or optical character recognition (OCR) based readers [26]
are commercially available. But most of the smart meter initiatives do not consider
retrofitting as a feasible solution due to the cost and the limited capability for future
expansions and opt for digital smart meters.
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AMR with usage information through the Internet
This option does not give full flexibility as in the case of interval metering, but collects
meter readings remotely and provides information to the customer through the Internet.
As an example, Energy Controls [27] has smart meters that can be fitted in
standalone installations or as part of a comprehensive metering system that comes witha module slot for simple Plug & Play connection of a communications unit. It has
direct connection or CT operated 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 are stored on their secure
server which is backed up daily.
Customers can access their meter readings using a standard internet browser. The data
can be manipulated to produce reports in a graphical format to identify consumption
trends.
Use of AMR Interval maters with AMI expansion capabilities
Use of AMR Interval meters is the most common approach in smart meter deployment
and some of the implementation expected to expand to AMI in the future. As an
example Telegestore smart meter system used by the Enel of Italy [19] is given
below.
Figure1. Telegestore System Architecture [19]
The Central Management 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 1. LV Concentrators have two-way
communication with the Central Management and meters through PLC half-duplex
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with net speed of 2400 bits/sec. Electronic meters are integrated ones (equipped with
breaker or disconnectors) providing metering, contract management and PLC
communication functions.
AMR Interval meters with wireless smart displays
Some smart meter solutions [28] provide AMR Interval meters with wireless smart
displays. These displays mostly use ZigBee communication protocol and provide
detailed information to the user through colour displays.
Smart meter with embedded intelligence [29]
Recent invention of a smart meter by the Oxford University claims it identifies the type
of appliance based on the time of use, period of use and the wave forms and accurately
measures the amount of energy being used by individual appliance. It uses acquired
data and probabilistically determines what the appliance is. It incorporates a learning
mode and it can independently identify appliances when they are used for the first time.
It also identifies appliances operating outside of their normal modes of electricityconsumption and detects malfunctions and energy-guzzling devices.
It does not use monitoring devices on each plug and uses single-point interrogation of
the mains supply providing building-wide information on appliance use or misuse. It
can identify short and long term savings by analysing the captured data. The device is
capable of giving the output information to a home PC or a mobile phone.
PriceLight [30]
In 2007 Ameren Illinois Utilities (AIU) started real time pricing program. They have
initiated a pilot program called Energy PriceLight Program. The PriceLight is a
small orb that glows in different colours based on the current estimated price ofelectricity. The PriceLightreceives a wireless radio signal and glows different colours
to reflect advisory hourly 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
efficiently.
The program expected to study whether customer would modify electricity
consumption behaviour in response to the PriceLightdisplay. The study showed these
customers did have a higher elasticity than customers without the PriceLight.
DSP through demand response management [DRM]
Demand response [DR] through peak load reduction programs
In the USA, several utilities offer peak load reduction programs such as load
curtailment, customer stand by generation and thermal energy storage [39]. It is
estimated that capital cost of DR is three to four times cheaper than the cost of
installing new peaking generation.
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DRM through management companies
In the USA, there are small scale initiatives of demand response management through
management companies. Comverge (contracts cover over 500 utility clients, 4.5
million devices and 495 MW) [31] and EnerNOC (cumulative participation of 1.5
GW) [32] are such two companies.
They have prior agreements with electricity utilities and with large scale and household
customers to reduce the consumption when the utilities need. Comverge install
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 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 to avert the impending critical event.
Smart devices for DRM
Smart devices such as Smart Thermostats [33] can be programmed by the user locally
or remotely over the Internet to operate on time based or tariff based schedule so 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 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
the settings automatically to reduce electricity consumptions. Some of the smart devices
communicate with the smart meter so that energy demand response companies orsupplier can control devices remotely by changing the settings to respond for 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 flexible tariff, the
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.
Standardisation of smart meters functionality for DSP
An interoperable platform for smart metering is required in order to provide an energy
supplier with protection for smart metering systems they choose to install. Without this
guarantee of interoperability, energy suppliers would probably need to replace
proprietary smart meters when a customer changes gas or electricity supplier, leaving
the previous supplier at risk of bearing 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.
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ERAs Supplier Requirements for Smart Metering (SRSM) Project
The Energy Retail Association (ERA) has started the Supplier Requirements for Smart
Metering (SRSM) project to propose Smart Metering Operational Framework Proposals
[OFP]. The purpose of the OFP is to provide the expected interoperability
[34][35][36][37][38]. To meet this objective, the OFP has defined a number of non-
functional elements as well as functional elements relating to:
Data transfer definition and communication solution options
Metering System definition 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.
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 importexport metering, credit and debit payment methods as mandatory requirements. These
functions are essential for DSP as well. It proposes modular design allowing plug and
play replacement of components which could facilitate future addition of DSP
functions. Load limiting, load switching and remote interruption functions are identified
as potential functions which may be the necessary functions for DSP.
The OFP mentions that a requirement for possible future applications of demand side
management such as home control solutions for intelligent load shedding, next
generation of home appliances and signalling to micro-generation could be included.
It specifies potential measurements such as maximum demand kW, kVA, kVArh and
power quality information which will be notified upon deviation from standard limits.In addition to above, more metering parameters would be needed in future DSP. In
order to accommodate future micro-generation, the specification indicates that reactive
measurement and requirement for gross and net values of micro-generation could be
included.
Even though the OFP specifies basic functions required for DSP, it may be necessary to
make some of the potential features mandatory and add more features to support future
DSP applications.
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References
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[2] Energy Policy Act USA 2005 , Public Law 109-58 (August 2005)
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Office Journal of the European Union L 114. (April 2006)
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