Understanding "Behind the Meter"[BTM] and "In Front of the Meter"[FTM] in the Utilities Sector

As the industry evolves, new terms and concepts emerge, such as "Behind the Meter" (BTM) and "In Front of the Meter" (FTM). These terms refer to the different points at which energy generation, consumption, and management occur within the grid system.

Behind the Meter (BTM):

The term “behind-the-meter” refers to energy production and storage systems that directly supply homes and buildings with electricity. Residential and commercial solar panels are considered to be behind-the-meter, as are residential and commercial solar batteries—the energy that is produced and/or stored by these systems is separate from the grid and does not need to be counted by a meter before being used, so they are positioned behind the meter. 

Behind-the-meter, however, is not the same as “off-grid”. Most behind-the-meter solar energy systems are still grid-tied, which means they maintain a connection to the electrical grid. The energy the solar PV systems provide do not pass through an electricity meter before it is used by the home or business, but, when the panels are not in use (when there is no sunlight), energy from the grid is sent to the home or business, and that energy must pass through a meter first so that it can be accounted for by the utility. 

1. Distributed Energy Generation or Distributed Energy: BTM systems enable consumers to generate electricity on their own premises, reducing dependence on traditional utility providers. Solar panels and wind turbines are common examples of BTM generation systems. These installations allow individuals and businesses to generate clean energy, lower their carbon footprint, and potentially save on energy bills.

2. Energy Storage: BTM solutions often involve energy storage systems, such as batteries, which allow users to store excess electricity for later use. By capturing surplus energy during low demand periods, batteries can help consumers offset peak demand costs and improve grid stability. Additionally, in regions with unreliable power grids, BTM storage systems provide backup power during outages. This is getting considerable focus in emerging markets such as Data Centres where disruption to energy supply is so damaging.

3. Energy Conversion: instead of traditional batteries storing electricity, new options use surplus onsite electricity to generate and store energy in alternate forms such as hydrogen or heat. With many industrial processes requiring anything from low grade heat to high temperature steam, this type of storage has three benefits: it removes the need for grid export capacity, which can be constrained in many regions; it allows for much longer energy storage, months if needed, increasing the ability to smooth out intermittent generation; it decarbonises heat generation for consumers, which currently relies almost exclusively on gas.

4. Energy Management: Behind the Meter solutions enable consumers to have greater control over their energy usage. Advanced energy management systems and smart grid technologies provide real-time data on energy consumption, enabling consumers to make informed decisions about their energy usage. This data-driven approach can lead to more efficient energy consumption patterns, cost savings, and increased energy resilience, as well as offering a means of commercial gain through energy trading back to the grid.

Benefits of Behind the Meter (BTM) Solutions:

1. Decentralised Energy Generation: BTM systems promote decentralised energy generation, reducing the reliance on centralised power plants and transmission infrastructure. An added benefit is that the electricity system becomes more efficient because transmission and distribution losses, which are around 10% in the UK electricity system, are avoided.

2. Increased Energy Independence: BTM solutions empower consumers to take control of their energy production, leading to increased energy independence. By generating their own electricity, consumers can reduce their exposure to fluctuating energy prices and enhance their energy security.

3. Environmental Sustainability: BTM solutions, particularly those leveraging renewable energy sources, contribute to a more sustainable energy future. By reducing reliance on fossil fuel-based electricity, BTM systems help lower carbon emissions, mitigate climate change, and promote a cleaner environment.

4. Cost Savings: Through BTM systems, consumers have the potential to reduce their energy costs over the long term. By generating their own energy, storing energy during low-demand periods, and managing their consumption more efficiently, consumers can lower their reliance on grid-supplied electricity and potentially save on utility bills.

Examples of BTM energy systems

There are many kinds of BTM energy systems. Here are a few common types to be aware of:

Onsite generation

Any energy generation on your property is considered behind the meter. This includes home solar panel systems, small wind turbines, and even gas-powered generators. All of these technologies generate electricity that you can use on the premises. In the case of wind and solar, excess generation can be sent through your meter and to the grid for credit on your electricity bill (known as net metering).

Onsite energy storage

Energy storage systems on your property are also behind-the-meter systems. Electricity stored in a home battery, for example, goes directly from the battery to your home appliances without passing through an electrical meter.

Microgrids

A more complicated type of BTM energy system is a microgrid. Microgrids are miniature versions of the larger electric grid that works to power a small number of buildings. Microgrids consist of generation, a transmission system, and sometimes battery storage. All of these components live behind the meter, as there is no need to pull electricity from the grid to keep the system energized.

In Front of the Meter (FTM):

“Front-of-meter” systems provide energy to off-site locations (like a home or business), and that energy needs to pass through a meter before it can be used. You can think of front-of-meter systems as those that are part of the utility. Energy generation and storage systems that feed the grid, as well as the power lines used to transport that energy, are considered to be front-of-meter because the energy they provide must pass through a meter before it can be used—they are positioned in front of the meter. Any energy that is delivered to your home or business from the electric grid comes from a front-of-meter system.  

In most cases, FTM electricity is generated at the local power plant by any number of sources, including:

• Coal

• Natural gas

• Solar

• Wind

• Geothermal

• Nuclear

• Hydropower

1. Centralised Power Generation: FTM systems involve large-scale power plants that generate electricity from conventional sources such as coal, natural gas, nuclear energy, or renewable sources like hydroelectric, geothermal, and wind power. These power plants produce electricity in bulk, which is then distributed to consumers through the grid.

2. Grid Infrastructure and Transmission: FTM systems rely on extensive grid infrastructure, including transmission lines, substations, and distribution networks, to transport electricity over long distances. This infrastructure ensures reliable and efficient delivery of electricity from power plants to end consumers.

3. Demand Management and Load Balancing: Utilities play a crucial role in managing energy demand and maintaining grid stability. They monitor and manage the overall energy supply-demand balance, adjusting generation capacity as needed. FTM systems allow utilities to optimise the use of diverse energy resources and ensure a stable electricity supply across the grid.

   Examples of in front of the meter energy systems

   In contrast, here are examples of common front-of-meter energy systems:

Utility-scale generation

Just about all large generation facilities that feed into the power grid are positioned in front of the meter. This includes fossil fuel generation like coal and gas, as well as renewable energy like wind, solar, and geothermal.

Utility-scale energy storage

Over time, utilities are installing large storage facilities, often paired with renewable energy generation plants. These storage facilities also sit in front of the meter because the electricity they dispatch must pass through electric meters at individual properties before it can be used for power.

Transmission and distribution lines

Utility-scale electricity needs to get to end consumers via the transmission and distribution system, which means that this system is also a front-of-meter energy setup. The poles and wires you see driving along most roads that transport electricity to your property are part of this transmission and distribution infrastructure and sit in front of the meter.

Front-of-the-Meter VS. Behind-the-Meter

Although front-of-the-meter and behind-the-meter systems are essential parts of the energy mix, they play different functions and affect users in various ways.

• FTM focuses on large-scale, centralized energy generation, while BTM centers on distributed energy resources and localized power generation and storage.

• FTM projects are owned and operated by utilities, while BTM assets are often owned by individual customers, businesses, or third-party service providers. FTM assets are typically large-scale power generation facilities, such as power plants (coal, natural gas, nuclear, solar, wind, etc.) and utility-scale renewable energy projects. BTM assets are typically smaller-scale distributed energy resources (DERs), including rooftop solar panels, energy storage systems, and backup generators, installed on residential, commercial, or industrial properties.

• FTM projects primarily contribute to the overall grid’s energy supply, while BTM resources aim to enhance energy resilience, reduce energy costs, and increase sustainability for individual consumers or businesses. FTM systems are designed to supply electricity to the grid and serve a wide customer base without being directly connected to specific end-users. Behind-the-meter systems are connected to the customer’s electrical system and can provide electricity directly to the premises, reducing the need for electricity from the grid.

#EVSE #EV #renewableenergy #renewables #evcharging #flexibility #grid #gridmodernization #gridmanagement #carbonfootprint #charger #fleetmanagement #vpp #fleetmanagement #derms #DR #Angad #Gupta #connectortype #type1 #type3 #dccharging #accharging #chargingmodes #mode1 #mode2 #mode3 #evmodes #ev_modes #vpp #dr #derms #OpenADR #openADR2.0 #protocol #OCPP #smartgrid #gridmodernization #demandresponse #virtualpowerplants #vpp #DERS #distributedenergyresources #smartgrid #grid #thermostat #tstat #battery #EVcharger #microgrid #electrifications #utilities #FTM #BTM #behindthe meter #front-in-the-meter