Load profiling for balance settlement,
demand response and smart metering in
Finland
Seppo Kärkkäinen
Elektraflex, Finland
Is DSM the Answer?
Workshop in the connection of IEA DSM EXCO, Chester 21st October 2009
Session 3 – The barriers of Profiles for Settlements in engaging small consumers
2
Load profiling of small customers
Small consumers (max 3x63 A (about 45 kW)) are divided
into three groups for profiling:
1. Households < 10,000 kWh/year
2. Other households > 10,000 kWh/year
(Most with electric heating)
3. Other, main fuses < 3x63 A
Load profiles in the balance settlement
• National load profiles are defined for each group and for
each month including separate profiles to workdays,
Saturdays and Sundays. In predefined special days profiles
of Saturdays or Sundays are applied
• Profiles are applied directly to customers without ToU-
tariffs (1-energy meters)
• When 2-energy meters are applied, the national load
curves are calibrated to correspond the estimated
consumption in each time zone
• Temperature correction is applied to group 2 (electric
heating)
• In special cases also local load profiles can be used if
network owner proposes it and has good reasons
Example: Group 1 (Household, <10,000 kWh/a), January
0
500
1000
1500
2000
2500
3000
3500
00.00-01.00
02.00-03.00
04.00-05.00
06.00-07.00
08.00-09.00
10.00-11.00
12.00-13.00
14.00-15.00
16.00-17.00
18.00-19.00
20.00-21.00
22.00-23.00
Workday
Saturday
Sunday
Hourly consumption (Wh) when annual consumption 10000 kWh
Example: Group 2 (Household, >10,000 kWh/a, most with electric
heating), January (outdoor temperature - 8.7 oC,
(temperature dependence 4 %/ oC)
0
500
1000
1500
2000
2500
3000
3500
00.00-01.0002.00-03.0004.00-05.0006.00-07.0008.00-09.0010.00-11.0012.00-13.0014.00-15.0016.00-17.0018.00-19.0020.00-21.0022.00-23.00
Workday
Saturday
Sunday
Hourly consumption (Wh) when annual consumption 10000 kWh
Example: Group 3*, Others, January
0
500
1000
1500
2000
2500
3000
3500
00.00-01.00
02.00-03.0004.00-05.00
06.00-07.00
08.00-09.0010.00-11.00
12.00-13.00
14.00-15.0016.00-17.00
18.00-19.00
20.00-21.0022.00-23.00
Workday
Saturday
Sunday
Hourly consumption (Wh) when annual consumption 10000 kWh
*Old profile, this profile has been updated
Use of load profiles in the balance settlement inside
the grid of DSO
• For the customers of outside supplier the annual consumption of
customers is estimated on the basis of the previous year
• Hourly loads of the outside supplier are calculated on the basis of
load profiles and estimated annual consumption taking into account
possible temperature corrections in group 2
• These hourly loads are used like hourly measured loads in the balance
settlements
• After the meters are read (usually once a year) the errors between the
estimated and measured energies and hourly loads can be calculated
• These errors are corrected between suppliers at the end of the year and
cleared. The sum of energy errors is zero. The financial corrections are based
on the public tariffs applied inside the corresponding network area to corresponding
customers
Load profiling in Finland inside DSO (distribution
system operator)
9
summed
day-TOU-profiles night
hourly metered load
Total grid area infeed
summed
night-TOU-profiles
summed 1-time profiles
Estimated losses
= infeed - hourly metered -
profiling - losses
this part is fully included in the balance of
the "local" supplier
this part is in the balances of the outside suppliers
10
Demand Response at small customers
Long experience from Time-of-Use tariffs
Long term response to ToU tariffs: electrically heated houses have ToU tariffs (low
price during night (usually 22 - 07), other residentials have flat prices
Main reasons to the modification of load profiles:
• domestic hot water produced during night time: 300 liter water storage
• also heating system have storing capabilities (often heating cables assembled into
isolated concrete layer of floor
12
National load profile and outdoor temperature
in Finland in two very cold winter days in 2007
TOU-loads
switch on
TOU-loads
switch on
MW
oC
=> TOU levels peak but requires control resources to balance switching steps.
outdoor
temperature
Example: some experiences from the response
to spot-prices
About 10 electrically heated customers had
• traditional ToU-network tariff with DSO and
• Nord-Pool spot-price based contract with retailer (normal product of some retailers)
High price days
Surface
temperature
of the fireplace
20
25
30
35
40
45
15 22 29 36 43 50 57
aika päivää vuoden 2006 alusta
takka D
takkaa
lämmitetty
ke, to, ja la
takkaa
lämmitetty
su, ma, ke takkaa
lämmitetty pe
väri kuvaa korkeaa
spot-hintaa
Manual response: use of fireplace to compensate electric heating
• hourly prices were known at
the afternoon before operating
day
• if the price exceeds the pre-
defined level, the retailer sent
sms-message or e-mail
• hourly meters at customers
• manual response to prices
Conclusions from 2004-2006
• both regulatory and economical (metering) barriers exist
• retailer does not get benefit due to the use of load profiles although customer had hourly meters
• to get full benefits from spot-prices, automatic response through building automation needed
14
Conclusions from the past experiences from
demand response
• Long tradition in large scale application of TOU-tariffs. There is a need for more
flexible control. Legislation requires that DSOs enable TOU. In 2005 about 25%
of TOU meters were are so old that they need to be replaced.
• Direct load control via power line communication and kWh-meters used to be
common before deregulation, but only some small DSOs have kept them
operational. With the recent large scale rollouts of communicating meters, these
old fast load control systems have been completely removed and sometimes
replaced with new GSM/GPRS based slow responding load control systems.
• Any type of load control is possible for all customers with main fuse over 3x63 A.
For example spot-price based real time tariffs can be used.
• Legislation requires load curve based settlement for all customers with 3x63 A or
smaller main fuse => Competitive retail energy suppliers and their customers
have no incentive for load control; research results not used. => Change in
legislation is needed to get the full potential of electrically heated houses utilised.
Planned change to settlement based on hourly metered values will solve this.
• 1 hour time resolution and delayed feedback => Inadequate for modelling DR
responses
• There are no other major barriers for demand response on the competitive side of
the electricity system. Some electricity retailer suppliers offer retail tariffs that
consist of hourly varying spot-price and a small margin.
15
Some new drivers for demand response
• Penetrations of distributed and renewable and relatively
unpredictable generation are increasing so distributed control
resources are needed
• Response of distributed energy resources is an essential part of
smart grid concepts and projects
• Controllable resources are needed also because the size of the
biggest generation and transmission units is increasing
• Competitive electricity market removes overcapacity and reacts to
capacity shortage with high price peaks
• Demand flexibility is necessary to reduce risks of failures of the
electricity market and system
• Saving fuels and environment
16
Smart metering/AMR
17
Existing drivers for smart metering (DSO drivers in red)
• Directive 2006/32/EC on energy end use efficiency and energy services
• Directive 2004/22/EC on metering
• Energy saving, energy efficiency and reducing CO2 emissions
• Energy end use management
• Improving the efficiency of the DSO (network operation and planning, power
quality management, customer service)
• Fast and straightforward settlement of electricity retail market (responsibility of
DSO)
• Desire to improve competition and efficiency in the electricity retail market.
• Need to increase demand response and price elasticity of demand in the electricity
market.
• Need for system reserves
• Expected increase in penetration of intermittent and Dispersed Generation
So far many AMR-investments have mostly been planned and designed to
serve the interests of DSO only. In the fractionalised unbundled electricity
market the metering monopoly lacks incentives to serve the interests of the
energy customer and the whole. => A challenge for regulation.
18
Possible new drivers and enablers for smart
metering
• Need to improve authority regulation of the distribution monopolies
• Retail products tailored to customer
• Harmonisation of the Nordic electricity retail market (Recording
consumption by each hour makes it possible to replace the mutually
incompatible typical customer load profile settlement practices and treat all
the retailers equally in the settlement. Harmonising the different load curve
models is too difficult and expensive.)
• Provision of remote monitoring and control services that use the AMR
infrastructure. ( For comfort, for fault diagnosis, for safety and security, for
remote energy management of buildings, power quality, etc.)
• Possibility to share communication and other costs with other remote
services
• Predictable and relatively stable rules of the game
• Open standard protocols for metering data presentation in various
interfaces
• Common minimum requirements for the functionality and interfaces of
AMR systems.
19
Conclusions from the AMR development in Finland until now.
The development has been voluntary
• In 2005 about 7% electricity consumption meters were in AMR, about 1 % in hourly
measurements and about 25 % needed to be replaced due to their age
• In 2006 there were slightly over 3 million consumption points, of them about 100 000
had main fuse over 3x63 A.
• In 2006 about 18 % of all the meters were in AMR and about 41 % of the customers
with main fuse over 3x63 A were in AMR
• In 2007 about 20 % of all the electricity consumption meters were in AMR and in
almost all new orders recording hourly readings was required.
• It is estimated that in 2010 about 44 % of all consumers have AMR and
• in 2015 the AMR coverage will be 70 – 90 %.
• There are some DSOs that plan not to start full scale AMR implementation by 2015.
• => Legislative actions are necessary to get full national AMR coverage. In
Finland the DSO is responsible for billing metering. Most DSOs outsource metering
partly or fully.
20
New regulation in 2009
21
New Regulation Status
• Status
• Regulations take effect March 1, 2009
• The regulation is applied to metering systems
bought after March 1, 2009
• The existing metering systems have to be
improved to correspond the regulation
• By 31st December 1010 with >3x63 A
consumers and
• By 31st December 2013 with other
consumers
• Before 31st December 2011 daily meter reading
is not required to customers who don’t have
hourly based products
March, 2009 -
Regulations take
effect
December 31, 2010 –
All hourly (>3x63
Amp) sites are ready
December 31, 2013 –
Rollouts Completed in
Finland (80% enabled
with hourly metering)
1,8 year 3 year
• Functionality
• Hourly measurement
• Meter reading once per day
• Registering of over 3 minutes outages
• Load control possibility included
• Supports simple time-of-use tariffs and controls
• Security of data
• hourly data to be stored at least 6 years at DSO
• No mandatory connection to house automation.
But, if customer needs data direct from the
meter, the meter has to be provided with a
standard interface
• Also electricity supplied to the network by DG
has to be measured on hourly basis
Remaining 20% read manually 3 times/year
December 31, 2011 –
after this daily meter
reading for all customers
22
Conclusions
• There are increasing needs for Demand Response.
• Demand response may not succeed if it is not adequately taken
into account in metering system investments and regulation.
• Demand Response and energy saving need similar metering
system functionalities.

More Related Content

PDF
Smart Metering, Load Control and Energy-using Behaviour
PPTX
The impact of the revision of the EPBD on energy savings from the use of BACS
PPTX
1. power system losses introduction
PDF
Algorithms for the control and sizing of renewable energy communities
PDF
Mitsubishi electric energy saving data collection server eco webserveriii-die...
PDF
Mitsubishi energy saving data collecting server eco webserver ⅲ_dienhathe.vn
PPT
Electricity demand side management and end use efficiency
PPTX
Operational ANM Schmes in the UK and America
Smart Metering, Load Control and Energy-using Behaviour
The impact of the revision of the EPBD on energy savings from the use of BACS
1. power system losses introduction
Algorithms for the control and sizing of renewable energy communities
Mitsubishi electric energy saving data collection server eco webserveriii-die...
Mitsubishi energy saving data collecting server eco webserver ⅲ_dienhathe.vn
Electricity demand side management and end use efficiency
Operational ANM Schmes in the UK and America

What's hot (19)

PPTX
Energy Management-7 Oct (Skykine)
PDF
Waste water treatment success story
PDF
Photovoltaic Grid Parity in the Tertiary Sector
PDF
Photovoltaic Grid Parity Monitor
PDF
Solar and wind power forecasting
PPTX
FedEx Poster
PPTX
Demand side management,
PDF
Towards a new model of Energy Development
PDF
PG&E Demand Response Programs
PPTX
5.5 off main-grid technologies for power generation in rural contexts
PPTX
IREC part 02
PPTX
Integrating Multiple Microgrids into an Active Network Management System
PDF
USA Activities on DSM (Demand Response & Energy Efficiency)
PDF
Chapter 6 : Smart District heating/cooling, Summer Course, AUST 2015
PDF
System Level Data and Technology Requirements of REV
PDF
Managing Grid Constraints with Active Management Systems
PDF
IRJET- Optimization of Renewable Energy Sources for DC Microgrid
PPT
Thesis Presentation
Energy Management-7 Oct (Skykine)
Waste water treatment success story
Photovoltaic Grid Parity in the Tertiary Sector
Photovoltaic Grid Parity Monitor
Solar and wind power forecasting
FedEx Poster
Demand side management,
Towards a new model of Energy Development
PG&E Demand Response Programs
5.5 off main-grid technologies for power generation in rural contexts
IREC part 02
Integrating Multiple Microgrids into an Active Network Management System
USA Activities on DSM (Demand Response & Energy Efficiency)
Chapter 6 : Smart District heating/cooling, Summer Course, AUST 2015
System Level Data and Technology Requirements of REV
Managing Grid Constraints with Active Management Systems
IRJET- Optimization of Renewable Energy Sources for DC Microgrid
Thesis Presentation
Ad

Similar to Load profiling for balance settlement, demand response and smart metering in Finland (20)

PDF
Analysis of distribution grid tariffs in the Norwegian energy system
PDF
European research experience and needs on smart metering
PPTX
Demand side management
PDF
Optimal Time-of-use Management for Utility Customers Using Behind-the-meter E...
PDF
UK Approach to Settlement – The barriers of Profiles for Settlements in engag...
PPTX
Wf storage 2018 presentation_ores v1_may 18th 2018
PDF
Emission impacts of marginal electricity demand in France
PDF
Integrating renewables and enabling flexibility of households and buildings
PPTX
Renewable Energy Integration Limits
PDF
Demand side management
PPT
Energy_conservation_paper_presentation
PPTX
Distributed generation.pptx
PPT
Real Time Pricing Simulator for Smart Grids
PDF
Issues faced by developer for net metering
PPTX
UNIT II.pptx
PPTX
MODERN SMART GRIDS AND LEVERAGING SMART METER DATA.pptx
PPTX
Smart Energy Business Models and Technologies
PDF
2. power system losses evaluation
PPTX
Smart grid technologies after midsem slides
PDF
Modelling loads and responses in project SGEM (Smart Grids and Energy Markets)
Analysis of distribution grid tariffs in the Norwegian energy system
European research experience and needs on smart metering
Demand side management
Optimal Time-of-use Management for Utility Customers Using Behind-the-meter E...
UK Approach to Settlement – The barriers of Profiles for Settlements in engag...
Wf storage 2018 presentation_ores v1_may 18th 2018
Emission impacts of marginal electricity demand in France
Integrating renewables and enabling flexibility of households and buildings
Renewable Energy Integration Limits
Demand side management
Energy_conservation_paper_presentation
Distributed generation.pptx
Real Time Pricing Simulator for Smart Grids
Issues faced by developer for net metering
UNIT II.pptx
MODERN SMART GRIDS AND LEVERAGING SMART METER DATA.pptx
Smart Energy Business Models and Technologies
2. power system losses evaluation
Smart grid technologies after midsem slides
Modelling loads and responses in project SGEM (Smart Grids and Energy Markets)
Ad

More from IEA DSM Implementing Agreement (IA) (20)

PDF
Converting Demand Side Operation in to an Accurate Tool for the Transmission ...
PDF
Customer Organizations
PDF
Market Mechanisms for White Certificates
PDF
Consumer's Services Companies
PDF
Utilities Industry & the Capital Market - Under Pressure - Utilities Global S...
PDF
Practical experiences with internal and external energy performance contracti...
PDF
Efficiency Valuation: Fine Tuning M&V for Business Transactions
PDF
From theory based policy evaluation to smart policy design: lessons learned f...
PDF
Registration and validation in Denmark – the principles and the chosen solutions
PDF
The New Structure for PSO Activities in Denmark – Goals and Overall Set-up
PDF
Measuring and verifying energy savings within the Energy Fund Model in Norway
PDF
The Italian white certificates market and the measurement and verification of...
PDF
Energy Efficiency Obligations - the UK Practical Experience on Validating & E...
PDF
EU Directive on Energy End-Use and Services
PDF
Automatic meter management – A customer's perspective
PDF
Options for a White Certificates scheme in the Netherlands
PDF
Energy services in practice – Saving energy and directly earn money
PDF
Monitoring information for EU reporting
PDF
Australian Energy Efficiency and Demand Side Management Activities
PDF
The Current Status and Prospect of Distributed Generation in Korea
Converting Demand Side Operation in to an Accurate Tool for the Transmission ...
Customer Organizations
Market Mechanisms for White Certificates
Consumer's Services Companies
Utilities Industry & the Capital Market - Under Pressure - Utilities Global S...
Practical experiences with internal and external energy performance contracti...
Efficiency Valuation: Fine Tuning M&V for Business Transactions
From theory based policy evaluation to smart policy design: lessons learned f...
Registration and validation in Denmark – the principles and the chosen solutions
The New Structure for PSO Activities in Denmark – Goals and Overall Set-up
Measuring and verifying energy savings within the Energy Fund Model in Norway
The Italian white certificates market and the measurement and verification of...
Energy Efficiency Obligations - the UK Practical Experience on Validating & E...
EU Directive on Energy End-Use and Services
Automatic meter management – A customer's perspective
Options for a White Certificates scheme in the Netherlands
Energy services in practice – Saving energy and directly earn money
Monitoring information for EU reporting
Australian Energy Efficiency and Demand Side Management Activities
The Current Status and Prospect of Distributed Generation in Korea

Recently uploaded (20)

PPTX
Copy- of-Lesson-6-Digestive-System.pptx
PPTX
INDIGENOUS-LANGUAGES-AND-LITERATURE.pptx
PPTX
NORMAN_RESEARCH_PRESENTATION.in education
PDF
Presentation on cloud computing and ppt..
PDF
IKS PPT.....................................
PDF
Yusen Logistics Group Sustainability Report 2024.pdf
PDF
Module 7 guard mounting of security pers
PPTX
Research Process - Research Methods course
PPTX
CAPE CARIBBEAN STUDIES- Integration-1.pptx
PPTX
PurpoaiveCommunication for students 02.pptx
PPTX
FINAL TEST 3C_OCTAVIA RAMADHANI SANTOSO-1.pptx
PPTX
Phylogeny and disease transmission of Dipteran Fly (ppt).pptx
PPTX
power point presentation ofDracena species.pptx
PPTX
Module_4_Updated_Presentation CORRUPTION AND GRAFT IN THE PHILIPPINES.pptx
PDF
Microsoft-365-Administrator-s-Guide_.pdf
PPTX
Lesson-7-Gas. -Exchange_074636.pptx
DOCX
Action plan to easily understanding okey
PPTX
Bob Difficult Questions 08 17 2025.pptx
PPTX
ANICK 6 BIRTHDAY....................................................
PPTX
Shizophrnia ppt for clinical psychology students of AS
Copy- of-Lesson-6-Digestive-System.pptx
INDIGENOUS-LANGUAGES-AND-LITERATURE.pptx
NORMAN_RESEARCH_PRESENTATION.in education
Presentation on cloud computing and ppt..
IKS PPT.....................................
Yusen Logistics Group Sustainability Report 2024.pdf
Module 7 guard mounting of security pers
Research Process - Research Methods course
CAPE CARIBBEAN STUDIES- Integration-1.pptx
PurpoaiveCommunication for students 02.pptx
FINAL TEST 3C_OCTAVIA RAMADHANI SANTOSO-1.pptx
Phylogeny and disease transmission of Dipteran Fly (ppt).pptx
power point presentation ofDracena species.pptx
Module_4_Updated_Presentation CORRUPTION AND GRAFT IN THE PHILIPPINES.pptx
Microsoft-365-Administrator-s-Guide_.pdf
Lesson-7-Gas. -Exchange_074636.pptx
Action plan to easily understanding okey
Bob Difficult Questions 08 17 2025.pptx
ANICK 6 BIRTHDAY....................................................
Shizophrnia ppt for clinical psychology students of AS

Load profiling for balance settlement, demand response and smart metering in Finland

  • 1. Load profiling for balance settlement, demand response and smart metering in Finland Seppo Kärkkäinen Elektraflex, Finland Is DSM the Answer? Workshop in the connection of IEA DSM EXCO, Chester 21st October 2009 Session 3 – The barriers of Profiles for Settlements in engaging small consumers
  • 2. 2 Load profiling of small customers
  • 3. Small consumers (max 3x63 A (about 45 kW)) are divided into three groups for profiling: 1. Households < 10,000 kWh/year 2. Other households > 10,000 kWh/year (Most with electric heating) 3. Other, main fuses < 3x63 A
  • 4. Load profiles in the balance settlement • National load profiles are defined for each group and for each month including separate profiles to workdays, Saturdays and Sundays. In predefined special days profiles of Saturdays or Sundays are applied • Profiles are applied directly to customers without ToU- tariffs (1-energy meters) • When 2-energy meters are applied, the national load curves are calibrated to correspond the estimated consumption in each time zone • Temperature correction is applied to group 2 (electric heating) • In special cases also local load profiles can be used if network owner proposes it and has good reasons
  • 5. Example: Group 1 (Household, <10,000 kWh/a), January 0 500 1000 1500 2000 2500 3000 3500 00.00-01.00 02.00-03.00 04.00-05.00 06.00-07.00 08.00-09.00 10.00-11.00 12.00-13.00 14.00-15.00 16.00-17.00 18.00-19.00 20.00-21.00 22.00-23.00 Workday Saturday Sunday Hourly consumption (Wh) when annual consumption 10000 kWh
  • 6. Example: Group 2 (Household, >10,000 kWh/a, most with electric heating), January (outdoor temperature - 8.7 oC, (temperature dependence 4 %/ oC) 0 500 1000 1500 2000 2500 3000 3500 00.00-01.0002.00-03.0004.00-05.0006.00-07.0008.00-09.0010.00-11.0012.00-13.0014.00-15.0016.00-17.0018.00-19.0020.00-21.0022.00-23.00 Workday Saturday Sunday Hourly consumption (Wh) when annual consumption 10000 kWh
  • 7. Example: Group 3*, Others, January 0 500 1000 1500 2000 2500 3000 3500 00.00-01.00 02.00-03.0004.00-05.00 06.00-07.00 08.00-09.0010.00-11.00 12.00-13.00 14.00-15.0016.00-17.00 18.00-19.00 20.00-21.0022.00-23.00 Workday Saturday Sunday Hourly consumption (Wh) when annual consumption 10000 kWh *Old profile, this profile has been updated
  • 8. Use of load profiles in the balance settlement inside the grid of DSO • For the customers of outside supplier the annual consumption of customers is estimated on the basis of the previous year • Hourly loads of the outside supplier are calculated on the basis of load profiles and estimated annual consumption taking into account possible temperature corrections in group 2 • These hourly loads are used like hourly measured loads in the balance settlements • After the meters are read (usually once a year) the errors between the estimated and measured energies and hourly loads can be calculated • These errors are corrected between suppliers at the end of the year and cleared. The sum of energy errors is zero. The financial corrections are based on the public tariffs applied inside the corresponding network area to corresponding customers
  • 9. Load profiling in Finland inside DSO (distribution system operator) 9 summed day-TOU-profiles night hourly metered load Total grid area infeed summed night-TOU-profiles summed 1-time profiles Estimated losses = infeed - hourly metered - profiling - losses this part is fully included in the balance of the "local" supplier this part is in the balances of the outside suppliers
  • 10. 10 Demand Response at small customers
  • 11. Long experience from Time-of-Use tariffs Long term response to ToU tariffs: electrically heated houses have ToU tariffs (low price during night (usually 22 - 07), other residentials have flat prices Main reasons to the modification of load profiles: • domestic hot water produced during night time: 300 liter water storage • also heating system have storing capabilities (often heating cables assembled into isolated concrete layer of floor
  • 12. 12 National load profile and outdoor temperature in Finland in two very cold winter days in 2007 TOU-loads switch on TOU-loads switch on MW oC => TOU levels peak but requires control resources to balance switching steps. outdoor temperature
  • 13. Example: some experiences from the response to spot-prices About 10 electrically heated customers had • traditional ToU-network tariff with DSO and • Nord-Pool spot-price based contract with retailer (normal product of some retailers) High price days Surface temperature of the fireplace 20 25 30 35 40 45 15 22 29 36 43 50 57 aika päivää vuoden 2006 alusta takka D takkaa lämmitetty ke, to, ja la takkaa lämmitetty su, ma, ke takkaa lämmitetty pe väri kuvaa korkeaa spot-hintaa Manual response: use of fireplace to compensate electric heating • hourly prices were known at the afternoon before operating day • if the price exceeds the pre- defined level, the retailer sent sms-message or e-mail • hourly meters at customers • manual response to prices Conclusions from 2004-2006 • both regulatory and economical (metering) barriers exist • retailer does not get benefit due to the use of load profiles although customer had hourly meters • to get full benefits from spot-prices, automatic response through building automation needed
  • 14. 14 Conclusions from the past experiences from demand response • Long tradition in large scale application of TOU-tariffs. There is a need for more flexible control. Legislation requires that DSOs enable TOU. In 2005 about 25% of TOU meters were are so old that they need to be replaced. • Direct load control via power line communication and kWh-meters used to be common before deregulation, but only some small DSOs have kept them operational. With the recent large scale rollouts of communicating meters, these old fast load control systems have been completely removed and sometimes replaced with new GSM/GPRS based slow responding load control systems. • Any type of load control is possible for all customers with main fuse over 3x63 A. For example spot-price based real time tariffs can be used. • Legislation requires load curve based settlement for all customers with 3x63 A or smaller main fuse => Competitive retail energy suppliers and their customers have no incentive for load control; research results not used. => Change in legislation is needed to get the full potential of electrically heated houses utilised. Planned change to settlement based on hourly metered values will solve this. • 1 hour time resolution and delayed feedback => Inadequate for modelling DR responses • There are no other major barriers for demand response on the competitive side of the electricity system. Some electricity retailer suppliers offer retail tariffs that consist of hourly varying spot-price and a small margin.
  • 15. 15 Some new drivers for demand response • Penetrations of distributed and renewable and relatively unpredictable generation are increasing so distributed control resources are needed • Response of distributed energy resources is an essential part of smart grid concepts and projects • Controllable resources are needed also because the size of the biggest generation and transmission units is increasing • Competitive electricity market removes overcapacity and reacts to capacity shortage with high price peaks • Demand flexibility is necessary to reduce risks of failures of the electricity market and system • Saving fuels and environment
  • 17. 17 Existing drivers for smart metering (DSO drivers in red) • Directive 2006/32/EC on energy end use efficiency and energy services • Directive 2004/22/EC on metering • Energy saving, energy efficiency and reducing CO2 emissions • Energy end use management • Improving the efficiency of the DSO (network operation and planning, power quality management, customer service) • Fast and straightforward settlement of electricity retail market (responsibility of DSO) • Desire to improve competition and efficiency in the electricity retail market. • Need to increase demand response and price elasticity of demand in the electricity market. • Need for system reserves • Expected increase in penetration of intermittent and Dispersed Generation So far many AMR-investments have mostly been planned and designed to serve the interests of DSO only. In the fractionalised unbundled electricity market the metering monopoly lacks incentives to serve the interests of the energy customer and the whole. => A challenge for regulation.
  • 18. 18 Possible new drivers and enablers for smart metering • Need to improve authority regulation of the distribution monopolies • Retail products tailored to customer • Harmonisation of the Nordic electricity retail market (Recording consumption by each hour makes it possible to replace the mutually incompatible typical customer load profile settlement practices and treat all the retailers equally in the settlement. Harmonising the different load curve models is too difficult and expensive.) • Provision of remote monitoring and control services that use the AMR infrastructure. ( For comfort, for fault diagnosis, for safety and security, for remote energy management of buildings, power quality, etc.) • Possibility to share communication and other costs with other remote services • Predictable and relatively stable rules of the game • Open standard protocols for metering data presentation in various interfaces • Common minimum requirements for the functionality and interfaces of AMR systems.
  • 19. 19 Conclusions from the AMR development in Finland until now. The development has been voluntary • In 2005 about 7% electricity consumption meters were in AMR, about 1 % in hourly measurements and about 25 % needed to be replaced due to their age • In 2006 there were slightly over 3 million consumption points, of them about 100 000 had main fuse over 3x63 A. • In 2006 about 18 % of all the meters were in AMR and about 41 % of the customers with main fuse over 3x63 A were in AMR • In 2007 about 20 % of all the electricity consumption meters were in AMR and in almost all new orders recording hourly readings was required. • It is estimated that in 2010 about 44 % of all consumers have AMR and • in 2015 the AMR coverage will be 70 – 90 %. • There are some DSOs that plan not to start full scale AMR implementation by 2015. • => Legislative actions are necessary to get full national AMR coverage. In Finland the DSO is responsible for billing metering. Most DSOs outsource metering partly or fully.
  • 21. 21 New Regulation Status • Status • Regulations take effect March 1, 2009 • The regulation is applied to metering systems bought after March 1, 2009 • The existing metering systems have to be improved to correspond the regulation • By 31st December 1010 with >3x63 A consumers and • By 31st December 2013 with other consumers • Before 31st December 2011 daily meter reading is not required to customers who don’t have hourly based products March, 2009 - Regulations take effect December 31, 2010 – All hourly (>3x63 Amp) sites are ready December 31, 2013 – Rollouts Completed in Finland (80% enabled with hourly metering) 1,8 year 3 year • Functionality • Hourly measurement • Meter reading once per day • Registering of over 3 minutes outages • Load control possibility included • Supports simple time-of-use tariffs and controls • Security of data • hourly data to be stored at least 6 years at DSO • No mandatory connection to house automation. But, if customer needs data direct from the meter, the meter has to be provided with a standard interface • Also electricity supplied to the network by DG has to be measured on hourly basis Remaining 20% read manually 3 times/year December 31, 2011 – after this daily meter reading for all customers
  • 22. 22 Conclusions • There are increasing needs for Demand Response. • Demand response may not succeed if it is not adequately taken into account in metering system investments and regulation. • Demand Response and energy saving need similar metering system functionalities.