Smart Metering: A key tool to enhance demand response and promote energy efficiency. Directorate General for Energy European Commission

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1 Smart Metering: A key tool to enhance demand response and promote energy efficiency Directorate General for Energy European Commission EGATEC 2013 Paris, May

2 Significant change of energy systems Single Market by 2014 Decarbonisation objectives Technological progress Energy Roadmap 2050: % electricity 2

3 Significant challenges ahead High RES % Source: Energinet.dk 3

4 Energy policy deployment for grid modernisation 3rd Energy Package Smart Grids and Smart Metering Energy Efficiency Directive Directive 2009/72/EC Making the IEM work COM(2012)663 Smart Grids Policy COM(2011)202 Recommendation COM(2012)148 Mandates for Standards M490 Directive 2012/27/EU Energy Infrastructure Electromobility Energy Infrastructure Package Regulation (EU) 347/2013 Proposal Directive for the deployment of Alternative Fuel Infrastructure COM(2013)18 4

5 Cost Benefit Analysis and planning of roll-out 5

6 Roll-out plans for smart electricity metering systems Sweden Completed Italy Completed (ENEL: ) Finland Mandated Malta Mandated Spain Mandated Austria Mandated Poland Under Discussion Estonia Mandated Romania Under Discussion Greece Mandated France Mandated (timetable TBC) Netherlands Mandated (timetable TBC) Denmark Mandated (1.5mn SM already installed)? 2020 Luxembourg Mandated UK Mandated Ireland Mandated

7 Successful roll-out of smart metering is key The roll-out of smart metering systems calls for a collaborative approach of policy-makers, industry and regulators for consumers' benefit. Successful roll-out of smart meters opens doors to win-win situation: Security of supply through better local balancing Involvement of consumers in the market (micro-generation, etc.) Empowerment of consumers through demand response => savings Cost-efficiencies for DSOs and suppliers and new business opportunities for third parties Success depends on criteria decided largely by Member States: Smart Meters functionalities (to include those benefiting also consumers, not just DSOs as owners/installers of smart meters) Retail market competition to breed innovative solutions and lower costs Commission presently analysing CBAs prepared by Member States Assessment and benchmarking under way > Benchmarking report planned for

8 EC Recommendation to prepare the roll-out 8

9 10 Common Minimum Functionalities CONSUMER Provide readings directly to the consumer and/or any 3 rd party Update the readings frequently enough to use energy saving schemes METERING OPERATOR COMMERCIAL ASPECTS OF SUPPLY SECURITY AND DATA PROTECTION Allow remote reading by the operator Provide 2-way communication for maintenance and control Allow frequent enough readings to be used for networking planning Support advanced tariff system Allow remote ON/OFF control supply and/or flow or power limitation Provide secure data communications Fraud prevention and detection DISTRIBUTED GENERATION Provide import/export and reactive metering MS are encouraged to go beyond these common minimum functionalities in their CBA scenarios. 9

10 6 Ways Smart Meters Benefit Consumers Energy Savings more accurate and frequent consumption data demonstrably help consumers reduce their consumption and save money Energy Efficiency more detailed consumption measurements help consumers identify opportunities for energy efficiency improvements Innovative Services smart meters are indispensable for smart home solutions/home automation, reducing energy costs Consumer Empowerment Sustainability Distribution System Efficiency switching suppliers, modifying contractual terms, etc. becomes easier, faster and cheaper use of local renewable sources and storage potential (microgrids), electromobility become easier management of the distribution systems becomes cheaper and more effective, leading to lower distribution costs 10

11 Thank you for your attention! 11

12 Standards and Interoperability Data Protection and Security European Smart Grids Task Force Mandate M/490 and validation of work programme 1st by 2012 and 2 nd set of standards by 2014 Interoperability and Conformance Testing Map Coordination with other mandates, e.g. M441 and M468 Cooperation with other regions, e.g. NIST DPIA template Cyber security assessment framework Consultation minimum security requirements Identification of data handling options and actors Regulation Implications for regulatory framework Identification process for "Project of Common Interest" Infrastructure Organisation of structures and procedures Industrial Policy Identification of conditions for investment and speeding up technology deployment 12