Smart Customer Gotland Demo on the island of Gotland

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Smart Customer Gotland Demo on the island of Gotland Christina Svalstedt, Vattenfall Smart Grid Gotland

Vattenfall, at a glance One of Europe s largest generator of electricity and one of the largest producers of heat Approx. 6.2 million electricity customers, 3.2 million electricity network customer and 1.9 million gas customers 100% owned by the Swedish state Operations mainly in the Nordic countries, Germany, Netherlands and UK Main products: Electricity, heat, gas, energy services Business operations: Production, Trading, Distribution, Sales and energy services

Project overview - Smart Grid Gotland (2012-2016) Redevelopment of an existing distribution network into a smart grid, to meet the challenges associated with an increased proportion of renewable electricity generation. Integration of Wind Power - Cost-effective increase in the maximum acceptable wind power production in existing power lines (5 MW of wind power on Gotland) Reliability and efficiency - Show that modern technology can help to increase power quality in rural networks with large amounts of installed renewable generation (20% lower SAIDI) Active customer participation Smart Customer Gotland. Enables active customer involvement with the intent to displace 10% grid load (attracting a large number of customers to participate in market test)

Essential questions To what extent will the customer adopt and use new technology to become more active? How active is the customer and in what areas? Dependent on customer profile? Is remote steering of i.e. heating a need for a sustainable change in behavior or can this be achieved from other activities? Can provided technology and/or pricing models impact consumption, energy cost and load peaks? Will a possible change in customer behavior be sustainable over time?

Agenda Project overview and setup Customer analysis

Customer motivation Smart Saving Strive to reduce their costs Smart Technology Interested in new technologies Smart Environment Protect the future environment

Participating customers 2 groups Automatic remote Manual control # of customers 214 50 Retail price Reinforced spot-price with a wind discount Regular spot price Grid tariff Time of use Time of use or fixed Equipment Heat control Energy Watch, smart control, Temp sensor Electric boilers, Heat pumps, electric radiators, water boilers Energy Watch, smart plug, temp sensor None, customer can manually control based on the price signals Recruitment Q4 2013 Q2 2014 Q3/Q4 2014

The engine: Control system configuration Spot-pri ce Temp prognosis Wind prod prognosis Economy + Economy Normal Comfort Hot water boiler Direct electric heating Heat Pump (Water) Floor heating (electrical) Electric boilers Next-day forecast Type of heating system Desired comfort level Override control Daily price signal Real time Temp guard Customer controls on/off Temp guard or lost contact

Analysis Preliminary intermediate results based on 1 st year pilot.

Analysis areas Load shift To what extent will customers change behavior and move consumptions to less expensive hours? Possible load shift of 10%? Activity steering How active is the customer, what activities are the most common ones, what is the main reason for these activities? Behavior and attitude surveys Customer satisfaction, behavior and awareness Economic benefit Impact from pricing models and price information

Typical day (total of all customers who participated) sgg.energywatch.se/totalchart Peak at 11pm; Low price heating switched on. Peak at 9am Heating hot water is turned on after being turned off from 6-9am.

Consumption during peak hours Data analysis Load shift automatic remote steering -16% -10% % 22.6 18.9 20.4 > 10% shift achieved 2013 before test 2014 during test 2015 during test Comparison of the 5 most expensive hours each day. Next step: include general price levels, weather conditions, energy consumption in total

Manual control/override Data analysis How active is the customer in modfication of price signals? 70 % of the customers with automatic control have made a manual change, at least once. It s decreasing over time (Why? Lower interest or better understanding?) They plan ahead: Increase off hours for next day. Remove off hours during weekends More reduction of off hours for water boilers than heating products Very few changes in the hour in progress

Change in energy behaviour (Consciousness) Customer survey Both manual and automatic changed behaviour 50% 40% 30% 20% 10% 0% Medelvärde: Auto 6,2 (6,2) / EW 5,2 (5,5) 7% 8% 6% 1=I mkt låg grad 4% 2% 1% 8% 8% 9% 9% 4% 3% 35% 22% 19% 20% 18% 15% 16% 13% 14% 15% 9% 6% 12% 10% 3% 4% 2 3 4 5 6 7 8 9 10=I mkt hög grad Totalt Auto EW I vilken grad har du förändrat ditt generella energibeteende efter det att utrustningen installerats och projektet kommit igång? Här avser vi din medvetenhet om energieffektivisering i stort och inte endast dina ev manuella ändringar i styrschemat. (skala 1-10) (Bas: samtliga = 231 st) 14

Support Auto customers needed most support All very satisfied with the support Local experts House calls (Bas: automatstyrda = 185 st) Nej 31% Customer survey Vet ej/ minns ej 3% Ja 66% 40% 30% Medelvärde: Auto 8,1 / EW 7,6 20% 20% 10% 6% 9% 8% 2% 2% 1% 1% 0% 1=Mycket missnöjd 2 3 4 (Bas: har haft behov av support = 139 st) 5 6 7 8 36% 14% 9 10=Mycket nöjd (Bas: EW-kunder = 46 st) Nej 57% Vet ej/ minns ej 6% Ja 37%

Customer satisfaction Customer survey High satisfaction (6.8), same level on both survey 1 and 2. Medelvärde: Auto 6,8 (6,8) / EW 5,8 (6,8) 40% 30% 20% 10% 0% 2% 2% 2% 2% 2% 1=Mycket missnöjd 15% 7% 5% 6% 5% 6% 14% 11% 24% 11% 9% 20% 20% 17% 6% 31% 28% 15% 10% 11% 6% 4% 4% 4% 2 3 4 5 6 7 8 9 10=Mycket nöjd Totalt Auto EW Tänk på din samlade erfarenhet av projektet Smart Kund Gotland så här långt. Hur nöjd är du med den erfarenheten? (skala 1-10)

Concluding remarks from a flexibility perspective Customers have different motivations but requires: Simplicity Comfort Hourly-spot price is too complicated - time tariff both on grid and electricity side Automatic control is necessary You can shift load from expensive to cheaper hours but it is difficult for the customer to increase their consumption when the price is low It is a challenge to get a cost-effective customer support - customers want more communication/? contact with their utility company.

Project status next steps About half pilot period (ending april 2016) First preliminary analysis done, final results autumn 2016. Planning started about customer offer after pilot Survey 1 After installation Controlled participants Survey 1 After installation Only EW Survey 2 2nd winter All particpants Survey 3 Autumn 2015 All participants Survey 4 After completion of the pilot All participants Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Progress report First winter Controlled participants Progress report 2 nd winter All participants Progress report Survey 3 All participants Final report (Pilot closed)

Langhammars, Fårö. Gotland More information? www.smartgridgotland.com (Swedish+English) www.gotlandsenergi.se/smartkundgotland.pab (Swedish) www.vattenfall.com christina.svalstedt@vattenfall.com

Total Smart Customer Price and wind compensation öre/kwh 180 160 140 120 100 80 60 40 20 5048 48 49 50 54 61 111 132 117 107 0 Hour at. -20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 101 95 96 94 94 113 163 Reinforced spot price SC P Time of use tariff Wind compensation SCP Total 125 79 63 58 53 50