SLIDE 1 International case-study: Harnessing Smart Metering for Kyoto Compliance
Jeffrey H. Michel
Ing.-Büro Michel Heuersdorf, Germany Smart Metering West Coast 2006
SLIDE 2 Germany‘s domestic objective of a 25% CO2 reduction by 2005 (referred to 1990) was abandoned after three lignite plants at Lippendorf and Boxberg were dedicated in 2000.
87% of Germany‘s greenhouse gas emissions consist
After the country‘s Kyoto
was nearly attained in the year 2000, aggregate emissions have now risen to 17.4% below 1990 levels.
SLIDE 3 Aggregate greenhouse gas emissions in the EU-15 states are diverging from a linear reduction path due to persistent deficiencies in emission reduction strategies.
European Environment Agency: “Only two Member States — Sweden and the United Kingdom — expect that existing domestic policies and measures alone will be sufficient to meet or even exceed their burden-sharing
- targets. All others are projected to be significantly above
their commitments with their existing domestic policies and measures.” (EEA Report 8/2005, p. 16)
Difficult Fulfillment of Kyoto Mandates in the EU
SLIDE 4 German Lignite Power Plants Produce Three Times the CO2 Emissions per Kilowatt-Hour of Highly Efficient Natural Gas Generation
Kraftwerk Lippendorf near Leipzig, dedicated 2000
Annual Data: 11 million tons of lignite 13 million tons of CO2 1 million tons of DeSOx gypsum 14 billion kWH
- 2% of German power production
- 3 times the annual generation of the Hoover Dam
SLIDE 5
Germany: World Leader in Lignite Production
SLIDE 6 German Lignite Regions and Mining Output
- Rhineland 100 MT/a
- Lusatia 60 MT/a
- Middle Germany
20 MT/a
Overburden 970 MT/a = 15 times the
(1869, 74 million cubic meters)
SLIDE 7
Lignite Mining for the Lippendorf Power Station
More than 300 villages have already been destroyed in Germany by lignite surface mining. This number may exceed 400 by the end of the century.
SLIDE 8 The German village of Heuersdorf began developing a smart metering infrastructure in 1996 for enhanced resource use efficiency as an alternative to being devastated by lignite mining for the Lippendorf power station.
A court decision in November 2005 has now sealed the fate of
will be devastated by the US-owned MIBRAG corporation before 2009 in preparation for mining 60 million tons of lignite at this location.
SLIDE 9
The profits from lignite power production in Germany are generally not devoted to improving demand side efficiency, but are used instead for new generation capacities and foreign acquisitions. Power produced from German lignite is sold at national market prices. In the USA, the power rates in lignite mining states are significantly lower than in coastal regions.
Lignite Pricing Policies
SLIDE 10
The Swedish state-owned Vattenfall invests in wind power and solar energy in Sweden using profits accrued in Germany from ecologically destructive mining and CO2- intensive lignite power generation.
Diversion of Lignite Profits to Foreign Investment
SLIDE 11 Breakdown of emissions abatement strategies due to disregard of real-time data
- Energy demand is presumed to have
been anticipated and minimized in a cost-effective manner during manufacturing and installation.
- Little regard is paid to ongoing
consumption.
- The inability persists to estimate the
frequency and intensity of equipment use, the observance of procedures for operation and maintenance, or possible deviations from specified system performance. Public programs that promote energy efficiency generally focus
purchase decisions for buildings, motor vehicles, heating, generation, and manufacturing equipment.
SLIDE 12 Controlling Consumption in Real Time
The Sampling Theory requires that a control device
- perate at double the frequency of the process it is
intended to regulate.
SLIDE 13 Implications of the Sampling Theory
- Yearly power invoices (such as employed in Germany)
allow only those demand variations to be detected with mathematical certainty that endure for at least two years.
- It is impossible to recognize daily or even seasonal
changes of power consumption on the basis of annual meter readings.
- More frequent decisions on energy use are necessarily
based in part on random information, which will inevitably misdirect a portion of available energy resources into ineffective or counterproductive responses, thereby reducing process efficiency.
SLIDE 14 Entropy:
The randomness, or disorganization, that diminishes the effectiveness of any process
- The term was first used by Rudolph Clausius in the middle of the
19th century to specify the wasted quantity of usable energy tha t is irretrievably lost to dissipated heat.
- Norbert Wiener observed that the probabilistic formula for entropy H
is the negative expression for an equivalent amount of information. ∞ H = - ∫ w(v) log2 w(v) dv
- ∞
- It follows that “the processes which lose information are, as we
should expect, closely analogous to the processes which gain entropy”.
Norbert Wiener, Cybernetics or Control and Communication in the Animal and the Machine (Cambridge: MIT Press, 1947), p. 76.
SLIDE 15 Increased Information → Lower Entropy = Greater Resource Use Efficiency
- Power bills are issued monthly in many countries
(USA, Canada, Australia, Norway) to improve customer responses to changes in consumption.
- Billing invoices may include easy-to-understand
graphical comparisons of consumption data
(www.wapa.gov/es/pubs/esb/1997/97Dec/at_abill.htm).
- Two types of comparisons may be employed:
historic monthly data or cross-comparisons between customers with similar use profiles.
SLIDE 16
Historic Data Comparison Feedback
Monthly Individual Data and Average Demand of All Customers
SLIDE 17
Cross-Comparison Data Feedback
Demand of Neighboring Households
SLIDE 18 Energy Savings Realized with Monthly Feedback
- f Information to the Customer
The Centre for Sustainable Energy in the United Kingdom has determined in an international survey of utility billing practices that the monthly feedback of printed and graphical data to the customer offers potential sustained energy savings of 5 to 10%.
Simon Roberts, William Baker, Towards Effective Energy Information (Bristol: Centre for Sustainable Energy, July 2003), p. 4.
SLIDE 19 Real-Time Control using Smart Metering Technologies for Additional Savings
- Continuous electronic monitoring and evaluation
- f power (and other resources such as heating
- il, natural gas, and water) enables consumption
data to be returned to points of decision in real time for interactive control.
- The Energy Policy Act of 2005 in the United
States recommends that “customers be provided with electricity price signals and the ability to respond to them”. Normal consumption patterns can then be altered “in response to changes in the price of electricity over time”.
SLIDE 20 Benefits of Data Collection and Control in Real Time
- With continuous data collection and intercommunication
- f current demand information, the customer becomes a
functional component of the grid control system.
- Preferred times of power delivery may be established by
the utility company using either static time-based tariffs
- r variable time-of-use rates that fluctuate in step with
power trading prices, thus improving grid utilization and diminishing required generation capacities.
- Continuous data interrogation at all points of the grid
allows power interruptions or critical load conditions to be pinpointed for rapid restoration of service.
- Unforeseen restrictions (“contingencies”) of power
generation or grid transmission may be countered by the remote control of load devices (water heaters, electrical appliances, machinery).
SLIDE 21 Provisional Directive 2005/.../EC of the European Parliament and of the Council on energy end-use efficiency and energy services
Article 13 Metering and informative billing of energy consumption
- 1. Member States shall ensure that, in so far as it is
technically possible, financially reasonable and proportionate in relation to the potential energy savings, final customers for electricity, natural gas, district heating and/or cooling and domestic hot water are provided with competitively priced individual meters that accurately reflect the final customer's actual energy consumption and that provide information on actual time of use.
SLIDE 22
- 2. (...) Appropriate information shall be made available with
the bill to provide final customers with a comprehensive account of current energy costs. Billing on the basis of actual consumption shall be performed frequently enough to enable customers to regulate their own energy consumption.
- 3. (…) the following information is made available to final
customers in clear and understandable terms (...): (a) current actual prices and actual consumption of energy (b) comparisons of the final customer's current energy consumption with consumption for the same period in the previous year, preferably in graphical form; (c) wherever possible and useful, comparisons with an average normalised or benchmarked user of energy of the same user category (...).
SLIDE 23 Limitations of the EU Directive on Energy End-Use Efficiency and Energy Services
- Considerations are omitted of the efficiency
enhancements that can be achieved using cross-comparisons of data between individual
- consumers. The corresponding data has been
normalized to a “benchmarked user”.
- Real-time metering capabilities may not be
expected for the majority of private residences, since implementation costs must be “reasonable in relation to the volume of consumption and savings potential”.
SLIDE 24 Cost Benefits in the USA using Remote Metering to Replace Monthly Manual Readings
$0.33 $2.91 Total
Patti Harper-Slaboszewicz, "California and Ontario: A Bold Approach with Prom ise", Issue Alert (August 10, 2004).
$0.08 $0.29 Service Reliability $0.00 $0.37 Revenue Protection $0.00 $0.34 Other $0.00 $0.67 Meter Reading $0.00 $0.60 Meter Operation $0.25 $0.64 Accounting & Customer Service
Savings per Meter and Month Customer Benefits Utility Benefits Advanced Metering Infrastructure (AMI) at California Public Utilities
SLIDE 25 Orienting Smart Metering Toward Kyoto Compliance and Energy Conservation
- If current annual billing routines were retained in
Europe, the cost benefits of an Advanced Metering Infrastructure (AMI) would be less pronounced than in the United States.
- However, that situation would change dramatically
if real-time readings were required for demand- side management in fulfilling the EU Directive on energy end-use efficiency.
- Once a corresponding commitment to AMI had
been made, additional monitoring functions and ancillary tasks could be implemented at little cost.
- In Germany, consumers will be able to install their
- wn power meters after July 1, 2007, opening the
way to new independent energy services.
SLIDE 26 Requirements for Real-Time Metering in Implementing Demand-Side Management
Tom D. Tamarkin, Small Customer Demand Response Enabling Technology (Sacramento: USCL Corporation, September 26, 2005).
Wireless or hardwired connection to utility or grid operator Wide Area Network Data Telecommunications Optional rates for critical load periods, advanced notification Critical Peak Pricing Rates received from the utility and shown on a customer display Dynamic or Real-Time Pricing 45-day storage of the maximum peak demand of each 15-minute time interval Peak Demand or Class of Service rate structures Processing of 15 minute rate data, stored for at least 45 days Time-of-Use rate structures
SLIDE 27 Cost Defrayment with Utility Services via WAN/Internet
- Service outage reporting
- Service restoration reporting
- Remote service connect & disconnect
- Theft of power reporting
- Over voltage and under voltage reporting
- Power factor monitoring and reporting
- Emergency disconnect of electric, gas, and
water services
- Service personnel data base and report
transmittal
SLIDE 28 Cost Defrayment with Customer Services via WLAN/Internet/Telephone
- Multiple metering of power, water, heating
(natural gas, oil, district heat), and wastewater, with information feedback
- Intrusion alarm
- Smoke alarm
- Medical emergency alarm (pendant transmitter)
- Appliance and device control
Cost defrayment results from a combination of energy and water savings, reduced insurance premiums, and enhanced operational efficiency.
SLIDE 29 An AMI power meter can function as a Network Gateway intercommunicating with:
and display devices
a wireless local area network and
service providers via the Internet.
Diagram courtesy of USCL Corporation
Smart Meters for Centralized Data Administration
SLIDE 30 Uncertainties of Smart Metering Implementation in Europe
- It is not apparent to what extent real-time
metering might become compulsory under the terms of the EU directive on energy end-use efficiency owing to the low level of average private consumption in many households (in eastern Germany only about 2000 kWh/a).
- It is difficult to make an economic case for the
adoption of AMI technology if only miniscule amounts of electrical power can be saved, unless multifunctional capabilities are realized.
SLIDE 31 Multifunctional Cost Efficiency
Low power demand in many parts of Europe limits the potential efficiency contribution
However, multifunctional meters capable of measuring power, heating energy, and water consumption will provide aggregate savings to justify the cost of AMI realization. Considerable undetected variations prevail between the heating energy demands of individual households.
SLIDE 32 Opportunities for Market Development in Europe
- 1. The lower average electricity
consumption of European households and businesses should be multiplied by higher utility rates to determine the attainable motivation for reducing
- demand. Display readouts translated into
monthly budget savings will likely prove more effective than power readings in influencing customer behavior.
SLIDE 33 Opportunities for Market Development in Europe
- 2. Since the beginning of 2006, an energy
performance certification has been
- bligatory for all buildings sold or rented
in the European Union. The cumulative measurements of a multifunctional meter for electricity and gas (or heat) can enable actual energy usage to be verified to the new owner or tenant.
SLIDE 34 Opportunities for Market Development in Europe
- 3. In Germany, utility customers will be able
to commission qualified contractors to install smart power meters after July 1, 2007. The subsequent attainment of reduced power demand by metering service companies dedicated to improving energy efficiency will constitute a virtual power station that has supplanted physical generating capacity.
SLIDE 35
Opportunities for Market Development in Europe
4. The United Kingdom is considering the allocation of personal carbon allowances to all citizens as a contribution both to Kyoto fulfillment and to energy security. The allowances would be registered on a "swipe card" that could be inserted into utility meters for booking carbon credits.
SLIDE 36 Opportunities for Market Development in Europe
- 5. Germany has 200 thousand photovoltaic
arrays with a total peak power capacity
- f nearly 2,000 MW that could be
combined by a dedicated metering infrastructure to form a nationwide solar power station. These units have proven invaluable for supplying electricity on hot summer days, when the output of many conventional power plants has been reduced to avoid overheating local rivers.
SLIDE 37 Opportunities for Market Development in Europe
6. The German feed-in law (Erneuerbare- Energie-Gesetz EEG) for reimbursing power from renewable energy sources has since been emulated by Spain, the Czech Republic, France, and Portugal, as well as by China and
- Brazil. The specification of real-time metering
capabilities in the corresponding legislation would enable all CO2-free improvements of grid performance by both renewable energies and interactive efficiency measures to be included into the payment schemes.
SLIDE 38
Smart Metering as an Indispensible Step of Evolutionary Power Development
Smart metering can materially contribute to fulfilling Kyoto commitments while enhancing European energy security by reducing reliance on fossil fuels.
