Smart Meters and Demand Response Where Is Europe Going and Who Will Profit.
 
1 year, 28 market, in-depth, multi-client study on Demand Response best practice from around the world
Research Basis - A comparison of 43 different pricing or feedback schemes - Peak clipping DR schemes Pricing tools - Energ...
Demand Response Programs  “ Any program which communicates with the customer that either enables them or encourages them t...
Peak Clipping DR
Energy Saving DR
Demand Response “Turning Energy  Consumers into  Energy Citizens” Sarah Darby
VaasaETT,  Capgemini, Enerdata
USA  5% peak reduction  = 625 power plants $66billion  over the next  two decades  split between Consumer and Utility  (Br...
The Four Key Drivers of Value •  Size of (peak) load  •  Amount of peak load offset by DR  •  Avoided cost of capacity  • ...
Smart Meter requirements - Past Provide automatic meter reading capabilities (AMR)
<ul><li>Smart Meter Requirements  </li></ul><ul><li>Present   </li></ul>
Financial potential of meter installations 195,593,000 households  in the EU 27 X €  400 per meter € 78,237,200,000
PAST Market Structure = Stable <ul><li>Global - planned    system equilibrium  </li></ul><ul><li>A monopoly supplier </li>...
<ul><li>Present Market Structure  =  Volatile </li></ul><ul><li>Critical peaks increase price volatility in   the wholesal...
Peak Clipping Demand Response
Peak Clipping DR
Peak Clipping Program Averages  T i me  Of Use
<ul><li>Present situation = FRANCE </li></ul><ul><li>10 historical peaks in the last 7 years </li></ul><ul><li>Each new ye...
Critical Peak Pricing France  <ul><li>1982 “ Peak Day Step Back”  </li></ul><ul><li>22 days of 18 hours (Nov.  –  March) <...
Energy Saving DR
Energy Saving Program Averages
<ul><li>Utilities  knowledge of residential customers </li></ul><ul><li>YES </li></ul><ul><li>Size of Living Space </li></...
RESULT?
 
Holistic understanding which includes customer drivers is necessary in order to maximise the effectiveness of company reso...
<ul><li>Market Barriers </li></ul><ul><li>GAP –  EU Commission / utilities </li></ul><ul><ul><li>Scientists & bureaucrats ...
<ul><li>Market Barriers </li></ul><ul><li>IDEALISM - policy makers </li></ul><ul><ul><li>“ It is good for society, they sh...
EU Market Developments <ul><li>EU commission pull from the top gradually changing the market.  </li></ul><ul><ul><li>Spain...
Reasons for optimism  <ul><li>Developments in metering market </li></ul><ul><li>Growing recognition of DR as financially v...
Despite the barriers T he market is preparing  today  f or  tomorrow “ We don’t know what the future market will require a...
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200TWh of Annual Energy Savings in Europe by 2020, part 1

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IT and Demand Response programs can be used to achieve substantial energy savings. How does the future look? This presentation will outline both the potential of these IT enabled programs taken from a range of studies collected globally, as well as map the political and market requirements needed to make them a reality for Europe.

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  • 200TWh of Annual Energy Savings in Europe by 2020, part 1

    1. 1. Smart Meters and Demand Response Where Is Europe Going and Who Will Profit.
    2. 3. 1 year, 28 market, in-depth, multi-client study on Demand Response best practice from around the world
    3. 4. Research Basis - A comparison of 43 different pricing or feedback schemes - Peak clipping DR schemes Pricing tools - Energy reduction DR schemes Feedback tools
    4. 5. Demand Response Programs “ Any program which communicates with the customer that either enables them or encourages them to lower or shift energy consumption”
    5. 6. Peak Clipping DR
    6. 7. Energy Saving DR
    7. 8. Demand Response “Turning Energy Consumers into Energy Citizens” Sarah Darby
    8. 9. VaasaETT, Capgemini, Enerdata
    9. 10. USA 5% peak reduction = 625 power plants $66billion over the next two decades split between Consumer and Utility (Brattle Group)
    10. 11. The Four Key Drivers of Value • Size of (peak) load • Amount of peak load offset by DR • Avoided cost of capacity • Avoided cost of energy
    11. 12. Smart Meter requirements - Past Provide automatic meter reading capabilities (AMR)
    12. 13. <ul><li>Smart Meter Requirements </li></ul><ul><li>Present </li></ul>
    13. 14. Financial potential of meter installations 195,593,000 households in the EU 27 X € 400 per meter € 78,237,200,000
    14. 15. PAST Market Structure = Stable <ul><li>Global - planned system equilibrium </li></ul><ul><li>A monopoly supplier </li></ul><ul><li>Regulated tariffs (still exist) </li></ul><ul><li>Basic metering with limited communication </li></ul><ul><li>TOU pricing because of production constraint </li></ul>
    15. 16. <ul><li>Present Market Structure = Volatile </li></ul><ul><li>Critical peaks increase price volatility in the wholesale market </li></ul><ul><li>Volatile renewable energy integration (wind & solar) </li></ul><ul><li>Retail market competition: new entrants, new price offers, new automated home services … </li></ul><ul><li>New technical progress : Smart metering (more interactive) interconnection of electrical and telecom networks with AMR </li></ul><ul><li>CO2 reduction goals </li></ul>
    16. 17. Peak Clipping Demand Response
    17. 18. Peak Clipping DR
    18. 19. Peak Clipping Program Averages T i me Of Use
    19. 20. <ul><li>Present situation = FRANCE </li></ul><ul><li>10 historical peaks in the last 7 years </li></ul><ul><li>Each new year brings a new record peak </li></ul><ul><li>Demand peaks : bigger and more often (even in summer) </li></ul><ul><li>Household consumption is responsible for global increase (increase of more than 75% since 1990) </li></ul><ul><li>… due to « brown product » use (electronic and communication e.g. : cell phone, computers…) and increasing number of homes </li></ul>
    20. 21. Critical Peak Pricing France <ul><li>1982 “ Peak Day Step Back”  </li></ul><ul><li>22 days of 18 hours (Nov. – March) </li></ul><ul><li>Low prices rest of year </li></ul><ul><ul><li>50% reductions participants </li></ul></ul><ul><ul><li>4% reductions total market </li></ul></ul>
    21. 22. Energy Saving DR
    22. 23. Energy Saving Program Averages
    23. 24. <ul><li>Utilities knowledge of residential customers </li></ul><ul><li>YES </li></ul><ul><li>Size of Living Space </li></ul><ul><li>Heating method </li></ul><ul><li>Age of house </li></ul><ul><li>Age of boiler </li></ul><ul><li>Heating system </li></ul><ul><li>NO </li></ul><ul><li>Composition of household </li></ul><ul><li>Age of household members </li></ul><ul><li>Income </li></ul><ul><li>Education </li></ul><ul><li>Profession </li></ul>
    24. 25. RESULT?
    25. 27. Holistic understanding which includes customer drivers is necessary in order to maximise the effectiveness of company resources RISK – Waste of 60% of budget
    26. 28. <ul><li>Market Barriers </li></ul><ul><li>GAP – EU Commission / utilities </li></ul><ul><ul><li>Scientists & bureaucrats vs. business & engineers </li></ul></ul><ul><li>GAP – customers / utilities </li></ul><ul><ul><li>Lack of trust – Ex. s mart metering = spying </li></ul></ul><ul><li>GAP – Findings / utility leadership </li></ul><ul><ul><li>Savings = Losses </li></ul></ul>
    27. 29. <ul><li>Market Barriers </li></ul><ul><li>IDEALISM - policy makers </li></ul><ul><ul><li>“ It is good for society, they should do it for free” </li></ul></ul><ul><ul><li>Legal barriers - Austria </li></ul></ul><ul><ul><li>Push the high profile measures - Denmark </li></ul></ul><ul><li>Weak mandates for regulators - Finland </li></ul><ul><li>Weak or counter productive regulations – Italy </li></ul><ul><li>Lost assets and investment without benefit – UK, Spain </li></ul>
    28. 30. EU Market Developments <ul><li>EU commission pull from the top gradually changing the market. </li></ul><ul><ul><li>Spain SM mandate – micro generation and smart grid capabilities </li></ul></ul><ul><ul><li>Italy - reviewing smart meters - for Smart Grid </li></ul></ul><ul><ul><li>Norway – mandated feedback capabilities </li></ul></ul><ul><ul><li>Austria – high priority on feedback </li></ul></ul><ul><ul><li>Finland – accurate billing and hourly readings, …. </li></ul></ul><ul><ul><li>France, Belgium, UK …. </li></ul></ul>
    29. 31. Reasons for optimism <ul><li>Developments in metering market </li></ul><ul><li>Growing recognition of DR as financially viable and effective </li></ul><ul><li>Leadership of EU Commission – Regulatory research, technical research, objectives </li></ul><ul><li>Improvements in customer friendly products </li></ul><ul><li>Developments in pilot studies </li></ul>
    30. 32. Despite the barriers T he market is preparing today f or tomorrow “ We don’t know what the future market will require and we don’t want to shut ourselves out” Norwegian Regulator.

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