AGRION Conference
Developments in National Smart Metering
Programmes

The future of smart metering in
Flanders/Belgium:
Do...
Can I ask you a question?
What percentage of families in Flanders do you
think feel that the installation of a smart meter...
Willingness to pay
What percentage of families in Flanders
wants to pay to have a smart meter
installed?
•64% does not wan...
Overview
• Is there support for smart metering within the
general public?
• The result of the Belgian CBAs
• Stakeholder d...
THE RESULTS OF THE
BELGIAN COST-BENEFIT
ANALYSIS
5
How did the CBA(s) come
about?
• Electricity and gas are (partly) regionalised
matters in Belgium
• Retail markets are reg...
BELGIUM
Smart Meters are under the responsibility of the
Regional authorities
The three Regions have separately conducted ...
COST-BENEFIT ANALYSIS (1)
Outcomes of the baseline scenario (80
to 100% roll out):
•Flanders: INCONCLUSIVE (NPV ranging
fr...
COST-BENEFIT ANALYSIS
Critical variables in the sensitivity analysis
•Flanders:
• Lifespan of the meter hardware and commu...
ROLL-OUT IN THE CBAs

(1)
Metering points and associated investment :

•Flanders: 3,4 million metering points electricity ...
ROLL-OUT IN THE CBAs

(2)
Assumed overall electricity savings (%)
•Flanders: 1% (indirect feedback) - 3% (direct
feedback ...
ROLL-OUT IN THE CBAs

(3)
Communication infrastructure
• Flanders:

• 80% PLC broadband to gateway with cable modem
• 20% ...
Conclusions of Belgian
CBA

• The assessment was done according to the
EC recommendations/guidelines
• The result is that ...
STAKEHOLDER
DIALOGUE IN
FLANDERS/BELGIUM
14
Policy platform smart
grids
• Flemish governement created a long term vision
• 1 area of action is ‘Smart cities’
• VREG –...
Policy platform smart grids
(2)

Participants:
•Representatives of industrial, household and
vulnerable clients (energy po...
Next steps
NEXT STEPS – WALLOON REGION (
A “smart meter friendly” scenario is
proposed
In this case, the smart meters are rolled-out:...
NEXT STEPS – BRUSSELS (1)
Roll-out of “advanced” meters
•For some specific clients; essentially big consumers
and industri...
NEXT STEPS – FLEMISH REGION
• DSOs in Flanders finished a first pilot project, called
“proof of concept”, which was mostly...
NEXT STEPS – FEDERAL LEVEL
Towards an adaptation of the market model?
•Project to create a new “Central Market System” in
...
Pilot projects in
Flanders
State of play October 2013

23
Pilot: Firmware upgrade
1.
1.
2.
2.
3.
3.
4.
4.

Masters SCM
Masters SCM
Slaves SCM
Slaves SCM
Flonidan FW - -1996
Flonida...
Study EE - Pilot planning
Naïeve periode

Testperiode jaar 1

10/2014 Start testperiode
12/2013 Nieuwe KBA VREG
10/2013 Ei...
New Central Market
System
Central Market System
• Start of operations planned mid 2016
• The roles of data hub and market facilitator will
be both i...
Atrias as Central Market System
As-IIs
As- s

Eandis
Eandis
Ores
Ores

Supplier 1
Supplier 1

Indexis
Indexis

Infrax
Infr...
Jan’12

Sept ‘12

Mar ‘13

MIG 6
MIG DSO

June ‘13

Jan ‘14

Mar ‘14

July’14

July ’15

July ’16

End to end market proce...
Which customers
might be rolled out
first?
Which customers might
be rolled out first?
Some segments of the market clearly show more
potential:
•Big customers (on the...
Experiences with PPM for
bad payers
A survey found that:
•Customers appreciate that PPMs help them
balance their (energy) ...
Conclusions
Smart metering is not
dead in Belgium
• All regional regulators are involved in on-going
discussions
• Pilot projects are ...
Thank you for your attention!

dirk.vanevercooren@vreg.be
@DEvercooren on Twitter
35
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Agrion smart meter conference 11 december 2013 slideshare version

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Description of the current situation regarding the roll out of smart meters in Flanders, how stakeholder dialogue around smart meters is organised, what next steps can be expected.

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Agrion smart meter conference 11 december 2013 slideshare version

  1. 1. AGRION Conference Developments in National Smart Metering Programmes The future of smart metering in Flanders/Belgium: Does a negative CBA mean the end? Dirk Van Evercooren, Director Markets VREG, 11 December 2013 Vlaamse Regulator van de Elektriciteits- en Gasmarkt
  2. 2. Can I ask you a question? What percentage of families in Flanders do you think feel that the installation of a smart meter would be an invasion of their privacy? 18% 59% of respondents say they would save money by adjusting their energy consumption to take into account low and high price periods if Time of Use tariffs would be extended (VREG Survey July 2013) 2
  3. 3. Willingness to pay What percentage of families in Flanders wants to pay to have a smart meter installed? •64% does not want to pay •Of those interested in having a smart meter, still 56% does not want to pay for a smart meter (VREG Survey July 2013) 3
  4. 4. Overview • Is there support for smart metering within the general public? • The result of the Belgian CBAs • Stakeholder dialogue on smart meters and smart grids • What is going on within the pilot projects? • How is the retail energy market model evolving? • Next steps at the legislative level 4
  5. 5. THE RESULTS OF THE BELGIAN COST-BENEFIT ANALYSIS 5
  6. 6. How did the CBA(s) come about? • Electricity and gas are (partly) regionalised matters in Belgium • Retail markets are regulated at regional level: Brussels Flanders Wallonia Brugel VREG CWaPE 6
  7. 7. BELGIUM Smart Meters are under the responsibility of the Regional authorities The three Regions have separately conducted a cost-benefit analysis as intended in directive 2009/72/EC and 2009/73/EC Why separately? Because of the different realities of the Regions. For example, Brussels-Capital is a purely urban Region, unlike the two others 7
  8. 8. COST-BENEFIT ANALYSIS (1) Outcomes of the baseline scenario (80 to 100% roll out): •Flanders: INCONCLUSIVE (NPV ranging from -300 M€ to +700 M€) •Brussels: NEGATIVE (NPV = -80 M€ in the least negative scenario, "advanced scenario") •Wallonia: NEGATIVE (NPV = -186 M€) 8
  9. 9. COST-BENEFIT ANALYSIS Critical variables in the sensitivity analysis •Flanders: • Lifespan of the meter hardware and communication module • % of consumers that will subscribe to TOU • Energy saving for gas customers •Brussels: • Valorisation of the CO2 emissions • Energy saving • Subscription communication • Number of meter installations per day •Wallonia: • Energy saving for electricity customers • Demand side management • Installations per day per full time equivalent 9 (4
  10. 10. ROLL-OUT IN THE CBAs (1) Metering points and associated investment : •Flanders: 3,4 million metering points electricity and 2,1 million metering points gas; 2000 M€ •Brussels: 620.378 electricity metering points electricity and 417.298 gas metering points; 460 M€ (for the least negative scenario: advanced scenario) •Wallonia: 1,9 million metering points electricity and 0,7 million metering points gas (assumed metering points for 2020); 2200 M€ Please note that the ratio between the number of metering points and the associated investment is meaningless Timeline •Flanders: 5 years •Brussels: 2015-2018 (4 years) •Wallonia: 2015-2019 (5 years) 10
  11. 11. ROLL-OUT IN THE CBAs (2) Assumed overall electricity savings (%) •Flanders: 1% (indirect feedback) - 3% (direct feedback - IHD) •Brussels: 3,38% •Wallonia: 0% as a baseline parameter Assumed average peak shaving or load shifting (%) •Flanders: 5% •Brussels: 0,47% of the total benefits (for the least negative scenario: advanced scenario) •Wallonia: additional demand flexibility due to smart meters is 12% of total load 11
  12. 12. ROLL-OUT IN THE CBAs (3) Communication infrastructure • Flanders: • 80% PLC broadband to gateway with cable modem • 20% of which 60% MUC via cable and 40% GPRS • Brussels : • UMTS (for the least negative scenario: advanced scenario) • Considered Options for all scenarios: • PLC technology • Mobile network technologies: GSM/GPRS, UMTS, etc. • Radio network technologies: WiMAX, Wi-Fi or Mesh • Wallonia: • PLC and GPRS • Technology mix will be further tested and evaluated by DSOs in the near future 12
  13. 13. Conclusions of Belgian CBA • The assessment was done according to the EC recommendations/guidelines • The result is that the conditions for a roll out of at least 80% of Smart meters are not met • Hence, the obligation of the 3rd Package has been fulfilled, with a negative outcome • Does this mean the smart meter is not an issue in Belgium any more? 13
  14. 14. STAKEHOLDER DIALOGUE IN FLANDERS/BELGIUM 14
  15. 15. Policy platform smart grids • Flemish governement created a long term vision • 1 area of action is ‘Smart cities’ • VREG – Flemish Regulator of Electricity and Gas markets was assigned as leader for this project • A stakeholder platform ‘Beleidsplatform slimme netten’ was created as a forum for discussion • Several organisations participate and express their opinions 15
  16. 16. Policy platform smart grids (2) Participants: •Representatives of industrial, household and vulnerable clients (energy poor) •Social-economic Council and Environmental Council •Sector representatives: DSOs, TSO, suppliers, ESCOs, aggregators,… •Other government agencies, interest groups,… 16
  17. 17. Next steps
  18. 18. NEXT STEPS – WALLOON REGION ( A “smart meter friendly” scenario is proposed In this case, the smart meters are rolled-out: On demand (the client pays for the installation) ● Bad payers households ● Replacement of a defective meter ● New connection ● Outcomes : 15% smart meters in 2020, 35% en 2030 (estimation) ● NPV = + 585 M€ ● Total cost: 947 M€ ● 18 No decision yet
  19. 19. NEXT STEPS – BRUSSELS (1) Roll-out of “advanced” meters •For some specific clients; essentially big consumers and industrials • AMR (Automated Meter Reading) meters for clients connected to the grid on high voltage => load curves reading on a day+1 basis • “REMI” meters for clients with a big consumption but connected on low voltage => reading on a monthly basis 19
  20. 20. NEXT STEPS – FLEMISH REGION • DSOs in Flanders finished a first pilot project, called “proof of concept”, which was mostly concerned with technical aspects of smart metering • Second phase, started up now is the “pilot project”: On a larger scale than the proof of concept (45.000 meters) Smart meters with different functionalities In order to test required logistics for roll-out process Ambition to go further: with smart meters market processes have to be re-analysed • First analysis of costs and benefits in real life situations • • • • • Integration with Linear project 20
  21. 21. NEXT STEPS – FEDERAL LEVEL Towards an adaptation of the market model? •Project to create a new “Central Market System” in 2016: a common platform for the exchange of data for market processes •Two main goals of the new Central Market System: • To have more efficient and simpler market processes • To be Smart Meters Ready •Market participants and regulators Respect of privacy •Privacy Commission participating in the reflections 21
  22. 22. Pilot projects in Flanders
  23. 23. State of play October 2013 23
  24. 24. Pilot: Firmware upgrade 1. 1. 2. 2. 3. 3. 4. 4. Masters SCM Masters SCM Slaves SCM Slaves SCM Flonidan FW - -1996 Flonidan FW 1996 Hexing FW - -220 Hexing FW 220 IMDMS IMDMS verbruiksfeedback Belgacom Telenet Release EE Release MDM MDM IPT/AMM IPT/AMM MS7  MS8 MS7  MS8 SMT SMT SAP SAP MOC PLC Mobile Mobile 24 MS7  MS8 MS7  MS8
  25. 25. Study EE - Pilot planning Naïeve periode Testperiode jaar 1 10/2014 Start testperiode 12/2013 Nieuwe KBA VREG 10/2013 Eindrapport PoC deel 2 2013 Go live verbruiks overzicht Infrax 10/13 Go live verbruiksoverzicht Eandis => Verschuift => volledige studie schuift gelijkmatig mee Design van het onderzoek Nu 25 Testperiode jaar 2 VerwerVerwerking king resultaten resultaten jaar 1 1 jaar 01/2016 Rapport jaar 1 VerwerVerwerking king resultaten resultaten jaar 2 2 jaar 01/2017 Rapport jaar 2
  26. 26. New Central Market System
  27. 27. Central Market System • Start of operations planned mid 2016 • The roles of data hub and market facilitator will be both incorporated within Atrias, the Central Market System • Atrias was created in 2011 by the Belgian DSOs • Operation of Atrias will cover the whole of Belgium • Hence, the regional regulators cooperate intensively preparing the CMS and MIG 6 27
  28. 28. Atrias as Central Market System As-IIs As- s Eandis Eandis Ores Ores Supplier 1 Supplier 1 Indexis Indexis Infrax Infrax Sibelga Sibelga CH CH Supplier 2 Supplier 2 PubliPubliclear clear Tecteo Tecteo WalWalClear Clear V V A A N N Fluxys // ELIA Fluxys ELIA Eandis Eandis Infrax Infrax Sibelga Sibelga Supplier 4 Supplier 4 Tecteo Tecteo Shipper // Balance Shipper Balance Responsible Responsible Supplier 1 Supplier 1 Ores Ores Supplier 3 Supplier 3 Supplier n Supplier n To-B To-Be e Supplier 2 Supplier 2 Atrias Atrias Federal Federal Clearing Clearing House House (CH) (CH) Fluxys // ELIA Fluxys ELIA Supplier 3 Supplier 3 Supplier 4 Supplier 4 Supplier n Supplier n Shipper // Balance Shipper Balance Responsible Responsible Atrias will be the only platform for the exchange of market data between energy suppliers, grid operators and other market participants 28 Infosessie - MIG6 Pre-Processing – Session d’information 28
  29. 29. Jan’12 Sept ‘12 Mar ‘13 MIG 6 MIG DSO June ‘13 Jan ‘14 Mar ‘14 July’14 July ’15 July ’16 End to end market processes => messages  Translation of MIG6 interactions between DSOs and CMS CMS Purchase CMS Build Testing Data extraction, data transformation en data migration Migration Transition GO-live Operation 29 Infosessie - MIG6 Pre-Processing – Session d’information 29
  30. 30. Which customers might be rolled out first?
  31. 31. Which customers might be rolled out first? Some segments of the market clearly show more potential: •Big customers (on the Distribution grid) •Prosumers (?) •Bad payers (who now have ‘closed’ system prepayment meters) •On demand 31
  32. 32. Experiences with PPM for bad payers A survey found that: •Customers appreciate that PPMs help them balance their (energy) budget •Organisations speaking for the poor don’t like the PPM, especially not the Gas PPM •90% of the users is satisfied with the existing charging options 32
  33. 33. Conclusions
  34. 34. Smart metering is not dead in Belgium • All regional regulators are involved in on-going discussions • Pilot projects are being executed • A new market model, including flexibility and smart meter ready market processes is being prepared • A Central Market System will facilitate the market supported by smart meters 34
  35. 35. Thank you for your attention! dirk.vanevercooren@vreg.be @DEvercooren on Twitter 35

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