This document summarizes a workshop on smart metering and how it can help smaller customers save energy. It discusses several methods like (1) providing customers with information on their energy use to motivate reductions, (2) implementing time-of-use pricing with remote switching capabilities to shift demand to lower price periods, and (3) demand side bidding which allows customers to be compensated for reducing energy during peak periods. It estimates that these approaches could achieve energy savings of up to 10% and help maintain electric grid stability through demand response. Further study is still needed to motivate customers and validate demand reductions.

1. Smart Metering Workshop
Energy Saving, Metering
and Smaller Customers
Richard Formby
Operating Agent Task XI
Brugge
October 2007

2. Background
• Up to 40% of electricity is used by
smaller customers
• Saving energy is major objective of
governments
• 2 ways customers can save electricity
-reducing use
-shifting use
• Maintain system security

3. Annual Duration of use of
generation capacity 2004/2005
2000MW for 15 hours (Spain)
5000MW for 170 hours (UK)
36,000.00
37,000.00
38,000.00
39,000.00
40,000.00
41,000.00
42,000.00
43,000.00
44,000.00
1 10 19 28 37 46 55 64 73 82 91 100
40 hours
3600 MW
6 hours
1600 MW
90 hours
4600 MW
15 hours
2600 MW
MW
Hours

4. Individual End Use
Contribution to Peak Demand

5. DR and Switched End Uses
• Potential Smaller Customer Demands
– Storage heating, cooling and water heating (switch energy
“in”/”out”)
– Direct space heating (modify thermostat settings)
– Direct water heating (modify thermostat settings)
– Direct space cooling (modify thermostat settings)
– Embedded generation (start out of heat led regime)
– Fridges and freezers (switch off for short period)
– Washing machines (disable for period, change time schedule)
– Cooker (disable for period)
– Sauna, car heaters (disable for period)
– Direct electric showers (disable for period)

6. Energy Saving Methods
• wise use education; use more efficient
end uses
-customers reduce use
• Move from high to low price times(tariff)
-reduced losses and maybe save CO2
from generation

7. Energy Saving Methods
• Demand participation in system operation
(Dynamic TOU pricing/DSB)/Remote
Switching
-Reduce standby generation
- maintain system security
-increase valley space for wind generation

8. Energy Saving Motivators
• INFORMATION as motivator
- provide end use costs and how to save
- provide demand shift potential, how to
participate and the benefits (financial and
environmental)

9. Energy Saving Mechanisms
• EUMF
• TOU Pricing + Remote switching
• Dynamic TOU/Critical peak pricing +
Remote Switching
• Demand Side Bidding + Remote
Switching

10. EUMF
• Feedback end use information,cost and
CO2 (displays)
• Demand disaggregation
-very “smart” metering
-modelling (interview data+real time
disaggregation and feedback)
• 10% savings estimate
• Put national disaggregation data on bills
now

11. Fixed TOU Pricing
• Fixed times and rates
- saves energy and CO2
• Manual/automatic/remote demand shift to
lower price times
- communication enabled TOU meter to
switch end uses(not really “smart”
metering)
- “smart” end uses
- slightly “Smart” metering for profiles
development data collection

12. Dynamic TOU/Critical Pricing
• DR participating in system operation
- automatic/remote switching (24 hrs)
- communication enabled end uses
- meter not really “smart”, 2 rate?
-saves energy and CO2
• Meter provides information to help
customers reduce demand?
- very “smart” meter
• Impacts profile settlements

13. Demand Side Bidding
• DSB is validated Dynamic DR
-saves energy and CO2
• Contracted DR to System Operator
• Motivated by price and payment
• High price dissuades customer over ride
(TOU meter plus comms to end uses)
• Validation of “available”/ “turndown”
• Validation by modelling DR or “smart”
remote metering

14. Remote Metering Solution for
Demand Validation
Demand
Aggregation
Demand
Validation
Demand Change
Signal
System
Operator
100000 Customers
Communications
Demand
Profile

15. Statistical Modelling Solution
for Demand Validation
GSP Substation
Demand
Validation
Demand Change
Signal
System
Operator
100000 Customers
Network
Aggregated Customer
Load Curve
Simulation
Demand
Management
Profile
Data

16. Energy Saving and Metering
• EUMF - potential 10% E saving
- very “smart” metering/interviews
• Tariff TOU-E savings + system security
- simple meter, “smart” end uses
• Dynamic TOU-E savings + system security
- simple meter, “smart” end uses
• DSB-E savings + system security
- simple meter, “smart” end uses
- validation by modelling or remote TOU
metering

17. Task XI Reports
Subtask 1 - Smaller Customer Energy Saving by
End Use Monitoring and Feedback
Subtask 2 - Time of Use Pricing for Demand
Management Delivery
Subtask 3 - Demand Side Bidding for Smaller
Customers
Subtask 4 - The Impact of Dynamic Demand
Changes on Profile Settlement Systems
Subtask 5 – Demand “available” and “turndown”
Mechanisms for Market Bidding of Smaller
Customer Demand
Final Report –TOU Pricing and Energy Use for
Demand Management Delivery

18. Overall Conclusions
Demand shift and energy savings based on
EUMF, TOU Pricing and DSB for smaller
customers is technically feasible
Significant further study is needed to motivate
customers, model DR for profile settlements
and demand validation and provide future
proof, cost effective remote end use switching
and communication

19. Route to Implementation
• ESCO Route attractive
- Proposed new Subtask to investigate
ESCO delivery of smaller and SME customer
EUMF and Demand Response and Energy
Savings

20. How to Motivate Energy
Saving DR Delivery
• Governments/Regulators set Smaller/SME
customer DR targets for Suppliers and
System Operators
• Large campaign to educate customers
• Provide financial incentives (accreditation
EEC)