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When solar policy went digital
Task Force Report
SolarPower Europe would like to thank the members of its Digitalisation
& Solar Task Force that contributed to this report including:
Download
digital report:
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 3
EXECUTIVE SUMMARY
It looks at two case studies of central data hubs or data exchange layers to
facilitate access to energy data from Estonia and Denmark, three examples
of collective self-consumption frameworks from Switzerland, Germany and
France, virtual net metering in Greece and Lithuania and the use of
regulatory exemptions or ‘sandboxes’ in the United Kingdom to encourage
peer-to-peer trading.
With regards data hubs the report details the types of data included – such
as smart meter, market and weather data – and permissioning systems for
customers to allow third parties to access their data. We show how these
data hubs can be used to the benefit of PV thanks to facilitating grid feed-
in, monitoring and tokenisation. Access to data can act as a strong incentive
for new business models related to demand side management, storage and
flexibility. We recommend that other Member States mandate neutral third
parties to create similar hubs. Lithuania, the Netherlands and others are
already undertaking similar projects.
With regards collective self-consumption we show the similarities and
differences of the different frameworks emerging across Europe. Some
countries have chosen to allow collectives to use the public grid, others have
not and others again have allowed consortia to buy portions of the public
distribution grid from the DSO. There are similar divergences in terms of
geographical limitations, with France allowing neighbourhood level peer-
to-peer trading. In all cases deployment so far is low with just a handful of
projects in each country, and the trigger to use digital technology implicit
rather than explicit in the framework, even if the potential to use digital
solutions is significant.
Two examples of virtual net metering in Greece and Lithuania are also
highlighted as ways to use existing net metering schemes to allow ‘virtual
self-consumption’ and broaden prosumer participation in the electricity
system. This is one of the many tools to broaden access to self-consumption
amongst consumer groups that for financial or roofspace reasons are
unable to use traditional self-consumption.
The report showcases the potential of blockchain technologies, looking at
a number of different use cases, including peer-to-peer energy trading in a
social housing estate in the UK. There are many more potential use cases
for distributed ledger technology in the PV space and policy-makers need
to ensure that their jurisdictions are blockchain-friendly if innovation is
allowed to flourish.
We end by making a series of policy recommendations based on these
specific case studies. These include that data hubs should be introduced in
all EU countries by neutral third parties, collective self-consumption projects
should be allowed to use the public grid and regulators should use
sandboxes or exemptions to foster innovation.
If you would like to get involved in SolarPower Europe’s ongoing work in this
area, please feel free to get in touch.
This report from the SolarPower
Europe Digitalisation & Solar Task
Force looks specifically at how
policy-makers and regulators
from across Europe can and
are encouraging innovative
digital business models in the
solar PV ecosystem.
In June 2017 SolarPower Europe’s
Digitalisation & Solar Task Force
developed10high-levelregulatory
asks to foster the uptake of key
digital technologies and services
such as peer-to-peer trading,
smart grids and aggregators. In
parallel, leading solar and energy
companies active in the Task Force
committed to a set of industry
commitments on data protection,
interoperability and sharing
excellence for the growth of a
digital solar industry in Europe.
This work led in March 2018 to
more than 50 European digital
solar companies calling on
European policy-makers to ‘Go
Digital’ within the context of
reform of EU electricity market
design and implement smart
solutions to renewable integration.
This report builds on the “Go
Digital” declaration, with the aim
of supporting European policy
makers in this crucial transition
towards a smarter energy system
and identifying existing best
practices for the uptake of digital
solar services in Europe.
4 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
SolarPower Europe would like to extend a special thanks to all the Task Force members and companies who contributed with their knowledge and
experience to this report. In particular we would like to thank: SMA, Alectris, BayWa r.e., BSW-Solar, coneva, Envision, helapco, huawei, Iberdrola, IKEA,
Solarcoin, Solar Trade Association, SwissSolar, QOS Energy, QWay Energy, Toomuch.energy, Trina Solar, WePower. We would also like to thank non-members that
kindly contributed their expertise, including Deddie, Elering, Greenpeace Greece, the Lithuanian Ministry of Energy and Navigant research. Thanks also to SolarPower
Europe staff for their contributions.
Task Force coordinator and lead author of report: Sonia Dunlop, Senior Policy Adviser, SolarPower Europe. Email: s.dunlop@solarpowereurope.org.
The SolarPower Europe Digitalisation & Solar Task Force started its work in December 2016 and has had regular meetings and calls since. This report was drafted by
the Task Force between September and December 2018. It was published on 4 December 2018.
The report can be downloaded at: http://www.solarpowereurope.org/when-solar-policy-went-digital/.
Please get in touch with SolarPower Europe if you have any comments or feedback on the report and its content in order to enrich our ongoing work in this field.
If you would like more information on the contents of this report or on the work of SolarPower Europe please contact info@solarpowereurope.org or call +3227095520.
Design: Onehemisphere, Sweden. Original diagrams designed by Julija Benet. cover image: © T.Sumaetho
Disclaimer: This report has been prepared by SolarPower Europe. It is being furnished to the recipients for general information purposes only. Nothing in it should
be interpreted as an offer or recommendation of any products, services or financial products. This report does not constitute investment, legal, tax or any other
advice. recipients should consult with their own financial, legal, tax or other advisors as needed. This report is based on sources believed to be accurate. however,
SolarPower Europe does not warrant the accuracy or completeness of any information contained in this report. SolarPower Europe assumes no obligation to update
any information contained herein. SolarPower Europe will not be held liable for any direct or indirect damage incurred by the use of the information provided.
TABLE OF CONTENTS
FOREWORD 5
INTRODUCTION 6
CASE STUDIES 12
CASE STUDIES
The data platform in Estonia bringing forward
new business models 12
A Danish data hub which facilitates solar prosumer feed-in
to the grid 13
The Self-consumption consortium regulation in Switzerland 14
The collective self-consumption model in France 15
The “Mieterstrom” landlord-to-tenant electricity supply
model in Germany 16
Virtual net metering in Greece 18
Virtual net metering in Lithuania 19
regulatory sandboxes encouraging blockchain innovation
in the UK 20
CONCLUSION How To DIGITaLISE SoLaR PoLIcy 22
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 5
FOREWORD
by PRoFESSoR bERnD EnGEL, SMA – TASK FOrcE chAIr
The digitalisation of the electricity system is at the very core of a successful energy transition to a fully flexible
and electrified energy system based on zero marginal cost renewables such as solar PV.
The energy transition and the digital transition must therefore go hand in hand – and policy-makers must think
smart to avoid going back to 20th century technologies and tools for ensuring grid stability.
however too often the “regulatory offer” is falling behind innovation in digital technologies and services, constantly
struggling to catch up.
Digitalisation is particularly relevant to solar, which is the decentralised prosumer energy generation technology
par excellence. Solar and storage are in many ways the most distributed of all the distributed technologies, and are
therefore best suited for digitalisation and the application of new distributed ledger technologies like blockchain.
Self-consumption solar systems also create many micro-transactions such as grid and storage feed-in at times of
excess power that could be managed by sophisticated technology. And this technology is already being used in a
number of cutting edge applications outside of Europe to allow prosumers to use and pay a fair price for grids to
send and receive energy.
OurlastreportDigitalisation&Solarlookedindetailatthenewretaillevelbusinessmodelsduetodigitalisation:smart
buildings, solar energy as a service, collective self-consumption, grid-connected microgrids and peer-to-peer trading.
This report seeks to answer the question of what innovative policies are needed across Europe to allow these
business models to come forward.
We would like to see regulators and ministries across the EU adopt these best practices, and in so doing create a
more harmonised regulatory environment for these technologies across Europe, facilitating their uptake. having a
bigger market in which to innovate encourages technologies to come forward and makes it easier for Europe to
export its standards. We need to avoid not just a two-speed Europe but a 27-speed Europe as every country thinks
within its own boundaries to develop its own regulation for the digitalisation of energy
We would also like to see the creation of a body at European level, perhaps a Digital Energy high-level Expert Group,
incorporating representatives from the Member States, the European commission, the energytech industry (which
we believe will be the next fintech industry) and trade associations. Together, we must identify what Europe’s
industrial strategy is and should be in this space. Furthermore we need to start working towards new EU legislation
specifically to enable the digital energy transition.
We hope you enjoy this report and find it useful in your work to promote digital solar at national and European level.
PrOFESSOr BErND ENGEL
SMA – Task Force chair
Professor Bernd Engel is chair of the
SolarPower Europe Digitalisation & Solar
Task Force and SMA representative
of the Board for Grid Integration.
We need to avoid not just a two-
speed Europe but a 27-speed
Europe on digital energy policy.
6 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
what can policy-makers and
regulators do to encourage the
digitalisation of the energy system
and renewables integration? How
can they encourage more digital
solar PV business models to
maximisedeploymentandintegrate
solar into the grid in a smarter way?
These are the key questions this
report seeks to answer.
Policy-makers across Europe are currently being faced with similar
challenges and similar questions as to how to approach the new digital
technologies that have a significant potential in the energy sector. As ever
when talking about energy regulation, this needs to be done in a cautious
way, but in a way that nonetheless embraces the opportunities brought by
innovative technologies such as blockchain, artificial intelligence and big
data analytics.
countries or regions in different parts of Europe can often take radically
different approaches, with little awareness of what is being implemented
on the other side of the border, or how things could be done differently.
There is a clear need to foster the exchange of best practice between
Member States and ensure the progressive convergence of regulatory
frameworks for digital and energy technologies. In the long-run, the
completion of Europe’s internal energy market could be at stake, and the
possibility for leading European companies in digital solar services to scale-
up their offerings across 27 markets.
It is also important to define what is meant by ‘new digital technologies’.
Every report and organisation takes a slightly different view. From a solar
perspective the key technologies are big data analytics, artificial intelligence
(AI), Internet of Things, robotics, drones, blockchain, mobile connectivity,
3D printing and cloud computing. (See diagram below for more details.) The
‘digitalisation of solar’ is defined as the application of these technologies
to solar and the energy sector to create new business models, generate new
sources of value and better integrate PV into the grid.
This report seeks to connect the dots from a business perspective. We seek
to highlight a handful of examples of innovative policy or regulation that is
helping to bring forward digital solutions in the solar PV ecosystem. We will
look at four main areas: data hubs and exchange layers, collective self-
consumption, virtual net metering and regulatory sandboxes.
In between the lines, the biggest finding of this report lies in what is missing:
today in Europe, very little regulation has the explicit purpose of
encouraging digitalisation, while many exemplary regulatory frameworks
seem to deliver this by accident and not by design. Europe needs to be more
strategic in its approach – and that applies to EU-level legislation as well.
It is hoped that these case studies are useful both for governments looking
for inspiration and for the solar PV and storage industries to think ahead of
what could and should be coming down the line and plan and campaign
for future regulatory change.
INTRODUCTION
Virtual net-metering project in Thessaloniki.
© constantinos Stathias/Greenpeace
What can
policy-makers do
to encourage
the digitalisation
of energy?
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 7
1 As defined in Article 5 of the EU General Data Protection regulation,
available here: http://eur-lex.europa.eu/legal-
content/EN/TXT/hTML/?uri=cELEX:32016r0679&qid=1491311160002&from=en
WHAT IS
DIGITALISATION?
BIG DATA ANALYTICS
AND ARTIFICIAL
INTELLIGENCE
CLOUD & LOW-COST
COMPUTING
3D PRINTING
MOBILE, 5G
AND WIRELESS
CONNECTIVITY
BLOCKCHAIN
ROBOTICS AND
DRONES
INTERNET OF THINGS
AND CONNECTED
SMART OBJECTS
SMART METERS
© SOLARPOWER EUROPE 2017
THE SOLAR INDUSTRY’S
SEVEN COMMITMENTS
In May 2017 the SolarPower Europe Digitalisation &
Solar Task Force published its “Seven commitments
on digitalisation” to aid the transition to fully
digitalised solar. They were:
1. Prosumer choice: We will promote transparency
and choice for prosumers in particular encouraging
mechanisms for easy switching from one product,
platform or aggregator, to another.
2. Peer-to-peer exchanges: We will support
decentralised peer-to-peer energy exchanges
and explore innovative solutions, such as
blockchain technology.
3. Smart and stable grids: We will collaborate closely
with network operators to build smart and stable
grids that include solar, storage and flexible
demand. These grids will use real-time data to
optimise electricity generation and demand. This
will also allow the system to maximise the market-
based ancillary services that inverters can provide
and be remunerated for, such as reactive power and
frequency response.
7
4. Reducing costs: We will use digitalisation to make
solar more cost-effective both in terms of up-front
costs and levelised cost of electricity (LcOE) and
increase system availability and reliability, thus
enhancing the competitiveness of solar.
5. Interoperability: We will encourage the
interoperability of software with compatible
hardware, to enable the transfer and sharing of data
that is both secure and efficient.
6. Data protection and cybersecurity: We will
champion data protection and recommend that all
companies active in the solar industry implement
state-of-the-art data protection, in-line with
established EU-wide principles.1
We will put in place
stringent cybersecurity measures.
7 Sharing excellence: We will endeavour to share
digitalisation excellence gathered within the
European industry with the rest of the world,
with specific emphasis on supporting the
developing world.
These commitments were coordinated by huawei Solar
on behalf of the SolarPower Europe Digitalisation &
Solar Task Force.
8 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
SOLARPOWER EUROPE’S REGULATORY ASKS
ON SOLAR AND DIGITALISATION
In June 2017 the SolarPower Europe Digitalisation &
Solar Task Force published its “Regulatory asks on
solar and digitalisation” to set out what policy
changes are needed at national and EU level to
promote the digitalisation of the sector. They were:
1. remove barriers to the peer-to-peer trading of
electricity, such as (but not exclusively) supply
licenserequirements,concludingcontractsbetween
peers, network charging and existing and future
systems for the delivery and billing of electricity.
2. Ensure that the implementation of regulation does
not preclude new technologies and business
models for the trading of and accounting for
electricity, such as blockchain and cryptocurrencies
that create incentives for PV and enable prosumers
to participate in energy markets.
3. Encourage regulation that allows aggregators to
compete with conventional generators in all
electricity markets and offer services in these
markets via new or different digital technologies,
such as Virtual Power Plants. Allow aggregators to
combine resources from all voltage levels and use
appropriate measuring equipment for the size of
the installation.
4. Use digitalisation to develop flexibility markets
with more automated tools and standardised
products, as well as standardised requirements for
the provision of system services both behind the
meter and at distribution and transmission level.
reform intraday and spot-markets to enable large-
scale solar and solar-plus-storage plants to take on
balancing responsibilities.
5. Acceleratethedeploymentofsmartgridtechnology,
so that more solar can be integrated into the system
and both utility-scale and small-scale solar can
provide services to the grid. In conjunction, reform
incentivesfornetworkoperators,toencouragethem
toimplementsmartgridtechnologyasanalternative
to strengthening cables and transformers. Also
provide more funding to smart grid and smart
market integration projects such as within the
connecting Europe Facility funding instrument.
10
6. reward the speed and accuracy that distributed
energy resources such as solar and storage can
provide in terms of grid support services.
7 Accelerate the deployment of smart metering
functionality, real-time measurement of
consumption and grid feed-in, as smart metering is
acatalystfornewsolarbusinessmodels.Ensurethat
consumers have access to their smart meter data
and guarantee that the roll-out of smart meters will
notdiscriminateagainstnewandexistinginnovative
solutions and solar prosumers. Avoid imposing extra
costs on smart meter customers, or mandating a
single gateway for all energy data in and out of a
building. Ensure that self-consumed electricity is not
subject to taxes, fees or charges.
8. Ensure that proposals within the market design
package for metering and consumption data to be
made available between DSOs, TSOs, customers,
suppliers, aggregators and energy service
companies are maintained. Guarantee that state of
the art and up-to-date data protection and
cybersecurity standards are put in place.
9. Maintain provisions in the proposed revision of the
Energy Performance of Buildings Directive on a
‘smartness indicator’ for homes and ensure that
on-site electricity generation is given a bonus within
the methodology for setting cost-optimal minimum
energy performance requirements for new and
renovated buildings. Ensure that this methodology
takes a holistic view of sector coupling, so that
excess PV electricity can be used and stored e.g. as
heat via heat pumps, or hot water storage.
10. Ensure that EU-level work on standards and
interoperability within the Digital Single Market
includessolarPVsystems,smartbuildingsandsmart
grids. Encourage the commission to come forward
with its ‘baseline’ standardised data format as soon
as possible, which individual device or service
manufacturers will then add additional features to.
These regulatory asks were coordinated by SMA Solar
Technology on behalf of the SolarPower Europe
Digitalisation and Solar Task Force.
INTRODUCTION / cONTINUED
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 9
THE “GO DIGITAL” DECLARATION
In March 2018 SolarPower Europe published its “Go
Digital” declaration to encourage EU policy-makers to
embrace this revolution and “go digital” when
thinking about future electricity market design.
Go Digital and make the most
of the renewables revolution
new digital technologies are breaking down the
traditional boundaries within the energy sector,
opening the door to a new era of flexibility. Smart
demand response, sector coupling and energy systems
4.0 – the opportunities are countless to make the most
of the energy transition. above all, the digitalisation of
the power system has proved to be extremely efficient
for network operation and integration of renewables,
reducing the need for curtailment and other measures
such as capacity markets.
buildingontheInternationalEnergyagency’ssuccessful
report on “Digitalisation & Energy”2
published in
november 2017, SolarPower Europe highlights the
many reasons why European policy-makers should
embrace this revolution and “go digital” when thinking
about future electricity market design.
1. Digitalisation will make the energy transition
cheaper According to the IEA report, the
digitalisation of the power sector could help save
up to $80 billion a year. This huge potential will
alleviate public finances, but first and foremost the
consumer bill.
• Digitalisation makes better use
of the existing grid
According to the IEA report, the uptake of smart
demand response could save $270 billion of
investments in energy infrastructure by 2040.
Analysis has shown that a combination of solar
and digitalised ‘grid supporting’ storage which
controls the maximum grid feed-in can double
the low-voltage grid capacity to absorb feed-in
of variable renewables (up to 60%) without any
other additional infrastructure. GODIGITAL
System operators can also maximise the use of
interconnector capacity, thereby bringing an
additional source of flexibility to the system
without additional investments. Variable
renewable input can be managed and stored
most cost effectively when connected and
handled at medium voltage level.
• Digitalisation reduces the need
for back-up capacity
European commission modelling3
has shown
that further digitalisation will trigger a peak
decrease of 36GW in 2030, leading to €1,383
million per year in benefits for the distribution
and transmission grid and €3,772 million per
year in reduced back-up capacity.
2. Digitalisation will foster the integration of
renewable capacities in the market
• Digitalisation optimises electricity flows
and market exchanges closer to real time
real-time load balancing and up-to-the-minute
pricing signals and tariffs will allow customers to
better respond to price signals: network
operation will be increasingly conducted on a
market basis, allowing small installations to
properly participate and provide grid services.
• Digitalisation reduces renewable
curtailment
According to the IEA report, smart grids with
digitally-enabled demand response and storage
could reduce curtailment of PV and wind across
the EU from 7% to 1.6% by 2040 and avoid a
massive 30 Mt of cO2 emissions per year.
• Digitalisation increases renewable energy’s
contribution to grid stability
Digitalisation will make variable generation more
controllableandabletoprovidegridservices.For
example, the new generation of PV inverters are
highly controllable devices, which can be used to
modulatetheenergyfedintothegird,andprovide
ancillaryservicestonetworkoperatorswithmore
accuracy than conventional generators.
2 International Energy Agency (2017) “Digitalization & Energy”.
3 European commission SWD, Best Practives on renewable Energy Self-
consumption cOM(2015) 339 final
1 Gerlach, A. and Breyer, ch., 2012. Global Grid-Parity Dynamics on a
National and regional Level, 27th EU PVSEc, Frankfurt, September 24-28,
2012, accepted; Breyer, ch. and Gerlach, A., 2012. Global Overview on Grid-
Parity, Progress in Photovoltaics: research and Applications, published
online February 17
10 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
INTRODUCTION / cONTINUED
3. Digitalisation will drive sector coupling
and system flexibility Digitalisation will break
the boundaries between sectors. Together,
renewables, electric vehicles, smart buildings and
smart heating and cooling will shape a cleaner
and more efficient economy.
• Electric vehicles and smart charging
Smart charging points, will increase EVs’
contribution to system flexibility by adapting the
vehicle’s consumption to low demand periods,
while releasing electricity to the grid at peak
times. This will be particularly relevant coupled
with on-site building mounted PV installations,
which generate mostly during the day when the
electric vehicle fleet is charging.
• Energy-positive smart buildings
and intelligent home systems
Smart buildings and energy management home
systems can provide energy efficiency and
demand response, building automation and
maximise the potential from smart appliances.
Smart energy management will foster the uptake
of energy-positive buildings. Such optimisation
could unlock the full potential of the huge surface
(4000 km2) of European buildings’ façades and
roofs: innovative (and EU manufactured)
technologies such as building-integrated
photovoltaic products could potentially cover up
to 40% of EU electricity demand.
• Unlocking smart demand response
The internet of things will contribute to unlocking
smart demand response. According to the IEA
report, 185 GW of system flexibility could be
reached worldwide, with further digitalisation of
the energy system. The European commission
has estimated that the technical potential of the
volume of controllable smart appliances in the
EU by 2025 will be at least 60 GW: shifting this
load from peak times to other periods can reduce
peak-generation needs in the EU by about 10%.4
GODIGITAL
4. Digitalisation will boost the EU’s industrial
leadership in renewables
• Industry 4.0 key part of maximising solar
industrial value for Europe
Digitalisation is a key part of a future European
solar industrial strategy, acknowledging the
tremendous value to be gained from offering
high-end, quality and niche products in a
commoditised market. SolarPower Europe
analysis has shown that value is moving to the
downstream and specialist parts of the sector.
• Investing digital R&D in segments of PV
market where Europe has an advantage
To stay ahead of global competitors, EU
policymakers must target digital r&D investment
into highly digitalised segments of the solar PV
sector such as the manufacturing equipment for
PV wafers, modules and cells, operations,
maintenance and asset management of large-
scale plants and building integrated PV.
4 European commission SWD, Best Practives on renewable Energy Self-
consumption cOM(2015) 339 final
European Commission Director Megan Richards with the Go Digital declaration. © SolarPower Europe
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 11
The Go Digital declaration was signed by 53 companies active
in the digital solar space, including:
12 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
CASE STUDIES
THE DATA PLATFORM IN ESTONIA
BRINGING FORWARD NEW
BUSINESS MODELS
a data exchange layer that allows all market
participants to access energy and related data in a fair,
open and secure manner.
The Estonian TSO Elering in September 2017 launched
a data platform called Estfeed which connects smart
meter, market price, weather forecast, heating data, grid
congestion and other sources of Internet of Things data
with third party application providers and final
customers. The platform does not store data but
facilitates access to existing data sets in one place.
Third parties such as energy monitoring services or
demand response providers can access smart meter
data for free based on the signing of a strict
Memorandum of Understanding and with the explicit
consent of customers.
The access to these data sets allows the development of
innovative services to consumers in the from of apps
made available in the platform’s app store. These third
partyappsincludethosethatallowcustomerstomonitor
their PV and storage production via a single interface.
In 2017 a digital power purchase agreement technology
company WePower used Estfeed to access the full
anonymised production and consumption yearly data
for Estonia in order to simulate and execute energy
transactions on the Etherium blockchain. This was the
first time in the world that the entire energy
consumption and production data for an entire country
was simulated on a blockchain, covering more than
70,000 consumption points. The WePower platform
enables investments into solar PV by providing energy
tokens in return. These tokens act as pre-payments for
energy and can then be traded. This makes it much
easier for small consumers to make micro-investments
in and micro-payments for PV generated power.
Furthermore, there is potential in the future for the
Estfeed data exchange layer to be used for crowdfunding
investments into solar PV, enabling community energy
projects and encouraging flexibility. Open access to data
brings more competition, thereby lowering costs and
increasing efficiencies for consumers.
This platform was created in order to foster innovation in
theenergyspace,asalackofenergydataisoftenabarrier
tonewentrants.Itisalsofullycompliantwithrequirements
DIGITAL TECHNOLOGIES USED:
5 See Article 23 of the proposed European commission (2016) “Directive
on common rules for the internal market in electricity”.
The Elering control room in Tallinn. © Elering
in the EU’s General Data Protection regulation in terms of
thepurposeofthedatausageandrequirementstoinclude
measures to ensure security, confidentiality, availability
and resilience of processing systems. customers use
Estonia’s“X-road”distributedidentificationsystemtogive
third parties access to their data. Furthermore, the
forthcomingEUmarketdesignpackageislikelytoexplicitly
require such consumer data sharing.5
Policy recommendations
SolarPower Europe recommends that other Member
States across the EU consider establishing a similar data
hubanddataaccesssolution.MemberStategovernments
and regulators should mandate a neutral third party to
take on this role, which could include but does not
necessarily have to be the TSO as in this case. It is
beneficial for the integration of PV and other renewables
for these hubs to include short and long term weather
forecast data in order to better integrate these into the
grid. These data hubs must also include a permissioning
system for final customers to give companies their data,
whichcanbebasedonablockchainbasedauthentication
system or other similar technology.
BIG DATA ANALYTICS
AND ARTIFICIAL
INTELLIGENCE
C
BLOCKCHAIN
R
CLOUD & LOW-COST
COMPUTING
3
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 13
CASE STUDY: SOLARCOIN:
A DIGITAL ASSET TO INITIATE THE GLOBAL
ENERGY TRANSITION
Solarcoin is an international and community-based
initiative promoting the development of solar energy
and self-consumption using one of the most disruptive
technologies to have emerged in recent years:
blockchain. Solarcoin is like an airmile programme and
any solar power producer can connect their solar panels
to the Solarcoin network by registering their solar install
to the Solarcoin website, receiving 1 SLr (ie Solarcoin,
§) for each MWh of solar energy produced.
Blockchain, the technology behind Bitcoin and other
digital currencies is a decentralised ledger which allows
participants to communicate and validate data and
monetary transactions on a same registry, available
peer-to-peer to all participants in the network. This can
apply to solar energy as well.
Solarcoin uses blockchain technology to generate a
decentralised, incorruptible and auditable record of
solar energy produced by any solar owner and comes
in addition to government-backed subsidies.
Solarcoin is already present in 46 countries and has been
rewarded to over 2,130,000 MWh of solar power
production on a test-basis, using the Solarcoin API and
SolarcoinraspberryPi3scriptsavailabletoallmonitoring
platforms, EPcs, inverter and datalogger companies.
The aim of the Solarcoin project is to initiate the energy
transition at a global scale. Join the Solarcoin network
and trial our blockchain wallet application at
www.solarcoin.org.
DIGITAL TECHNOLOGIES USED:
End consumers can view their data through their
supplier’s platform or a central website and the data is
also open to researchers via Statistics Denmark. Users
can grant third parties access to their data via the
Danish e-signature system called nemID.
A major drawback of the way the data hub has been set
upistheinabilitytohandlerealtimedatafromresidential
customers, as the data set required to enable this is too
large and has been scoped out of the current design.
Policy recommendations
SolarPower Europe recommends that open source data
hubsareestablishedacrossEuropeandaredesignedwith
the ability to handle real-time meter readings from all
consumption and generation points – from both import
and export meters. Furthermore, we recommend these
data hubs are used to better manage, analyse and
forecast the grid feed-in of self-consumption PV systems.
BIG DATA ANALYTICS
AND ARTIFICIAL
INTELLIGENCE
C
CLOUD & LOW-COST
COMPUTING
3
SMART METERS
A DANISH DATA HUB WHICH
FACILITATES SOLAR PROSUMER
FEED-IN TO THE GRID
a data hub that facilitates grid feed-in for behind-the-
meter PV systems.
In 2013 the Danish TSO Energinet implemented the first
version of its Datahub. The goal was to simplify and
managecommunicationanddatasharingandstandardise
processes between market participants in Denmark.
ThehubbroughttogethermeteringdatacollectedbyDSOs,
tariffs, subscriptions and fees data (known as ‘wholesale
master data’) and details of final customers such as
metering point ID, connection status, grid area, maximum
power kW and so on. There are 3.3million metering points
inDenmarkonboththeconsumptionandproductionsides.
At present the hub is not ready to handle hourly data,
but from 2020 onwards all Danish consumers large and
small will be settled on an hourly basis, and the
Datahub will be able to process hourly data.
The datahub is important for the uptake of innovative
solar PV business models, as it allows prosumers to sell
their excess electricity back to the grid through
advanced management of metering points. compared
to the current process the hub will allow for a much
smoother process for the feed-in of excess electricity
from the residential segment and allow a competitive
market to evolve with fair prices for prosumers.
The Energinet control room in Cophenhagen. © Energinet
14 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
CASE STUDIES / cONTINUED
THE SELF-CONSUMPTION CONSORTIUM
REGULATION IN SWITZERLAND
a collective self-consumption framework that allows
neighbours and new apartment buildings to take
control of their energy, administer flows within their
area and break away from the local utility.
In January 2018 Switzerland introduced an innovative
regulatoryframework6
forcollectiveself-consumptionwhich
could be applied to any distributed energy technology.
The ‘classic’ Swiss self-consumption model is where the
self-consumerremainsacustomerofthelocalutility,sells
itsentirePVgenerationtotheutilitywhichinturnsupplies
the self-consumer with all the electricity it needs (which
is always a combination of solar and grid electricity).
The new regulation introduced the possibility for several
houses or businesses to come together and create a Self-
consumption consortium (Scc) or Zusammenschluss
zumEigenverbrauch (ZEV). This consortium can be made
up of owner-occupied residential units or landlords that
act on behalf of their tenants.
The participating properties must be adjacent to one
another (or in a multi-occupancy building) and there
must be only one grid connection point between the
Scc and the grid. Within the Scc, the consortium then
sells the self-produced power to its members at a price
that must be no higher than the price offered by the
local utility.7 The Scc also buys power from the utility to
meet the collective’s residual demand, and re-sells it on
to its members. If the consumption of the consortium is
higher than 100MWh/year, the Scc can even buy power
in bulk on the wholesale market.
The main application for this new model to date has
been with new build multi-occupancy housing, where
the PV or storage and the single grid connection point
can be designed in to the building from the beginning
of the project. It allows the residents of these buildings
the opportunity of accessing lower power prices than
the local utility would offer them.
AnexampleisthesoontobebuiltPapillonneighbourhood
in Niederwangen. The complex will include 60 flats, have
157kW of PV and have a self-consumption rate of 70%.
crucially as far as digitalisation is concerned, the
framework specifies that a certified smart meter8 is to
be used at the grid connection point and for measuring
the flows within the consortium. (Smart meters are
currently being rolled out across Switzerland.) There is
also potential for digital technology to be used when an
6 Swiss Energy Act (Energiegesetz, EnG) Art. 16/17.
7 Switzerlanddoesnothavealiberalisedelectricitymarketandsmallconsumers
must buy power from a single local utility at a pre-determined price.
8 This is the „Eidgenössische Messmittelverordnung” regulation.
Scc aggregates the demand within its area and
measures and administers the flows within it.
This model encourages aggregation within the
consortium although all sales have to be done via the
consortium which means there is no micro-market
within the entity – there are no peer-to-peer
transactions in the strict sense of the term.
Policy recommendations
Thereispotentialforthisregulationtobefurtheramended
andthereforeimprovedinspring2019.SolarPowerEurope
andSwissolarrecommendthatlocalutilitiesareputunder
an obligation to sell segments on the public grid where
necessary and at a reasonable price. The 2% limit on
return on investment for non-third party owned self-
consumption installations should be lifted to allow more
business models and offers to emerge. It should also be
possibleforaconsortiumtoconnectpropertiesorplotsof
land separated by public land such as a road or a river.
Furthermore, we recommend that other European
countries consider introducing similar collective self-
consumption models where the collective is able buy
portionsofthepublicgrid,astheremaybesituationswhere
thisismorecost-effectivethantheparticipantspayinggrid
charges for the use of local grid infrastructure. We also
encourage other markets to consider making the use of a
smart meter at the grid connection point obligatory, and
discourage policy-makers from putting arbitrary return on
investment limits on these new business models.
DIGITAL TECHNOLOGIES USED:
MOBILE, 5G
AND WIRELESS
CONNECTIVITY
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The future Papillon complex, Niederwangen. © Genossenschaft Fambau
SMART METERS
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 15
CASE STUDY: SOLARCOIN:
A DIGITAL ASSET TO INITIATE THE GLOBAL
ENERGY TRANSITION
Solarcoin is an international and community-based
initiative promoting the development of solar energy
and self-consumption using one of the most disruptive
technologies to have emerged in recent years:
blockchain. Solarcoin is like an airmile programme and
any solar power producer can connect their solar panels
to the Solarcoin network by registering their solar install
to the Solarcoin website, receiving 1 SLr (ie Solarcoin,
§) for each MWh of solar energy produced.
Blockchain, the technology behind Bitcoin and other
digital currencies is a decentralised ledger which allows
participants to communicate and validate data and
monetary transactions on a same registry, available
peer-to-peer to all participants in the network. This can
apply to solar energy as well.
THE COLLECTIVE SELF-CONSUMPTION
MODEL IN FRANCE
a collective self-consumption framework that allows
peer-to-peer energy transactions and the use of the
public grid.
In spring 2017 France put in place a legal framework for
a new model of ‘collective self-consumption’ or
autoconsommation collective.9
This is arguably the best
example of European national regulation that
encourages peer-to-peer energy transactions.
Under this model electricity can be sold between one or
more generators and one or more consumers.
crucially, and unlike in other countries such as
Switzerland, the members of a collective self-
consumption project have to use the public grid by
paying either the normal grid fee or an alternative fee
which depends on the level of self-generation and self-
consumption within the collective.
The geographic area of a collective self-consumption
project must be limited to the area within a single low-
voltage branch or low-voltage connection of the grid.
This sets a de facto limit on the size of the projects to
that of a small neighbourhood.
The consumer(s) within the legal entity purchase the PV
generated power at a price defined in a ‘mini’ power
purchase agreement contract with the generator(s).
Separate contracts are required for each buyer-seller
relationship within the entity.
Options for the collective legal entity include
cooperatives, associations or a co-ownership
management body (similar to a tenants’ association).
The regulation is not prescriptive as to what legal
entities are required allowing local groups the freedom
to choose the type of legal entity that best suits them.
collective self-consumption can be used for multi-
occupancybuildingsormultipleconsumerswithinasmall
neighborhood. It could also be used in the social housing
sector and could include public buildings such as a town
hallorschool.Itallowsbuildingsthatcannotbenefitfrom
their own self-consumption due to roof orientation or
otherwise to use that of their neighbours instead.
The model encourages peer-to-peer trading and
encourages the use of digital technology to manage the
power flows and contracts within the collective. Smart
energy management systems and blockchain have
been discussed as technologies that could be used to
manage the flows and payments within this model.
DIGITAL TECHNOLOGIES USED:
9 Décret d’application n°2017-676 du 28 avril 2017 publié le 30 avril 2017.
Collective self-consumption project in Fruges, France. © Region Hauts-de-France
Allowing excess electricity to be sold between peers also
encourages those within the entity to maximise the PV
array on their roofs rather than simply sizing it to their
own self-consumption, as long as they forecast
sufficient demand within the community.
The framework has been in place for over a year
however unfortunately only three projects have used
this model so far, with a few more in development.
Deployment therefore needs to be increased.
One example of such an installation is a project in
Fruges, near calais. Four PV systems with a total power
of 228kW have been installed on local authority
buildings. The electricity is then consumed by a health
centre, a kindergarten and a ‘cybercentre’. This project
is part of the rEV3 or third industrial revolution
programme in the hauts-de-France region.
Policy recommendations
SolarPower Europe encourage other regulators to copy
the French model in allowing peer-to-peer transactions
(even if only within a legal entity) and the use of the
public grid. The widening of the model to larger areas
as well as the proposed removal of the requirement for
the project to be restricted to a single low-voltage
branch of the grid is welcome.
Thedifferentgridchargesleviedonthesolarelectricityand
residual demand within the collective self-consumption
model however are not balanced and should be reviewed
as at present it increases the costs on the solar prosumer
withinthecollectiveself-consumptionframework.
MOBILE, 5G
AND WIRELESS
CONNECTIVITY
B
BLOCKCHAIN
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16 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
CASE STUDIES / cONTINUED
THE “MIETERSTROM”
LANDLORD-TO-TENANT ELECTRICITY
SUPPLY MODEL IN GERMANY
a collective self-consumption model that uses digital
technology to make sure that tenants and apartment
dwellers are not left out of the energy transition.
In July 2017 the tenant electricity model
(Mieterstromgesetz in German, also translated as
‘landlord-to-tenant electricity supply model’) was
formalised by the German government with a dedicated
subsidy framework for this model set out in an
amendment to the German renewable Energy Act (EEG)
2017. The subsidy is limited to residential buildings with
a majority share of residential apartments (at least 40%)
and includes PV installations up to 100kW. The third
party plant operator can sell the electricity either to
tenants within the residential building or owners of
residential apartments in the building. Up to 500MW of
such installations can be subsidised each year.
The consumer can contract with a separate supplier for
its residual electricity demand, and other consumers in
the building can choose to be included in or excluded
from the scheme. A building can therefore have
participating and non-participating tenants.
The model involves a third party installing and owning
a PV system on the roof of an apartment block or office
building and selling the power via multiple mini on-site
direct wire PPAs to the owner-occupiers or tenants in
that building. Power can also be sold to any consumers
or facilities located within ‘close proximity’ of the
building as long as there is no use of the public grid.
In addition to a Feed-in Tariff for excess PV electricity fed
into the grid, the system operator receives an additional
subsidy for every kWh consumed by the participating
tenants within the building.
Digital solutions facilitate the cost-effective planning,
commissioning and operation and maintenance of such
landlord-to-tenant installations.
The flows of electricity and payments within the
building are managed with the use of a specific
metering system (Summenzählermodell in German)
facilitating the billing of every participating apartment
and the (smart) metering of the PV generation while
ensuring separate management of non-participating
tenants. There is potential for these flows to be
managed via an integrated energy management system
or blockchain technology in the future.
10 Energiewirtschaftsgesetz in German.
11 Gesetz zur Digitalisierung der Energiewende in German.
The German Act on the Digitalisation of the Energy
Transition10
requires the gradual roll-out of smart meters
which means that the standards and possibilities for
intelligent metering models are likely to grow. Digital
technology could be used to create a visualisation of the
building’s energy flows and savings to help engage
tenants further.
critically, the electricity that is generated and sold on-
site is not considered to have used the public electricity
grid when it flows from the building rooftop to the
apartment in that building. The directly consumed
electricity is fully exempted from grid charges and taxes,
but it is liable for the full EEG levy.
As providers of the tenant electricity model deliver
electricity to final consumers they do have to obtain a
supply license as stipulated in the Energy Industry Law
(EnWG)11
, but with reduced administrative procedures.
In addition to this, the solar installation for which a
particular landlord seeks funding needs to be registered
with the Bundesnetzagentur and the TSO in order to
receive Feed-in Tariff payments.
however data on landlord-to-tenant electricity
installations so far in 2018 shows that deployment is
very low and only using 1% of the annual subsidy
available. The Neue heimat buildings in the photo
below are an example of one of these installations.
This is mainly due to the full payment of the EEG levy on
landlord-to-tenantelectricity,thesizelimitationof100kW,
alackofguaranteesasregardingstheshareofparticipating
tenants, the complex technical and administrative
requirements and the model’s restriction to single
buildings. Administrative requirements include those
relating to changing electricity supplier, market processes
forelectricitygeneratorsandtheregulationonWholesale
Energy Market Integrity and Transparency (rEMIT).
Finally, the PV electricity supplied within this model
always needs to be 90% or less of the basic tariff of the
basic electricity provider. This can be difficult to achieve
and depends on the local basic tariff which includes grid
charges, which differ from one region to another.
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 17
CASE STUDY: SOLARCOIN:
A DIGITAL ASSET TO INITIATE THE GLOBAL
ENERGY TRANSITION
Solarcoin is an international and community-based
initiative promoting the development of solar energy
and self-consumption using one of the most disruptive
technologies to have emerged in recent years:
blockchain. Solarcoin is like an airmile programme and
any solar power producer can connect their solar panels
to the Solarcoin network by registering their solar install
to the Solarcoin website, receiving 1 SLr (ie Solarcoin,
§) for each MWh of solar energy produced.
Blockchain, the technology behind Bitcoin and other
digital currencies is a decentralised ledger which allows
participants to communicate and validate data and
monetary transactions on a same registry, available
peer-to-peer to all participants in the network. This can
apply to solar energy as well.
12 DIrEcTIVE OF ThE EUrOPEAN PArLIAMENT AND OF ThE cOUNcIL on
the promotion of the use of energy from renewable sources (recast)
cOM/2016/0767 final/2 - 2016/0382 (cOD) – as agreed after final
trilogue, June 2018.
Policy recommendations
The German Mieterstrom collective self consumption
model is potentially successful in allowing tenants,
residents and businesses in multi-occupancy buildings
to benefit for the first time from the energy transition
and encourage the use of digital technology in doing so.
however the lack of deployment shows how important
it is to get the regulatory balance right and to not
overburden these new models with red tape as
otherwise developers will not take the risks involved.
As with the case study from Switzerland, the maximum
price regulation of 90% of the local basic tariff
demonstrates that regulating prices and returns on
investment only hampers those seeking to offer these
business models.
Specifically, SolarPower Europe and BSW-Solar therefore
recommend that the German government and other
regulators looking to copy this model do the following:
• introduce lower bureaucratic hurdles for small
buildings with only a few flats – as set out in the recast
of the EU renewables Directive12
small installations
need simplified administrative procedures
• abolish disproportionate taxes and surcharges on
self-consumed PV electricity
• remove fiscal barriers in the form of trade and
corporation tax that causes the unequal treatment of
tenant electricity by real estate companies
• allow models where a third party purchases the
electricity from the PV system owner and distributes
it to the tenants
• clearly define “close proximity” to avoid legal
challenges.
DIGITAL TECHNOLOGIES USED:
MOBILE, 5G
AND WIRELESS
CONNECTIVITY
B
Neue Heimat buildings, Heidelberg, Germany. © Heidelberger Energiegenossenschaft
SMART METERS
Digital solutions facilitate
the planning, commissioning
and operation of such
landlord-to-tenant systems.
18 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
CASE STUDIES / cONTINUED
VIRTUAL NET METERING IN GREECE
an innovative use of net metering to encourage
public interest organisations to make the most of PV
self-consumption within their fleet of buildings.
In Greece in summer 2016 a virtual net metering scheme
was introduced by Ministerial Decision and related
legislation which allowed for the electricity generated by
a behind-the-meter PV installation to be consumed by
another of the customer’s facilities, if the remote
consumer is located elsewhere in the region. The two
installations have to belong to the same legal entity. This
requires the use of low-cost cloud computing and big
data type technology in order to manage the billing
processatmultiplesitesandnetthemagainsteachother.
This is a framework open to local authorities, agricultural
buildings, hospitals, schools and universities. It will also
be open to energy communities after the publication of
a forthcoming Ministerial Decision.
For public interest organisations, the power of each
photovoltaic plant may amount to up to 100% of the
sum of the agreed power to be offset. For others
organisations it is 50%.
The self-consumer and its supplier sign a ‘Virtual Energy
clearing convention’ which is valid for 25 years. The
consumption point where the PV is installed pays the
same regulated fees as in the normal self-consumption
scheme, where the regulated fees such as grid charges
are charge pro rata based on the percentage of self-
consumption. The other (remote) consumption points
however pay all regulated fees (including grid fees) and
only benefits from the reduction in the energy part of
the electricity bill.
In 2017 Greenpeace Greece worked with two
municipalities on pilot projects that highlighted the
benefits of using virtual net metering in congested urban
areas and used the scheme to combat energy poverty.
In Thessaloniki, in Greece’s first ever virtual net metering
project, Greenpeace placed a 10kW PV system on the
roof of the the “Emmanuel Kriaras” Thessaloniki high
School. The system’s generation covers the electricity
needs of the “Shelter for Abused Women and their
children” nearby.
In Larissa, the NGO worked with the municipality to
install a 15kW PV system on the roof of the Larissa
Middle School. The energy produced will provide
electricity to a nearby municipal kindergarten.
13 Law (4153/2018).
In 2018, a new law13
was introduced that opened up
virtual net metering not just for public interest
organisations but for all energy communities. The
ministerial decision to implement this has undergone
public consultation and is expected to be published by
the end of 2018.
It is important to note that under the Greek net metering
and virtual net metering legislation self-consumers pay
full grid charges. Net metering self-consumers pay for all
the power they buy (or temporarily “store”) in the grid,
meaning that they avoid paying only for the solar power
they produce and instantly consume during the day.
The remote virtual net metering self-consumers on the
other hand pay the full amount on all grid charges and
other taxes, as all the power they consume physically
comes from the grid.
Smart meters have to be used at the point where the PV
installation is installed to calculate generation and
consumption and reconcile the two at the end of every
cycle. The virtual consumption point however can have
a conventional meter. Any power surplus is credited to
the next cycle. The final netting takes place every 3 years,
in which case any surplus power is not reimbursed. All
virtual net metering self-consumers that net against
each other need to share the same energy provider.
Policy recommendations
regulators from other Member States should consider
adopting similar virtual net metering options as a tool
for allowing customers that for technical or economic
reasons cannot benefit directly from an on-site self-
consumption installation. The Greek framework is also
an example of how regulation can be used to meet the
differing needs of different parts of the grid and to
advantage the third sector to also look at self-
consumption as a means of generating power. care and
attention however is needed as regards to grid charging
with this model to find a balanced outcome for
prosumers and the grid.
DIGITAL TECHNOLOGIES USED:
CLOUD & LOW-COST
COMPUTING
3
INTERNET OF THINGS
AND CONNECTED
SMART OBJECTS
SMART METERS
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 19
VIRTUAL NET METERING IN LITHUANIA
an extension of net metering which allows consumers
with multiple sites to net generation and consumption
across their buildings.
Lithuania is currently reforming its self-consumption
framework and has proposed that as of July 2019 the
net metering scheme should be extended to include a
“virtual” net metering option.
This would mean that a single consumer could link a
behind the meter self-consumption system in one
location with a consumption point elsewhere within the
same grid voltage level. Again this requires the use of
low-cost cloud computing and big data in order to allow
different consumption points to net against each other.
Theelectricitygeneratedinonelocationwouldbenetted
against the energy bill of the consuming meter point.
The two locations – generation and consumption – have
to belong to the same natural person or legal entity.
Therefore a business with multiple sites could net
production and consumption at its various sites.
This is part of a strategy to ensure that 2% of final
consumers in Lithuania become self-consumers by
2020. The goal is for 34,000 customers to become self-
consumers by that date.
DIGITAL TECHNOLOGIES USED:
The net metering scheme currently applies to systems
of less than 10kW for residential consumers and less
than 100kW for commercial customers. There is a
proposal to remove this upper limit and allow net
metering for all installations up to 500kW.
These changes have currently been proposed in
Parliament and are awaiting approval.
Policy recommendations
regulators from other Member States should consider
adopting similar virtual net metering options as a tool
for allowing customers that for technical or economic
reasons cannot benefit directly from their own self-
consumption installation and are fortunate enough to
have multiple sites. Again, a fair compromise must be
found between the virtual self-consumers and grid
operators to make this viable in the long term.
CLOUD & LOW-COST
COMPUTING
3
Solar PV in a modern residential area in Vilnius, Lithuania. © vilax/shutterstock
20 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
CASE STUDIES / cONTINUED
Members of the Verv Banister House project team. © Verv
REGULATORY SANDBOXES
ENCOURAGING BLOCKCHAIN
INNOVATION IN THE UNITED KINGDOM
an example of how regulators can think outside the
box and encourage innovation with temporary
flexibility on regulation.
The UK’s energy regulator Ofgem has adopted the
technique of creating ‘regulatory sandboxes’ to
encourage innovation across the energy system.
This concept is derived from the world of software
development, where new code can be tested “in a ring-
fenced setting, without affecting the operations and
safety of the wider system.”14
Launched in February 2017, the Sandbox offers a
regulatory “one stop shop” to support start-ups,
businesses, local councils and community
organisations looking to launch innovative products,
services or business models in the energy space. Within
the bounds of the sandbox, Ofgem can grant innovators
a temporary exemption from the usual rules for a
specific project in order to determine whether it will
provide consumer benefit. This is a technique that has
also been used by regulators in the United States,
notably in the fintech sector.
Each of the four Ofgem-approved Sandbox trials within
the current window will involve electricity supply to a
small number of domestic customers and will last two
years from the date of their approval. In all cases,
consumers have voluntarily agreed to join the trial, can
opt out at any time, and will pay no more for their
energy than if they had not participated. There is
therefore no risk of vulnerable consumers being ‘ripped
off’ or locked in by these trials.
One of the four approved trials in the Sandbox is being
led by London-based energy start-up Verv on a social
housing estate in hackney, London. In April 2018, Verv
successfully facilitated the UK’s first-ever physical energy
trade using blockchain technology, in which one KWh
of electricity was sent from a rooftop solar PV array on
one of the estate’s buildings to a resident’s home in
another building, using Verv’s peer-to-peer energy
trading software platform.
The ongoing one-year trial of the platform is supported
by repowering London (a community organisation),
Innovate UK (a national government funding program
to support business r&D), and by the utility British Gas,
which is owned by parent company centrica. Utilising
Artificial Intelligence based “smart hubs” in tenants’
homes to calculate their energy demand profiles, and
PowerVault batteries to store power, the trial allows Verv
to test practical applications of their technology,
including how consumers respond to it. The goal is
ultimately to test whether AI and peer-to-peer trading
can optimise the use of electricity generated on a
community-owned PV site, reducing local residents’
bills and increasing energy independence.
Policy recommendations
regulators from around Europe should copy the
‘sandboxing’ practice in the UK and allow innovative
start-ups and social entrepreneurs to experiment with
new technology when it is shown there is a clear
consumer benefit. The UK example shows how a
temporary reprieve from regulation is effective at
fostering innovation.
DIGITAL TECHNOLOGIES USED:
BIG DATA ANALYTICS
AND ARTIFICIAL
INTELLIGENCE
C
BLOCKCHAIN
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14 What is a regulatory sandbox? – Ofgem, 2017 -
https://www.ofgem.gov.uk/system/files/docs/2018/09/what_is_a_regul
atory_sandbox.pdf
SMART METERS
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22 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
There is much innovation going on across Europe in
terms of digital technologies and how they can be
applied and combined with various PV and distributed
energy business models.
Some of this is happening thanks to regulatory
encouragement and innovation, some projects have
other drivers. however as the energy sector is a heavily
regulated space, it is essential that policy-makers work
with the ‘energytech’ industry to foster creativity and
experimentation.
We recognise that it is not easy for regulators to adapt
policies based on ever-changing solutions, and indeed
this is why technology-neutral approaches that do not
precludenewtechnologiesandbusinessmodelsneedto
be prioritised when designing and implementing policy.
Based on the case studies above, SolarPower
Europe recommends regulators should:
• consider implementing data hubs or data exchange
layers to facilitate access to energy, weather, market
and other sources of data for third parties. A simple
permissioning system for final customers to give third
parties access to their data in a secure way is an
essential part of this. regulators should mandate a
neutral third party to take on this role.
• require and prioritise the use of smart meters at the
point where collective self-consumption entities
connect to the grid
• Implement models for peer-to-peer trading and
collective self-consumption so that consortia can use
the public grid (subject to proportionate fees). These
models should not be geographically limited to
single buildings, adjacent properties or private land.
• Simplify administrative procedures and lower
bureaucratic hurdles for smal installations
• Avoid imposing maximum regulated prices or
ceilings on returns on investment.
• considervirtualnetmeteringasoneoftheoptionsto
allow cmore consumers to access self-consumption.
• Ensure that policy in general is blockchain-friendly
and does not preclude particular technologies or
solutions. Where possible blockchain should be
explored to bring more transparency, facilitate micro-
transactions within markets and reward PV electricity
with additional value.
• National regulators should use ‘sandboxes’ to grant
exemptions from rules for specific projects in order
to foster experimentation.
• consider using more advanced power electronics to
maximise the controllability of large-scale PV plants
• When conducting planning for infrastructure
projects, regulators should incentivise network
operators to exploit the synergies between digital
and energy networks and develop the two in
tandem, thereby reducing costs and increasing the
connectivity available throughout the electricity grid.
We are sure that many more case studies of interesting
uses of regulation to encourage digitalisation will
emerge over the coming years and look forward to
working with regulators and national associations to
encourage this innovation.
In order to ensure that there is full cooperation we
would also like to see the creation of a body at European
level, a Digital Energy High-level Expert Group,
incorporating representatives from the Member States
(and neighbouring third countries), the European
commission, the ‘energytech’ industry and trade
associations to foster a dialogue at European level and
spread best practice in terms of encouraging digital
business models. In the longer term we believe there
could be a need for new EU legislation specifically to
enable the digital energy transition, as has been done
in a number of Member States. We look forward to
working with stakeholders in the public and private
sector towards the creation of such a body.
Insummary,itisessentialwehaveamoreharmonised
and more European approach to digital energy policy
toencouragedigitalsolar.Weneedtoavoida27-speed
Europe and market fragmentation in this space and
ensure that policy-makers from across Europe learn
from each other and move forward in a coordinated
way to make the most of the opportunity of
digitalisation in the energy transition.
CONCLUSION:
HOW TO DIGITALISE SOLAR POLICY
24 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
SolarPower Europe would like to thank our sponsor members:
Space satellite orbiting the earth. © andrey armyagov/shutterstock
26 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT
SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 27
Aerial view of a new residential area. © metamorworks/shutterstock
SolarPower Europe – Leading the Energy Transition
rue d’Arlon 69-71, 1040 Brussels, Belgium
T +32 2 709 55 20 / F +32 2 725 32 50
info@solarpowereurope.org / www.solarpowereurope.org

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When solar policy went digital

  • 1. When solar policy went digital Task Force Report
  • 2. SolarPower Europe would like to thank the members of its Digitalisation & Solar Task Force that contributed to this report including: Download digital report:
  • 3. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 3 EXECUTIVE SUMMARY It looks at two case studies of central data hubs or data exchange layers to facilitate access to energy data from Estonia and Denmark, three examples of collective self-consumption frameworks from Switzerland, Germany and France, virtual net metering in Greece and Lithuania and the use of regulatory exemptions or ‘sandboxes’ in the United Kingdom to encourage peer-to-peer trading. With regards data hubs the report details the types of data included – such as smart meter, market and weather data – and permissioning systems for customers to allow third parties to access their data. We show how these data hubs can be used to the benefit of PV thanks to facilitating grid feed- in, monitoring and tokenisation. Access to data can act as a strong incentive for new business models related to demand side management, storage and flexibility. We recommend that other Member States mandate neutral third parties to create similar hubs. Lithuania, the Netherlands and others are already undertaking similar projects. With regards collective self-consumption we show the similarities and differences of the different frameworks emerging across Europe. Some countries have chosen to allow collectives to use the public grid, others have not and others again have allowed consortia to buy portions of the public distribution grid from the DSO. There are similar divergences in terms of geographical limitations, with France allowing neighbourhood level peer- to-peer trading. In all cases deployment so far is low with just a handful of projects in each country, and the trigger to use digital technology implicit rather than explicit in the framework, even if the potential to use digital solutions is significant. Two examples of virtual net metering in Greece and Lithuania are also highlighted as ways to use existing net metering schemes to allow ‘virtual self-consumption’ and broaden prosumer participation in the electricity system. This is one of the many tools to broaden access to self-consumption amongst consumer groups that for financial or roofspace reasons are unable to use traditional self-consumption. The report showcases the potential of blockchain technologies, looking at a number of different use cases, including peer-to-peer energy trading in a social housing estate in the UK. There are many more potential use cases for distributed ledger technology in the PV space and policy-makers need to ensure that their jurisdictions are blockchain-friendly if innovation is allowed to flourish. We end by making a series of policy recommendations based on these specific case studies. These include that data hubs should be introduced in all EU countries by neutral third parties, collective self-consumption projects should be allowed to use the public grid and regulators should use sandboxes or exemptions to foster innovation. If you would like to get involved in SolarPower Europe’s ongoing work in this area, please feel free to get in touch. This report from the SolarPower Europe Digitalisation & Solar Task Force looks specifically at how policy-makers and regulators from across Europe can and are encouraging innovative digital business models in the solar PV ecosystem. In June 2017 SolarPower Europe’s Digitalisation & Solar Task Force developed10high-levelregulatory asks to foster the uptake of key digital technologies and services such as peer-to-peer trading, smart grids and aggregators. In parallel, leading solar and energy companies active in the Task Force committed to a set of industry commitments on data protection, interoperability and sharing excellence for the growth of a digital solar industry in Europe. This work led in March 2018 to more than 50 European digital solar companies calling on European policy-makers to ‘Go Digital’ within the context of reform of EU electricity market design and implement smart solutions to renewable integration. This report builds on the “Go Digital” declaration, with the aim of supporting European policy makers in this crucial transition towards a smarter energy system and identifying existing best practices for the uptake of digital solar services in Europe.
  • 4. 4 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT SolarPower Europe would like to extend a special thanks to all the Task Force members and companies who contributed with their knowledge and experience to this report. In particular we would like to thank: SMA, Alectris, BayWa r.e., BSW-Solar, coneva, Envision, helapco, huawei, Iberdrola, IKEA, Solarcoin, Solar Trade Association, SwissSolar, QOS Energy, QWay Energy, Toomuch.energy, Trina Solar, WePower. We would also like to thank non-members that kindly contributed their expertise, including Deddie, Elering, Greenpeace Greece, the Lithuanian Ministry of Energy and Navigant research. Thanks also to SolarPower Europe staff for their contributions. Task Force coordinator and lead author of report: Sonia Dunlop, Senior Policy Adviser, SolarPower Europe. Email: s.dunlop@solarpowereurope.org. The SolarPower Europe Digitalisation & Solar Task Force started its work in December 2016 and has had regular meetings and calls since. This report was drafted by the Task Force between September and December 2018. It was published on 4 December 2018. The report can be downloaded at: http://www.solarpowereurope.org/when-solar-policy-went-digital/. Please get in touch with SolarPower Europe if you have any comments or feedback on the report and its content in order to enrich our ongoing work in this field. If you would like more information on the contents of this report or on the work of SolarPower Europe please contact info@solarpowereurope.org or call +3227095520. Design: Onehemisphere, Sweden. Original diagrams designed by Julija Benet. cover image: © T.Sumaetho Disclaimer: This report has been prepared by SolarPower Europe. It is being furnished to the recipients for general information purposes only. Nothing in it should be interpreted as an offer or recommendation of any products, services or financial products. This report does not constitute investment, legal, tax or any other advice. recipients should consult with their own financial, legal, tax or other advisors as needed. This report is based on sources believed to be accurate. however, SolarPower Europe does not warrant the accuracy or completeness of any information contained in this report. SolarPower Europe assumes no obligation to update any information contained herein. SolarPower Europe will not be held liable for any direct or indirect damage incurred by the use of the information provided. TABLE OF CONTENTS FOREWORD 5 INTRODUCTION 6 CASE STUDIES 12 CASE STUDIES The data platform in Estonia bringing forward new business models 12 A Danish data hub which facilitates solar prosumer feed-in to the grid 13 The Self-consumption consortium regulation in Switzerland 14 The collective self-consumption model in France 15 The “Mieterstrom” landlord-to-tenant electricity supply model in Germany 16 Virtual net metering in Greece 18 Virtual net metering in Lithuania 19 regulatory sandboxes encouraging blockchain innovation in the UK 20 CONCLUSION How To DIGITaLISE SoLaR PoLIcy 22
  • 5. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 5 FOREWORD by PRoFESSoR bERnD EnGEL, SMA – TASK FOrcE chAIr The digitalisation of the electricity system is at the very core of a successful energy transition to a fully flexible and electrified energy system based on zero marginal cost renewables such as solar PV. The energy transition and the digital transition must therefore go hand in hand – and policy-makers must think smart to avoid going back to 20th century technologies and tools for ensuring grid stability. however too often the “regulatory offer” is falling behind innovation in digital technologies and services, constantly struggling to catch up. Digitalisation is particularly relevant to solar, which is the decentralised prosumer energy generation technology par excellence. Solar and storage are in many ways the most distributed of all the distributed technologies, and are therefore best suited for digitalisation and the application of new distributed ledger technologies like blockchain. Self-consumption solar systems also create many micro-transactions such as grid and storage feed-in at times of excess power that could be managed by sophisticated technology. And this technology is already being used in a number of cutting edge applications outside of Europe to allow prosumers to use and pay a fair price for grids to send and receive energy. OurlastreportDigitalisation&Solarlookedindetailatthenewretaillevelbusinessmodelsduetodigitalisation:smart buildings, solar energy as a service, collective self-consumption, grid-connected microgrids and peer-to-peer trading. This report seeks to answer the question of what innovative policies are needed across Europe to allow these business models to come forward. We would like to see regulators and ministries across the EU adopt these best practices, and in so doing create a more harmonised regulatory environment for these technologies across Europe, facilitating their uptake. having a bigger market in which to innovate encourages technologies to come forward and makes it easier for Europe to export its standards. We need to avoid not just a two-speed Europe but a 27-speed Europe as every country thinks within its own boundaries to develop its own regulation for the digitalisation of energy We would also like to see the creation of a body at European level, perhaps a Digital Energy high-level Expert Group, incorporating representatives from the Member States, the European commission, the energytech industry (which we believe will be the next fintech industry) and trade associations. Together, we must identify what Europe’s industrial strategy is and should be in this space. Furthermore we need to start working towards new EU legislation specifically to enable the digital energy transition. We hope you enjoy this report and find it useful in your work to promote digital solar at national and European level. PrOFESSOr BErND ENGEL SMA – Task Force chair Professor Bernd Engel is chair of the SolarPower Europe Digitalisation & Solar Task Force and SMA representative of the Board for Grid Integration. We need to avoid not just a two- speed Europe but a 27-speed Europe on digital energy policy.
  • 6. 6 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT what can policy-makers and regulators do to encourage the digitalisation of the energy system and renewables integration? How can they encourage more digital solar PV business models to maximisedeploymentandintegrate solar into the grid in a smarter way? These are the key questions this report seeks to answer. Policy-makers across Europe are currently being faced with similar challenges and similar questions as to how to approach the new digital technologies that have a significant potential in the energy sector. As ever when talking about energy regulation, this needs to be done in a cautious way, but in a way that nonetheless embraces the opportunities brought by innovative technologies such as blockchain, artificial intelligence and big data analytics. countries or regions in different parts of Europe can often take radically different approaches, with little awareness of what is being implemented on the other side of the border, or how things could be done differently. There is a clear need to foster the exchange of best practice between Member States and ensure the progressive convergence of regulatory frameworks for digital and energy technologies. In the long-run, the completion of Europe’s internal energy market could be at stake, and the possibility for leading European companies in digital solar services to scale- up their offerings across 27 markets. It is also important to define what is meant by ‘new digital technologies’. Every report and organisation takes a slightly different view. From a solar perspective the key technologies are big data analytics, artificial intelligence (AI), Internet of Things, robotics, drones, blockchain, mobile connectivity, 3D printing and cloud computing. (See diagram below for more details.) The ‘digitalisation of solar’ is defined as the application of these technologies to solar and the energy sector to create new business models, generate new sources of value and better integrate PV into the grid. This report seeks to connect the dots from a business perspective. We seek to highlight a handful of examples of innovative policy or regulation that is helping to bring forward digital solutions in the solar PV ecosystem. We will look at four main areas: data hubs and exchange layers, collective self- consumption, virtual net metering and regulatory sandboxes. In between the lines, the biggest finding of this report lies in what is missing: today in Europe, very little regulation has the explicit purpose of encouraging digitalisation, while many exemplary regulatory frameworks seem to deliver this by accident and not by design. Europe needs to be more strategic in its approach – and that applies to EU-level legislation as well. It is hoped that these case studies are useful both for governments looking for inspiration and for the solar PV and storage industries to think ahead of what could and should be coming down the line and plan and campaign for future regulatory change. INTRODUCTION Virtual net-metering project in Thessaloniki. © constantinos Stathias/Greenpeace What can policy-makers do to encourage the digitalisation of energy?
  • 7. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 7 1 As defined in Article 5 of the EU General Data Protection regulation, available here: http://eur-lex.europa.eu/legal- content/EN/TXT/hTML/?uri=cELEX:32016r0679&qid=1491311160002&from=en WHAT IS DIGITALISATION? BIG DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE CLOUD & LOW-COST COMPUTING 3D PRINTING MOBILE, 5G AND WIRELESS CONNECTIVITY BLOCKCHAIN ROBOTICS AND DRONES INTERNET OF THINGS AND CONNECTED SMART OBJECTS SMART METERS © SOLARPOWER EUROPE 2017 THE SOLAR INDUSTRY’S SEVEN COMMITMENTS In May 2017 the SolarPower Europe Digitalisation & Solar Task Force published its “Seven commitments on digitalisation” to aid the transition to fully digitalised solar. They were: 1. Prosumer choice: We will promote transparency and choice for prosumers in particular encouraging mechanisms for easy switching from one product, platform or aggregator, to another. 2. Peer-to-peer exchanges: We will support decentralised peer-to-peer energy exchanges and explore innovative solutions, such as blockchain technology. 3. Smart and stable grids: We will collaborate closely with network operators to build smart and stable grids that include solar, storage and flexible demand. These grids will use real-time data to optimise electricity generation and demand. This will also allow the system to maximise the market- based ancillary services that inverters can provide and be remunerated for, such as reactive power and frequency response. 7 4. Reducing costs: We will use digitalisation to make solar more cost-effective both in terms of up-front costs and levelised cost of electricity (LcOE) and increase system availability and reliability, thus enhancing the competitiveness of solar. 5. Interoperability: We will encourage the interoperability of software with compatible hardware, to enable the transfer and sharing of data that is both secure and efficient. 6. Data protection and cybersecurity: We will champion data protection and recommend that all companies active in the solar industry implement state-of-the-art data protection, in-line with established EU-wide principles.1 We will put in place stringent cybersecurity measures. 7 Sharing excellence: We will endeavour to share digitalisation excellence gathered within the European industry with the rest of the world, with specific emphasis on supporting the developing world. These commitments were coordinated by huawei Solar on behalf of the SolarPower Europe Digitalisation & Solar Task Force.
  • 8. 8 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT SOLARPOWER EUROPE’S REGULATORY ASKS ON SOLAR AND DIGITALISATION In June 2017 the SolarPower Europe Digitalisation & Solar Task Force published its “Regulatory asks on solar and digitalisation” to set out what policy changes are needed at national and EU level to promote the digitalisation of the sector. They were: 1. remove barriers to the peer-to-peer trading of electricity, such as (but not exclusively) supply licenserequirements,concludingcontractsbetween peers, network charging and existing and future systems for the delivery and billing of electricity. 2. Ensure that the implementation of regulation does not preclude new technologies and business models for the trading of and accounting for electricity, such as blockchain and cryptocurrencies that create incentives for PV and enable prosumers to participate in energy markets. 3. Encourage regulation that allows aggregators to compete with conventional generators in all electricity markets and offer services in these markets via new or different digital technologies, such as Virtual Power Plants. Allow aggregators to combine resources from all voltage levels and use appropriate measuring equipment for the size of the installation. 4. Use digitalisation to develop flexibility markets with more automated tools and standardised products, as well as standardised requirements for the provision of system services both behind the meter and at distribution and transmission level. reform intraday and spot-markets to enable large- scale solar and solar-plus-storage plants to take on balancing responsibilities. 5. Acceleratethedeploymentofsmartgridtechnology, so that more solar can be integrated into the system and both utility-scale and small-scale solar can provide services to the grid. In conjunction, reform incentivesfornetworkoperators,toencouragethem toimplementsmartgridtechnologyasanalternative to strengthening cables and transformers. Also provide more funding to smart grid and smart market integration projects such as within the connecting Europe Facility funding instrument. 10 6. reward the speed and accuracy that distributed energy resources such as solar and storage can provide in terms of grid support services. 7 Accelerate the deployment of smart metering functionality, real-time measurement of consumption and grid feed-in, as smart metering is acatalystfornewsolarbusinessmodels.Ensurethat consumers have access to their smart meter data and guarantee that the roll-out of smart meters will notdiscriminateagainstnewandexistinginnovative solutions and solar prosumers. Avoid imposing extra costs on smart meter customers, or mandating a single gateway for all energy data in and out of a building. Ensure that self-consumed electricity is not subject to taxes, fees or charges. 8. Ensure that proposals within the market design package for metering and consumption data to be made available between DSOs, TSOs, customers, suppliers, aggregators and energy service companies are maintained. Guarantee that state of the art and up-to-date data protection and cybersecurity standards are put in place. 9. Maintain provisions in the proposed revision of the Energy Performance of Buildings Directive on a ‘smartness indicator’ for homes and ensure that on-site electricity generation is given a bonus within the methodology for setting cost-optimal minimum energy performance requirements for new and renovated buildings. Ensure that this methodology takes a holistic view of sector coupling, so that excess PV electricity can be used and stored e.g. as heat via heat pumps, or hot water storage. 10. Ensure that EU-level work on standards and interoperability within the Digital Single Market includessolarPVsystems,smartbuildingsandsmart grids. Encourage the commission to come forward with its ‘baseline’ standardised data format as soon as possible, which individual device or service manufacturers will then add additional features to. These regulatory asks were coordinated by SMA Solar Technology on behalf of the SolarPower Europe Digitalisation and Solar Task Force. INTRODUCTION / cONTINUED
  • 9. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 9 THE “GO DIGITAL” DECLARATION In March 2018 SolarPower Europe published its “Go Digital” declaration to encourage EU policy-makers to embrace this revolution and “go digital” when thinking about future electricity market design. Go Digital and make the most of the renewables revolution new digital technologies are breaking down the traditional boundaries within the energy sector, opening the door to a new era of flexibility. Smart demand response, sector coupling and energy systems 4.0 – the opportunities are countless to make the most of the energy transition. above all, the digitalisation of the power system has proved to be extremely efficient for network operation and integration of renewables, reducing the need for curtailment and other measures such as capacity markets. buildingontheInternationalEnergyagency’ssuccessful report on “Digitalisation & Energy”2 published in november 2017, SolarPower Europe highlights the many reasons why European policy-makers should embrace this revolution and “go digital” when thinking about future electricity market design. 1. Digitalisation will make the energy transition cheaper According to the IEA report, the digitalisation of the power sector could help save up to $80 billion a year. This huge potential will alleviate public finances, but first and foremost the consumer bill. • Digitalisation makes better use of the existing grid According to the IEA report, the uptake of smart demand response could save $270 billion of investments in energy infrastructure by 2040. Analysis has shown that a combination of solar and digitalised ‘grid supporting’ storage which controls the maximum grid feed-in can double the low-voltage grid capacity to absorb feed-in of variable renewables (up to 60%) without any other additional infrastructure. GODIGITAL System operators can also maximise the use of interconnector capacity, thereby bringing an additional source of flexibility to the system without additional investments. Variable renewable input can be managed and stored most cost effectively when connected and handled at medium voltage level. • Digitalisation reduces the need for back-up capacity European commission modelling3 has shown that further digitalisation will trigger a peak decrease of 36GW in 2030, leading to €1,383 million per year in benefits for the distribution and transmission grid and €3,772 million per year in reduced back-up capacity. 2. Digitalisation will foster the integration of renewable capacities in the market • Digitalisation optimises electricity flows and market exchanges closer to real time real-time load balancing and up-to-the-minute pricing signals and tariffs will allow customers to better respond to price signals: network operation will be increasingly conducted on a market basis, allowing small installations to properly participate and provide grid services. • Digitalisation reduces renewable curtailment According to the IEA report, smart grids with digitally-enabled demand response and storage could reduce curtailment of PV and wind across the EU from 7% to 1.6% by 2040 and avoid a massive 30 Mt of cO2 emissions per year. • Digitalisation increases renewable energy’s contribution to grid stability Digitalisation will make variable generation more controllableandabletoprovidegridservices.For example, the new generation of PV inverters are highly controllable devices, which can be used to modulatetheenergyfedintothegird,andprovide ancillaryservicestonetworkoperatorswithmore accuracy than conventional generators. 2 International Energy Agency (2017) “Digitalization & Energy”. 3 European commission SWD, Best Practives on renewable Energy Self- consumption cOM(2015) 339 final
  • 10. 1 Gerlach, A. and Breyer, ch., 2012. Global Grid-Parity Dynamics on a National and regional Level, 27th EU PVSEc, Frankfurt, September 24-28, 2012, accepted; Breyer, ch. and Gerlach, A., 2012. Global Overview on Grid- Parity, Progress in Photovoltaics: research and Applications, published online February 17 10 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT INTRODUCTION / cONTINUED 3. Digitalisation will drive sector coupling and system flexibility Digitalisation will break the boundaries between sectors. Together, renewables, electric vehicles, smart buildings and smart heating and cooling will shape a cleaner and more efficient economy. • Electric vehicles and smart charging Smart charging points, will increase EVs’ contribution to system flexibility by adapting the vehicle’s consumption to low demand periods, while releasing electricity to the grid at peak times. This will be particularly relevant coupled with on-site building mounted PV installations, which generate mostly during the day when the electric vehicle fleet is charging. • Energy-positive smart buildings and intelligent home systems Smart buildings and energy management home systems can provide energy efficiency and demand response, building automation and maximise the potential from smart appliances. Smart energy management will foster the uptake of energy-positive buildings. Such optimisation could unlock the full potential of the huge surface (4000 km2) of European buildings’ façades and roofs: innovative (and EU manufactured) technologies such as building-integrated photovoltaic products could potentially cover up to 40% of EU electricity demand. • Unlocking smart demand response The internet of things will contribute to unlocking smart demand response. According to the IEA report, 185 GW of system flexibility could be reached worldwide, with further digitalisation of the energy system. The European commission has estimated that the technical potential of the volume of controllable smart appliances in the EU by 2025 will be at least 60 GW: shifting this load from peak times to other periods can reduce peak-generation needs in the EU by about 10%.4 GODIGITAL 4. Digitalisation will boost the EU’s industrial leadership in renewables • Industry 4.0 key part of maximising solar industrial value for Europe Digitalisation is a key part of a future European solar industrial strategy, acknowledging the tremendous value to be gained from offering high-end, quality and niche products in a commoditised market. SolarPower Europe analysis has shown that value is moving to the downstream and specialist parts of the sector. • Investing digital R&D in segments of PV market where Europe has an advantage To stay ahead of global competitors, EU policymakers must target digital r&D investment into highly digitalised segments of the solar PV sector such as the manufacturing equipment for PV wafers, modules and cells, operations, maintenance and asset management of large- scale plants and building integrated PV. 4 European commission SWD, Best Practives on renewable Energy Self- consumption cOM(2015) 339 final European Commission Director Megan Richards with the Go Digital declaration. © SolarPower Europe
  • 11. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 11 The Go Digital declaration was signed by 53 companies active in the digital solar space, including:
  • 12. 12 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT CASE STUDIES THE DATA PLATFORM IN ESTONIA BRINGING FORWARD NEW BUSINESS MODELS a data exchange layer that allows all market participants to access energy and related data in a fair, open and secure manner. The Estonian TSO Elering in September 2017 launched a data platform called Estfeed which connects smart meter, market price, weather forecast, heating data, grid congestion and other sources of Internet of Things data with third party application providers and final customers. The platform does not store data but facilitates access to existing data sets in one place. Third parties such as energy monitoring services or demand response providers can access smart meter data for free based on the signing of a strict Memorandum of Understanding and with the explicit consent of customers. The access to these data sets allows the development of innovative services to consumers in the from of apps made available in the platform’s app store. These third partyappsincludethosethatallowcustomerstomonitor their PV and storage production via a single interface. In 2017 a digital power purchase agreement technology company WePower used Estfeed to access the full anonymised production and consumption yearly data for Estonia in order to simulate and execute energy transactions on the Etherium blockchain. This was the first time in the world that the entire energy consumption and production data for an entire country was simulated on a blockchain, covering more than 70,000 consumption points. The WePower platform enables investments into solar PV by providing energy tokens in return. These tokens act as pre-payments for energy and can then be traded. This makes it much easier for small consumers to make micro-investments in and micro-payments for PV generated power. Furthermore, there is potential in the future for the Estfeed data exchange layer to be used for crowdfunding investments into solar PV, enabling community energy projects and encouraging flexibility. Open access to data brings more competition, thereby lowering costs and increasing efficiencies for consumers. This platform was created in order to foster innovation in theenergyspace,asalackofenergydataisoftenabarrier tonewentrants.Itisalsofullycompliantwithrequirements DIGITAL TECHNOLOGIES USED: 5 See Article 23 of the proposed European commission (2016) “Directive on common rules for the internal market in electricity”. The Elering control room in Tallinn. © Elering in the EU’s General Data Protection regulation in terms of thepurposeofthedatausageandrequirementstoinclude measures to ensure security, confidentiality, availability and resilience of processing systems. customers use Estonia’s“X-road”distributedidentificationsystemtogive third parties access to their data. Furthermore, the forthcomingEUmarketdesignpackageislikelytoexplicitly require such consumer data sharing.5 Policy recommendations SolarPower Europe recommends that other Member States across the EU consider establishing a similar data hubanddataaccesssolution.MemberStategovernments and regulators should mandate a neutral third party to take on this role, which could include but does not necessarily have to be the TSO as in this case. It is beneficial for the integration of PV and other renewables for these hubs to include short and long term weather forecast data in order to better integrate these into the grid. These data hubs must also include a permissioning system for final customers to give companies their data, whichcanbebasedonablockchainbasedauthentication system or other similar technology. BIG DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE C BLOCKCHAIN R CLOUD & LOW-COST COMPUTING 3
  • 13. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 13 CASE STUDY: SOLARCOIN: A DIGITAL ASSET TO INITIATE THE GLOBAL ENERGY TRANSITION Solarcoin is an international and community-based initiative promoting the development of solar energy and self-consumption using one of the most disruptive technologies to have emerged in recent years: blockchain. Solarcoin is like an airmile programme and any solar power producer can connect their solar panels to the Solarcoin network by registering their solar install to the Solarcoin website, receiving 1 SLr (ie Solarcoin, §) for each MWh of solar energy produced. Blockchain, the technology behind Bitcoin and other digital currencies is a decentralised ledger which allows participants to communicate and validate data and monetary transactions on a same registry, available peer-to-peer to all participants in the network. This can apply to solar energy as well. Solarcoin uses blockchain technology to generate a decentralised, incorruptible and auditable record of solar energy produced by any solar owner and comes in addition to government-backed subsidies. Solarcoin is already present in 46 countries and has been rewarded to over 2,130,000 MWh of solar power production on a test-basis, using the Solarcoin API and SolarcoinraspberryPi3scriptsavailabletoallmonitoring platforms, EPcs, inverter and datalogger companies. The aim of the Solarcoin project is to initiate the energy transition at a global scale. Join the Solarcoin network and trial our blockchain wallet application at www.solarcoin.org. DIGITAL TECHNOLOGIES USED: End consumers can view their data through their supplier’s platform or a central website and the data is also open to researchers via Statistics Denmark. Users can grant third parties access to their data via the Danish e-signature system called nemID. A major drawback of the way the data hub has been set upistheinabilitytohandlerealtimedatafromresidential customers, as the data set required to enable this is too large and has been scoped out of the current design. Policy recommendations SolarPower Europe recommends that open source data hubsareestablishedacrossEuropeandaredesignedwith the ability to handle real-time meter readings from all consumption and generation points – from both import and export meters. Furthermore, we recommend these data hubs are used to better manage, analyse and forecast the grid feed-in of self-consumption PV systems. BIG DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE C CLOUD & LOW-COST COMPUTING 3 SMART METERS A DANISH DATA HUB WHICH FACILITATES SOLAR PROSUMER FEED-IN TO THE GRID a data hub that facilitates grid feed-in for behind-the- meter PV systems. In 2013 the Danish TSO Energinet implemented the first version of its Datahub. The goal was to simplify and managecommunicationanddatasharingandstandardise processes between market participants in Denmark. ThehubbroughttogethermeteringdatacollectedbyDSOs, tariffs, subscriptions and fees data (known as ‘wholesale master data’) and details of final customers such as metering point ID, connection status, grid area, maximum power kW and so on. There are 3.3million metering points inDenmarkonboththeconsumptionandproductionsides. At present the hub is not ready to handle hourly data, but from 2020 onwards all Danish consumers large and small will be settled on an hourly basis, and the Datahub will be able to process hourly data. The datahub is important for the uptake of innovative solar PV business models, as it allows prosumers to sell their excess electricity back to the grid through advanced management of metering points. compared to the current process the hub will allow for a much smoother process for the feed-in of excess electricity from the residential segment and allow a competitive market to evolve with fair prices for prosumers. The Energinet control room in Cophenhagen. © Energinet
  • 14. 14 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT CASE STUDIES / cONTINUED THE SELF-CONSUMPTION CONSORTIUM REGULATION IN SWITZERLAND a collective self-consumption framework that allows neighbours and new apartment buildings to take control of their energy, administer flows within their area and break away from the local utility. In January 2018 Switzerland introduced an innovative regulatoryframework6 forcollectiveself-consumptionwhich could be applied to any distributed energy technology. The ‘classic’ Swiss self-consumption model is where the self-consumerremainsacustomerofthelocalutility,sells itsentirePVgenerationtotheutilitywhichinturnsupplies the self-consumer with all the electricity it needs (which is always a combination of solar and grid electricity). The new regulation introduced the possibility for several houses or businesses to come together and create a Self- consumption consortium (Scc) or Zusammenschluss zumEigenverbrauch (ZEV). This consortium can be made up of owner-occupied residential units or landlords that act on behalf of their tenants. The participating properties must be adjacent to one another (or in a multi-occupancy building) and there must be only one grid connection point between the Scc and the grid. Within the Scc, the consortium then sells the self-produced power to its members at a price that must be no higher than the price offered by the local utility.7 The Scc also buys power from the utility to meet the collective’s residual demand, and re-sells it on to its members. If the consumption of the consortium is higher than 100MWh/year, the Scc can even buy power in bulk on the wholesale market. The main application for this new model to date has been with new build multi-occupancy housing, where the PV or storage and the single grid connection point can be designed in to the building from the beginning of the project. It allows the residents of these buildings the opportunity of accessing lower power prices than the local utility would offer them. AnexampleisthesoontobebuiltPapillonneighbourhood in Niederwangen. The complex will include 60 flats, have 157kW of PV and have a self-consumption rate of 70%. crucially as far as digitalisation is concerned, the framework specifies that a certified smart meter8 is to be used at the grid connection point and for measuring the flows within the consortium. (Smart meters are currently being rolled out across Switzerland.) There is also potential for digital technology to be used when an 6 Swiss Energy Act (Energiegesetz, EnG) Art. 16/17. 7 Switzerlanddoesnothavealiberalisedelectricitymarketandsmallconsumers must buy power from a single local utility at a pre-determined price. 8 This is the „Eidgenössische Messmittelverordnung” regulation. Scc aggregates the demand within its area and measures and administers the flows within it. This model encourages aggregation within the consortium although all sales have to be done via the consortium which means there is no micro-market within the entity – there are no peer-to-peer transactions in the strict sense of the term. Policy recommendations Thereispotentialforthisregulationtobefurtheramended andthereforeimprovedinspring2019.SolarPowerEurope andSwissolarrecommendthatlocalutilitiesareputunder an obligation to sell segments on the public grid where necessary and at a reasonable price. The 2% limit on return on investment for non-third party owned self- consumption installations should be lifted to allow more business models and offers to emerge. It should also be possibleforaconsortiumtoconnectpropertiesorplotsof land separated by public land such as a road or a river. Furthermore, we recommend that other European countries consider introducing similar collective self- consumption models where the collective is able buy portionsofthepublicgrid,astheremaybesituationswhere thisismorecost-effectivethantheparticipantspayinggrid charges for the use of local grid infrastructure. We also encourage other markets to consider making the use of a smart meter at the grid connection point obligatory, and discourage policy-makers from putting arbitrary return on investment limits on these new business models. DIGITAL TECHNOLOGIES USED: MOBILE, 5G AND WIRELESS CONNECTIVITY B The future Papillon complex, Niederwangen. © Genossenschaft Fambau SMART METERS
  • 15. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 15 CASE STUDY: SOLARCOIN: A DIGITAL ASSET TO INITIATE THE GLOBAL ENERGY TRANSITION Solarcoin is an international and community-based initiative promoting the development of solar energy and self-consumption using one of the most disruptive technologies to have emerged in recent years: blockchain. Solarcoin is like an airmile programme and any solar power producer can connect their solar panels to the Solarcoin network by registering their solar install to the Solarcoin website, receiving 1 SLr (ie Solarcoin, §) for each MWh of solar energy produced. Blockchain, the technology behind Bitcoin and other digital currencies is a decentralised ledger which allows participants to communicate and validate data and monetary transactions on a same registry, available peer-to-peer to all participants in the network. This can apply to solar energy as well. THE COLLECTIVE SELF-CONSUMPTION MODEL IN FRANCE a collective self-consumption framework that allows peer-to-peer energy transactions and the use of the public grid. In spring 2017 France put in place a legal framework for a new model of ‘collective self-consumption’ or autoconsommation collective.9 This is arguably the best example of European national regulation that encourages peer-to-peer energy transactions. Under this model electricity can be sold between one or more generators and one or more consumers. crucially, and unlike in other countries such as Switzerland, the members of a collective self- consumption project have to use the public grid by paying either the normal grid fee or an alternative fee which depends on the level of self-generation and self- consumption within the collective. The geographic area of a collective self-consumption project must be limited to the area within a single low- voltage branch or low-voltage connection of the grid. This sets a de facto limit on the size of the projects to that of a small neighbourhood. The consumer(s) within the legal entity purchase the PV generated power at a price defined in a ‘mini’ power purchase agreement contract with the generator(s). Separate contracts are required for each buyer-seller relationship within the entity. Options for the collective legal entity include cooperatives, associations or a co-ownership management body (similar to a tenants’ association). The regulation is not prescriptive as to what legal entities are required allowing local groups the freedom to choose the type of legal entity that best suits them. collective self-consumption can be used for multi- occupancybuildingsormultipleconsumerswithinasmall neighborhood. It could also be used in the social housing sector and could include public buildings such as a town hallorschool.Itallowsbuildingsthatcannotbenefitfrom their own self-consumption due to roof orientation or otherwise to use that of their neighbours instead. The model encourages peer-to-peer trading and encourages the use of digital technology to manage the power flows and contracts within the collective. Smart energy management systems and blockchain have been discussed as technologies that could be used to manage the flows and payments within this model. DIGITAL TECHNOLOGIES USED: 9 Décret d’application n°2017-676 du 28 avril 2017 publié le 30 avril 2017. Collective self-consumption project in Fruges, France. © Region Hauts-de-France Allowing excess electricity to be sold between peers also encourages those within the entity to maximise the PV array on their roofs rather than simply sizing it to their own self-consumption, as long as they forecast sufficient demand within the community. The framework has been in place for over a year however unfortunately only three projects have used this model so far, with a few more in development. Deployment therefore needs to be increased. One example of such an installation is a project in Fruges, near calais. Four PV systems with a total power of 228kW have been installed on local authority buildings. The electricity is then consumed by a health centre, a kindergarten and a ‘cybercentre’. This project is part of the rEV3 or third industrial revolution programme in the hauts-de-France region. Policy recommendations SolarPower Europe encourage other regulators to copy the French model in allowing peer-to-peer transactions (even if only within a legal entity) and the use of the public grid. The widening of the model to larger areas as well as the proposed removal of the requirement for the project to be restricted to a single low-voltage branch of the grid is welcome. Thedifferentgridchargesleviedonthesolarelectricityand residual demand within the collective self-consumption model however are not balanced and should be reviewed as at present it increases the costs on the solar prosumer withinthecollectiveself-consumptionframework. MOBILE, 5G AND WIRELESS CONNECTIVITY B BLOCKCHAIN R
  • 16. 16 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT CASE STUDIES / cONTINUED THE “MIETERSTROM” LANDLORD-TO-TENANT ELECTRICITY SUPPLY MODEL IN GERMANY a collective self-consumption model that uses digital technology to make sure that tenants and apartment dwellers are not left out of the energy transition. In July 2017 the tenant electricity model (Mieterstromgesetz in German, also translated as ‘landlord-to-tenant electricity supply model’) was formalised by the German government with a dedicated subsidy framework for this model set out in an amendment to the German renewable Energy Act (EEG) 2017. The subsidy is limited to residential buildings with a majority share of residential apartments (at least 40%) and includes PV installations up to 100kW. The third party plant operator can sell the electricity either to tenants within the residential building or owners of residential apartments in the building. Up to 500MW of such installations can be subsidised each year. The consumer can contract with a separate supplier for its residual electricity demand, and other consumers in the building can choose to be included in or excluded from the scheme. A building can therefore have participating and non-participating tenants. The model involves a third party installing and owning a PV system on the roof of an apartment block or office building and selling the power via multiple mini on-site direct wire PPAs to the owner-occupiers or tenants in that building. Power can also be sold to any consumers or facilities located within ‘close proximity’ of the building as long as there is no use of the public grid. In addition to a Feed-in Tariff for excess PV electricity fed into the grid, the system operator receives an additional subsidy for every kWh consumed by the participating tenants within the building. Digital solutions facilitate the cost-effective planning, commissioning and operation and maintenance of such landlord-to-tenant installations. The flows of electricity and payments within the building are managed with the use of a specific metering system (Summenzählermodell in German) facilitating the billing of every participating apartment and the (smart) metering of the PV generation while ensuring separate management of non-participating tenants. There is potential for these flows to be managed via an integrated energy management system or blockchain technology in the future. 10 Energiewirtschaftsgesetz in German. 11 Gesetz zur Digitalisierung der Energiewende in German. The German Act on the Digitalisation of the Energy Transition10 requires the gradual roll-out of smart meters which means that the standards and possibilities for intelligent metering models are likely to grow. Digital technology could be used to create a visualisation of the building’s energy flows and savings to help engage tenants further. critically, the electricity that is generated and sold on- site is not considered to have used the public electricity grid when it flows from the building rooftop to the apartment in that building. The directly consumed electricity is fully exempted from grid charges and taxes, but it is liable for the full EEG levy. As providers of the tenant electricity model deliver electricity to final consumers they do have to obtain a supply license as stipulated in the Energy Industry Law (EnWG)11 , but with reduced administrative procedures. In addition to this, the solar installation for which a particular landlord seeks funding needs to be registered with the Bundesnetzagentur and the TSO in order to receive Feed-in Tariff payments. however data on landlord-to-tenant electricity installations so far in 2018 shows that deployment is very low and only using 1% of the annual subsidy available. The Neue heimat buildings in the photo below are an example of one of these installations. This is mainly due to the full payment of the EEG levy on landlord-to-tenantelectricity,thesizelimitationof100kW, alackofguaranteesasregardingstheshareofparticipating tenants, the complex technical and administrative requirements and the model’s restriction to single buildings. Administrative requirements include those relating to changing electricity supplier, market processes forelectricitygeneratorsandtheregulationonWholesale Energy Market Integrity and Transparency (rEMIT). Finally, the PV electricity supplied within this model always needs to be 90% or less of the basic tariff of the basic electricity provider. This can be difficult to achieve and depends on the local basic tariff which includes grid charges, which differ from one region to another.
  • 17. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 17 CASE STUDY: SOLARCOIN: A DIGITAL ASSET TO INITIATE THE GLOBAL ENERGY TRANSITION Solarcoin is an international and community-based initiative promoting the development of solar energy and self-consumption using one of the most disruptive technologies to have emerged in recent years: blockchain. Solarcoin is like an airmile programme and any solar power producer can connect their solar panels to the Solarcoin network by registering their solar install to the Solarcoin website, receiving 1 SLr (ie Solarcoin, §) for each MWh of solar energy produced. Blockchain, the technology behind Bitcoin and other digital currencies is a decentralised ledger which allows participants to communicate and validate data and monetary transactions on a same registry, available peer-to-peer to all participants in the network. This can apply to solar energy as well. 12 DIrEcTIVE OF ThE EUrOPEAN PArLIAMENT AND OF ThE cOUNcIL on the promotion of the use of energy from renewable sources (recast) cOM/2016/0767 final/2 - 2016/0382 (cOD) – as agreed after final trilogue, June 2018. Policy recommendations The German Mieterstrom collective self consumption model is potentially successful in allowing tenants, residents and businesses in multi-occupancy buildings to benefit for the first time from the energy transition and encourage the use of digital technology in doing so. however the lack of deployment shows how important it is to get the regulatory balance right and to not overburden these new models with red tape as otherwise developers will not take the risks involved. As with the case study from Switzerland, the maximum price regulation of 90% of the local basic tariff demonstrates that regulating prices and returns on investment only hampers those seeking to offer these business models. Specifically, SolarPower Europe and BSW-Solar therefore recommend that the German government and other regulators looking to copy this model do the following: • introduce lower bureaucratic hurdles for small buildings with only a few flats – as set out in the recast of the EU renewables Directive12 small installations need simplified administrative procedures • abolish disproportionate taxes and surcharges on self-consumed PV electricity • remove fiscal barriers in the form of trade and corporation tax that causes the unequal treatment of tenant electricity by real estate companies • allow models where a third party purchases the electricity from the PV system owner and distributes it to the tenants • clearly define “close proximity” to avoid legal challenges. DIGITAL TECHNOLOGIES USED: MOBILE, 5G AND WIRELESS CONNECTIVITY B Neue Heimat buildings, Heidelberg, Germany. © Heidelberger Energiegenossenschaft SMART METERS Digital solutions facilitate the planning, commissioning and operation of such landlord-to-tenant systems.
  • 18. 18 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT CASE STUDIES / cONTINUED VIRTUAL NET METERING IN GREECE an innovative use of net metering to encourage public interest organisations to make the most of PV self-consumption within their fleet of buildings. In Greece in summer 2016 a virtual net metering scheme was introduced by Ministerial Decision and related legislation which allowed for the electricity generated by a behind-the-meter PV installation to be consumed by another of the customer’s facilities, if the remote consumer is located elsewhere in the region. The two installations have to belong to the same legal entity. This requires the use of low-cost cloud computing and big data type technology in order to manage the billing processatmultiplesitesandnetthemagainsteachother. This is a framework open to local authorities, agricultural buildings, hospitals, schools and universities. It will also be open to energy communities after the publication of a forthcoming Ministerial Decision. For public interest organisations, the power of each photovoltaic plant may amount to up to 100% of the sum of the agreed power to be offset. For others organisations it is 50%. The self-consumer and its supplier sign a ‘Virtual Energy clearing convention’ which is valid for 25 years. The consumption point where the PV is installed pays the same regulated fees as in the normal self-consumption scheme, where the regulated fees such as grid charges are charge pro rata based on the percentage of self- consumption. The other (remote) consumption points however pay all regulated fees (including grid fees) and only benefits from the reduction in the energy part of the electricity bill. In 2017 Greenpeace Greece worked with two municipalities on pilot projects that highlighted the benefits of using virtual net metering in congested urban areas and used the scheme to combat energy poverty. In Thessaloniki, in Greece’s first ever virtual net metering project, Greenpeace placed a 10kW PV system on the roof of the the “Emmanuel Kriaras” Thessaloniki high School. The system’s generation covers the electricity needs of the “Shelter for Abused Women and their children” nearby. In Larissa, the NGO worked with the municipality to install a 15kW PV system on the roof of the Larissa Middle School. The energy produced will provide electricity to a nearby municipal kindergarten. 13 Law (4153/2018). In 2018, a new law13 was introduced that opened up virtual net metering not just for public interest organisations but for all energy communities. The ministerial decision to implement this has undergone public consultation and is expected to be published by the end of 2018. It is important to note that under the Greek net metering and virtual net metering legislation self-consumers pay full grid charges. Net metering self-consumers pay for all the power they buy (or temporarily “store”) in the grid, meaning that they avoid paying only for the solar power they produce and instantly consume during the day. The remote virtual net metering self-consumers on the other hand pay the full amount on all grid charges and other taxes, as all the power they consume physically comes from the grid. Smart meters have to be used at the point where the PV installation is installed to calculate generation and consumption and reconcile the two at the end of every cycle. The virtual consumption point however can have a conventional meter. Any power surplus is credited to the next cycle. The final netting takes place every 3 years, in which case any surplus power is not reimbursed. All virtual net metering self-consumers that net against each other need to share the same energy provider. Policy recommendations regulators from other Member States should consider adopting similar virtual net metering options as a tool for allowing customers that for technical or economic reasons cannot benefit directly from an on-site self- consumption installation. The Greek framework is also an example of how regulation can be used to meet the differing needs of different parts of the grid and to advantage the third sector to also look at self- consumption as a means of generating power. care and attention however is needed as regards to grid charging with this model to find a balanced outcome for prosumers and the grid. DIGITAL TECHNOLOGIES USED: CLOUD & LOW-COST COMPUTING 3 INTERNET OF THINGS AND CONNECTED SMART OBJECTS SMART METERS
  • 19. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 19 VIRTUAL NET METERING IN LITHUANIA an extension of net metering which allows consumers with multiple sites to net generation and consumption across their buildings. Lithuania is currently reforming its self-consumption framework and has proposed that as of July 2019 the net metering scheme should be extended to include a “virtual” net metering option. This would mean that a single consumer could link a behind the meter self-consumption system in one location with a consumption point elsewhere within the same grid voltage level. Again this requires the use of low-cost cloud computing and big data in order to allow different consumption points to net against each other. Theelectricitygeneratedinonelocationwouldbenetted against the energy bill of the consuming meter point. The two locations – generation and consumption – have to belong to the same natural person or legal entity. Therefore a business with multiple sites could net production and consumption at its various sites. This is part of a strategy to ensure that 2% of final consumers in Lithuania become self-consumers by 2020. The goal is for 34,000 customers to become self- consumers by that date. DIGITAL TECHNOLOGIES USED: The net metering scheme currently applies to systems of less than 10kW for residential consumers and less than 100kW for commercial customers. There is a proposal to remove this upper limit and allow net metering for all installations up to 500kW. These changes have currently been proposed in Parliament and are awaiting approval. Policy recommendations regulators from other Member States should consider adopting similar virtual net metering options as a tool for allowing customers that for technical or economic reasons cannot benefit directly from their own self- consumption installation and are fortunate enough to have multiple sites. Again, a fair compromise must be found between the virtual self-consumers and grid operators to make this viable in the long term. CLOUD & LOW-COST COMPUTING 3 Solar PV in a modern residential area in Vilnius, Lithuania. © vilax/shutterstock
  • 20. 20 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT CASE STUDIES / cONTINUED Members of the Verv Banister House project team. © Verv REGULATORY SANDBOXES ENCOURAGING BLOCKCHAIN INNOVATION IN THE UNITED KINGDOM an example of how regulators can think outside the box and encourage innovation with temporary flexibility on regulation. The UK’s energy regulator Ofgem has adopted the technique of creating ‘regulatory sandboxes’ to encourage innovation across the energy system. This concept is derived from the world of software development, where new code can be tested “in a ring- fenced setting, without affecting the operations and safety of the wider system.”14 Launched in February 2017, the Sandbox offers a regulatory “one stop shop” to support start-ups, businesses, local councils and community organisations looking to launch innovative products, services or business models in the energy space. Within the bounds of the sandbox, Ofgem can grant innovators a temporary exemption from the usual rules for a specific project in order to determine whether it will provide consumer benefit. This is a technique that has also been used by regulators in the United States, notably in the fintech sector. Each of the four Ofgem-approved Sandbox trials within the current window will involve electricity supply to a small number of domestic customers and will last two years from the date of their approval. In all cases, consumers have voluntarily agreed to join the trial, can opt out at any time, and will pay no more for their energy than if they had not participated. There is therefore no risk of vulnerable consumers being ‘ripped off’ or locked in by these trials. One of the four approved trials in the Sandbox is being led by London-based energy start-up Verv on a social housing estate in hackney, London. In April 2018, Verv successfully facilitated the UK’s first-ever physical energy trade using blockchain technology, in which one KWh of electricity was sent from a rooftop solar PV array on one of the estate’s buildings to a resident’s home in another building, using Verv’s peer-to-peer energy trading software platform. The ongoing one-year trial of the platform is supported by repowering London (a community organisation), Innovate UK (a national government funding program to support business r&D), and by the utility British Gas, which is owned by parent company centrica. Utilising Artificial Intelligence based “smart hubs” in tenants’ homes to calculate their energy demand profiles, and PowerVault batteries to store power, the trial allows Verv to test practical applications of their technology, including how consumers respond to it. The goal is ultimately to test whether AI and peer-to-peer trading can optimise the use of electricity generated on a community-owned PV site, reducing local residents’ bills and increasing energy independence. Policy recommendations regulators from around Europe should copy the ‘sandboxing’ practice in the UK and allow innovative start-ups and social entrepreneurs to experiment with new technology when it is shown there is a clear consumer benefit. The UK example shows how a temporary reprieve from regulation is effective at fostering innovation. DIGITAL TECHNOLOGIES USED: BIG DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE C BLOCKCHAIN R 14 What is a regulatory sandbox? – Ofgem, 2017 - https://www.ofgem.gov.uk/system/files/docs/2018/09/what_is_a_regul atory_sandbox.pdf SMART METERS
  • 21. info@coneva.com Your business partner for innovative energy services CONNECTED We connect and integrate devices, systems, sectors, energy prosumers and consumers. ENERGY We offer data-based energy management from monitoring through local optimization to energy market integration. VALUE We ensure energy costs are reduced and/or additional revenue is generated.
  • 22. 22 / SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT There is much innovation going on across Europe in terms of digital technologies and how they can be applied and combined with various PV and distributed energy business models. Some of this is happening thanks to regulatory encouragement and innovation, some projects have other drivers. however as the energy sector is a heavily regulated space, it is essential that policy-makers work with the ‘energytech’ industry to foster creativity and experimentation. We recognise that it is not easy for regulators to adapt policies based on ever-changing solutions, and indeed this is why technology-neutral approaches that do not precludenewtechnologiesandbusinessmodelsneedto be prioritised when designing and implementing policy. Based on the case studies above, SolarPower Europe recommends regulators should: • consider implementing data hubs or data exchange layers to facilitate access to energy, weather, market and other sources of data for third parties. A simple permissioning system for final customers to give third parties access to their data in a secure way is an essential part of this. regulators should mandate a neutral third party to take on this role. • require and prioritise the use of smart meters at the point where collective self-consumption entities connect to the grid • Implement models for peer-to-peer trading and collective self-consumption so that consortia can use the public grid (subject to proportionate fees). These models should not be geographically limited to single buildings, adjacent properties or private land. • Simplify administrative procedures and lower bureaucratic hurdles for smal installations • Avoid imposing maximum regulated prices or ceilings on returns on investment. • considervirtualnetmeteringasoneoftheoptionsto allow cmore consumers to access self-consumption. • Ensure that policy in general is blockchain-friendly and does not preclude particular technologies or solutions. Where possible blockchain should be explored to bring more transparency, facilitate micro- transactions within markets and reward PV electricity with additional value. • National regulators should use ‘sandboxes’ to grant exemptions from rules for specific projects in order to foster experimentation. • consider using more advanced power electronics to maximise the controllability of large-scale PV plants • When conducting planning for infrastructure projects, regulators should incentivise network operators to exploit the synergies between digital and energy networks and develop the two in tandem, thereby reducing costs and increasing the connectivity available throughout the electricity grid. We are sure that many more case studies of interesting uses of regulation to encourage digitalisation will emerge over the coming years and look forward to working with regulators and national associations to encourage this innovation. In order to ensure that there is full cooperation we would also like to see the creation of a body at European level, a Digital Energy High-level Expert Group, incorporating representatives from the Member States (and neighbouring third countries), the European commission, the ‘energytech’ industry and trade associations to foster a dialogue at European level and spread best practice in terms of encouraging digital business models. In the longer term we believe there could be a need for new EU legislation specifically to enable the digital energy transition, as has been done in a number of Member States. We look forward to working with stakeholders in the public and private sector towards the creation of such a body. Insummary,itisessentialwehaveamoreharmonised and more European approach to digital energy policy toencouragedigitalsolar.Weneedtoavoida27-speed Europe and market fragmentation in this space and ensure that policy-makers from across Europe learn from each other and move forward in a coordinated way to make the most of the opportunity of digitalisation in the energy transition. CONCLUSION: HOW TO DIGITALISE SOLAR POLICY
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  • 27. SolarPower Europe / WhEN SOLAr POLIcy WENT DIGITAL - TASK FOrcE rEPOrT / 27 Aerial view of a new residential area. © metamorworks/shutterstock
  • 28. SolarPower Europe – Leading the Energy Transition rue d’Arlon 69-71, 1040 Brussels, Belgium T +32 2 709 55 20 / F +32 2 725 32 50 info@solarpowereurope.org / www.solarpowereurope.org