2010: Yet another smart year?

Frank Borchardt

It was hoped EC goals laid out in 2006 would drive significant advances in Europe's smart grid. Four years later and we are still waiting. Here Frank Borchardt, Head of Smart Metering, EFR helps to clear things up.

“The good news is that this need for various solutions has lead to the significantly increased capability of smart meters”
-Frank Borchardt, EFR GmbH

Smart metering integration as a technical challenge

In 2006 the European Commission released a directive about energy efficiency goals to be applied by all EU members by May 2008. This directive has become the "ignition" for smart metering. Since this ignition there have been plenty of rumours, but the smart meter rocket remains grounded. So, what’s happened?

First of all, the national governments put highly individual interpretations of that 2006 directive forth. Different markets accentuate the obstacles to introducing smart meters initially given by technical and business requirements different from nation to nation. For each particular market utilities and manufacturers are set to try and reinvent the wheel.

The good news is that this need for various solutions has lead to the significantly increased capability of smart meters. It's no longer just about pure meter data collection; the smartness lies in the variety of parameters to measure, the access for remote management, the business process automation and many more. But the bad news is someone has to pay for this all.

It's obvious that all these technical features can pay off. Some do now, some will do later, may be in combination with other "smart things" coming along with the smart grids. Different stakeholders will claim particular features they would value in the smart meter, but more often than not those realising the benefits are different from those in charge of realising the costs.

Electricity distribution will become dynamic

If there is only one who has to deploy the smart meters, and the communication and the IT running behind it, they must get the money back that has been invested for someone else's benefit. With respect to the lack of clear legislation this is a risky game not too many utilities will go for. Splitting the full system in different functional modules with clearly specified interfaces (like the Dutch do with their Netherlands Technical Agreements (NTA), see slide show) could help to minimise these risks. In order for their relevance and business opportunities such modules could be assembled step by step. For example, if the distribution network operator (DNO) is paid only for providing meter data he will go for simple automatic meter reading (AMR) equipment. The supplier dealing with time of use (TOU) tariffs and demand-side-management (DSM) programs can add his technical equipment for managing that later on at their own expense.

Finally a new player is entering the floor - the consumer. It's not only the energy awareness created by the instant feedback of the smart meter, but with the consumer's solar panel or something else acting as a "Micro IPP" with completely different interests from the DNO or the supplier.

Renewables integration will expand to low voltage networks

The UK debate about smart metering made it evident that all this issues are part of one story. DSM is seen as an essential part of the smart metering infrastructure. As the renewables are going to the consumer's home demand will be added by generation to manage remotely. The key to success for smart grids lies in providing adequate communication channels for all this data. Sure, one day we might have the super high-speed broadband network maintaining energy management between the Mediterranean and the North Cape with highest reliability - but in 2010?

The need for speed forces smart grids today to utilise the internet as much as possible; with all constraints this means particularly for rural regions where no broadband is available. To release smart grids from R&D projects to commercial operation requires looking for alternatives. There are a bundle of communication channels for different purposes today, such as GPRS, PLC, short- or long-haul radio, so it doesn't necessarily have be the internet that is used in every case.

Making sure 2010 is not "another" but the smart year means accepting the incompleteness of our current "smart industry" and getting started with that technology available today. Giving the public an idea of what smart grids could bring in the future will release creativity to ensure get there. Or, like the Chinese say: The journey is the reward!

Frank Borchardt started as a project manager in the environmental technologies sector. In 1996 he joined the PreussenElektra group (today E.ON Energie) and worked in different strategic fields of business and corporate strategy. From 2003 he was responsible for evaluating the smart metering program for E.ON’s Eastern European subsidiaries. By November 2005 Frank became the head of E.ON Energie’s smart metering project. This project covered all activities of the E.ON Energie group concerning this subject. September 2008 Frank moved to EFR, a subsidiary of the E.ON group to establish smart metering as a new business segment beside energy management services. As a senior expert he is involved in managing professional services for utilities and in developing new products and services.

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