National Smart Metering Programme. Consultation CER/11/191 Information Session 23 rd November 2011

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1 National Smart Metering Programme Consultation CER/11/191 Information Session 23 rd November 2011

2 Welcome Cathy Mannion Director Electricity Networks & Retail CER

3 Objective CER/11/191: Consultation on the Proposed National Rollout of Electricity and Gas Smart Metering Information Session Objective: To present the key sections of the consultation so that stakeholders will be better positioned to respond to the consultation. Consultation Period: 15 th Nov th Dec 2011

4 Agenda Section 2: Rollout Proposal & Rationale Paul O Neill CER Section 3: Programme Objectives Gary Martin CER Section 4: Data Ownership, Display & Provision Gary Martin CER Q&A Section 5: End-to-end System Design & Functionality: Solution Overview & Gas Meter Functionality Michael Crowley BGN Electricity Meter Functionality, HAN & WAN Neil McGuinness ESBN Procurement Model Gary Martin CER Section 6: Implementation Approach & Timelines Gary Martin CER Q&A Wrap Up: Dermot Nolan CER

5 Phase 1 Overview Participants & Key Deliverables Customer Behaviour Trials Findings Reports Electricity: CER/11/080a Gas: CER/11/180a Technology Trials Findings Reports Electricity: CER/11/080b Dual Fuel : CER/11/180b Cost-Benefit Analyses Reports Electricity: CER/11/080c Gas : CER/11/180c

6 Section 2 Rollout Proposal and Rationale (Trial & CBA Results) Paul O Neill Smart Metering Programme Manager CER

7 Objective of the Customer Behaviour Trials to ascertain the potential for smart meter technology to effect measurable change in consumer behaviour, which will result in the reduction of peak demand and overall energy use, when operated with appropriate DSM initiatives.

8 Electricity Trials Experimental Design Tariff Bi-monthly detailed bill and energy use statement Monthly detailed bill and energy use statement Bi-monthly detailed bill and Electricity Monitor Bi-monthly detailed bill, energy use statement plus Overall Load Reduction Tariff A ,368 Tariff B Tariff C ,370 Tariff D Weekend 100 Control Group 1, ,028

9 Gas Residential Trials Experimental Design

10 Time of Use (ToU) Tariffs Electric Ireland Residential Trial Time of Use Tariffs (cents per kwh, excluding VAT)** Tariff Night Day Peak T T T T T5 (W end)* * Night rate applies all day Saturday & Sunday for T5 ** Current standard 24hr tariff rate is 14.1c per kwh excl. VAT Electric Ireland SME Trial Time of Use Tariffs (cents per kwh, excluding VAT) *** Tariff Night Day Peak T T *** Bord Gáis Energy & ESBIE calculated the SME trial ToU tariffs for their participating customers based on the agreed methodology.

11 Billing - Residential Detailed Bill (Residential) Appliance ToU Cost Table Graph of average usage costs (by ToU) Text based messages: Personalised Motivational Historic & peer comparisons Hints & Tips OLR Incentive (stimulus for subset of customers)

12 In Home Display (IHD)

13 Electricity Residential CBT Findings The deployment of Time of Use tariffs and DSM stimuli are found to reduce overall electricity usage by 2.5% and peak usage by 8.8% Overall Peak Day Night Usage Usage Usage Overall Change -2.5%* -8.8%* -2.6%* 0.1% * denotes results which are statistically significantly different from control group using a 90% confidence level.

14 Electricity Residential CBT Findings by Stimuli Tariff Groups A-D by DSM Stimulus Bi-monthly Bi-monthly All Tariff Bi-monthly Monthly Bill Bill, energy Bill, energy Groups Bill and Usage and energy use statement use statement and DSM energy use use statement and electricity and OLR Stimuli statement (Stimulus 2) monitor incentive (Stimulus 1) % (Stimulus 3) (Stimulus 4) % % % Overall -2.5* * -3.2* -2.9* Peak -8.8* -6.9* -8.4* -11.3* -8.3* * denotes results statistically significantly different from control group using a 90% confidence level

15 Gas Residential CBT Findings Bi-monthly bill and energy usage statement % Monthly bill and energy usage statement % Bi-monthly bill, energy usage statement and IHD device % Bi-monthly bill, energy usage statement, IHD device and Variable tariff % Overall -2.9* -2.2%* -2.8%* -2.9%* -3.6%* * denotes results statistically significantly different from control group using a 90% confidence level.

16 Cost Benefit Analysis (CBA)

17 National Rollout Options Electricity 12 Options - vary by billing baseline, billing scenario, communications technology & IHD inclusion. Option Billing baseline Billing scenario Comm s IHD Option 1 Bi-monthly Bi-monthly PLC-RF N Option 2 Bi-monthly Bi-monthly PLC-RF Y Option 3 Bi-monthly Monthly PLC-RF N Option 4 Bi-monthly Bi-monthly PLC-GPRS N Option 5 Bi-monthly Bi-monthly PLC-GPRS Y Option 6 Bi-monthly Monthly PLC-GPRS N Option 7 Bi-monthly Bi-monthly GPRS N Option 8 Bi-monthly Bi-monthly GPRS Y Option 9 Bi-monthly Monthly GPRS N Option 10 Monthly Monthly PLC-RF N Option 11 Monthly Monthly PLC-GPRS N Option 12 Monthly Monthly GPRS N

18 Total Electricity NPV ( m) by Option

19 Qualitative Benefits Smart Grid Micro Generation Electric Vehicles Smart Home Synergies with other Metering Requirements (Gas / Water)

20 Total Gas NPV ( m) by Option Energy saving scenario Meter roll-out scenario Scenario code Total incremental NPV (EUR) Bimonthly ES Fast 1F 15,663,848 Bimonthly ES Phased 1S -1,612,759 Monthly ES Fast 2F 938,003 Monthly ES Phased 2S -13,870,616 Bimonthly ES + IHD Fast 3F 33,323,837 Bimonthly ES + IHD Phased 3S 12,101,010 Bimonthly ES + IHD + VT Fast 4F 59,879,967 Bimonthly ES + IHD + VT Phased 4S 33,991,380

21 Total Gas NPV ( m) by Option

22 Overall Trial Findings On the basis of the Customer Behaviour Trials and the Cost Benefit Analysis the CER is proposing to proceed with the rollout of electricity and gas smart meters.

23 Section 3 Programme Objectives Section 4 Data Ownership, Display & Provision Gary Martin Smart Metering Programme Analyst CER

24 Objectives (Section 3) 1. Encourage Energy Efficiency 2. Facilitate Peak Load Management 3. Support Renewable and Micro Generation 4. Enhance Competition and Improve Consumer Experience 5. Improve Network Services 6. Review & Realise Synergies with Water Metering

25 Data Ownership, Display & Provision (Section 4) Increase in available data results in key questions that need to be addressed, including: 1. Granularity of data requirement 2. Access to data for suppliers 3. Access to data for consumers 4. Billing content, frequency & tariffs 5. Data required for prepayments 6. In-Home data requirements 7. Data ownership and security 8. Vulnerable consumers

26 1. Granularity of Data Requirement Proposals a. Overwhelming response in favour of half hourly intervals for electricity consumption data: complements the settlement frequency in the electricity wholesale market and will facilitate a full range of potential future innovative pricing options and consumption information provision options for electricity consumers. b. Gas data granularity requirement not as clear: Likely to be either half hourly to hourly intervals (IHD refresh) TBC during Design stage (Phase 2)

27 a. Data portal: updated daily, push and/or pull access 2. Data Access for Suppliers - Proposals assuming this is technically and economically feasible TBC design stage fair processing requirements of the Data Protection Acts.

28 a. Consumer owns their consumption data: 3. Data Access for Consumers - Proposals access to it in a national harmonised format, free of charge may be via same data portal used by suppliers (TBC design stage) b. Consumers will have the right to provide their detailed historical consumption data to other suppliers in order to get an alternative quote for their supply (design stage to explore) c. Consumers can give permission to other third parties to access their detailed historical consumption data e.g. for energy management services (design stage to explore). d. Consumers will receive cost and usage based consumption information via: in-home displays (IHD) and energy statements (with their bills).

29 4. Billing Content, Frequency & Tariffs - Proposals a. No monthly billing mandate - leave billing frequency to market CBT/CBA results. Potential future EU legislative developments in this area. b. Mandate energy statement with bills: CBT/CBA results. minimum content requirements TBC in Design stage, taking into account requirements from relevant EU and national legislation. c. Mandate time of use tariffs for all electricity consumers on smart metering: Detailed proposals will be developed during the Design stage.

30 5. Data Required for Prepayments - Proposals a. The thin prepayment solution will be facilitated by the smart metering functionality. Proof of concept trial.

31 6. In-Home data requirements - Proposals a. In-home displays (IHDs) will be provided to all energy consumers as part of the full rollout during their electricity smart meter installation. b. The IHDs will cater for dual fuel consumers. c. Definition of the IHD s minimum functionality will be determined during the Design stage. d. The IHD device will be supported for two years after its installation date (i.e. repairing or replacing faulty devices). e. Over time other devices in the home should be able to receive the consumption data from the smart meter.

32 7. Data ownership and security - Proposals a. Full end-to-end security of smart metering systems is a paramount requirement (the Design stage of a full rollout would explore this further). b. Data protection will be to the fore of smart metering systems design.

33 8. Vulnerable consumers- Proposals a. Specific considerations for vulnerable consumers should be integrated into the design of the smart metering systems and accompanying education and awareness programme at an early stage.

34 Q&A

35 Section 5 (Part 1) Smart Metering End-to-end Technology Solution Michael Crowley Smart Metering Project Manager Bord Gáis Networks

36 Solution Overview Electricity Meter Data Storage and management Existing Electricity market system Electricity Suppliers Mic. Gen E HAN Communications Network Customer Portal G IHD Data collection systems Gas Shippers E = Electricity Meter, G = Gas Meter, Mic.Gen = Meter for Micro Gen. HAN = Home Area Network ESBN BGN Gas Meter Data Storage and management Existing Gas market system

37 Required gas meter output functionality: Gas Meter Functionality (Section 5.2.2) - Proposals 1. Minimum half hourly profile volume usage data (actual interval to be confirmed during Design stage) and volume index reads (m³) with date and time stamp. 2. Other data that will be required to support meter equipment servicing; a. Open/closed valve status b. Meter serial number or other identifier c. Alarm/Event codes d. Battery warning flag/code e. Valve usage counter f. Excess flow warning

38 Gas Meter Functionality (Section 5.2.2) - Proposals Gas meter input functionality: 1. Remote disconnection instruction (valve closure) 2. Remote reconnection enablement instruction (health and safety validation checks required to allow consumer to self re-connect / open valve) 3. Calorific Value where required (can be used by in-home ancillary equipment or IHD for the conversion of volume output data from the meter into energy values - kwh) 4. Clock synchronization (for the gas meter and comm s modules) 5. Tariff settings a. Block (volume related) tariff settings (can be used by IHD if required for advanced tariff and payment systems) b. Seasonal or time of use (ToU) tariff settings (can be used by IHD if required for advanced tariff and payment systems)

39 Gas meter input functionality cont Gas Meter Functionality (Section 5.2.2) - Proposals 6. Firmware upgrades (to meter and communications modules) 7. Tariff prices (can be used by in-home ancillary equipment or IHD if required for advanced tariff and payment systems) 8. Encryption key changes for secure data communication 9. Potential requirements for prepayment functionality on the meter will be determined during the Design stage. 10. Life of meter typically years (with possibility of one battery replacement if necessary) 11. Ability to store data on meter for agreed period of time (to be finalised during the Design stage)

40 Gas Meter Functionality (Section 5.2.2) - Proposals Optional gas meter output functionality for further consideration: 1. Volume usage data to support remote reading and provision of data to ancillary devices in the home, to be provided at defined frequencies (e.g. half hourly, hourly, 4 hourly, Daily); a. Temperature sensor readings (gas temperature at meter point) b. Temperature compensated volume index readings (m³) 2. The gas meter may also be required to provide energy usage interval data (in kwh) for the IHD depending on the final detailed design. Optional gas meter input functionality for further consideration: 1. Signal strength indicator (on LCD display) for low power radio link between gas meter and electricity meter/communications hub.

41 Section 5 (Part 2) Smart Metering End-to-end Technology Solution Neil McGuinness Smart Metering Project Manager ESB Networks

42 Half-hourly profile data Proposed Smart Meter Functionality Energy Measurement Proposals Facilitate a minimum of three types of tariffs: energy import, energy export and network. Minimum of twelve rate registers. Import and export measurement Watt-less energy measurement

43 Proposed Smart Meter Functionality Condition Monitoring Proposals Power outages recordable on the meter Tamper alerts recordable on the meter Meter events / error messages Voltage outside limits recorded Voltage / Power quality monitoring available as required

44 Proposed Smart Meter Functionality Operations Proposals Remotely operable embedded switch for de/reenergisation Trip settings to enable load limiting and MIC enforcement Single controllable physical circuit for legacy loads such as night storage heating. Sensors to enable switch reclosing

45 Firmware upgradeable Proposed Smart Meter Functionality meter technical Proposals Strong Encryption and secure mechanisms for joining the smart metering network Ability to store data on meter for agreed period of time Life of meter typically years The communications module, which will provide the WAN and HAN capability, will be incorporated in the electricity meter. Potential requirements for prepayment functionality on the meter will be determined during the Design stage.

46 Utility HAN: Home Area Network (Section 5.2.5) Proposals The electricity meter will act as a hub for the gas meter, via the utility HAN, thereby facilitating a single communications infrastructure to support both electricity and gas smart metering The utility HAN should also accommodate if required a second electricity meter installed to measure actual output of embedded micro generator. The CER will continue to work with the Department of the Environment, Heritage and Local Government to review any potential synergies that may exist between the required energy smart metering infrastructure and water metering.

47 Non-Utility HAN: Home Area Network (Section 5.2.5) Proposals The functionality should enable secure communications between the smart meter and in home devices i.e. any authenticated device in the home and not just the in-home display. Due the immaturity of the associated technologies and evolving business requirements further evaluation of secure communications functionality will be required during the design stage. Cost information is part of the requirements for display of data in home. However, how exactly price information is provided to the in home devices (i.e. via the smart metering infrastructure or via another method e.g. IP based) will be examined further as part of the Design stage of a full rollout. A watching brief will be kept on developments in Smart Home and Smart Grid technologies areas for future proofing req s.

48 Wide Area Network (Section 5.2.3) Proposals WAN will facilitate (Design stage will elaborate req s): two-way communication with the backend smart metering infrastructure. the collection of both on-demand (real time) and cyclical data from the meter e.g. daily interval reads. remote operation of the meter to de-energise and re-energise the customer (subject to safety arrangements). remote re-configuration and upgrades of meter. All viable wide area network (WAN) solutions will be considered - guiding principle will be to ensure that the most cost effective communications solution is put in place through a public procurement process.

49 Section 5 (Part 3) Smart Metering End-to-end Technology Solution Gary Martin Smart Metering Programme Analyst CER

50 Procurement Model (Section 5.3) Proposals Ultimately the guiding principle will be to ensure that the most cost effective end-to-end national smart metering solution is put in place through a public procurement process. i. Proposed model for procuring smart meters ii. Proposed model for procurement and management of the wide area network (WAN) and back-end IT systems (including meter data management system (MDMS) and Web portal) iii. Proposed model for procurement and management of the in-home display (IHD)

51 Smart Meter Procurement Model (Section 5.3) Proposals ESB Networks will be responsible for procuring electricity smart meters with a communications module (for wide area network and home area network) that meet the agreed functionality requirements and will be responsible for installation and ongoing maintenance of these meters. Bord Gáis Networks will be responsible for procuring gas smart meters with a communications module (for home area network) that meets the agreed functionality requirements and will be responsible for installation (in coordination with ESB Networks) and ongoing maintenance of these meters. The CER will approve the functional requirements and the procurement strategy.

52 WAN / Back-end IT Procurement Model (Section 5.3) Proposals These will be procured as separate or combined lots and on an ownership or service provision basis. ESB Networks will own the contracts for the WAN and electricity back-end IT systems and will be responsible for their procurement. Bord Gáis Networks will own the contract for the gas back-end IT systems and will be responsible for their procurement. The CER will approve the procurement strategy.

53 IHD Procurement Model (Section 5.3) Proposals The IHDs will be procured on an ownership or service provision basis. The CER will approve the minimum functional requirements. Regarding responsibility for procurement, installation and maintenance of IHDs either: 1. ESB Networks will be responsible for procurement for all consumers. In which case the CER will approve the procurement strategy. 2. Electricity suppliers will be responsible for procurement for their customers.

54 Section 6 Implementation Approach & Timelines Gary Martin Smart Metering Programme Analyst CER

55 Programme Governance The CER will be responsible for the overall governance of the programme. The CER will continue to oversee the development of the Smart Metering Project. It will coordinate Industry inputs, keep all stakeholders informed and up-to-date, and will also manage and coordinate any implementation programme. The CER will issue details of the proposed Programme Governance structure in early Q and publish a detailed Programme Plan shortly thereafter.

56 High Level Implementation Timelines Phase 1: Discovery, Exploration and Business Case Development (Q1 2012) Phase 2: Planning, Requirement Definition, Procurement and Selection ( 2yrs) Phase 3: Detailed design, System testing and Pre-Deployment roll out ( 2yrs) Phase 4: Deployment Phase (2-4yrs)

57 Q&A

58 Thank You & Close Dermot Nolan Chairperson CER

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