Demand side, Metering & Retail

Chairman: Maher Chebbo (SAP)

OBJECTIVES

1. Organise the 2030 Vision into 3 key milestones: 2005, 2015, 2030
2. Suggest to the Steering Committee a logical structure of the vision document including assumptions, background, key performance indicators (metrics), key issues, barriers, opportunities, roadmap and proof of concept (see appendix 2)
3. Provide inputs to the Vision from the Demand and Metering business processes side, in line with the "Template" distributed by the Executive Board and with the Advisory Council objectives. The following work packages were identified for R&D activities:

• Installation of E-meters
• Flexible and tailored rates based on customers' needs
• Remote flexible contracts management
• Automatic Meter Management systems
• Energy "on demand" management
• Value added services, multi-metering applications and home automation systems
• Demand Side Management (DSM) for optimising power generation based on customer demand
• Interconnections with Ukraine and Russia
• Full free Energy Market
• Harmonisation of existing standards
• Real-time measurements to optimise load profiles and component utilization
• Integrated network nation wide

4. Define the "Roadmap" for the scope of Demand and Metering, with explanations in terms of vision, key issues and proof of concept. The following roadmap was provided :

• Metering ("gateway to network access") to suit "Harmonized trading rules and procedures"
• Emission trading
• Incentives for the Demand Side Management (DSM) to provide system support
• Characteristics of new appliances for future DSM
• Online selection of the "best" supplier by the individual end-user
• Energy savings trading (end user is compensated saving energy)

5. Create a Vision statement for each of the stakeholders (see appendix 1)impacted by the EU Electricity transformation.  The Vision statements outlined below maintain a customer-centric approach.

• Commercial & Industrial and Residential Customers

Vision: With the smart grid system, customers will have the ability to select an energy supplier based on price and demand. They can expect a higher level of overall customer service, connectivity, in-house generation (Combined Heat and Power), and will become more aware of their individual energy profiles and usage.

• Utility Distribution companies

Vision: Utility distribution companies will provide a customer-centric approach by offering flexible rates, total connectivity, value-added services, and cost reduction. Energy suppliers will provide additional services for increasing the network’s efficiency and reliability. This integrated system will provide the framework for “energy-on-demand”, flexible rates, electronic meters, and the Automatic Meter Management systems.

• Energy Service Companies

Vision: Energy suppliers will provide a variety of service plans to suit customer needs ranging from customised solutions to turnkey operations. The customers’ personalised energy profile will present both cost and energy saving details in a clear, easy-to-understand format. Maintenance and operational requests will be handled in a timely, convenient, and straightforward manner.

• Traders

Vision: Integrated trading regulations, procedures, and communication will create a free trade environment throughout Europe.  Additionally, customers will be able to take advantage of competitive pricing due to peak and off-peak energy costs as well as the variety of suppliers, which will also alleviate congestion within the system.

• Political and social regulatory Institutions

Vision: The adaptation of smart grids will result in an increased sense of personal responsibility regarding energy usage.  This level of accountability will be reflected in the energy consumption of individuals, as well as the policies created by political and educational institutions.  Using renewable sources will also become more important, with the ultimate goal of generating 40% of the energy supply using renewable sources by 2030.   Emphasis will be also placed on regional micro grids and autonomous energy supplies, as well as technology developments that facilitate energy savings.

• Environmental governmental and non governmental

Vision: Europe’s adaptation of a smart grid system comes at a time when there is a high demand for low-emission energy sources, due to the scarcity and high cost of fossil fuels, as well as the rapid industrialisation of developing countries.  As the European population becomes increasingly aware of the social and political implications of fossil fuel dependency, they are demanding a higher level of Corporate Social Responsibility. Political and economic institutions will also see a shift towards regulatory policy that promotes efficient and responsible energy usage, including the reduction of CO2 emissions and the promotion of renewable energy sources. Corporate policy should be focused on generating customer awareness, creating a cost-competitive market, and utilising green energy sources.

• Technology standards and equipments

Vision: An Information and Communication Technology (ICT) solution will be created for connecting the various touch points of the energy value chain: power generation, transmission, distribution, retailing, suppliers, and traders. The key system components considered in the development of an integrated ICT solution will be energy data management, inter-company data exchange, trading, forecasting, portfolio management, and risk management.  The new solution will be developed in alignment with the Service Oriented Architecture (SOA) principles.  The development objective of the ICT solution will take a competitive, customer-centric approach which will facilitate the quick transformation and progression of the industry. Because an efficient ICT system can be successfully developed using technology that is currently available, the future challenges to the system will be focused more on cost and change management.

• Service Providers

Vision: Service providers will collaboratively develop the business process and define the best practices for managing customer-related activities within the smart grids market. They will also manage subcontracting for various business needs, as well as installation and maintenance services. ICT service providers will provide the Utilities Distribution Companies with the necessary tools for offering new services of bundling electricity and integrated billing.

• Investment community

Vision: The new smart grids market will be an exciting place for those seeking innovation and investment opportunities.  The deregulation of the power market, promotion of renewable sources, environmental challenges, and the need for multifaceted security systems create an ideal environment for innovation, capital investment, entrepreneurship, and development.