SMART METERING IN THE CZECH REPUBLIC, VIEWED BY EZ DISTRIBUCE

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1 SMART METERING IN THE CZECH REPUBLIC, VIEWED BY EZ DISTRIBUCE April 2017 Pavel Šolc Board Member, EZ Distribuce, a.s.

2 SMART METERING STRATEGY IN THE CZECH REPUBLIC nd unbundling packet smart metering for 80% of the consumers 2012 smart metering study on the national level smart metering are economically unsound (NPV<0) therefore, no wide smart metering deployment until Instead, a detailed smart grid concept study will be made by 2019, including smart metering the 2012 study will be updated in National Action Plan SG & National Energ. Concept specify the objective of defining, designing and building the smart grid infrastructure on HV, MV and SV levels : preparation phase - definitions, business model, rules, legislation - pilot projects - regulation (NTS/VTS) 2

3 SMART METERING STRATEGY IN THE CZECH REPUBLIC Citation from chapter 7.1 Final conclusion: Based on the qualitative and economic analysis of smart metering implementation in the Czech Republic and taking into account experiences and results made so far in domestic and other European countries pilot projects, the recommended future actions for the Czech Republic are: Do not start complete smart metering implementation until 2018 and continue with technology developments in pilot projects Continuously follow up technological progress in smart grid technologies, especially progress of technical parameters and costs of the key components, which are crucial for decision making for the project preparation and implementation of the smart metering Repeatedly evaluate the suitability and more importantly the effectiveness of smart metering implementation at least every 5 years, i.e. next time in

4 SMART METERING STRATEGY IN THE CZECH REPUBLIC Czech Republic will implement smart metering system in scope and time, when it becomes economically effective and will not cause disproportionate negative effects for consumers. Smart metering must be part of a wider concept of smart grid technologies and must be implemented together with infrastructural changes. 4

5 SMART METERING IN THE CLEAN ENERGY FOR ALL EUROPEANS REPORT OF THE EU COMMISSION: SMART METERING IMPLEMENTATION New suggestions: in case of a positive economical evaluation smart metering roll out for 80% customers during a 8 years period in case of a negative economical evaluation periodical economical evaluation EU states, which are already deploying smart metering systems, must ensure that final customers pay for it in a transparent and nondiscriminatory way and must regularly control their implementation. EU states also have to closely watch and evaluate the progress of costs and benefits in the whole price chain, including the price for the final consumers. Annex III: specifies rules for already implemented smart metering systems: Member States that have initiated the deployment of the new systems, should finish it by 2020 under the current rules. What is not yet clear, is whether or not the new rules for smart metering functionalities, as stated in article 20, will be applied to those already deployed systems. If the national roll-out analysis has shown an negative outcome, the consumers have nevertheless the right to ask for and have installed the smart metering system within a three months period. 5

6 SMART METERING IN THE CLEAN ENERGY FOR ALL EUROPEANS REPORT OF THE EC: SMART METERING REQUIREMENTS ARTICLE 20 (a) the metering systems accurately measure actual electricity consumption and provide to final customers information on actual time of use. That information shall be made easily available and visualized to final customers at no additional cost; (b) the security of the smart metering systems and data communication is ensured in compliance with relevant Union security legislation having due regard of the best available techniques for ensuring the highest level of cybersecurity protection; (c) the privacy and data protection of final customers is ensured in compliance with relevant Union data protection and privacy legislation; 6

7 SMART METERING IN THE CLEAN ENERGY FOR ALL EUROPEANS REPORT OF THE EC: SMART METERING REQUIREMENTS ARTICLE 20 (d) meter operators shall ensure that the meter or meters of active customers who selfgenerate electricity can account for electricity put into the grid; (e) if final customers request it, metering data on their electricity input and off-take shall be made available to them, via a local standardized communication interface and/or remote access; (f) appropriate advice and information shall be given to final customers at the time of installation of smart meters, in particular about their full potential with regard to meter reading management and the monitoring of energy consumption; (g) smart metering systems shall enable final customers to be metered and settled at the same time resolution as the imbalance period in the national market 7

8 RESULT: The EU has taken a more thoughtful approach towards the deployment of AMM: - the roll-out and its scope is a matter of the Member States, while their only obligation is to repeat the economical analysis - requires minimal standards (deadlines, functionalities, data security) for the deployed systems - requires the possibility for consumers to install a standard AMM - in case of a roll-out, requires the distribution of the cost among all consumers This approach fully legitimize the strategy of the Czech Republic in this field: - verify the characteristics and define standards based on the experiences from the pilot projects - deploy the new system, when it becomes efficient and in the most efficient range - AMM on demand with a certain cost 8

9 SMART METERING PILOT PROJECTS EZ DISTRIBUCE 9

10 PROJECT OBJECTIVES Verification of the characteristics of new generation communications and metering systems with pilot projects and creation of requirements/projects for AMM deployment (whether complete or gradual, i.e. selective at first and complete later) standards and legislation definition Verification of the impact of the requirement level of security in the field of technology, their usage and personal data protection and the definition of data protection requirements Fulfillment of the NAP SG objectives, including the output sharing (cooperation with the Ministry of Industry and Trade) Verification of the tested technical and economical hypotheses 10

11 PROJECT OBJECTIVES Grant inputs for the actualization of NAP SG. NS II as well if possible Create the proposal for effective operations of the new systems after the termination of the pilot projects Documentation for strategies in the fields of metering and load management for the period until 2030 Documentation for a reliable cost-benefit analysis of the AMM roll-out in the Czech Republic environment Documentation from the projects will serve to make changes in the legislation for distribution grid operations in the fields of connection, metering and active/reactive power management Documentation from the projects will also be used to formulate demand for a change in the consumers tariffs and their application in the field of active and reactive power and support services in the distribution grid 11

12 DESIGN SGRP AMM Acquisition of up to electric meters and integration of AMM from the WPP pilot projects summary: over smart meters in 4 regions of various characteristics complete deployment selective deployment Verification of technologies, technological hypotheses, impacts on operations Effective usage of supply points (SP) from the WPP AMM / ~500 distribution transformers Newly deployed SP / transformer substations (DTS) Laboratory simulations New deployment in two regions Verification of technologies, technological hypotheses, impacts on operations Effective usage of SP from the WPP AMM (over 6MWh) Newly deployed SP with the LTE technology (up to 4000 if IoT(500) and WiFi (500) are taken into account laboratory tests need to be successful) Laboratory simulations New deployment in two regions, with the possibility for consumers to apply for an AMM Total: SP Total: SP (8 900 SP) 12

13 TESTED HYPOTHESES 1/2 1. Gather data about distributed energy sources and reactive power flows on the LV level and assess them in order to set the monitoring and control systems 2. Verify the correctness and effectiveness of the monitoring method for voltage ratios in the LV level and detection of non-standard condition in the network. Based on this, the voltage regulation in the LV network will be set 3. Verify that using current AMM technology, it is possible to detect/predict the real level of supplied power to each SP and, possibly, motivate/reward according to these real values. Based on this, the aim is to define how to use this regulating power for load control on the distribution network nodes and for the storage of distributed regulating powers, their control and legislation. 4. Verify the new consumer information support methods leading to a change in the consumer behavior, with an effect of decreasing the amount of consumed energy and its distribution in time and an evaluation of these methods. In the verification scope of this hypothesis, it will be necessary to test the impacts of the EMS system deployment, on the consumers side, on the power flows and distribution network nodes load balance. Based on this, the bounding requirements for EMS system will be set. 13

14 TESTED HYPOTHESES 2/3 5. Verify the quality of the currently used support for load balance calculations and evaluation of nontechnical and technical losses of the new technologies, and the settings of losses and detection localization systems. 6. Verify the possibilities of technical solutions and operation impacts during their deployment, during the fulfillment of the EU recommendations, without forgetting consumer services in the field of data sharing in the supply point of the consumer, including the setting of the correct solution for specified consumer support segments. 7. Evaluate the impacts of the new AMM technology deployments for both roll-out methods (complete and selective) in the fields of implementation process and later impacts on the operation process during their usage as well. The evaluation will provide an option to correctly supply input data for the NS II in terms of both CAPEX and OPEX. Later on, these inputs will be used for the preparation of the technology deployment and its respective legislation requirements. 8. Verify the level of deployment of the required security standards and their impact on the implementation and usage of the AMM technology. Security standards for data transfer and storage will need to determined as well. 14

15 TESTED HYPOTHESES 3/3 9. Verify the communication tools and standards from their performance parameters, quality of operation support and operation requirements point of view. 10.Verify the option of foreseeable reliability and performance improvement of the whole AMM solution, using correct communication control technics over the whole infrastructure and confirm the option of a complete roll-out, while maintaining the required security. 11.Verify the assumption that the current level of remote management, including its automatization, will decrease the number of operation activities in the network and the overall complexity on the human sources for AMM technology support as well. 15

16 NEW LOCATIONS FOR SGRP AMM Choice characteristics: 4 topologically different locations Possible deployment in 4 regions know-how sharing with highly qualified AMM specialists 2 voltage levels for transformer Location A Foothills 35 kv Distributed urban areas Location C Flatland 35 kv City agglomeration (region capital) with subburbs substation (DTS - 22kV, 35kV) Various topographies, climatic conditions and LV topologies Covers most distribution networks conditions demand, DTS solutions, MV and LV topologies and solutions Optimal accessibility of the location from the test centers LAB HK and Skute Location D Lowlands 22 kv Mixed urbanization, Significant potential for sources of renewable energy Location B Highlands 22 kv Distributed urban areas, underdeveloped region 16

17 SGRP AMM ENERGY SOURCES SUMMARY OF TOTAL POWER FLOWS (KW) IN THE LOCATIONS (PHV 37 %) Location Power area BioG Solar CHP Gas Coal Wind Hydro Total C HK_HKSE HK_VSES A JC_NOPA SM_SEMI D NB_PMK_ KO_KOL_ B SU_HANU 113, UO_JABL Total

18 WPP AMM LOCATIONS SUPPLY POINTS 18

19 WPP AMM LOCATIONS SELECTIVE INSTALLATIONS SUPPLY POINTS WITH ANNUAL CONSUMPTION > 6 MWH; TOTAL SP * Green points represent SP with a demand > 6 MWh village of Pardubice-Polabiny 19 19

20 RELATED PROJECTS AND ACTIVITIES In order to test all the different functionalities and its behavior it is crucial, in the pilot projects locations, to install other smart grid technologies, whether in the pilot phase or during the full deployment: metering in transformer substations ( EZdr oll-out project of 2018 to 2021) U/Q regulations on MV level ( EZd roll-out project 2018 to 2020) Installation of remotely controlled pole switches ( EZd roll-out project 2018 to 2020) Failure detection and quality oriented maintenance systems Tools for load control OLTC tranformators U/Q regulations of renewable energy sources on the MV level Derogation and regulating power prediction system Rules for storage, creation of virtual blocks and regulation energy supply Rules for frequency supply of support services from the virtual blocks to the transmission network Rules for the supply of non-frequency support services for the distribution network Installation of high-speed charging stations for vehicles Installation of storage infrastructure on the HV and MV levels for regulation energy supply 20

21 REQUIREMENTS COMPLETION STAGE FOR THE DEPLOYMENT OF AMM Economic benefit and/or consumer interest - no interest for a smart metering system from the consumers - no massive deployment of distributed renewable sources of energy - marginal costs for metering are superior to the marginal gains An improvement on behalf of the metering security and reliability: - if the new systems fulfill this purpose would be tested in the pilot projects Resolve the ability of AMM to overtake the functions of load management: - equipment with a limiter and breaker makes it possible, but there is a need to set new rules for the tariffs Integration with the development of smart grid technologies: - most technologies will be widely installed only after 2020 National standards (metering, communication) will be completed by 2018/

22 REQUIRED FUNCTIONS AND CHARACTERISTICS Supply and demand of real power metering class A precision Supply and demand of reactive power metering 15 minutes interval values Limiters and breakers functions Consumer data environment Minimal encryption on level AES128 Flexibility (parametrization, SW upgrade, communication interface) 22

23 CONCLUSION The pilot project SGRP AMM is the last pilot project before the roll-out after The necessary steps are: - finish the testing of all hypotheses and the setting of rules for the consumers and traders (storage, data sharing, ) - creation and offer of new trade products - finish the national standards (meters, communication, data sharing, ) - new tariffs system - equipment price decline and miniaturization - relation to other smart grid technologies (transformer substation metering, UQ regulation, remotely controlled pole switchers) 23

24 Thank you for your attention