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Trends in Smart Metering: EED creates added value, material remains scarce, openness to technology creates flexibility

Trends in Smart Metering: EED creates added value, material remains scarce, openness to technology creates flexibility

The EED’s commitments give rise to new business models. Awareness of data security and ensuring the supply of materials is increasing. Openness to different technologies increases flexibility.

Elvaco AB has been implementing technology-oriented comprehensive solutions and services for the collection, evaluation and presentation of energy measurement data. Elvaco has identified the following trends using its many years of experience in smart metering:

1. The energy sector will recognise that the implementation of legal directives such as the EED adds value and has the potential to create new business models.
2. Two security aspects are becoming increasingly important when it comes to smart meter systems: Data security and the availability of materials.
3. In order to respond to future demands and seize opportunities, utility companies will combine different technologies. Essentially, forward-looking planning is becoming more and more important in order to remain able to act.

 

The EED creates added value: Turning obligations into money
From 2022, more and more companies will develop new business models based on smart metering. The focus will shift away from the goal of fulfilling the minimum legal requirements towards generating profitable added value.
From January 2022, the EU Energy Efficiency Directive (EED) requires suppliers to send consumers monthly bills that include consumption data. To this end, the meter readings are taken automatically by remote intelligent measurement devices. Many utility companies see the regulations as a nuisance and only implement what is necessary. However, there is much more to be gained from these technological conditions. This means more profit and higher customer retention instead of additional costs.

“The technology for automated meter reading has to be installed one way or another. Meaningful information can be drawn from the data available and from any additional data collected for the benefit of the consumer. This could then be monetised by suppliers which provide personalised energy advice, for example. We predict a professional service sector for data. For instance, data pools for research purposes or energy contracting for private individuals are both possible. A lot will happen in this area that we can’t even predict today,” says Thomas Nickel, Area Manager DACH at Elvaco.

Priority should be given to data that is relevant to energy efficiency: How do heating temperatures behave over the course of the day and week? What does heating behaviour look like in detail and how can it be optimised by the end customer? On this basis, the energy industry can give its customers personalised advice. However, possible applications are not limited to consumers’ heating behaviour: For example, building managers can record the relative humidity and temperatures in living areas. The results of the measurements help to clarify disputes in the event of mould growth or even to prevent it.

“Of course, such measurements should only be taken with the consent of the tenants. In some circumstances, highly personal data is collected, which falls subject to the General Data Protection Regulation (GDPR). If consumers and suppliers agree, data collection can save both sides a lot of trouble, time and money or prevent damage to the living areas in advance,” says Thomas Nickel.

 

More security for data
The state and economy are exposed to increasingly sophisticated cyber attacks. At the same time, with ever more complex IT infrastructures, data protection is becoming more expensive.

Utility company data centres are particularly at risk, as the data collected from many thousands of end consumers is located there. Ever since the EU GDPR came into force, the principles of confidentiality, data integrity and accessibility have applied to the IT security sphere. National IT security acts focus on regulations for the protection of critical infrastructure. Utility companies will have to be particularly demanding in the future when selecting hardware, software and external service providers. Even meters and devices must be state-of-the-art to provide minimum protection against attacks.

“It is essential to manage and continuously protect both customer and energy data in a secure environment that is constantly checked and monitored. Parallel storage of data is also necessary in order to survive a local data outage. At the end of the day, these are not new issues. However, the obligation to carry out monthly evaluations as opposed to annual accounting makes them a lot more relevant in the energy industry and when working with consumers,” says Thomas Nickel.

 

Plan ahead and keep materials available
Utility companies must act quickly to ensure the availability of materials. One reason for the current bottleneck in technical components is the ongoing pandemic, which has compounded global production conditions and increased costs. As a result, the production of electronic components such as chips for sensors has fallen, as has the production of raw materials such as wood and steel. At the same time, demand is increasing due to repressed investment or legal framework conditions such as the EED. Many companies are only realising the seriousness of the effects gradually.

“This situation will persist throughout the whole of 2022 at least, possibly even continuing until 2024. This is because increasing production capacities, for example through the construction of new production facilities for chip manufacturing, takes a year or longer. The solution for companies lies in making plans in a timely manner and securing a long-term solution for the required components,” states Thomas Nickel.

 

Flexible and sustainable thanks to a technology-oriented approach
The solution used for radio transmission depends on the specific requirements and framework conditions. Utility companies should remain open to deploying the best technology for the specific need at hand. The EED stipulates a number of conditions for collecting consumer data: for example, the devices must be interoperable and state-of-the-art. Interoperability can currently be easily achieved with common metering technologies such as LoRaWAN, NB-IoT and wM-Bus (OMS).

 “Where smart meters are concerned, it is advisable to look at meters and communication separately to remain open to technology. In this way, suppliers remain flexible and can adapt to future demands, taking advantage of any opportunities that may arise. For example, self-contained communication modules can be plugged into many meters, even after they have been manufactured. You can apply the appropriate technology to suit the current target scenario,” says Thomas Nickel.

Today, communication technologies change over the course of cycles of less than ten years. This also applies to smart metering. Meters or modules that will be installed in ten years are likely to communicate differently to the devices installed today. “Despite our fast-moving times, it is especially important to plan foresight but also to remain adaptable. However, it is even more important to act now,” says Thomas Nickel.

 

Valuable information can be obtained from available data on consumers;
for example, for a chargeable personalised energy consultation (graphics: Elvaco AB)

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