Key to Energy Transformation of Intelligent Measurement System

[China Instrument Network Industry Focus] The smart meter measurement system has become an important part of energy transformation. But even in Germany, the system has not been widely promoted. The smart measurement system equipment market is yet to be tapped.


"Energy Transformation" illustration
With the advent of the Internet of Energy and the era of big data, high demands are placed on smart measurement systems. Compared with the hidden commercial value behind energy consumption data, the hardware and software devices of smart measurement systems are only a fraction of the total.

During Premier Li Keqiang's visit to Germany, China and Germany issued the "Sino-German Cooperation Action Outline: Innovation in the Republic of Moldova" on October 10th with more than 13,000 words and 110 entries. The outline proposes that China and Germany will cooperate closely on the standard issue and include the “Industry 4.0” issue in the Sino-German Standardization Cooperation Committee. The two parties will continue to strengthen the existing cooperation under the framework of the China-Germany Standardization Cooperation Committee and commit themselves to more systematic and strategic cooperation. Both parties unanimously decided to pay more attention to future areas such as electric vehicles, energy-efficient smart energy control / smart home, water supply and sewage treatment.

At present, smart meter measurement systems are usually regarded as the basis for realizing demand response. The electrical load data provided by them is also the most important information resource in the future electricity market. In the future, this system will become an important part of energy transformation in various countries.

Intelligent exploration of “Industry 4.0” In the future smart grid and smart power markets, demand-side management and demand response technologies are important means for coping with a large number of distributed generation grids, coordinating and optimizing demand-side electricity consumption, power generation modes, and energy efficiency. The German-defined smart measurement system goes beyond the traditional boundaries, connecting users, measurements, the power grid and the market, promoting real-time interaction between them, providing massive amounts of valuable data and information for consumers and electricity market participants, and enabling Demand-side response in the true sense has become possible while also fostering innovative business models.

In 2013, the German Information Security Agency (BSI) was entrusted by the German Ministry of Economy and Energy to develop a new technical specification for smart metering systems, and put forward a smart meter gateway as the center, based on advanced two-way communication network connection measurement. The intelligent measurement system (Intelligent Measurement System) for the instrument network, wide-area electricity market, and demand-side interaction is referred to as iMsys. In this architecture, electricity meters (as well as gas meters, water meters, etc.) are only measuring sensors responsible for collecting data, while smart meter gateways are the core of system intelligence and are key functional modules that connect participants from different regions.

Through the smart meter gateway, real-time feedback of electrical water usage information and price information can be provided for the user on the demand side, and power information on the demand side can also be sent to the corresponding power market participants. More importantly, smart meter gateways can be combined with control terminals to implement energy-side power management and real-time control of distributed power devices. At the same time, the German Information Security Agency has also developed an information security standard that puts forward detailed and strict requirements and technical specifications for the protection of the electrical energy and personal information in the entire measurement system.

Big data business model is looming In Germany, in the 21st edition of the 2012 new energy economic law, relevant laws and regulations for the promotion of iMsys were introduced in a wide range of areas. In particular, the scope of promotion and the role of the responsible person were clearly defined and the four situations in which iMsys must be installed: New or Housing for large-scale maintenance; power consumers with an annual electricity consumption of over 6,000 kWh; newly installed new energy power generation equipment and cogeneration facilities with a capacity exceeding 7 kW; and all technically and economically allowable buildings. In addition, Germany has also established measurement system regulations that clearly define the nature of the open market in the energy measurement industry and have given birth to new roles in the electricity market, such as measurement service providers.

According to preliminary statistics, 40 percent of iMsys needs to be installed in Germany by 2020. This is undoubtedly a huge business opportunity for manufacturers of meter and measurement systems. Leading companies such as Landis & Gyr and Siemens Smart Grid have already been gearing up to launch their flagship products. However, compared with the hidden business value behind the power data collected through iMsys, hardware and software equipment is only a fraction of a million.

In the future, demand-side energy data may become an important commodity in the electricity market. Therefore, market participants who can grasp the massive load and power generation data will occupy a pivotal position and even have the ability to determine the market. On the one hand, iMsys provides real-time feedback on electrical water usage information for demand-side users, and incorporates real-time floating tariff information delivered from the market side. Together with building and home energy management systems, power users can improve electricity usage habits, improve electricity efficiency, and optimize Energy consumption, low energy smart home. On the other hand, iMsys can provide 24-hour load and low- and medium-voltage grid status information, providing the basis for analyzing and excavating demand-side power and distributed generation characteristics. For power sales companies, understanding the habits of consumers using electricity can help them develop more attractive tariff packages; for power company accounting units, it can help them better understand the real-time power and power generation information on the demand side. Make load forecasting to reduce the balance error; for grid companies, having load and distributed generation data can help them optimize grid planning and operation. The iMsys combined with a distributed generation control system can also provide support for grid dispatching and intelligent control of virtual power plants.

The German market has also emerged with innovative companies and models such as greenpocket, econ, and virtual power plant systems that use energy measurement data to provide grid observations, energy management, and integrated distributed generation. German RWE, EnBW and other power companies have also begun to deploy in full swing, and look forward to quickly seize the market after the implementation of the policy.

The slow progress is due to the concept system. However, since the introduction of the new version of the energy economic law for three years, the large-scale promotion of smart measurement systems has not really begun in Germany. Where are the problems?

First, the people have high requirements for information security. The smart meter system is installed on the demand side and involves the collection and use of user power and private related information. For historical reasons, Germany’s personal privacy is paramount, and it is a very troublesome problem to collect, process, and use user-related information. Although the German Information Security Agency has developed information technology standards for information security, most people in Germany are conservative in their analysis of their own power consumption information, knowing when to watch TV, playing computers, washing clothes, sleeping, and vacationing.

The second is iMsys economic doubt. It is currently estimated that the installation of new measurement systems for electricity users will cost about 50 to 70 euros per year. It is still unclear whether the new system can help electricity users save electricity and reduce electricity bills. This makes the German public more skeptical. And whether the optimization of electricity price packages and grid optimization operation plans facilitated by iMsys can bring economic benefits to users, and it has yet to be verified by the market.

Third, it is more difficult to increase tedious regulations and technical guidelines. In order to promote smart measurement systems, Germany has, as always, begun by defining technical guidelines and introducing laws and regulations. However, it is precisely this kind of rigorous but almost rigid working method that has slowed down the progress of promotion. At the end of 2014, the German Ministry of Economy and Energy is still further formulating relevant regulations and clear preferential policies in order to develop a complete legal framework. This undoubtedly puts forward the relevant products to the German manufacturer, has increased many difficulties to the promotion and the use of the German electric network company, also increased the cost and the expense.

In short, due to the very sensitive topics involved in the preservation, collection, and processing of user data, it is difficult to promote it in Germany on a large scale. Therefore, it is imperative that the German government clearly support the policy as soon as possible, carry out active publicity for the public and increase public acceptance. At the same time, the companies in the upper, middle, and lower reaches of the industry need to work together to unify technical standards and reduce costs and expenses.

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