Load profiling for balance settlement, demand response and smart metering in

Finland

Seppo KärkkäinenElektraflex, Finland

Is DSM the Answer?Workshop in the connection of IEA DSM EXCO, Chester 21st October 2009

Session 3 – The barriers of Profiles for Settlements in engaging small consumers

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Load profiling of small customers

Small consumers (max 3x63 A (about 45 kW)) are divided into three groups for profiling:

1. Households < 10,000 kWh/year

2. Other households > 10,000 kWh/year(Most with electric heating)

3. Other, main fuses < 3x63 A

Load profiles in the balance settlement

• National load profiles are defined for each group and for each month including separate profiles to workdays, Saturdays and Sundays. In predefined special days profiles of Saturdays or Sundays are applied

• Profiles are applied directly to customers without ToU-tariffs (1-energy meters)

• When 2-energy meters are applied, the national load curves are calibrated to correspond the estimated consumption in each time zone

• Temperature correction is applied to group 2 (electric heating)

• In special cases also local load profiles can be used if network owner proposes it and has good reasons

Example: Group 1 (Household, <10,000 kWh/a), January

0

500

1000

1500

2000

2500

3000

3500

00.00

-01.00

02

.00-03

.0004

.00-05

.00

06.00

-07.00

08

.00-09

.00

10.00

-11.00

12

.00-13

.00

14.00

-15.00

16

.00-17

.00

18.00

-19.00

20.00

-21.00

22

.00-23

.00

WorkdaySaturdaySunday

Hourly consumption (Wh) when annual consumption 10000 kWh

Example: Group 2 (Household, >10,000 kWh/a, most with electric heating), January (outdoor temperature - 8.7 oC,

(temperature dependence 4 %/ oC)

0

500

1000

1500

2000

2500

3000

3500

00.00

-01.00

02

.00-03

.0004

.00-05

.00

06.00

-07.00

08

.00-09

.00

10.00

-11.00

12

.00-13

.00

14.00

-15.00

16

.00-17

.00

18.00

-19.00

20.00

-21.00

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.00-23

.00

WorkdaySaturdaySunday

Hourly consumption (Wh) when annual consumption 10000 kWh

Example: Group 3*, Others, January

0

500

1000

1500

2000

2500

3000

3500

00.00

-01.00

02

.00-03

.0004

.00-05

.00

06.00

-07.00

08

.00-09

.00

10.00

-11.00

12

.00-13

.00

14.00

-15.00

16

.00-17

.00

18.00

-19.00

20.00

-21.00

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.00-23

.00

WorkdaySaturdaySunday

Hourly consumption (Wh) when annual consumption 10000 kWh

*Old profile, this profile has been updated

Use of load profiles in the balance settlement inside the grid of DSO

• For the customers of outside supplier the annual consumption of customers is estimated on the basis of the previous year

• Hourly loads of the outside supplier are calculated on the basis ofload profiles and estimated annual consumption taking into accountpossible temperature corrections in group 2

• These hourly loads are used like hourly measured loads in the balance settlements

• After the meters are read (usually once a year) the errors between theestimated and measured energies and hourly loads can be calculated

• These errors are corrected between suppliers at the end of the year andcleared. The sum of energy errors is zero. The financial corrections are basedon the public tariffs applied inside the corresponding network area to correspondingcustomers

Load profiling in Finland inside DSO (distribution system operator)

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summed day-TOU-profiles night

hourly metered load

Total grid area infeed

summed night-TOU-profiles

summed 1-time profiles

Estimated losses

= infeed - hourly metered -profiling - losses

this part is fully included in the balance of the "local" supplier

this part is in the balances of the outside suppliers

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Demand Response at small customers

Long experience from Time-of-Use tariffs

Long term response to ToU tariffs: electrically heated houses have ToU tariffs (low price during night (usually 22 - 07), other residentials have flat prices

Main reasons to the modification of load profiles:• domestic hot water produced during night time: 300 liter water storage• also heating system have storing capabilities (often heating cables assembled into isolated concrete layer of floor

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National load profile and outdoor temperature in Finland in two very cold winter days in 2007

TOU-loads switch on

TOU-loads switch on

MWoC

=> TOU levels peak but requires control resources to balance switching steps.

outdoor temperature

Example: some experiences from the response to spot-prices

About 10 electrically heated customers had• traditional ToU-network tariff with DSO and• Nord-Pool spot-price based contract with retailer (normal product of some retailers)

High price days

Surface temperature of the fireplace

20

25

30

35

40

45

15 22 29 36 43 50 57aika päivää vuoden 2006 alusta

takka D

takkaa lämmitetty ke, to, ja la

takkaa lämmitettysu, ma, ke takkaa

lämmitetty pe

väri kuvaa korkeaa spot-hintaa

Manual response: use of fireplace to compensate electric heating• hourly prices were known at

the afternoon before operatingday

• if the price exceeds the pre-defined level, the retailer sentsms-message or e-mail

• hourly meters at customers• manual response to prices

Conclusions from 2004-2006• both regulatory and economical (metering) barriers exist• retailer does not get benefit due to the use of load profiles although customer had hourly meters• to get full benefits from spot-prices, automatic response through building automation needed

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Conclusions from the past experiences from demand response

• Long tradition in large scale application of TOU-tariffs. There is a need for more flexible control. Legislation requires that DSOs enable TOU. In 2005 about 25% of TOU meters were are so old that they need to be replaced.

• Direct load control via power line communication and kWh-meters used to be common before deregulation, but only some small DSOs have kept them operational. With the recent large scale rollouts of communicating meters, these old fast load control systems have been completely removed and sometimes replaced with new GSM/GPRS based slow responding load control systems.

• Any type of load control is possible for all customers with main fuse over 3x63 A. For example spot-price based real time tariffs can be used.

• Legislation requires load curve based settlement for all customers with 3x63 A or smaller main fuse => Competitive retail energy suppliers and their customers have no incentive for load control; research results not used. => Change in legislation is needed to get the full potential of electrically heated houses utilised. Planned change to settlement based on hourly metered values will solve this.

• 1 hour time resolution and delayed feedback => Inadequate for modelling DR responses

• There are no other major barriers for demand response on the competitive side of the electricity system. Some electricity retailer suppliers offer retail tariffs that consist of hourly varying spot-price and a small margin.

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Some new drivers for demand response

• Penetrations of distributed and renewable and relatively unpredictable generation are increasing so distributed control resources are needed

• Response of distributed energy resources is an essential part ofsmart grid concepts and projects

• Controllable resources are needed also because the size of the biggest generation and transmission units is increasing

• Competitive electricity market removes overcapacity and reacts to capacity shortage with high price peaks

• Demand flexibility is necessary to reduce risks of failures of the electricity market and system

• Saving fuels and environment

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Smart metering/AMR

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Existing drivers for smart metering (DSO drivers in red)• Directive 2006/32/EC on energy end use efficiency and energy services• Directive 2004/22/EC on metering• Energy saving, energy efficiency and reducing CO2 emissions• Energy end use management• Improving the efficiency of the DSO (network operation and planning, power

quality management, customer service)• Fast and straightforward settlement of electricity retail market (responsibility of

DSO)• Desire to improve competition and efficiency in the electricity retail market.• Need to increase demand response and price elasticity of demand in the electricity

market. • Need for system reserves• Expected increase in penetration of intermittent and Dispersed Generation

So far many AMR-investments have mostly been planned and designed to serve the interests of DSO only. In the fractionalised unbundled electricity market the metering monopoly lacks incentives to serve the interests of the energy customer and the whole. => A challenge for regulation.

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Possible new drivers and enablers for smart metering

• Need to improve authority regulation of the distribution monopolies• Retail products tailored to customer• Harmonisation of the Nordic electricity retail market (Recording

consumption by each hour makes it possible to replace the mutually incompatible typical customer load profile settlement practices and treat all the retailers equally in the settlement. Harmonising the different load curve models is too difficult and expensive.)

• Provision of remote monitoring and control services that use the AMR infrastructure. ( For comfort, for fault diagnosis, for safety and security, for remote energy management of buildings, power quality, etc.)

• Possibility to share communication and other costs with other remote services

• Predictable and relatively stable rules of the game • Open standard protocols for metering data presentation in various

interfaces• Common minimum requirements for the functionality and interfaces of

AMR systems.

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Conclusions from the AMR development in Finland until now.The development has been voluntary

• In 2005 about 7% electricity consumption meters were in AMR, about 1 % in hourly measurements and about 25 % needed to be replaced due to their age

• In 2006 there were slightly over 3 million consumption points, of them about 100 000 had main fuse over 3x63 A.

• In 2006 about 18 % of all the meters were in AMR and about 41 % of the customers with main fuse over 3x63 A were in AMR

• In 2007 about 20 % of all the electricity consumption meters were in AMR and in almost all new orders recording hourly readings was required.

• It is estimated that in 2010 about 44 % of all consumers have AMR and• in 2015 the AMR coverage will be 70 – 90 %. • There are some DSOs that plan not to start full scale AMR implementation by 2015.• => Legislative actions are necessary to get full national AMR coverage. In

Finland the DSO is responsible for billing metering. Most DSOs outsource metering partly or fully.

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New regulation in 2009

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New Regulation Status • Status

• Regulations take effect March 1, 2009 • The regulation is applied to metering systems

bought after March 1, 2009• The existing metering systems have to be

improved to correspond the regulation• By 31st December 1010 with >3x63 A

consumers and• By 31st December 2013 with other

consumers• Before 31st December 2011 daily meter reading

is not required to customers who don’t have hourly based products

March, 2009 -Regulations take

effect

December 31, 2010 –All hourly (>3x63

Amp) sites are ready

December 31, 2013 –Rollouts Completed in Finland (80% enabled with hourly metering)

1,8 year 3 year

• Functionality • Hourly measurement• Meter reading once per day• Registering of over 3 minutes outages• Load control possibility included• Supports simple time-of-use tariffs and controls• Security of data• hourly data to be stored at least 6 years at DSO• No mandatory connection to house automation. But, if customer needs data direct from the meter, the meter has to be provided with a standard interface• Also electricity supplied to the network by DG has to be measured on hourly basis

Remaining 20% read manually 3 times/year

December 31, 2011 –after this daily meter reading for all customers

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Conclusions

• There are increasing needs for Demand Response.• Demand response may not succeed if it is not adequately taken

into account in metering system investments and regulation.• Demand Response and energy saving need similar metering

system functionalities.