Smart metering an energy networks perspective

The Energy White Paper proposes a number of measures that will challenge the traditional role of electricity distribution networks. These include facilitating competition in sustainable, clean and efficient electricity production, which in turn will mean accommodating significantly higher levels of decentralised generation and renewable energy resources. At both the commercial and domestic level, demand-side participation facilitated by cogeneration and micro-generation could play an increasing role in optimising not only electrical energy production (in terms of carbon emissions) but also network cyclic demand patterns. For example, flattening load profiles by 'shifting' peak demands would not only improve load factor and reduce network I²R losses, it might also improve overall network utilisation and enable the deferral of 'load-related' capital investment. Smart Metering has a potentially key role to play in providing the means by which the necessary financial incentives to encourage cogeneration and micro-generation (e.g. in terms of export reward) and effective demand-side management (e.g. in terms of time-of-day pricing) can be created. As well as the obvious benefits to Suppliers of 'responsive' demand, given the necessary attention to regulatory and commercial frameworks, smart metering and its associated data management technologies might also create a number of opportunities for Distributors and benefits for their connected customers; these include: (1) more accurate DUoS billing; (2) improved super-customer profiling and hence more accurate settlement; (3) reduced technical and non-technical losses; (4) identifying 'idle' services (i.e. no unit consumption) or, conversely, overloaded services; (5) potential load and voltage-profile monitoring at a highly disaggregated (i.e. LV) level which could in turn identify potential local network thermal overloads, potential statutory voltage transgressions and new and emerging demand profiles, that might in turn influence economic network design criteria through improved localised network utilisation data, enable networks to be more highly utilised, and enable a more rapid response to customers' requests for additional demand and new connections (including generation) through an inherent power outage detection capability; (6) easier identification of 'worst-served' customers; (7) the ability to identify vulnerable customers affected by power failures; (8) potential income from providing power line carrier communication services; and (9) potentially marketable ancillary 'DSO' services (i.e. system balancing). The presentation outlines some of the above opportunities and hopefully provides 'food for thought' for the discussion forum.