Description of the current situation regarding the roll out of smart meters in Flanders, how stakeholder dialogue around smart meters is organised, what next steps can be expected.

1. AGRION Conference
Developments in National Smart Metering
Programmes
The future of smart metering in
Flanders/Belgium:
Does a negative CBA mean the end?
Dirk Van Evercooren, Director Markets VREG, 11 December 2013
Vlaamse Regulator van de Elektriciteits- en Gasmarkt

2. Can I ask you a question?
What percentage of families in Flanders do you
think feel that the installation of a smart meter
would be an invasion of their privacy?
18%
59% of respondents say they would save
money by adjusting their energy
consumption to take into account low and
high price periods if Time of Use tariffs
would be extended
(VREG Survey July 2013)
2

3. Willingness to pay
What percentage of families in Flanders
wants to pay to have a smart meter
installed?
•64% does not want to pay
•Of those interested in having a smart
meter, still 56% does not want to pay for a
smart meter
(VREG Survey July 2013)
3

4. Overview
• Is there support for smart metering within the
general public?
• The result of the Belgian CBAs
• Stakeholder dialogue on smart meters and
smart grids
• What is going on within the pilot projects?
• How is the retail energy market model
evolving?
• Next steps at the legislative level
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5. THE RESULTS OF THE
BELGIAN COST-BENEFIT
ANALYSIS
5

6. How did the CBA(s) come
about?
• Electricity and gas are (partly) regionalised
matters in Belgium
• Retail markets are regulated at regional level:
Brussels
Flanders
Wallonia
Brugel
VREG
CWaPE
6

7. BELGIUM
Smart Meters are under the responsibility of the
Regional authorities
The three Regions have separately conducted a
cost-benefit analysis as intended in directive
2009/72/EC and 2009/73/EC
Why separately? Because of the different realities
of the Regions. For example, Brussels-Capital is a
purely urban Region, unlike the two others
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8. COST-BENEFIT ANALYSIS (1)
Outcomes of the baseline scenario (80
to 100% roll out):
•Flanders: INCONCLUSIVE (NPV ranging
from -300 M€ to +700 M€)
•Brussels: NEGATIVE (NPV = -80 M€ in the
least negative scenario, "advanced scenario")
•Wallonia: NEGATIVE (NPV = -186 M€)
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9. COST-BENEFIT ANALYSIS
Critical variables in the sensitivity analysis
•Flanders:
• Lifespan of the meter hardware and communication module
• % of consumers that will subscribe to TOU
• Energy saving for gas customers
•Brussels:
• Valorisation of the CO2 emissions
• Energy saving
• Subscription communication
• Number of meter installations per day
•Wallonia:
• Energy saving for electricity customers
• Demand side management
• Installations per day per full time equivalent
9
(4

10. ROLL-OUT IN THE CBAs
(1)
Metering points and associated investment :
•Flanders: 3,4 million metering points electricity and 2,1 million
metering points gas; 2000 M€
•Brussels: 620.378 electricity metering points electricity and
417.298 gas metering points; 460 M€ (for the least negative
scenario: advanced scenario)
•Wallonia: 1,9 million metering points electricity and 0,7 million
metering points gas (assumed metering points for 2020); 2200
M€
Please note that the ratio between the number of metering points
and the associated investment is meaningless
Timeline
•Flanders: 5 years
•Brussels: 2015-2018 (4 years)
•Wallonia: 2015-2019 (5 years)
10

11. ROLL-OUT IN THE CBAs
(2)
Assumed overall electricity savings (%)
•Flanders: 1% (indirect feedback) - 3% (direct
feedback - IHD)
•Brussels: 3,38%
•Wallonia: 0% as a baseline parameter
Assumed average peak shaving or load
shifting (%)
•Flanders: 5%
•Brussels: 0,47% of the total benefits (for the least
negative scenario: advanced scenario)
•Wallonia: additional demand flexibility due to smart
meters is 12% of total load
11

12. ROLL-OUT IN THE CBAs
(3)
Communication infrastructure
• Flanders:
• 80% PLC broadband to gateway with cable modem
• 20% of which 60% MUC via cable and 40% GPRS
• Brussels :
• UMTS (for the least negative scenario: advanced scenario)
• Considered Options for all scenarios:
• PLC technology
• Mobile network technologies: GSM/GPRS, UMTS, etc.
• Radio network technologies: WiMAX, Wi-Fi or Mesh
• Wallonia:
• PLC and GPRS
• Technology mix will be further tested and evaluated by
DSOs in the near future
12

13. Conclusions of Belgian
CBA
• The assessment was done according to the
EC recommendations/guidelines
• The result is that the conditions for a roll out of
at least 80% of Smart meters are not met
• Hence, the obligation of the 3rd Package has
been fulfilled, with a negative outcome
• Does this mean the smart meter is not an issue
in Belgium any more?
13

14. STAKEHOLDER
DIALOGUE IN
FLANDERS/BELGIUM
14

15. Policy platform smart
grids
• Flemish governement created a long term vision
• 1 area of action is ‘Smart cities’
• VREG – Flemish Regulator of Electricity and
Gas markets was assigned as leader for this
project
• A stakeholder platform ‘Beleidsplatform slimme
netten’ was created as a forum for discussion
• Several organisations participate and express
their opinions
15

16. Policy platform smart grids
(2)
Participants:
•Representatives of industrial, household and
vulnerable clients (energy poor)
•Social-economic Council and Environmental
Council
•Sector representatives: DSOs, TSO, suppliers,
ESCOs, aggregators,…
•Other government agencies, interest groups,…
16

17. Next steps

18. NEXT STEPS – WALLOON REGION (
A “smart meter friendly” scenario is
proposed
In this case, the smart meters are rolled-out:
On demand (the client pays for the installation)
● Bad payers households
● Replacement of a defective meter
● New connection
●
Outcomes :
15% smart meters in 2020, 35% en 2030 (estimation)
● NPV = + 585 M€
● Total cost: 947 M€
●
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No decision yet

19. NEXT STEPS – BRUSSELS (1)
Roll-out of “advanced” meters
•For some specific clients; essentially big consumers
and industrials
• AMR (Automated Meter Reading) meters for clients
connected to the grid on high voltage => load curves
reading on a day+1 basis
• “REMI” meters for clients with a big consumption
but connected on low voltage => reading on a
monthly basis
19

20. NEXT STEPS – FLEMISH REGION
• DSOs in Flanders finished a first pilot project, called
“proof of concept”, which was mostly concerned with
technical aspects of smart metering
• Second phase, started up now is the “pilot project”:
On a larger scale than the proof of concept (45.000 meters)
Smart meters with different functionalities
In order to test required logistics for roll-out process
Ambition to go further: with smart meters market processes
have to be re-analysed
• First analysis of costs and benefits in real life situations
•
•
•
•
• Integration with Linear project
20

21. NEXT STEPS – FEDERAL LEVEL
Towards an adaptation of the market model?
•Project to create a new “Central Market System” in
2016: a common platform for the exchange of data for
market processes
•Two main goals of the new Central Market System:
• To have more efficient and simpler market
processes
• To be Smart Meters Ready
•Market participants and regulators
Respect of privacy
•Privacy Commission participating in the reflections
21

22. Pilot projects in
Flanders

23. State of play October 2013
23

24. Pilot: Firmware upgrade
1.
1.
2.
2.
3.
3.
4.
4.
Masters SCM
Masters SCM
Slaves SCM
Slaves SCM
Flonidan FW - -1996
Flonidan FW 1996
Hexing FW - -220
Hexing FW 220
IMDMS
IMDMS
verbruiksfeedback
Belgacom
Telenet
Release EE
Release
MDM
MDM
IPT/AMM
IPT/AMM
MS7  MS8
MS7  MS8
SMT
SMT
SAP
SAP
MOC
PLC
Mobile
Mobile
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MS7  MS8
MS7  MS8

25. Study EE - Pilot planning
Naïeve periode
Testperiode jaar 1
10/2014 Start testperiode
12/2013 Nieuwe KBA VREG
10/2013 Eindrapport PoC deel 2
2013 Go live verbruiks overzicht Infrax
10/13 Go live verbruiksoverzicht Eandis
=> Verschuift => volledige studie schuift
gelijkmatig mee
Design van het onderzoek
Nu
25
Testperiode jaar 2
VerwerVerwerking
king
resultaten
resultaten
jaar 1 1
jaar
01/2016 Rapport jaar 1
VerwerVerwerking
king
resultaten
resultaten
jaar 2 2
jaar
01/2017 Rapport jaar 2

26. New Central Market
System

27. Central Market System
• Start of operations planned mid 2016
• The roles of data hub and market facilitator will
be both incorporated within Atrias, the Central
Market System
• Atrias was created in 2011 by the Belgian
DSOs
• Operation of Atrias will cover the whole of
Belgium
• Hence, the regional regulators cooperate
intensively preparing the CMS and MIG 6
27

28. Atrias as Central Market System
As-IIs
As- s
Eandis
Eandis
Ores
Ores
Supplier 1
Supplier 1
Indexis
Indexis
Infrax
Infrax
Sibelga
Sibelga
CH
CH
Supplier 2
Supplier 2
PubliPubliclear
clear
Tecteo
Tecteo
WalWalClear
Clear
V
V
A
A
N
N
Fluxys // ELIA
Fluxys ELIA
Eandis
Eandis
Infrax
Infrax
Sibelga
Sibelga
Supplier 4
Supplier 4
Tecteo
Tecteo
Shipper // Balance
Shipper Balance
Responsible
Responsible
Supplier 1
Supplier 1
Ores
Ores
Supplier 3
Supplier 3
Supplier n
Supplier n
To-B
To-Be
e
Supplier 2
Supplier 2
Atrias
Atrias
Federal
Federal
Clearing
Clearing
House
House
(CH)
(CH)
Fluxys // ELIA
Fluxys ELIA
Supplier 3
Supplier 3
Supplier 4
Supplier 4
Supplier n
Supplier n
Shipper // Balance
Shipper Balance
Responsible
Responsible
Atrias will be the only platform for the exchange of market data between energy
suppliers, grid operators and other market participants
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Infosessie - MIG6 Pre-Processing – Session d’information
28

29. Jan’12
Sept ‘12
Mar ‘13
MIG 6
MIG DSO
June ‘13
Jan ‘14
Mar ‘14
July’14
July ’15
July ’16
End to end market processes => messages
 Translation of MIG6 interactions between DSOs and CMS
CMS
Purchase
CMS
Build
Testing
Data extraction, data
transformation en data migration
Migration
Transition
GO-live
Operation
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Infosessie - MIG6 Pre-Processing – Session d’information
29

30. Which customers
might be rolled out
first?

31. Which customers might
be rolled out first?
Some segments of the market clearly show more
potential:
•Big customers (on the Distribution grid)
•Prosumers (?)
•Bad payers (who now have ‘closed’ system prepayment meters)
•On demand
31

32. Experiences with PPM for
bad payers
A survey found that:
•Customers appreciate that PPMs help them
balance their (energy) budget
•Organisations speaking for the poor don’t like
the PPM, especially not the Gas PPM
•90% of the users is satisfied with the existing
charging options
32

33. Conclusions

34. Smart metering is not
dead in Belgium
• All regional regulators are involved in on-going
discussions
• Pilot projects are being executed
• A new market model, including flexibility and
smart meter ready market processes is being
prepared
• A Central Market System will facilitate the
market supported by smart meters
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35. Thank you for your attention!
dirk.vanevercooren@vreg.be
@DEvercooren on Twitter
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