Targets put pressure on the smart meter rollout
08.02.2024
Source: Energy & Management Powernews
The rollout of smart metering systems has picked up speed. And it has to, as Voltaris Managing Director Volker Schirra explained in an interview with journalists.
From the Metering Point Operation Act in 2016 to the Act on the Restart of the Digitization of the Energy Transition of 2023, the rate of mandatory installations has increased significantly. However, the absolute installation figures will also increase enormously, according to Schirra. On the one hand, metering point operators must have completed at least 20 percent of all mandatory installations in their grid area by the end of 2025, whereas previously a period of three years was granted for the first 10 percent. The mandatory rollout applies to consumers who consume between 6,000 and 100,000 kWh per year and to systems that must be controllable in accordance with the provisions of Section 14a of the German Energy Industry Act (EnWG). It also covers generation systems with an installed capacity of 7 to 100 kW.
"Due to the enormous increase in PV systems, the absolute number of installation cases is skyrocketing," said the head of metering service provider Voltaris. However, the number of mandatory installations will increase not only as a result of prosumer generation systems, but also with the electrification of the heating and transport sector through heat pumps and wall boxes. Voltaris assumes that between 30 and 40 percent of all metering points will be mandatory installations by 2030. Currently, the proportion is between 20 and 30 percent, depending on the grid area.
In view of these figures and further tightening in the coming years, the pressure on metering point operators is increasing. Everyone would therefore be well advised to start working through the mandatory installation cases as early as possible, not least because installation capacities are a scarce commodity. They will also be needed for years to come, as the targets for the end of 2028 - by which time 50% of all mandatory installations must have been completed - and the end of 2030 with the target of 95% are also ambitious. In addition, installation is mandatory for customers with an annual consumption of more than 100,000 kWh and generators with an installed capacity of more than 100 kW. A gradual target from 2028 to 2030 to 2032 is also pressing here.
New benefit-cost analysis on the price cap
Schirra pointed out that although a whole series of regulations have been written into the new Digitalization Act, a final clarification is still pending - for example on the subject of the price cap. The pressure on grid operators has increased considerably as a result of the reduction in the costs of smart metering, which are borne by the end consumer, to EUR 20. It is not yet clear how they will be able to set or refinance the remaining 80 euros they have to bear as part of incentive regulation. It is also still unclear whether the price cap of EUR 100 will remain in place at all, which - Schirra left no doubt - is anything but adequate for the metering point operators.
Like the entire industry, the Voltaris Managing Director is also looking forward to an investigation by Ernst & Young. The consulting firm, which presented a benefit-cost analysis to determine the price cap more than ten years ago, was commissioned by the Federal Ministry of Economics to review the current value. We will probably know how this turns out when the results are announced in mid-2024. However, this only concerns the cost side. The revenue side will be examined separately. Whether there will ultimately be an adjustment to the price cap, in whatever direction, could then become clear in the second half of the year.
Secure supply chain and metering and calibration law simplified
One of the numerous regulatory changes intended to accelerate the smart meter rollout is the simplification of the secure supply chain. Schirra definitely sees progress here thanks to new, simpler packaging solutions, as special PIN-secured boxes no longer need to be used for transportation to the end customer. However, this has not solved the problem of storing larger quantities, the Voltaris Managing Director lamented.
On the positive side, Schirra highlighted the improvements in measurement and calibration law. Among other things, smart meter gateways can be used indefinitely since February 1, as they no longer need to be replaced after eight years for calibration law reasons. Only if the device shows anomalies, whether in logs or system tests, does it have to be replaced. The "loss of the first calibration year" if a device is only installed in December of a year, for example, is also a thing of the past. In addition, simplified software updates are possible, although these are still subject to testing by the Federal Office for Information Security (BSI) and the Physikalisch-Technische Bundesanstalt (PTB). According to Schirra, all of these simplifications lead to a reduction in costs that benefits everyone involved.
Author: Fritz Wilhelm