‘Smart Meter Light’ under discussion – progress or patchwork solution?
Active discussions are currently taking place regarding the German smart meter rollout. At the heart of these discussions is the realisation that, compared to other European countries, the German smart meter rollout is late and has been slow to date. As a result, the installation of smart meters in Germany is currently proceeding in stages. Consumers with high consumption, a PV system or a controllable consumption device in accordance with Section 14a of the German Energy Industry Act (EnWG) are given priority during installation as so-called mandatory installation cases (both in terms of speed and costs incurred).
The FfE Whitepaper summarizes the ongoing discussions, explores the pros and cons of the Smart Meter Light and presents further possible solutions for accelerating the smart meter rollout in Germany.
Smart Meter Light as an alternative?
Many providers of new business models in the energy industry are dependent on the installation of smart meters. As a result, there are calls to allow a low-threshold solution that would give customers who are not affected by mandatory installation faster and more cost-effective access to a slimmed-down smart metering solution – the ‘smart meter light’.
The Simplify Smart Metering Initiative‘s requirement to take all customers into account in order to guarantee a fair transformation of the energy system is generally legitimate and important. The current costs of commissioning the intelligent metering system (iMSys) and the delayed pace of the German rollout can be seen as an economic problem that should be addressed as a matter of high priority.
Nevertheless, the present paper concludes that the Smart Meter Light approach would not adequately address the problems of speed and cost of the smart meter rollout.
We see three main arguments for this:
- It is unlikely that the smart meter light solution would be as cost-effective and quickly available as hoped for by the Simplify Smart Metering Initiative. Certification processes and lengthy discussions on standardization and regulation, as we have experienced with iMSys, seem to be unavoidable to a certain extent in this context – see the ongoing debates – which reduces the value of an alternative to iMSys.
- There is a risk that discussions about Smart Meter Light could provoke a renewed debate about the current rollout of iMSys in Germany and, in the worst case, could lead to a reprioritisation of resources and installation capacities away from the currently planned iMSys installation cases.
- There are other levers that can be used to reduce the costs and accelerate the pace of the iMSys rollout. These measures would benefit everyone (mandatory and voluntary installations) and, consequently, the overall system. One such measure, for example, is to take greater account of the interests of voluntary installations in order to strengthen acceptance of the rollout and the energy transition.
Alternatives to the alternative – How can the rollout be accelerated nonetheless?
Instead of the Smart Meter Light, we present alternative measures in the whitepaper that will accelerate the rollout of smart meters and benefit both the German energy system and customers who wish to voluntarily install a smart meter gateway (SMGW).
The specific measures proposed are:
- Create platforms and leverage synergies
- Define clear consequences for non-compliance with the obligations of metering point operators
- Utilise the expertise of competitive metering point operators – rethink the status of basic responsible metering point operators
- Gradually focus on multi-family/ apartment buildings
- In the medium-term, equal treatment of mandatory and voluntary installation cases
All stakeholders involved in the discussion on Smart Meter Light have a common interest: to accelerate the German smart meter rollout.
Based on the arguments and ideas presented here, we are keen to work with these stakeholders to identify and develop further measures. The FfE is also happy to act as a neutral intermediary between stakeholders with different interests and perspectives in order to work towards a compromise and a solution that would create added value for all stakeholders.
Please feel free to contact us; we look forward to your feedback and perspective!
