Getting smarter: N Zs smart meter success story Presented to SACOSS - PowerPoint PPT Presentation

Getting smarter: N Z’s smart meter success story Presented to SACOSS Smart Meter Forum December 2014

Not this… But this…

Similar, just smaller

Similar, just smaller Market New Zealand Australia NEM Generation capacity 10 GW 50 GW Renewables 75% 25% Residential consumers 1.7 million 8.1 million Residential sales 13,000 GWh 55,000 GWh Retailers 16 25 Wildlife Flightless Marsupials, birds snakes

An independent rule-maker  Electricity is important to the economy  Independent Crown Entity  Impartial and professional 5

Four core functions  Develop the market rules (‘the Code’)  Enforce the Code and relevant legislation and regulations  Contract service providers to run the market and the electricity system  Monitor market performance

Its all about the consumer

What’s he talking about? Kiwi Ocker Advanced Metering Infrastructure Smart meter (AMI) Installation Control Point National Metering Identifier (ICP) Metering Equipment Provider Metering Coordinator (MEP) Approved Test House Metering Provider (ATH) Distributor or lines company Network Service Provider

What have we got to talk about? 60%+ AMI penetration

What have we got to talk about? No government All major mandate retailers No apparent cost increase Better customer Retail service innovation

Key drivers are competition and compliance

Key drivers are competition and compliance 1999 Increasing competition Full retail + cost-to-serve focus competition commences 1999 Recertification requirements set

Key drivers are competition and compliance 2005 First AMI deployment 1999 Recertification requirements set

Key drivers are competition and compliance 2006 Retailers commence AMI tenders 1999 2008 Recertification Commission requirements guidelines set

Key drivers are competition and compliance 2006 Retailers commence AMI tenders 2013 1999 New metering Recertification Code requirements set

Key drivers are competition and compliance 2014 All major retailers pursuing AMI 2013 1999 New metering Recertification Code requirements set

Key drivers are competition and compliance 2014 All major retailers pursuing AMI 1999 2015 Recertification Recertification requirements deadline set

Why retailers? Primarily lower cost-to-serve:  No meter access issues  No read errors or estimates  Fewer billing errors and enquiries  Reduced ‘vacant consumption’  Remote connection/disconnection  More accurate market settlement Emerging role in retail innovation

‘Light touch’ regulation  Clear compliance pathway  Efficient market operation  Interoperability standards  System and communications integrity  Data quality and access

When markets decide…  Investors carrying risk, not consumers  Competing on quality, reliability & price  Retailers differentiating requirements  Low cost – no ‘bells and whistles’  No technology ‘lock - in’  Only installed where of value

But what about the networks?

But what about the networks?  Some competing in market  (Limited) metering duplication  Some engaging with meter providers ‘Smart grid’ benefits not yet as significant as retail benefits?

What we are getting? All of this…   Reduced meter access issues   Fewer read errors and estimates   Fewer billing errors and enquiries   Reduced ‘vacant consumption’   Remote connection/disconnection   More accurate market settlement

…and also some of this… Network losses reducing and…  meter fleet rationalisation  historical data errors being corrected  some avoided load management investment

…and increasingly vibrant retail product innovation

Enabling retail innovation

AMI’s role is going to increase Data services Image source: EPRI

Competitive smart metering was a smart decision  ‘Fit -for- purpose’ implementation  Market efficiency gains  Evolving retail innovation  Platform for future market revolution

Questions? Find out more at: www.ea.govt.nz