Data Management and Business Opportunities inEmerging Smart Metering Market

Abstract: Major changes in the energy systems throughout Europe have resulted in the implementation of new technologies such as smart grids and meters, enabling a two-way flow of information and electricity. This results in large volumes of metering data which needs to be efficiently managed for market and grid operational purposes. In addition to this, a new market for third parties seeking to enhance and convert data into valuable information has emerged. Current data management strategies vary between countries, resulting in a great diversity of data management models. To reach consensus, the European Commission has developed three theoretical reference models in order to cover all possible options. For the success of third parties, it is important to understand the rather complex mechanisms of these reference models. This can ease the process of recognizing the implemented data management model on a given market, as well as the interaction with related obstacles or barriers, in order to determine business opportunities. This report aims to present market conditions for third party actors in two European countries that have implemented different data management models. The Netherlands and Great Britain are selected based on certain conditions. With existing theories of the reference models, the actual models will be defined in each country. Key barriers are also identified. This report will then study how appropriate the implemented models are in relation to the barriers. Therefore, these two countries will also serve as case studies for evaluating the applicability of the reference models. In the Netherlands, case 1 of the reference models is identified per definition, although a transitioning towards case 2 can be observed. The major barrier consists of privacy concerns although customer engagement is becoming a central focus. In relation to these issues, targeted regulations seems to have more positive impact than the implemented model.  The Dutch market is evolving and it is shown that the customers are open to new innovative services, although the intent to purchase such services is low. A central point of access to data facilitates efficient data management, however this only includes data with a 15 minute frequency. Data with a 10 second update interval can currently be accessed only via a physical smart meter port. In Great Britain, parts from both reference model 2 and 3 are implemented and the main barrier is currently customer engagement. The model has been developed with high emphasis on earlier privacy concerns, but it has potential to also address customer engagement by supporting innovation and new services. However, earlier restrictive regulations have only allowed certain feedback services, i.e. In Home Displays, to be offered to customers. As of 2015, other options are allowed which opens up a promising market for third party actors. Data can be accessed either centrally, with half-hourly updates, or via so called Consumer Access Devices providing data with updates every 10 second. A gap between the theoretical models and reality is observed; theoretical benefits are not always evident in practice. It is also observed how all possible data flows are not always properly described or included in data management model mappings. Therefore, it is important for third parties to look beyond such mappings to understand the access to certain data that fits their purpose. At last, privacy concerns can be eased through increased customer awareness and empowerment, which is also related to the receptivity to innovations among customers.