Paper no. O-036Collaboration is a term to characterize contemporary relationship between a supplier and a consumer. In the old days, an energy meter is the interface service-counter that prompts the double-coincidence of wants between the parties. Nowadays a meter can have smartness beyond registration of consumption units by the supplier. It can carry intelligence to serve demand side management. When the electrical-load-signature technology has been efficiently developed, then a user has to accept that the barrier to load monitoring and surveillance by other parties is no longer a technical issue, but primarily an ethical issue only. On the other hand, it is anticipated that experience curves shall drag down the cost of intelligent home management system to an extent that most of the homes can equip one system to enhance installation operation efficiency and human comfort. It is perceived that when a platform can be developed to permit the intelligence of two sides to share information, then each of them may support the other as a neighboring aide. This paper discusses on philosophies and models that shall develop the concepts.postprintThe International Conference on Electrical Engineering (ICEE) 2008, Okinawa, Japan, 6-10 July 2008

Fung, KB

Lee, WK

HKU Scholars Hub

Title The Development of a smart metering schemeAuthor(s) Lee, WK; Fung, KBCitation The International Conference on Electrical Engineering (ICEE)2008, Okinawa, Japan, 6-10 July 2008.Issued Date 2008URL http://hdl.handle.net/10722/126076Rights Creative Commons: Attribution 3.0 Hong Kong LicenseThe Development of a Smart Metering Scheme LEE, W. K. and FUNG, Kwok Bong The University of Hong Kong Department of Electrical and Electronic EngineeringPokfulam Road, Hong KongAbstractCollaboration is a term to characterize contemporary relationship between a supplier and a consumer. In the old days, anenergy meter is the interface service-counter that prompts the double-coincidence of wants between the parties. Nowadays ameter can have smartness beyond registration of consumption units by the supplier. It can carry intelligence to serve demandside management. When the electrical-load-signature technology has been efficiently developed, then a user has to accept thatthe barrier to load monitoring and surveillance by other parties is no longer a technical issue, but primarily an ethical issue only.On the other hand, it is anticipated that experience curves shall drag down the cost of intelligent home management system to an extent that most of the homes can equip one system to enhance installation operation efficiency and human comfort. It isperceived that when a platform can be developed to permit the intelligence of two sides to share information, then each of themmay support the other as a neighboring aide. This paper discusses on philosophies and models that shall develop the concepts.Keywords: smart meter, demand side management, electrical load signature, home management.1. INTRODUCTIONThere are many reasons for redefining conventional businessrelationships. First, novel technology emerges; and second,the concept of value chain evolves; and third, the notion ofsustainability develops. The changes of technical feasibilityand entity values call upon the transformation of cold-toneexchange relationships into warm-setting collaborationrelationships. Traditionally the relationship between anelectricity supplier and her electricity consumer is represented by relationship-pairs such as source-and-sink;seller-and-buyer; or provider-and-customer. What then shallbe the direction of new relationship?New businesses appreciate collaboration models.[5] A newcollaboration relationship like a partner-yet-neighborconnection is budding. In the past, the content of theaforementioned traditional relationship is measured by adevice called electricity meter which, in most of thecircumstances, also serves as the demarcation ofresponsibilities between the two parties. This meter isanalogous to the service-counter interfaced between theseller and the buyer in general businesses. The meter obtainsconsumption history in terms of electrical values, based onwhich the supplier charges the user as per the agreementbetween the two parties. The benefits are entirely derived bydouble-coincidences-of–wants when the supplier wishes to sell, and at the same time, the user uses to buy.Nowadays, thanks to digital technology, a meter can havesmartness beyond such conventional capability; and by parallel technology, the user being served may also install anequally intelligent home management system at the demandside for developing efficiency and comfort. It is perceivedthat when a platform can be developed to permit the two intelligence sharing information [2], then each of them maysupport the other as a neighboring aide.By installing incentives, the supplier may motivate a user todevelop an equipment-selection and power-consumptionhabit which endows with a win-win scenario to the twoparties. However, of course, technology must not infringethe generally accepted human values.The University of Hong Kong has commenced research inload signature for some years [1],[3],[4]. Smart metering is anew extension of the study [2].2. MODELS AND ARCHITECTURE 2.1 The Value Development Model The model suggests that other than an interface meterconnecting supply to the installation, the interface shall be apair of contacts contributed by both parties; andcommunicated with each others as shown by Figure 1. Otherthan selling and buying of electricity, the contacts shallderive new and related values through communication andcollaboration.1The International Conference on Electrical Engineering 2008No. O-036 2SystemOperatorGeneratorDistributorEstateCarrierConsumerIntranetHomeManagerBusinessValueConnect-ionSmartMeterOtherSmartMetersSmartMeterFireWallFireWallAppliance A Appliance B Appliance C Fig 1 2.2 The Value ChannelThe collaborative contacts are partners. Despite instantresponse between the partners may not desirable for 24-7hours, yet a real-time dialogue is essential. It requires anadvanced telecommunication technology to support valuecreation between the supplier in the upstream and theconsumer in the downstream of the chain.Between the supplier and the consumer, electricity is delivered through a network system or an integration ofnetwork systems which additional players are involved. Forexample, there are system operators, distributors, and inmetropolitan cities: estate management. Understanding theplayers in the value channel (Figure 2) is one of the firststeps in developing the smart connection.In the internal marketing loop of the supplier, the nodes areits departments [5]. And in the evaluation loop of the consumer, the nodes are its appliances.Fig 3 To simplify the discussion, this paper clusters the“Generator; System Operator; and Distributor” as the“Supplier” in subsequent paragraphs.  With thesimplification, the key players in the chain are: “Supplier – Estate Management – Consumer”. In Hong Kong, whereland space is scarce, offices and homes are contained as a component in a high-rise building and/or an estate of blocks.The involvement of estate management is common. Thus theindividual offices and homes, instead of obtaining electricitydirectly from the public network, they obtain electricity fromthe communal estate network. In other words, the estatemanagement provides a carrier to connect their componentsto the suppliers. The estate management is a member in thepower-delivery value channel.Supplier ConsumerOperation & DistributionDerived OperationValuesDerived IncentiveValuesInternalMarketingSupplierValue ChannelConsumerInternalEvaluationFig 2 July 6-10, 2008, OKINAWA, JAPAN3. VALUES AND BENEFITS3.1 Meaning of Adding ValuesAdding values along the chain may mean any of thefollowing, or a combination of a number of them. Both themarginal value and the aggregate value are considered:? Increasing value ? Decreasing cost? Increasing value larger than increasing cost? Decreasing value smaller than decreasing cost? Creation of new valueNot all values are measurable or quantifiable. Hence it is common to divide them as:? Tangible values? Intangible valuesValues and benefits are substantially time functions. Hencethey can be categorized as: ? Short-term values? Long-term values? Sustainable valuesHence it is valuable to consider “values” along all theaforementioned divisions. Yet in general, the supplier shallprobe to maximize values in all the categories, tangible orintangible, and the consumer shall explore tangibleshort-term and intangible sustainable values.It is envisaged that the values are projected values before theincidents take place. As each incident is determined by manyvariables which unlikely to be fully explored and predicted,hence the realized values may eventually be different thanthe projected values. The consideration links withprobabilities of outcomes: opportunities and risks.3.2 Interaction for Adding ValuesMarket emerges and grows through interaction betweensellers and buyers. Needs are satisfied throughunderstanding and utility. Exchanges are welcome whenboth sides feel rewarded. While smart meter provides a newopportunity to link with the consumer in the chain,fundamental market norms are primary keys in constructingnew value model.New businesses appreciate collaboration models. A newcollaboration relationship like a partner-yet-neighborconnection is budding in all value-booming industry,including the electricity market. The meter is an interfacebetween parties. Traditionally the device is cold-tone, yetnew market opportunities demand warm-setting atmosphereand trust-bearing collaboration relationships.3.3 Values and Benefits for Supplier The apparently demand-side-management brings values tosupply-side-management. Through cooperation of theconsumer, indeed substantial number of consumers, thesupplier shall derive operational benefits, e.g.? Power quality improvementRealize less harmonics, better power factor,smaller voltage drop, etc. ? Power shedding flexibilityEstablish some consumers becominglong-term power shedding partners forcommitment to potential emergency.? Power-up sequence possibilityDetermine sequence of powering up installations and equipment at each recoveryof supply as to avoid excessive surge byloads and recharging devices.? Power and surge diversity improvementLoad management through time-shift and time-division-multiplex (TDM) for a betterdiversity.? Critical load managementExtend the load management as a tool tocrisis management? Spinning reserve alternativeEnjoy generation alternatives throughconsumer participation by shifting load or byself-generation.? Utilization improvementAchieve higher utilization of generator, cable& equipment capacity by less harmonics;higher power factor; smaller voltage drop,and better load diversity.? Energy managementEffect energy management by utilizationimprovement and also by sustainabilityculture developed among consumers.? Database of load signature and performanceBuild trust in consumers and in appliancemanufacturers for their commitment toenable legal collection of data.? Collection of research information Utilize data to develop research for thesociety? Sustainability and philanthropy commitmentContribute to defend scarcity of resourcesand moderate imbalance and deficiencywithin population. 3The International Conference on Electrical Engineering 20083.4 Values and Benefits for ConsumerAt the other end of the chain, the consumer shall deriveincentive benefits. Such as:? Human comfort and convenienceHuman physiological and belonging needs? Bill amount reductionPrimary and tangible value to inducecollaboration in load shedding, load shifts,load TDM, steady consumption, etc.? Appliance reliability and maintainabilitySupplementary value? Information enhancementInformation utility value? Energy audit and consultancySocial value? Sustainability commitmentSocial value? Energy efficiency upgrade for less Social value through tangible supplementaryvalue? Cooperation bonus and pointsTangible supplementary value3.5 Values and Benefits for Estate ManagementIn Hong Kong, a housing estate accommodating more than5,000 families is not uncommon. Each housing estate isrealized as a cluster of homes in which communal facilitiesalso contribute aforementioned effects to greater values. In addition, linking homes together may serve a larger pool ofparticipative loads to enable more flexibility and a higherachievement rate. The estate as a whole may have acollective bargaining power with the supplier. The latter, onthe other hand, may visualize the estate management as aservice distributor in the value channel which provides newservice and operation value yet lessens the supplier’sresponsibilities in the value chain. However, of course, the scheme may not work fully when final users choose tocooperate directly with the supplier instead of collectivelywith the estate management.The housing estate is an effective community to promotesustainability. Currently most of the sustainable generationsare in smaller scale, yet sizeable for housing estates. When a norm of micro-grid system as a hybrid component can bedeveloped for estates, then more benefits can be derived bythe smart communication among the value partners.3.6 Values and Benefits for ManufacturersThe success of the smart metering scheme requires partnership with appliance manufacturer to release appliancesignatures and operation patterns of their products. Despitethey may not be technical secrets, yet at this momentmanufacturers may still be skeptical in this collaboration.Yet it is anticipated that eventually some manufacturers may be aware that the release of information is a new opportunityfor building product differentiation, and new brand value;not to mention they may be leading a competitive edgewhich eventually becomes a norm of the society.4. TECHNOLOGY AND CULTURE SUPPORT4.1 Electrical Load SignatureNowadays power electronics bring in non-linear appliancesand facilities that introduce significant harmonics to thesupply system. Understanding the operation signatures of anappliance helps the system operator managing the powerquality. [1],[4]Load signature is also beneficial to consumers and manufacturers. Besides serving as a basis for energymanagement and load diversity, it provides a health recordand monitor for the appliance concerned. It provides roomfor improvement in energy efficiency upgrade andequipment upgrade.When load signatures are available, then a procedure ofsign-up; sign-in and sign-out may be established for loadconnection. [4] 4.2 Home Automation and Smart Meter TechnologyThe home automation manager is the warden of theinstallation that carries the appliances. [2] The managerunderstands the behaviour of individual members. It has thetasks:? Monitor performance? Perform specified and conditional control? Adjust operations intelligently withoutcompromising noteworthy comfort andconvenience? Communicate with value partners (e.g. smartmeter) for new operational values? Support sign-in and sign-outA Smart Meter System is the mediator between powersystem and final loads. It dialogues with the home managerto recommend control and management of load operation inrespect of system condition. Through contractual terms for“forward operation” and quotation for “spot operation”, thesmart meter may initiate the voluntary participation ofconsumers in power quality. The operation may include load 4July 6-10, 2008, OKINAWA, JAPANshedding, load shift, load TDM, hybrid changeover andequipment upgrade. The smart meter can also be developedas a data-link to convey messages in a bidirectional manner.The consumer sends connected-load signatures informationto the supplier, and the supplier studies similar and relevantsignatures for artificial-intelligence, then gives advices to theconsumer.Housing estate can also be a member in the value channel.The intelligent estate manager is similar in intelligence yet with a larger coverage monitoring than a home manager. Forownership reason, it leaves the control tasks to the homemanagers. The estate manager may also take up part of thetasks of the smart meter, and collectively monitor loadsignatures. This may be effective as many loads in the sameestate are similar, and likely identical. 4.3 Consumption CultureThe smart meter system should promote a consumer culture that treasures social values besides tangible values. Bytangible values alone, the achievement of operationalbenefits will be economically dependent. The scheme willreceive less support when the economy is booming in asociety. This is because incentives will then have faded values. The culture develops a persistent force that enablesconsumers to form good habits in load operations. A culturealso facilitates steady energy consumption by a family.4.4 Tariff ReformRegardless how the two partners share the culture ofsustainability and system quality, the smart meter schemeworks on a give-and-take value-exchange mechanism. [4]For this reason, the tariff may have to be modified forfeasibility.A uniform all-time tariff is not suitable. A multi-tier tariffhas to be adopted. It can be time dependent and/or modedependent. Alternatively or conjunctively, it canaccommodate rebates, points or discount coupons for cooperation in discrete or cumulative manner. Use of thepoints and coupons can be extended to electricity and energyrelated business.The multi-tier tariff may also rate on both spot-data and interval-data. Spot-data means the instantaneous values ofenergy, power factor, current, and its harmonic content. Interval-data means the same set of values over a period ofone week, one month, one season or one year. The interval-data may be a measurement of summation, average,moving average, cusum value, steadiness, smoothness, etc.5. CONCLUSIONThis paper looks forward to new responsibilities andopportunities of smart meters. The technology has alreadymoved us toward that direction. Yet there are still hurdles tobe overcome. A new culture has to be developed. Probingnon-intrusive new information is an ethical issue. And asintelligence develops at both sides, demarcation of tasks andresponsibilities has to be redefined. Whilst the model iscollaborative, it may induce new complication to the currentsimple contractual agreement between the supplier and the consumer. With cooperation of estate management andmanufacturers, the benefits brought by smart meters to thepower system can be remarkable. Wining is achievable by all participants.REFERENCES[1] Lam H.Y., Fung G.S.K., and Lee W.K., "A Novel Method to Construct Taxonomy of Electrical Appliances Based on Load Signatures" IEEE Transactions on ConsumerElectronics, May 2007. [2] Fung Kwok Bong, “Simulation of a ProposedArchitecture in Smart Electricity Metering”, 2007,research project of Department of Electrical and Electronic Engineering of The University of Hong Kong[3] Lam H.Y., Ting K.H., Lee W.K. and Fung S.K., "Buildinga vector-based load taxonomy using electrical load signatures”, Proc. ICEE 2006, Kunming, China, July 2005.[4] Lee W.K., Fung G.S.K., Lucente M., Lam H.Y., andChan F.H.Y., "Exploration on Load Signatures", Proc.ICEE 2004, Sapporo, Japan, July 2004.[5] Kotler P, and Armstrong G., “Principles of Marketing”,8th ed., Pearson Education, 2008 5The International Conference on Electrical Engineering 2008

The Development of a smart metering scheme

http://hub.hku.hk/bitstream/10722/126076/3/Content.pdf

The Development of a smart metering scheme

Abstract

Similar works

Full text

Available Versions

HKU Scholars Hub