considerations for economic analyses of smart metering
TRANSCRIPT
1 - Regulatory barriers to Smart Metering, John Harris, VP Regulatory and Governmental Affairs, April 13, 2010
Considerations for Economic Analyses of Smart MeteringJohn Harris, Vice President, Head of Regulatory Affairs
Oct-10 2
The Problem:
+Benefits of smart metering
– are dispersed and
– longer term
+The initial investment costs
– are concentrated and
– short term
Oct-10 3
An Accurate Economic Analysis of Smart Metering
+Must be broad in scope:
–Market actors and society as a whole
–Cognizant of future requirements
–Policy goals (not exclusively retail markets)
Oct-10,
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Do not focus too closely on technology
Oct-10 5
Smart Metering: Value for All Stakeholders
5
Custo
mer
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yS
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rs
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n
Genera
tion
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rnm
ent
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pean
Polic
y
Improved energy use visibility ++ ++ ++ + + +
Accurate billing +++ +++
Enhances customer services / switching + ++
Better debt management ++ ++
Improved outage & demand management + ++ ++ + + +
Improved analytics ++ +++ ++ ++ +
Improved load forecasting +++ +++ ++
Improved investment decisions + +++ +++ ++ ++
Energy efficiency, CO2 reduction + + + ++ +++ ++
Benefits
Oct-10 6 - Landis+Gyr - Insert name of presentation and author at Insert ribbon (Header&Footer)
Smart Metering addresses all 3 Pillars ofEuropean Energy Policy:
+ Competitive markets
– Purpose of the 3rd Package
+ Sustainability
+ Security of supply
Opportunity Costs:
The Status-Quo and a Business-as-usual scanario cannot be the Baseline!
+ The costs of not deploying smart metering should also be considered!
+ Future requirements of the grids should also be
included in the calculations
No smart metering „on the cheap“!
Oct-10 7 - Landis+Gyr - Insert name of presentation and author at Insert ribbon (Header&Footer)
Oct-10 8
Multidimensional Axes of Time/Stakeholder interests
Conclusion:
Holistic Economic Analysis is necessary:
– Broad value chain, market actor and societal analysis
– Longer time frame
– Opportunity costs of non-deployment
Oct-10 9
Thank you
Oct-10 10