Achieving net zero carbon emissions has become a core goal for leading energy companies worldwide. If we are going to have to take serious steps in preventing climate catastrophes, one way is to ensure increased use of renewable energy and being smart when using them. Smart meters, a core enabler of the smart grid infrastructure, can help utilities achieve their goals of reducing carbon emissions by controlling losses, opening a two-way communication channel between energy providers and consumers, and reducing waste.
Therefore, it comes as no surprise that nations all over the world are increasing the pace of smart meter rollouts to achieve their goals of a more sustainable future. For instance, the government of India with its ambitious SMNP initiative aims to replace an astounding 250 million traditional meters with prepaid smart meters over the next five years. In this blog, we will understand how transformative features of smart metering can help achieve the net-zero energy emissions as the rollout of smart meters will only increase in the foreseeable future.
How Smart Metering Can Help Utilities Achieve Net-Zero Emission Goals?
Real-time data monitoring
If we ask you to compare the amount of energy consumed by an individual household with a commercial establishment, you would identify the latter as the bigger consumer. And there would be no lie about it. However, if we were to compare the consumption of a commercial establishment with 1000 or 2000 households, it would be a completely different ball game altogether. Energy providers need to have a clear-cut transparent view into the cumulative energy consumption as well as the individual household data. One scenario would be the charging of EV cars.
In the not too distant future, it is likely that most if not all households with cars would have shifted to every EVs. By default, every one of them is likely to charge their vehicles at night. This would result in a heavy demand on the electricity grid, where renewable energy sources might not suffice and extra generation from fossil fuels would be required.
Smart meters provide real-time data on consumption, allowing energy providers to identify periods of peak demand and optimize their energy distribution programmes. One of the ways would be to implement ‘time-of-use’ tariffs where consumers would be encouraged to charge their EVs at times of low demand, which will preferably have lower rates for consumption.
This capability of smart metering is also a vital component in reducing the dependency on carbon-intensive energy plants during periods of high demand. A study conducted by Delta-EE viewpoint highlights how smart meter implementation will contribute to a 25% reduction in carbon emissions (by 2035 from 2015 levels) by enabling households in the UK to reduce their energy demands with features like dynamic pricing tariffs. This data-driven strategy enables utilities to shift energy generation toward periods when renewable energy sources are abundant, and in turn reducing emissions associated with fossil fuel usage.
Demand response programs
As we saw in the previous paragraph, one of the most efficient ways to manage demand during peak times is implementing TOU (time-of-use) pricing. With smart meters generating data at intervals of 15 minutes or less, utilities can leverage this high-resolution information to charge different rates at various times of the day. In this context, smart meters also play a critical role in optimizing energy usage of the grid by empowering consumers with data to adjust their consumption behavior. On one hand, consumers can contribute to the grid via the implementation of Distributed Energy Resources (DERs), by increasing their reliance on solar panels and selling back excess energy generated. Simultaneously, the time-of-use tariffs allows consumers to adjust the use of high-energy consuming devices like EV chargers or HVACs, and shift their usages from peak periods when electricity is generated from fossil fuels and is most expensive.
Smart metering can also facilitate other demand response programs such as critical peak pricing or peak time rebates. Critical peak pricing imposes significantly higher rates during a limited period of critical peak hours whereas peak time rebates can offer financial incentives to consumers for reducing energy consumption during times of high demand. By flattening demand peaks, smart meters enable energy providers to better match energy supply with demand, minimizing the need for fossil-fuel energy generation during times of high consumption. In turn, this allows for greater integration of intermittent resources like solar or wind, which are generally abundant during off-peak periods.
Integration of renewable energy resources
With real-time consumption data and granular level insights, smart meters can be a powerful tool for utilities in balancing energy supply and demand curve. The data can help energy providers leverage the excess renewable energy generated in an effective manner when the demand surges, more specifically during extreme weather events like peak summer.
One of the key challenges of renewable energy sources is their intermittent nature. They are heavily dependent on weather conditions, such as solar panels generating electricity only when the sun is shining, or wind turbines relying on the availability of the wind. The near real-time collection and analysis of smart metering data can help utilities predict and manage the variability of renewable energy generation more effectively. Smart metering solutions like Grid facilitate on-demand device reading and offer a comprehensive view into the collected data via detailed reports and custom dashboards. For example, if the analysis of the data predicts an expected heat wave which will in turn increase the use of air conditioning, utilities can then ramp up renewable energy generation, if available. They can also similarly implement demand response programs to maintain grid stability and reduce reliance on fossil fuels during peak times.
Additionally, the adoption of smart meters also facilitates the increased integration of distributed energy resources (DERs) in individual households. By accurately measuring the energy produced by DERs, smart meters enable net metering programs, incentivizing consumers for selling excessive energy back to the grid. This two-way flow of energy that is facilitated by smart meters, encourages the adoption of renewable energy resources at an individual level, fostering a more decentralized and resilient energy system.
Energy efficiency insights
What does it actually mean when we say smart meters offer granular insights? It means that instead of showing overall consumption over a month like traditional meters do, they can break down energy usage into smaller time frames, like minutes or even segregate the data appliance wise. In this way, smart meters encourage consumers to adopt energy saving practices, which in turn leads to minimizing overall consumption and lowering carbon emissions across the grid.
Devices like in-home displays or mobile apps connected to smart meters enable consumers to gain near real-time insights regarding their consumption patterns, broken down by appliance usage. In case a particular appliance is shown to consume large amounts of energy during a particular time of the day, consumers can leverage this feedback and see the impact of their actions, like turning off the lights, adjusting their thermostat or ACs, etc.
With such meticulous insights into consumer trends, utilities can design campaigns or energy efficiency programs that include behavioral adjustments like turning off the central AC when no one is at home. A McKinsey study found residential energy-efficiency performances have the potential to uncover untapped savings of 16-20% of the present US residential energy demand. Simultaneously, smart meters also facilitate the integration of smart home technologies which further enhances energy efficiency. For instance, connecting smart meters like programmable thermostats, smart plugs, and LED light bulbs, consumers will be able to automate their energy use based on preferences. Like, a smart thermostat can learn a household’s temperature preferences over time and adjust the heating or cooling accordingly, while smart plugs can turn off unused appliances when they are not in use.
Conclusion
Smart meters are not just about energy savings for consumers at an individual level. With smart metering systems, utilities gain a clear-cut picture of how much overall energy is being used, the future demand with respect to elements like weather changes, and the grid knowing how much energy to buy or sell. These advanced technologies provide granular data that only allows consumers to make smarter decisions but also enables utilities to optimize business processes and integrate renewable resources more effectively. The pursuit of achieving net-zero sustainability calls for a seamless collaboration between utilities, consumers and technology providers. One solution that fosters such collaboration is Grid that is designed to support utilities in enhancing thor efficiency, while promoting environmentally responsible practices. Utilities can now transform their processes, contribute to a greener future and build a resilient energy ecosystem that not only meets the demands of today but also paves the way for a sustainable tomorrow.
