Presented by Seppo Kärkkäinen, Elektraflex Oy, Finland at the IEA DSM workshop in Chester, United Kingdom on 21 October 2009.

1. Load profiling for balance settlement,
demand response and smart metering in
Finland
Seppo Kärkkäinen
Elektraflex, Finland
Is DSM the Answer?
Workshop in the connection of IEA DSM EXCO, Chester 21st October 2009
Session 3 – The barriers of Profiles for Settlements in engaging small consumers

2. 2
Load profiling of small customers

3. Small consumers (max 3x63 A (about 45 kW)) are divided
into three groups for profiling:
1. Households < 10,000 kWh/year
2. Other households > 10,000 kWh/year
(Most with electric heating)
3. Other, main fuses < 3x63 A

4. Load profiles in the balance settlement
• National load profiles are defined for each group and for
each month including separate profiles to workdays,
Saturdays and Sundays. In predefined special days profiles
of Saturdays or Sundays are applied
• Profiles are applied directly to customers without ToU-
tariffs (1-energy meters)
• When 2-energy meters are applied, the national load
curves are calibrated to correspond the estimated
consumption in each time zone
• Temperature correction is applied to group 2 (electric
heating)
• In special cases also local load profiles can be used if
network owner proposes it and has good reasons

5. Example: Group 1 (Household, <10,000 kWh/a), January
0
500
1000
1500
2000
2500
3000
3500
00.00-01.00
02.00-03.00
04.00-05.00
06.00-07.00
08.00-09.00
10.00-11.00
12.00-13.00
14.00-15.00
16.00-17.00
18.00-19.00
20.00-21.00
22.00-23.00
Workday
Saturday
Sunday
Hourly consumption (Wh) when annual consumption 10000 kWh

6. Example: Group 2 (Household, >10,000 kWh/a, most with electric
heating), January (outdoor temperature - 8.7 oC,
(temperature dependence 4 %/ oC)
0
500
1000
1500
2000
2500
3000
3500
00.00-01.0002.00-03.0004.00-05.0006.00-07.0008.00-09.0010.00-11.0012.00-13.0014.00-15.0016.00-17.0018.00-19.0020.00-21.0022.00-23.00
Workday
Saturday
Sunday
Hourly consumption (Wh) when annual consumption 10000 kWh

7. Example: Group 3*, Others, January
0
500
1000
1500
2000
2500
3000
3500
00.00-01.00
02.00-03.0004.00-05.00
06.00-07.00
08.00-09.0010.00-11.00
12.00-13.00
14.00-15.0016.00-17.00
18.00-19.00
20.00-21.0022.00-23.00
Workday
Saturday
Sunday
Hourly consumption (Wh) when annual consumption 10000 kWh
*Old profile, this profile has been updated

8. Use of load profiles in the balance settlement inside
the grid of DSO
• For the customers of outside supplier the annual consumption of
customers is estimated on the basis of the previous year
• Hourly loads of the outside supplier are calculated on the basis of
load profiles and estimated annual consumption taking into account
possible temperature corrections in group 2
• These hourly loads are used like hourly measured loads in the balance
settlements
• After the meters are read (usually once a year) the errors between the
estimated and measured energies and hourly loads can be calculated
• These errors are corrected between suppliers at the end of the year and
cleared. The sum of energy errors is zero. The financial corrections are based
on the public tariffs applied inside the corresponding network area to corresponding
customers

9. Load profiling in Finland inside DSO (distribution
system operator)
9
summed
day-TOU-profiles night
hourly metered load
Total grid area infeed
summed
night-TOU-profiles
summed 1-time profiles
Estimated losses
= infeed - hourly metered -
profiling - losses
this part is fully included in the balance of
the "local" supplier
this part is in the balances of the outside suppliers

10. 10
Demand Response at small customers

11. Long experience from Time-of-Use tariffs
Long term response to ToU tariffs: electrically heated houses have ToU tariffs (low
price during night (usually 22 - 07), other residentials have flat prices
Main reasons to the modification of load profiles:
• domestic hot water produced during night time: 300 liter water storage
• also heating system have storing capabilities (often heating cables assembled into
isolated concrete layer of floor

12. 12
National load profile and outdoor temperature
in Finland in two very cold winter days in 2007
TOU-loads
switch on
TOU-loads
switch on
MW
oC
=> TOU levels peak but requires control resources to balance switching steps.
outdoor
temperature

13. Example: some experiences from the response
to spot-prices
About 10 electrically heated customers had
• traditional ToU-network tariff with DSO and
• Nord-Pool spot-price based contract with retailer (normal product of some retailers)
High price days
Surface
temperature
of the fireplace
20
25
30
35
40
45
15 22 29 36 43 50 57
aika päivää vuoden 2006 alusta
takka D
takkaa
lämmitetty
ke, to, ja la
takkaa
lämmitetty
su, ma, ke takkaa
lämmitetty pe
väri kuvaa korkeaa
spot-hintaa
Manual response: use of fireplace to compensate electric heating
• hourly prices were known at
the afternoon before operating
day
• if the price exceeds the pre-
defined level, the retailer sent
sms-message or e-mail
• hourly meters at customers
• manual response to prices
Conclusions from 2004-2006
• both regulatory and economical (metering) barriers exist
• retailer does not get benefit due to the use of load profiles although customer had hourly meters
• to get full benefits from spot-prices, automatic response through building automation needed

14. 14
Conclusions from the past experiences from
demand response
• Long tradition in large scale application of TOU-tariffs. There is a need for more
flexible control. Legislation requires that DSOs enable TOU. In 2005 about 25%
of TOU meters were are so old that they need to be replaced.
• Direct load control via power line communication and kWh-meters used to be
common before deregulation, but only some small DSOs have kept them
operational. With the recent large scale rollouts of communicating meters, these
old fast load control systems have been completely removed and sometimes
replaced with new GSM/GPRS based slow responding load control systems.
• Any type of load control is possible for all customers with main fuse over 3x63 A.
For example spot-price based real time tariffs can be used.
• Legislation requires load curve based settlement for all customers with 3x63 A or
smaller main fuse => Competitive retail energy suppliers and their customers
have no incentive for load control; research results not used. => Change in
legislation is needed to get the full potential of electrically heated houses utilised.
Planned change to settlement based on hourly metered values will solve this.
• 1 hour time resolution and delayed feedback => Inadequate for modelling DR
responses
• There are no other major barriers for demand response on the competitive side of
the electricity system. Some electricity retailer suppliers offer retail tariffs that
consist of hourly varying spot-price and a small margin.

15. 15
Some new drivers for demand response
• Penetrations of distributed and renewable and relatively
unpredictable generation are increasing so distributed control
resources are needed
• Response of distributed energy resources is an essential part of
smart grid concepts and projects
• Controllable resources are needed also because the size of the
biggest generation and transmission units is increasing
• Competitive electricity market removes overcapacity and reacts to
capacity shortage with high price peaks
• Demand flexibility is necessary to reduce risks of failures of the
electricity market and system
• Saving fuels and environment

16. 16
Smart metering/AMR

17. 17
Existing drivers for smart metering (DSO drivers in red)
• Directive 2006/32/EC on energy end use efficiency and energy services
• Directive 2004/22/EC on metering
• Energy saving, energy efficiency and reducing CO2 emissions
• Energy end use management
• Improving the efficiency of the DSO (network operation and planning, power
quality management, customer service)
• Fast and straightforward settlement of electricity retail market (responsibility of
DSO)
• Desire to improve competition and efficiency in the electricity retail market.
• Need to increase demand response and price elasticity of demand in the electricity
market.
• Need for system reserves
• Expected increase in penetration of intermittent and Dispersed Generation
So far many AMR-investments have mostly been planned and designed to
serve the interests of DSO only. In the fractionalised unbundled electricity
market the metering monopoly lacks incentives to serve the interests of the
energy customer and the whole. => A challenge for regulation.

18. 18
Possible new drivers and enablers for smart
metering
• Need to improve authority regulation of the distribution monopolies
• Retail products tailored to customer
• Harmonisation of the Nordic electricity retail market (Recording
consumption by each hour makes it possible to replace the mutually
incompatible typical customer load profile settlement practices and treat all
the retailers equally in the settlement. Harmonising the different load curve
models is too difficult and expensive.)
• Provision of remote monitoring and control services that use the AMR
infrastructure. ( For comfort, for fault diagnosis, for safety and security, for
remote energy management of buildings, power quality, etc.)
• Possibility to share communication and other costs with other remote
services
• Predictable and relatively stable rules of the game
• Open standard protocols for metering data presentation in various
interfaces
• Common minimum requirements for the functionality and interfaces of
AMR systems.

19. 19
Conclusions from the AMR development in Finland until now.
The development has been voluntary
• In 2005 about 7% electricity consumption meters were in AMR, about 1 % in hourly
measurements and about 25 % needed to be replaced due to their age
• In 2006 there were slightly over 3 million consumption points, of them about 100 000
had main fuse over 3x63 A.
• In 2006 about 18 % of all the meters were in AMR and about 41 % of the customers
with main fuse over 3x63 A were in AMR
• In 2007 about 20 % of all the electricity consumption meters were in AMR and in
almost all new orders recording hourly readings was required.
• It is estimated that in 2010 about 44 % of all consumers have AMR and
• in 2015 the AMR coverage will be 70 – 90 %.
• There are some DSOs that plan not to start full scale AMR implementation by 2015.
• => Legislative actions are necessary to get full national AMR coverage. In
Finland the DSO is responsible for billing metering. Most DSOs outsource metering
partly or fully.

20. 20
New regulation in 2009

21. 21
New Regulation Status
• Status
• Regulations take effect March 1, 2009
• The regulation is applied to metering systems
bought after March 1, 2009
• The existing metering systems have to be
improved to correspond the regulation
• By 31st December 1010 with >3x63 A
consumers and
• By 31st December 2013 with other
consumers
• Before 31st December 2011 daily meter reading
is not required to customers who don’t have
hourly based products
March, 2009 -
Regulations take
effect
December 31, 2010 –
All hourly (>3x63
Amp) sites are ready
December 31, 2013 –
Rollouts Completed in
Finland (80% enabled
with hourly metering)
1,8 year 3 year
• Functionality
• Hourly measurement
• Meter reading once per day
• Registering of over 3 minutes outages
• Load control possibility included
• Supports simple time-of-use tariffs and controls
• Security of data
• hourly data to be stored at least 6 years at DSO
• No mandatory connection to house automation.
But, if customer needs data direct from the
meter, the meter has to be provided with a
standard interface
• Also electricity supplied to the network by DG
has to be measured on hourly basis
Remaining 20% read manually 3 times/year
December 31, 2011 –
after this daily meter
reading for all customers

22. 22
Conclusions
• There are increasing needs for Demand Response.
• Demand response may not succeed if it is not adequately taken
into account in metering system investments and regulation.
• Demand Response and energy saving need similar metering
system functionalities.