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Press Release15 February 2024Smart InfrastructureZug
Grid transparency behind-the-meter is key challenge for power utilities, study reveals
New Siemens Report: Seeing behind the meter: How electric utilities are adapting to the surge in distributed energy resources
Data from the study reveals the extent
to which utilities are challenged by behind the meter distributed energy
resources and the benefits that increased DER visibility could enable. Key
findings include the importance of investing in technologies to boost
visibility behind the meter, prioritizing DER management programs for a more
reliable and stable grid, and strengthening customer trust to boost
participation in management programs.
Siemens partnered with
Oxford Economics – a leader in thought leadership, global
economic forecasting, and econometric analysis – to survey 100 decision makers
from electric utilities in the United States and Canada.
“The complexities associated with behind the meter DERs
are a significant challenge to electricity distribution utilities in North
America. Technology can help by providing actionable insights into the
opportunities and challenges of these resources to improve grid resilience. The
software and digitalization tools we implement today, will not only increase
capacity, but aid in reliability – laying the foundation for an autonomous and
advanced clean grid of the future,” said Marcus McCarthy, SVP of Siemens Grid
Software, US and Mexico.
Study reveals a rise in active energy producers
The report highlights the steady transformation of passive
energy consumers into producers, consequently altering the energy market. This
transition is an opportunity to tap into alternative sources of power and
increase the resilience of the grid to meet sustainability goals. However,
according to the study, behind the meter visibility is a challenge in designing
cost-effective programs and monitoring. At least half of utilities surveyed
have experienced an increase in the adoption of solar panels (64%) and electric
vehicles (50%) over the past three years. Batteries are expected to gain popularity
with over half (59%) of respondents expecting increased penetration in the next
three years.
Operational challenges caused by behind the meter DERs are known but difficult to address due to lack of visibility
Findings
from the survey highlight that there is a lack of clarity in understanding
DER’s location, size, and activity. In fact, 70% of respondents said they rely
on interconnection requests and/or integrations with platforms like distributed
energy resource management systems (DERMS) to gather information about the location
of behind the meter DERs. Utilities surveyed estimate that they only have
visibility into, on average, 36% of DERS on the grid through platforms like
DERMS. As a result, the
report indicates that behind the meter DERs create an operational issue for
utilities. Nearly three quarters of utilities said that customer adoption
creates challenges, including voltage visibility and control issues,
back-feeding, protection and control coordination issues, distribution
transformer and conductor overloads, masked or hidden loads.
Optimizing the grid through demand-side and DER management programs
The study points to demand-side
management programs (which incentivize customers to modify energy consumption
patterns) as a solution. More than two in every three utilities surveyed are implementing
demand side management programs and plan to expand this in the next five years.
However, only 37% have currently implemented DER management programs (involves
communication and management by grid operators of DERs to deliver grid services
and balance demand with supply) – as this involves the additional hurdle of
customer opt-in. The results of the survey found that, on average, only 35% of
customers participate in DER management programs versus 54% for incentive-based
demand-side programs.
The future of the grid relies on visibility
More than half of respondents expect
visibility into the behavior and location of all behind the meter DERs to
benefit their operations department by reducing their SAIDI (System Average
Interruption Duration Index) and SAIFI (System Average Interruption Frequency
Index) metrics and increasing productivity. Moving towards the future of
autonomous grids, three key findings from the report may be relevant. First, invest
in the technologies that boost visibility behind the meter – a necessity for
utilities to successfully navigate the energy transition and future-proof the
grid. Second, prioritize strategies like demand-side and DER management
programs for increased flexibility behind the meter. And finally, strengthen
customer trust to boost participation in management programs.
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Siemens Smart Infrastructure (SI) is shaping the market for intelligent, adaptive infrastructure for today and the future. It addresses the pressing challenges of urbanization and climate change by connecting energy systems, buildings, and industries. SI provides customers with a comprehensive end-to-end portfolio from a single source – with products, systems, solutions, and services from the point of power generation all the way to consumption. With an increasingly digitalized ecosystem, it helps customers thrive and communities progress while contributing toward protecting the planet. Siemens Smart Infrastructure has its global headquarters in Zug, Switzerland. As of September 30, 2023, the business had around 75,000 employees worldwide.
Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare.
In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €77.8 billion and net income of €8.5 billion. As of September 30, 2023, the company employed around 320,000 people worldwide. Further information is available on the Internet at www.siemens.com.
In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €77.8 billion and net income of €8.5 billion. As of September 30, 2023, the company employed around 320,000 people worldwide. Further information is available on the Internet at www.siemens.com.