By smartgrider In Advanced Metering Infrastructure, Case study Posted 2014-07-06
AMI CASE Case06 / KOREA
AMI as a Prerequisite to the Nationwide Smart Grid
| Market structure | Hybrid structure of vertically integrated and single buyer utility- KEPCO. KEPCO owns, installs and maintains all meters. |
| Number of retail customers | 50 million |
| Electricity consumed-2011 | 443.4 TWh |
| Peak Demand for Power-2011 | 73,137 MW |
| Net Revenue to Distribution | Over 600V : 209,604 km Under 600V : 225,945 km |
| Distribution Network | - |
| Contact | Dong-Joo Kang djkang@keri.re.kr Sung-Hwan Song karysong@keri.re.kr Electrotechnology Research Institute, KOREA |
Korea
AMI as a Prerequisite to the Nationwide Smart Grid
Korea’s National Smart Grid Roadmap places Advanced Metering Infrastructure (AMI) as the core to its smart grid functionality. Korea’s approach began with the Power IT project, from 2005 to 2009. It was an R&D project, which mainly focused on core component technologies for applying IT to the power system. The next phase is the Jeju Smart Grid Demonstration project, which is acting as a test-bed for a number of smart grid technologies and use cases. According to the final phase of the Roadmap, it is planned for AMI deployment to take place in major cities of Korea from 2013 to 2020 followed by the nationwide deployment which should be completed by 2030. AMI is positioned as a prerequisite infrastructure for smart grid and customer engagement.
Figure 6 Korea National Smart Grid Roadmap
Objectives & Benefits
Under the National Smart Grid Roadmap, the government has promoted AMI technology development for the accommodation of new renewable energy and for the increase of demand response. When making use of the Jeju Smart Place, the optimization of power supply and demand has been promoted based on the real-time information between the consumers and power providers. This has been done through AMI, Energy Management System (EMS) and bidirectional communication technology.
Figure 7 : AMI Deployment Plan
The project objectives and benefits are:
Objectives
- Establishment of new market for two-way power trades with various resources in the demand side (facilitating negative generation: demand response)
- Smart Grid ICT Infrastructure for bidirectional information exchange based on Power IT technology. This technology is expected to facilitate electricity market trading and create new value added services
- Development of smart systems and smart appliances to enable customers with demand response and automatic controls responding to time-variant or real-time tariffs
Benefits
- Improvements in power quality, reliability, and cost-effectiveness of the system operation from AMI and related technologies
- The reduction of greenhouse gas emission and the stimulation of green energy use
- The development of value-added services such as demand side management by optimizing power consumption patterns
- Cost savings through load shifting to cheaper hours with economic incentives
AMI in the Jeju Smart Grid Demonstration Project
The Jeju Smart Grid Demonstration was established in Gujwa-eup, in the northeastern region of Jeju Island, in December 2009. The project will be completed in May 2013, as a precursor to the nationwide implementation of smart grid which is expected to be completed by 2030. The Jeju project was designed to promote the commercialization and export of smart grid technologies. This project consists of the five smart grid technology areas:Smart Place(SP), Smart Transportation(ST), Smart Renewable(SR), Smart Power Grid(SPG) and Smart Electricity Service(SES).
Three of the technology areas: SP, ST, and SR are currently available, while SPG and SES will be enabled once the nationwide smart grid is in effect. There are 12 consortiums involved in the project representing 170 participating companies from various business sectors such as power, communication, automobile and home appliances.
Figure 8 : Five technology areas of Jeju smart grid demonstration project
Advanced Metering Infrastructure (AMI) is included in the Smart Place technology area, with four consortiums participating as shown in Table 2. These consortiums are focusing on finding and verifying new business models for the new smart grid environment, with new electric power. The developed technologies and business models would be tested through a virtual market with real-time tariffs, a demand management market, and electric vehicle-related business. The AMI will also interact with the renewable energy interconnection and power storage devices, and by doing so, it will upgrade the current power grid. More details on individual consortiums have been provided in Table 3.
Table 2 : Jeju project consortiums participating in the Smart Place technology area
| Area | Consortium | Participants | Budget |
|---|---|---|---|
Smart Place | A Consortium B Consortium C Consortium D Consortium | 29 14 15 38 | Government: $16M Private: $75M |
Table 3 : Jeju Project Use Case Descriptions
| Consortium | Description |
|---|---|
| A Consortium | • 600 households and 3 places, Jeju Venture Maru, etc. • Formation of five kinds of the demonstration households group by combination of smart meter, in-home display, solar battery and electric vehicle • Application of various electricity tariff system : TOU, TOU+CPP, RTP, etc. • Implementation of energy consumption efficiency by providing of incentive-based Demand Response service • Increases of consumer participation awareness • Providing smart grid information by utilizing D-CATV and DMB broadcasting |
| B Consortium | • 600 households and buildings of 7 places • Construction of Building Energy Management Systems for high-voltage consumer such as Convention Center and University • Excavation of a new business model of an energy sector by performing an energy service provider role. This should provide the energy management services such as load management and load shift in households, buildings and factories. • Expanding customer choice and maximizing energy efficiency by conducting various electricity pricing system with a consulting service and analysis of the electric power usage pattern by each customer |
| C Consortium | • 30 households and a large-scale consumer of 5 households • Verification of energy efficiency through the building and demonstration of Smart appliances, air-conditioners, washing machine, refrigerators, etc., which have been approved by the world’s first appliance, ZigBee’s communication standard. • Providing home energy care service based on the demonstration results of smart server, appliances and renewable facilities in the first step • Verification of energy efficiency technology through an operation of micro-grid system in Pensions, 21 buildings and administrative building, getting electricity and gas price for 10% cheaper |
| D Consortium | • 560 households and large-scale consumer of 10 households • Verification of the interoperability and technical excellence between heterogeneous systems with AMI infrastructure based on PLC, Zigbee, and Wibro communication technology • Identification of outage information from smart meters, and the demonstration of the Out age Management System for supporting the rapid recovery • Demonstration of HEMS providing the energy management services, depending on the pattern of the consumer’s life such as age, region, occupation, etc • The optimal demand resource management and market participation by developing regional-based demand resource management system • Providing and DR service with an incentive-based real-time tariff system, and its effect analysis |
Current Status & Results
Currently most high-voltage customers in Korea have the AMI implemented, but only 10%, or 1 million, of the 18 million low voltage customers have AMI, outside of the Jeju Smart Place project. 170,000 households in multi-residential buildings with high-voltage connections have AMI. 110,000 of those customers have a TOU tariff system based on a bilateral contract to consumers of more than 300kW. For these high-voltage customers, the potential for electricity savings could be enhanced with tools for smart phones, tablets or PCs providing usage information communicated through the AMI.
Figure 9
Project Details
- Korea AMI deployment
- 10% of low-voltage customers with AMI
- 100% of high-voltage customers with AMI
- Korean tariffs
• TOU for high-voltage customers
• Fixed rate for low-voltage customers - Jeju demonstration project use cases
- 4 Use cases with 2190 households and 46 larger customers participating
- Use cases with various smart appliances, In-Home Displays and Energy Management Systems
- Range of communication PLC, Zigbee and Wibro technology
- Demand Response cases
- Outage Management System connection
- Jeju demonstration project tariffs
- Cases with Time-of-Use, Critical Peak Pricing and Real Time Pricing
- Jeju AMI Project Cost
- Government: $16M
- Private: $75M
- Project Benefit Value
- To be evaluated
Through a phased deployment, Korea aims to have up to 55% (10 million households) of low-voltage customers connected with AMI by 2016. The complete AMI deployment for all households (low-voltage consumers, high-voltage consumers) is planned by 2020.
The AMI deployment has been planned in the National Smart Grid Roadmap as follows:
In 2013:
- Promoting AMI supply after consultation with the corresponding operators for apartments and Area Electrical Business areas, etc
In 2014:
- Preferential supply of AMI system in the pilot city
- Development and supply of an energy integrated metering system that can uniformly read the usage information of electricity, tap water, gas, heat, etc.
In 2015:
- Obligation of AMI system in construction of Housing, Commercial Area, Buildings and Apartments
In 2016:
- Phased supply of AMI for 55% (10 million households) of low-voltage customers in the whole country
In 2020:
- Completion of AMI for all households (low-voltage consumers, high-voltage consumers) in the whole country
While it is still early to determine the results of the Jeju AMI demonstration, a 2012 pilot study on the deployment and demonstration of smart metering system technology with in-home displays found a 12% reduction in energy consumption.
Lessons Learned & Best Practices
Korea has been investing in AMI projects since 2005 with the Power IT R&D project, followed by the Smart Grid Demonstration Project in Jeju island, that started in 2009.Korea is planning to invest approximately $7 billion until 2030 for the development of smart grid core technologies. AMI in particular, is the core infrastructure of the smart grid, and prerequisite for the realization of the green growth policy of the Korean government and global CO2 reduction policies. It is also required to create various value-added service models such as energy monitoring and automated demand response.
Tariff system
The AMI deployment will be combined with various time-variant pricing step-by-step such as TOU, CPP and RTP on the process of replacing current mechanical meters with the smart meters. Consumers can have multiple options considering their unique usage patterns and thereby optimize their consumption and cost. This is expected to bring out the innovative transformation of captive consumers to active prosumers, as well as the overall reduction of energy costs. In addition, power service providers could ensure the stable and efficient services through the collection and analysis of information from real-time data through AMI.
Figure 10 : Korean smart grid deployment timeline
Standardization and Interoperability
The AMI deployment will be combined with various time-variant pricing step-by-step such as TOU, CPP and RTP on the process of replacing current mechanical meters with the smart meters. Consumers can have multiple options considering their unique usage patterns and thereby optimize their consumption and cost. This is expected to bring out the innovative transformation of captive consumers to active prosumers, as well as the overall reduction of energy costs. In addition, power service providers could ensure the stable and efficient services through the collection and analysis of information from real-time data through AMI.
Software Development
The AMI deployment will be combined with various time-variant pricing step-by-step such as TOU, CPP and RTP on the process of replacing current mechanical meters with the smart meters. Consumers can have multiple options considering their unique usage patterns and there by optimize their consumption and cost. This is expected to bring out the innovative transformation of captive consumers to active prosumers, as well as the overall reduction of energy costs. In addition, power service providers could ensure the stable and efficient services through the collection and analysis of information from real-time data through AMI.
Export Strategy
Business models for overseas expansion will need to accommodate common AMI architecture and adhere to global standards. These aspects can be built into the domestic demonstration stages to develop an integrated package model for the overseas business marketing. Demonstration projects should be used to promote the development of strategic technologies and business models, which will have been applied to a broad range of markets such as urban areas, islands and developing countries.
Key Regulations, Legislation & Guidelines
Further information for Korea’s Smart Grid Roadmap, Jeju Test-bed, and Power IT projects:
http://www.smartgrid.or.kr/eng.htm
Further information for R&D strategy on overall energy technologies:
http://ketep.re.kr/english/index.jsp
Smart Grid Stimulus Law, 2011.11 The 1st Basic Plan of Smart Grid in Korea, 2012.07
http://www.korea.smartgrid.com/first-smart-grid-plan/#
Further information can be found at the Jeju Smart Grid website:
http://smartgrid.jeju.go.kr/eng/
Korea’s Smart Grid Policy
Korea released a National Smart Grid Roadmap in 2010, which built off of the outcomes of its Power IT R&D project from 2005-2010. The Roadmap is toward smart grid deployment across the major cities by 2020 and the whole country by 2030. This Roadmap complements the country’s strategy for ubiquitous connectivity and the convergence of a number of its IT business capabilities. The main focus of Korea’s smart grid policy is placed on the development of new services and business models for the green growth strategy of Korean government.