Denmark’s lead in Smart Grid is strengthened with Smart Meter rollout

Denmark’s MV Group has commissioned Kamstrup to deliver 153,000 smart meters over a three-year period. The roll-out is set to improve energy reliability and customer service.
Published: Thu 23 Jan 2014

The country’s upgrade to smart meters is preparing the utility group for the smart grid by enabling crucial optimizations of grid management and administration.

Rewarding payoffs

For utilities, the investment means a rewarding pay-off: "There is no doubt that our new smart metering system will give all companies a lower total cost per year, and we expect a payback time of just 7-10 years,” says Per Nielsen, Spokesman for the MV Group and Technical Manager in RAH Service.

Nielsen informed Engerati that this timeframe is based primarily on reduced costs for meter reading. He goes on to explain that self meter reading, carried out by consumers has been a common method in Denmark. It is also very inaccurate and is an administration-heavy method. Smart metering will introduce accurate monthly billing instead of estimates. He says that consumers will have to pay an extra annual meter fee of ca. 10 Euro but that this will probably be covered by the savings accumulated from the benefits of real time consumption data.

Consumers will have more control of their consumption as they can track their usage hour by hour. Nielsen says: “With these meter replacements, we are looking forward to offering the most modern technology on the market to our customers who will be able to follow their energy usage in detail and decrease it accordingly."

Grid optimisation

Grid optimization will help utilities use the grid more efficiently, thereby reduce the spinning reserve. Apart from data for billing, the utilities will get more technical information about voltage quality and supply quality. This will help utilities to control the grid and manage supply better. In addition, power generation has recently become decentralized in Denmark. The country has a fairly high coverage of solar panels in private households. This makes the need for additional technical information from the low voltage grid all the more acute.

The Kamstrup's OMNIA Smart Grid suite will consist of all supply forms in the areas including electricity, heat and water meters. All meters will be connected to the same system and will deliver big data to the utilities. This will give the utility a fine grained picture of supply and consumption and as a result, customers can expect an improved customer service and grid optimization.

Denmark’s meter plans

The Danish Energy Agency has declared that all electricity meters must be remotely read by the end of 2020. This announcement and the ensuing roll-out of smart meters for the MV Group are the manifestation of the Danish Government's progressive Smart Grid Strategy [2013]. The strategy’s purpose is to make the grid intelligent and ready for the green transition.

Says CEO at Kamstrup, Per Asmussen: “We are very pleased with the agreement with MV Group. The announcement was expected in the whole industry and will mean, that all the investment plans that were already made by energy supply companies in Denmark, finally can start and be carried out”.