Pöyry Report on Benefit Assessment of an EU-Wide Data Exchange Platform, 2019

BENEFIT ASSESSMENT OF AN EU-WIDE DATA EXCHANGE PLATFORM A report to Elering AS November 2019 PLATFORM CHANGE WIDE DATA EX DATA WIDE - F AN EU F AN BENEFIT ASSESSMENT O BENEFIT ASSESSMENT BENEFIT ASSESSMENT OF AN EU-WIDE DATA EXCHANGE PLATFORM Contact details Name: Stephen Woodhouse Email: [email protected] Tel: +44 7970 572 444 Address: Pöyry Norway AS Email: [email protected] Management Consulting Tel: (switchboard) +47 45 40 50 00 Lille Grensen 5 Oslo, Norway 0159 ÅF Pöyry is an international leader within engineering, design and advisory services. We create solutions to support our customers worldwide to act on sustainability as well as the global trends of urbanisation and digitalisation. We are more than 16,000 devoted experts within the fields of infrastructure, industry and energy operating across the world to create sustainable solutions for the next generation. Pöyry Management Consulting provides leading-edge consulting and advisory services covering the whole value chain in energy, forest and bio-based industries. Our energy practice is the leading provider of strategic, commercial, regulatory and policy advice to European energy markets. Our energy team of over 250 specialists offers unparalleled expertise in the rapidly changing energy markets across Europe, the Middle East, Asia, Africa and the Americas. Copyright © 2019 Pöyry Norway AS This report has been prepared by Pöyry Norway AS (“Pöyry”) for Elering AS (“Elering”). Elering’s stated objective in commissioning the work was to assess the benefits of having a joint energy meter data access and management platform for EU and the targeted member states. This report has been prepared based on the instructions by Elering and therefore there is no certainty that the report addresses or reflects the specific requirements, interests or circumstances of any other party. NOTHING IN THIS REPORT IS OR SHALL BE RELIED UPON AS A PROMISE OR REPRESENTATION OF FUTURE EVENTS OR RESULTS. PÖYRY HAS PREPARED THIS REPORT BASED ON INFORMATION AVAILABLE TO IT AT THE TIME OF ITS PREPARATION AND HAS NO DUTY TO UPDATE THIS REPORT. Pöyry makes no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided in this report or any other representation or warranty whatsoever concerning this report. This report is partly based on information that is not within Pöyry’s control. Statements in this report involving estimates are subject to change and actual amounts may differ materially from those described in this report depending on a variety of factors. Pöyry hereby expressly disclaims any and all liability based, in whole or in part, on any inaccurate or incomplete information given to Pöyry or arising out of the negligence, errors or omissions of Pöyry or any of its officers, directors, employees or agents. 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Any such permitted use or reproduction is expressly conditioned on the continued applicability of each of the terms and limitations contained in this disclaimer. We are grateful to Elering for funding and guiding the study and to the interviewees who have generously given their time. PÖYRY MANAGEMENT CONSULTING November 2019 R-2019-004 BENEFIT ASSESSMENT OF AN EU-WIDE DATA EXCHANGE PLATFORM TABLE OF CONTENTS EXECUTIVE SUMMARY 1 1. INTRODUCTION 5 2. DATA EXCHANGE PLATFORM 7 3. METHODOLOGY FOR BENEFITS ASSESSMENT 11 4. QUALITATIVE DESCRIPTION 13 4.1 Problem 13 4.2 Benefits and limitations to the analysis 14 5. QUANTIFICATION AND RESULTS 19 5.1 General methodology 19 5.2 Assumptions and limitations 21 5.3 Results 23 ANNEX A – QUANTIFICATION ASSUMPTIONS AND RATIONALE 25 PÖYRY MANAGEMENT CONSULTING November 2019 R-2019-004 BENEFIT ASSESSMENT OF AN EU-WIDE DATA EXCHANGE PLATFORM PÖYRY MANAGEMENT CONSULTING November 2019 R-2019-004 BENEFIT ASSESSMENT OF AN EU-WIDE DATA EXCHANGE PLATFORM EXECUTIVE SUMMARY Context and scope The Clean Energy Package (CEP) states that consumers own their energy data. All EU Member States have to lay down the rules regarding the management and exchange of meter data. Elering (together with TenneT and Energinet) is looking into the benefits of a European Data Exchange Platform (DEP), an interoperability platform that would provide retailers, energy service providers, and other eligible market participants with a single, standard access point for consumers’ metering data. Pöyry has been engaged to assess the benefits of having a joint energy meter data access and management platform for EU and the targeted member states, and we have chosen 2023 as the nominal year for assessment. Description of benefits Improved access to meter data is one means by which the operation of the energy markets, improved energy efficiency and the efficient transition to sector coupling can be achieved. Data access is necessary to perform many of the existing functions within the competitive energy market, and difficulty in accessing data from multiple sources is a barrier to the efficient and competitive market development. At a general level, the value of easier access to meter data would come from: ▪ Improved application of services in markets where the use cases would still exist in the counterfactual − Cost savings from existing and planned market operations; − Improved competition in existing market segments, by lowering the cost of data access which can otherwise serve as a barrier to entry; ▪ Accelerated innovation and unlocking of benefits from certain use cases, due to faster and easier access to data via DEP, as compared to the counterfactual; and ▪ Enabled deployment of new use cases in the markets where the data would not be available. In addition, a separate identified benefit unrelated to specific use cases involves ICT cost savings from building new national and local data exchange and access platforms and consent management. These sources of value are usually linked to certain market use cases and their related benefits. Therefore, in order to analyse the benefits of the Data Exchange Platform, we developed a use case-centric approach that focuses on benefits arising from groups of use cases. Figure 1 shows the identified use case groups with some examples of use cases and their benefits. PÖYRY MANAGEMENT CONSULTING November 2019 R-2019-004 1 BENEFIT ASSESSMENT OF AN EU-WIDE DATA EXCHANGE PLATFORM Figure 1 – Use case groups requiring meter data and their benefits Benefits Group Example of use cases Easier access to consumption profiles of Increased competition and Retail potential customers1 reduced customer prices market Enable competition through easier supplier (and supplier margins) switching; Energy administration, book Cost savings when keeping, validation settlement accessing several markets Energy management audits Saved energy Energy Energy monitoring services Reduced losses efficiency Inform consumers of consumption and impact Reduced CO2 emissions behaviour; Building energy management Implicit demand response Deferred/reduced DSO grid Flexibility Explicit demand response settlement investments Finding best location for Distributed Energy Better ancillary services Resources; Vehicle to grid; EV charging; Grid Energy market benefits planning Enabling EV adoption Comparison tool (clean energy package) Enabling renewable Other Greenness of energy audit investments innovative Microforecasting Other use cases Financing Renewables (digital PPA) Cost savings Single platform instead of country-specific data exchange and access solutions in all EU member states Findings and conclusions Based on Pöyry’s analysis, discussions with the market participants and project stakeholders this study has identified the following findings: Meter data access is still a problem in the EU: roll-out of smart meters and establishing data hubs are only first steps towards an effective and well-functioning electricity market with supporting services. Market participants still encounter data access barriers across the EU and often need to engage with several meter data entities in each country, irrespective of whether smart meters are in place. For example, in Spain or Germany a market participant requiring meter data will need to deal with multiple DSOs and data platforms. Easy and secure access to (smart) meter data will enable a wide range of benefits: market participants are currently exploring several use cases that are providing electricity market benefits. Improved cross border data access through the proposed European Data Exchange Platform would lead not only to cost savings but realisation of these full benefits in instances where such use cases would have not been possible otherwise. The sources of these benefits are generated from four

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