Accelerating and streamlining the rollout - finally light at the end of the rollout tunnel?

But is there now a light at the end of the tunnel? Back on 20 October 2022, Robert Habeck presented a number of points at the dena event ‘Restarting the smart meter rollout’ - at which our CEO was also present - that the BMWK now wants to deal with. Among other things, an amendment to the Metering Point Operation Act was already announced there - but with the comment ‘The amendment will not come at the end of October, but we should make sure that it does not become 2027’.

What lasts a long time...

However, we would never have dreamed that the BMWK would react so quickly. The draft was published on 29 November and is expected to be adopted in December.

But what are the biggest innovations?

But what are the biggest innovations?

Not only is the market declaration by the BSI set to be discontinued, but additional responsibilities are also to be gradually transferred from the BSI to the Federal Ministry for Economic Affairs and Climate Action (BMWK). This shift aims to give the BMWK greater control over the rollout. Meanwhile, the BSI will be able to concentrate more closely on the standardisation of smart meter gateways.

Elimination of the three-manufacturer rule

Previously, three independent manufacturers had to be certified by the BSI for each update of the smart meter gateways before installation could begin. This rule no longer applies, which means that the speed of the rollout now depends on the most innovative manufacturer. Apart from this, the rollout is also to be much more agile, i.e. the nationwide deployment with the already certified devices is to start for most installation cases - for consumers with an annual electricity consumption of less than 20,000 kWh or a generating capacity of up to 25 kW. New control functions will then be gradually activated via updates.

Target year 2030

The new rollout deadlines are primarily aligned with the year 2030 — meaning that 95% of all eligible metering points are to be equipped by the end of that year. In addition to the existing 10% quota, a new milestone has been introduced: a mandatory 50% rollout by the end of 2028. However, the original deadline for the 10% mandatory installation has been pushed back from 2023 to 2025 — a move that could potentially slow down the rollout rather than accelerate it.

1:n metering as a new model

1:n metering is intended to make it possible to connect an SMWG to a grid connection. This would allow several meters, consumers and charging devices to be bundled via one SMGW. This should contribute significantly to the cost-effectiveness of the rollout, enable a ‘full rollout’ and also make neighbourhood solutions permissible. In addition, fewer devices would have to be installed.

Reduced costs for the connection user increase acceptance

The costs of the SMGW are now to be split between the consumer and the grid operator after all - i.e. the price for the consumer is capped at €20/year, while the grid operator covers the remaining costs of €10-80. This should increase acceptance for the consumer - and we are also pleased about this, as the cost-benefit ratio for the connection user is still very unbalanced. With lower costs and the possibility of receiving smart transparency software, the current pressure to save energy could be remedied and a real benefit presented to the consumer.

Grid operator responsible for efficient grid planning

And it's not just cost allocation that the new law assigns to grid operators: they also face new challenges such as data-driven grid operation and efficient, sustainable grid planning. To systematically monitor grid status data transmitted by smart meter gateways (SMGWs) and ensure efficient grid management, an energy management platform — in addition to the meters themselves — will be essential.

Accelerated introduction of dynamic tariffs

Dynamic electricity tariffs are also intended to increase the acceptance of smart meters, as they help end consumers to shift their electricity consumption to more cost-effective times, e.g. when a lot of renewable energy is being generated. The introduction of dynamic tariffs should therefore now apply to all suppliers from 2026, regardless of the number of end consumers. This is also an opportunity for us as a software supplier, which makes it possible to monitor dynamic tariffs and electricity consumption. However, like everything else in the energy market, this regulation will require a very long transition period, as the dynamic tariffs require a lot of procedural adjustments.

Early fitting on request

The rollout could be further accelerated by ‘early installation on request’. If, for example, an installation operator explicitly asks for a smart metering system, the MSB must install the iMSys within 4 months. However, there are no further regulations on this and the installation within 4 months is generally regarded as very short by the industry. It is therefore questionable to what extent this measure can be implemented in practice.

Our conclusion as a service provider for energy management and transparency software

The fact that the law came so quickly shows that something should finally happen. Shifting responsibilities to the Federal Office of Economics and Climate Protection will hopefully also help politicians to react more quickly in the coming years. The ideas and new approaches largely address the previous shortcomings and inconsistencies in the old Metering Point Operation Act. For us, however, each new point also comes with new challenges and a ‘but’, such as the postponement of the 10% quota of mandatory installations from the end of 2023 to the end of 2025. Of course, all market players need a certain lead time - but the rollout and the associated obligations were not just invented this year. Shifting the timeline could lead to the issue being sat out until 2025 again - only to realise in 2025 that everything came too quickly and cannot now be implemented so spontaneously.

Some points are intended to increase the acceptance of smart meters among the population (dynamic tariffs, cost splitting, etc.). But the benefits are still not completely clear. There is still no concrete plan to make it clear to consumers what benefits they can derive from the data - and that, for example, the annual costs of smart meters are negligible when set against the savings potential that can be identified with the help of visualisation software.

Energy prices are now rising. The need to save energy is now becoming ever greater. We hope that enough suppliers, grid operators and metering point operators will see the new rollout targets as an opportunity and finally take action. We see a great opportunity here in the bundling of smart meters and software - because the digitalised infrastructure alone is not enough to make efficiency and energy saving potential visible.