Today it's about the intelligent use of electricity and identifying savings potential through the use of digital electricity meters, so-called smart meters. I am Bogdan Ses, founder of the Smukbird company, and I would like to warmly welcome my three guests. Please briefly introduce yourself to our readers.
Dr. Elena Fischer, energy analyst: I am an expert in energy market analyzes and specialize in the integration of renewable energies into existing supply networks. My focus is on how political decisions influence the energy market and how innovative technologies such as smart meters can help increase efficiency.
Prof. Dr. Markus Weber, electrical engineer: As a professor of electrical engineering with a focus on energy systems, I research the technical aspects of energy distribution and use. I am particularly interested in the development and implementation of smart grid technologies that enable more efficient and reliable energy supply.
Dr. Laura Schmidt, Data Scientist:With a background in applied mathematics and computer science, I work to identify patterns in energy consumption by analyzing large amounts of data. My goal is to develop more precise forecasting models for energy demand and consumption through the use of machine learning and artificial intelligence.
Dr. Elena Fischer:Let's start with the smart meters. These digital electricity meters are a great way to monitor energy consumption in real time. They send data directly to the energy provider and allow consumers to understand their electricity consumption in more detail.
Prof. Dr. Markus Weber: Exactly, and the technical aspect of this is particularly interesting. Smart meters not only measure how much electricity is used, but also when and how. This time-based data is crucial for identifying which times of day electricity consumption is highest.
I would like to add that this data can also be analyzed using machine learning to identify patterns in consumption behavior. Through such analyzes we can specifically uncover savings potential and make recommendations on how and when devices should be used optimally in order to save costs.
What is the current status in Germany? What goals have politicians set and how widespread are smart meters? Is there already data on this?
Dr. Elena Fischer: The law on the digitalization of the energy transition was introduced in Germany, which forms the framework for the introduction of intelligent measuring systems, i.e. smart meters. The aim is to ensure that German households and companies are largely equipped with smart meters by 2032.
Prof. Dr. Markus Weber:The actual introduction started slower than expected, however. Since 2020, larger energy consumers and generating facilities have been required to install smart meters. However, the installation is not yet mandatory for private households and smaller consumers, but will be implemented gradually.
Dr. Laura Schmidt: According to current data, only a fraction of households are equipped with smart meters. This is partly due to higher costs for end users as well as privacy concerns. Nevertheless, there is a noticeable trend towards widespread adoption, and it is expected that penetration will increase significantly in the next few years.
Dr. Elena Fischer:The federal government is promoting the use of smart meters through various measures to increase energy efficiency and improve the integration of renewable energies. This is part of the strategy to make Germany climate neutral by 2045.
I'm interested, and I'm sure our readers will also find it exciting, to find out what things are like in our neighboring countries. What are Austria and Switzerland doing?
Dr. Elena Fischer: There are also interesting developments in Austria and Switzerland regarding smart meters and energy efficiency. In Austria, the goal has been set to equip at least 95% of all households with intelligent measuring systems by the end of 2022. This is part of a larger plan for energy efficiency and the integration of renewable energy sources.
Prof. Dr. Markus Weber: Switzerland, on the other hand, has a slightly different approach. There is no legal obligation to introduce smart meters across the board. Nevertheless, many cantons and energy suppliers are actively promoting the use of this technology. The main goal is to optimize energy consumption and increase energy efficiency, especially during periods of high demand.
Dr. Laura Schmidt:In both countries there is also a strong focus on data protection and the security of the data collected. This is a crucial aspect that is particularly emphasized in Switzerland, where consumer privacy is highly valued.
Dr. Elena Fischer:In conclusion, both Austria and Switzerland are making significant efforts to modernize their energy infrastructure and support the transition to more sustainable energy sources, with smart meters playing a key role.
Back to Germany. If you want to go even deeper into the topic. Which 5 providers on the market should you definitely look at in order to ultimately decide on a dynamic collective agreement?
Dr. Elena Fischer: There are several providers in Germany that offer interesting dynamic electricity tariffs that work particularly well with smart meters. Here are five providers you should take a closer look at:
1. aWATTar – This provider adjusts the electricity prices hourly to the exchange electricity prices. This allows consumers to adjust their electricity consumption to benefit from low prices.
2. Tibber – Another innovative provider that not only offers dynamic tariffs, but also provides an app that analyzes and optimizes energy consumption in real time.
3. Discovergy – Offers smart metering solutions ideal for consumers who want to accurately monitor and control their energy consumption.
4. E.ON – As one of the largest energy suppliers, E.ON offers dynamic tariffs that are particularly suitable for consumers who have flexibility in their consumption and want to save on energy costs.
5. Vattenfall – Vattenfall also has dynamic tariff options designed to enable customers to save on energy costs by scheduling energy consumption at more cost-effective times.
Prof. Dr. Markus Weber:It is important to note that the availability of these tariffs may depend on the regional connection and local network. So check which providers are available in your region.
Dr. Laura Schmidt:It's also worth reading reviews and experiences from other customers to see how the providers perform in terms of customer support and technical reliability.
We want to construct a case study. How could a 3-person household benefit from using a smart meter in conjunction with a dynamic electricity tariff that follows price fluctuations on the stock exchange in real time, compared to a 3-person household with an analogue electricity meter and a fixed electricity contract with a price guarantee ? What data do we need for this comparison?
Dr. Laura Schmidt:For a case study like this we need specific data. First, the household's detailed electricity consumption over time, ideally in hourly or quarter-hour intervals. Secondly, information about the dynamic tariff electricity prices as they change throughout the day.
Dr. Elena Fischer:We should also look at the typical consumption patterns of a 3-person household, for example when the most electricity is used - in the morning, in the evening or throughout the day. This helps us understand how flexible the household can be in adjusting its consumption to price fluctuations.
Prof. Dr. Markus Weber:And then there is the comparison with the fixed electricity contract. Here we need the fixed price per kWh and could set this against the variable prices of the dynamic tariff over the same period. This way we can see which model could save the household in the long term.
Dr. Laura Schmidt: Exactly, with this data we could carry out simulations to calculate how the three-person household could reduce its electricity costs by adjusting consumption to low-price times. For example, energy-intensive appliances such as washing machines or dishwashers could operate when prices are lowest.
Dr. Elena Fischer: Finally, it would be important to analyze how realistic such adjustments are for the average household. Not everyone is willing or able to change their daily routine to save on electricity costs. This behavior plays a major role in assessing the effectiveness of dynamic electricity tariffs.
We assume an annual consumption of 3500 kWh. In the last 12 months, the stock exchange price including taxes and duties has been very stable at around 25 cents/kWh. With a contract with a price guarantee, the kWh price is around 32 cents. To be fair, let's assume the same basic price of €15 per contract per month.
Dr. Elena Fischer: With these details we can now make a more precise calculation. With a consumption of 3500 kWh per year and an exchange price of 25 cents per kWh, the household with the dynamic tariff would pay a total of 875 euros per year for electricity, without taking the basic price into account.
Prof. Dr. Markus Weber:In comparison, a household with a fixed tariff of 32 cents per kWh would pay 1,120 euros per year, also without the basic price. The difference in pure energy costs is 245 euros per year in favor of the dynamic tariff.
Dr. Laura Schmidt:If we add the basic price, which is the same for both tariffs, i.e. 15 euros per month or 180 euros annually, the total costs are 1,055 euros for the dynamic tariff and 1,300 euros for the fixed tariff per year.
Dr. Elena Fischer: This shows that the household could save significantly with the dynamic tariff as long as the stock exchange prices remain stable. However, it should be noted that this calculation is based on the assumption that consumption is evenly distributed over the year and that there are no price peaks with the dynamic tariff.
Prof. Dr. Markus Weber:It would also be important to take into account whether the household is able to adapt its consumption to cheaper times. Appliances such as water heaters and heaters could be programmed to run primarily when electricity prices are lower, which could lead to further savings.
Let's assume that the household with the smart meter optimizes its behavior and saves 15% on electricity through real-time analysis of consumption. There are already modern providers who, for example, display electricity consumption in real time in their own app and thus increase consumers' awareness of their behavior. How does the bill compare now?
Dr. Laura Schmidt:If the household with the smart meter reduces its consumption by 15% to 2975 kWh, while the classic household stays at its original consumption of 3500 kWh, the new calculation looks like this:
For households with smart meters and dynamic tariffs, the electricity price is 25 cents per kWh. So you pay around 743.75 euros for 2975 kWh. With the basic price of 180 euros, this results in a total cost of 923.75 euros per year.
In comparison, the household with the fixed tariff and the analog meter remains at the original 3500 kWh, which amounts to 1,120 euros at 32 cents per kWh. With the basic price of 180 euros, the annual costs total 1,300 euros.
This results in a difference of 376.25 euros per year in favor of the household with the smart meter and the dynamic tariff. This shows even more clearly the benefits of the combination of smart meters and a tariff based on real-time price fluctuations, especially when the technology is used to effectively manage and reduce consumption.
That's quite remarkable. If I do the math in my head, I get a saving of 28%. Thank you for your time today and I look forward to revisiting this topic in 2-3 years. I would be happy if there was a recommendation for our readers at the end.
Dr. Elena Fischer:We are pleased that we were able to help you! A final recommendation would be to consider the possibilities of modern smart meters and dynamic electricity tariffs, especially if one wants to reduce energy consumption and associated costs.
Prof. Dr. Markus Weber: I would recommend that interested households contact their electricity supplier to find out about the availability and specific offers of smart meters and dynamic tariffs. It is also advisable to check your own consumption habits and adjust them if necessary in order to use the full savings potential.
Dr. Laura Schmidt:And finally, stay up to date on technological developments in this area. Over the next few years, further advances in technology and pricing could enable even greater savings. We look forward to further developing this topic with you!
Finally, I would like to once again describe the state of affairs in our company. At Smukbird we pay great attention to the use of resources and we do this consistently with electricity. We have very low power consumption. The company consumes 1750 kWh per hour per year. This is extremely low and corresponds to the consumption of a single-person household. We have selected our machines and computers as well as the lighting specifically for low consumption. I will continue to pursue the topic of smart meters for us in the next few days. We already have a contract with dynamic prices, now all that's missing is the smart meter. The local utility Stadtwerke Trier is currently testing the collection of data provided by the smart meter in various pilot projects.
Dr. Elena Fischer:That sounds like an impressive initiative from Smukbird! Their commitment to energy efficiency and the selection of specialized equipment that uses less electricity is an exemplary model of sustainability in the industry.
Prof. Dr. Markus Weber:Implementing a smart meter will certainly help you make your already low energy consumption even more efficient. With a smart meter you can not only monitor energy consumption in real time, but also get detailed insights into consumption patterns, which is ideal for optimizing dynamic electricity prices.
Dr. Laura Schmidt:In addition, the smart meter's use of data analytics could allow Smukbird to make even more precise adjustments. For example, you could integrate automation solutions that further optimize the operation of machines and devices based on the data collected.
Dr. Elena Fischer:It is also worth mentioning that the Trier municipal utility company is carrying out pilot projects. This could be a great opportunity for Smukbird to be there from the beginning and potentially influence the development and implementation of the technology, tailored specifically to your needs.
Prof. Dr. Markus Weber:I recommend communicating regularly with your local utility to receive updates on the pilot projects and to ensure that your requirements and experiences are incorporated into the further development of smart meter technology.
Thank you for your interest and see you next time!
