Over 1 million smart meters will be installed by Tauron by the end of 2025. Remote reading meters (VOC) are a key element of a smart energy grid, thanks to which customers will be able to benefit from, for example, dynamic tariffs, and energy companies will be able to, among others, easier to obtain measurement data. But will dynamic tariffs be profitable?
At the end of 2023, remote reading meters were installed in over 1.14 million Tauron customers. This represents approximately 19% of the company’s customers.
Last year, remote reading meters were installed for customers newly connected to the network and for prosumers.
In total, at the end of 2025, there will be approximately 2.1 million smart meters in Tauron Dystrybucja’s networks, which means that over 35 percent of the company’s customers will be able to use new opportunities for more efficient use of electricity.
What are the benefits of smart meters for Tauron customers?
For Tauron’s customers, replacing meters will mean automatic, actual reading of electricity consumption and the ability to control and plan energy consumption in the eLicznik application prepared for them.
The meters operate in various technologies, which allows you to become independent from one electricity supplier.
In the application, the customer can analyze electricity consumption for a selected period and compare the consumption for a given day with the average value.
Additionally, he can set goals for himself by specifying what level of energy consumption would be acceptable for him. Once this threshold is exceeded, the recipient will receive a notification.
However, thanks to the installation of smart meters, Tauron Dystrybucja gains the ability to automatically obtain data on the operation of the power grid.
The company already has part of the volume of meters required for installation this year, and at the same time, contracts for devices for the following years are in progress.
Over 1 million meters to be replaced at Tauron Dystrybucja
In the third quarter of last year, a procurement procedure was announced in the competitive dialogue mode for the purchase of a remote reading system (SZO) for the operation of remote reading meters using radio technology and on the power grid (PLC), as well as two tender procedures for the purchase of VOC in GSM/LTE communication technology for the needs of installations in 2024 and 2025.
The results of the last procedure were announced in mid-December – the contract provides for the delivery of remote reading meters for the needs of nine Tauron Dystrybucja branches with a planned installation date in 2024.
By 2031, all electricity consumers in Poland will have such devices.
Where are the most legalization replacements of Tauron meters?
TAURON installed the most modern meters last year in Wrocław. In the capital of Lower Silesia, TAURON is conducting a mass legalization exchange of meters installed as part of the first and largest Smart City Wrocław pilot program in Poland. As part of the program, 360,000 have been installed there since 2014. meters that currently require legal replacement.
Additionally, in Lower Silesia, the exchanges covered the areas of the Wrocław and Wałbrzych Branches, an area extending much beyond the city of Wrocław itself.
From the point of view of a distribution company, the most important thing is the ability to obtain measurement data in an automated manner and without the need to engage employees to read devices. Given our scale of operations, this means savings and streamlined processes allowing for timely and correct settlement of customers – says Ewa Groń, spokeswoman for Tauron Dystrybucja.
Greater control and monitoring of Tauron’s energy network infrastructure
In addition, intelligent measurement infrastructure creates additional possibilities for monitoring energy quality and events occurring on the network.
We immediately know, for example, about attempts to interfere with measurement systems at individual consumption points. All this significantly increases the security of continuity of electricity supply and affects the correct operation of the power system – adds Ewa Groń.
All exchanges are carried out by authorized representatives of Tauron Dystrybucja – employees of the company or cooperating companies. Fitters have name badges and ID cards. In many cases, the customer does not need to be present during the exchange. However, when the measuring system is located inside the premises, presence is necessary.
The communication itself is encrypted. In addition, remote reading meters are equipped with a mechanism that records security violations in the event log regarding access to all communication interfaces and physical access to the device – explains Grzegorz Marek, director of the sales department of distribution services at Tauron Dystrybucja.
Huge barriers to introducing dynamic tariffs in 2024
The introduction of dynamic tariffs to sellers’ offers requires the replacement of electricity meters. This means the need to modernize the energy network.
Determining who will bear the costs of replacing and installing modern meters and on what terms. Will meters be replaced first for consumers who switch to dynamic tariffs?
The process of installing smart meters will start in approximately 3 years at the earliest. Only when they are installed will end users be able to voluntarily choose whether they want to settle their electricity consumption in dynamic tariffs.
In addition, end users will have to install systems that intelligently control electricity consumption so that they can save on electricity using variable electricity prices in a dynamic tariff.
This also means that it will be necessary to invest in an energy storage facility that will be charged when electricity prices are lowest, and when they rise, the end user will use the stored electricity so as not to overpay for it.
An energy storage with a capacity of 10 kWh is over 20,000. zloty. Of course, there will be dedicated government subsidies for this purpose, but the purchase cost is quite high and may constitute a barrier for many consumers.
It is also worth considering how dynamic tariffs will work. Preferably based on hourly RCE electricity prices.
How will dynamic tariffs work in Poland from 2024?
Consumers will be able to buy electricity when it is cheapest and use as little of it as possible when prices rise. And here an important question arises: when will this energy be cheap and when will it become more expensive during the day?
Helpful to understand this mechanism is the analysis of market, hourly electricity prices RCE (will be used to settle electricity from photovoltaics from July 1) 2024, which will make you realize that using dynamic tariffs and changing electricity prices can be a huge challenge without proper training. with the right tools, i.e. energy storage and intelligent control of electricity consumption.
So let’s analyze when electricity prices are the lowest and when they are the highest based on electricity prices at the hourly RCE rate, on the basis of which photovoltaic owners settling in the net-billing system will sell electricity from July 1, 2024.
Hourly RCE shows at what times prices for 1 MWh of electricity are the highest and at what times they are the lowest. And similarly, these prices will most likely be shaped in dynamic tariffs.
Observing individual days where electricity from photovoltaics is settled at the hourly RCE rate, we see many time intervals when prices are very low or even negative.
In the chart above, from 10:00 a.m. to 5:00 p.m., the prices offered for electricity in the RCE hourly settlement are the most favorable – then the fewest people consume electricity. Most of us are at work at this time and do not use home utilities, washing machines or dishwashers. It is also unnecessary to heat the house this way.
Similarly, in dynamic tariffs, electricity prices will most likely be the lowest during similar hours, i.e. from 10:00 a.m. to 5:00 p.m., when the demand for electricity is lowest.
Of course, there is no reason to delude yourself that the seller will pay us for electricity consumption when prices are negative. Minimum and very attractive electricity prices will probably be introduced during these hours.
And it is during these hours that it will be best for apartment owners to increase electricity consumption or store it. It turns out that such an unprofitable investment in energy storage is starting to make more and more sense.
However, if we look further at the hourly distribution of RCE electricity prices, there are hours – especially from 6:00 p.m. to 12:00 p.m. – where we see electricity prices that are even two, three or even four times higher. According to this table, the highest price for electricity was at 8 p.m. and amounted to PLN 418 per 1 MWh, or approximately PLN 0.418 per 1 kWh.
This is the time when the demand for electricity is highest. Most of us start using home utilities and lighting extensively. Most likely, electricity prices in dynamic tariffs will also be the highest during these hours.
Electricity in dynamic tariffs will not always be cheap
We want to make you aware of how dynamic the tariffs will be and that this electricity will not always be cheap when you want it and can use it. Of course, there is no reason to delude ourselves that the energy seller will pay us for the year we use electricity at. e.g. 13 where according to the table it was -PLN 29.59 per 1 MWhbut then electricity prices will be the lowest even than in G11 fixed tariffs.
Unfortunately, we will not be able to meet all the energy needs of our household between 10:00 a.m. and 5:00 p.m., which is when electricity is the cheapest. It may turn out that we will have to take advantage of higher prices in the dynamic tariff. It will also be necessary to invest in an energy storage facility and intelligent control of electricity consumption throughout the house.
