Smart Metering: How to Optimize Building Energy Efficiency With Intelligent Measurement Systems

Measuring energy consumption in buildings is more than just a technical process - it forms the foundation for a multitude of innovative business models and compliance with legal energy management requirements. With the "Act to Restart the Digitization of the Energy Transition" initiated by the Federal Ministry for Economic Affairs and Climate Action (BMWK) and coming into effect in 2023, the German government aims to expedite the installation of intelligent measurement systems, so-called "smart meters" in a straightforward manner. This initiative is designed to provide more accurate information on electricity consumption and to fully harness the potential of a digital metering infrastructure. We have compiled the most important questions and answers regarding the smart meter rollout, explaining why these new measurement systems, in combination with suitable cloud solutions, are a fundamental requirement for achieving energy- and cost-efficient building operations.

What is Regulated by the “Smart Meter Act”?

The "Act to Restart the Digitization of the Energy Transition", also known as the "Smart Meter Act", regulates the gradual introduction of smart meters in buildings. The core of this legislation is the revision of the Metering Point Operation Act (MsbG). It specifies how and by when the existing analog electricity meters must be replaced by smart metering systems or modern metering equipment. Compliance with legal requirements to ensure data protection and security by the respective product components is continuously monitored as part of a certification process by the Federal Office for Information Security (BSI). Additionally, the law mandates that all electricity suppliers offer dynamic electricity tariffs – also known as “flexible electricity tariffs” – starting in 2025. This allows customers to shift their consumption to more cost-effective periods with high renewable energy generation or even benefit from negative electricity prices.

What are Smart Meters?

Smart meters, also known as "intelligent measurement systems" (iMSys), fundamentally differ from conventional analog and simple digital electricity meters. Analog electricity meters (so-called Ferraris meters) operate mechanically and measure electricity consumption via a rotating disc. In contrast, certified digital electricity meters, also called "modern metering equipment" (mME), measure electricity consumption electronically. Smart meters consist of such modern metering equipment, complemented by a communication unit - the "smart meter gateway." Smart meters record consumption and feed-in data (e.g., fromphotovoltaic systems) at 15-minute intervals and transmit this data to the metering point operator via the gateway.

At a glance

Why do we Need Smart Meters in Buildings?

With the statutory expansion of renewable energy sources (including an 80 % share of renewable energies by 2030) and the increasing coupling of consumption sectors, especially in the areas of mobility and heating, electricity generation in Germany is becoming more decentralized and volatile. This increases the demands on the digitization of grid operation. Generation and consumption must be intelligently coordinated. In the context of demand side management, the consumption and generation data from smart meters can be analyzed and optimal time windows for electricity procurement and feed-in can be identified. Consumers not only benefit from dynamic electricity tariffs but can also profitably sell self-generated electricity on the energy market. As a central data hub in the smart grid, smart meters make a crucial contribution to the energy transition.

With suitable cloud solutions, the measurement data can also be recorded centrally and used for the digital optimization of technical building operation to increase energy efficiency. This includes, for example, automated action recommendations or AI-based, predictive control, incorporating external data such as weather forecasts. Expensive additional charges due to undetected "power guzzlers" and defective or poorly coordinated systems will become a thing of the past. Besides simplified and more transparent billing of electricity consumption, the data from smart meters is also a crucial basis for ESG reporting, for example, to compare and document the impact of savings measures.

Who Should Have Smart Meters Installed and by When?

The statutory rollout schedule for smart meters is staggered and depends on the consumption and the capacity of the generation plants installed in the building. Starting in 2025, all buildings with an average annual electricity consumption between 6 000 kWh and 100 000 kWh, as well as systems (e.g., photovoltaic systems) with an installed capacity between 7 kW and 100 kW, are required to be equipped with smart meters. By the end of 2030, at least 95 percent of these buildings must be equipped with an intelligent metering system. Buildings with an annual electricity consumption of more than 100 000 kWh or large systems with more than 100 kW installed capacity are granted a longer transition period. They must be gradually retrofitted starting in 2028 at the latest and completed by the end of 2030. For buildings with anannual consumption of less than 6 000 kWh and small systems with a capacity of 1 to 7 kW, the installation of a smart meter remains voluntary. However, they must install at least one modern metering device by 2032. Since the legal schedule allows for an "agile rollout" metering point operators are free to install an intelligent metering system earlier. Starting in 2023 or 2025, consumers can also request installation ahead of schedule. The responsible metering point operator must comply with this request within aspecified period.

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What are the Costs of a Smart Metering System and who Bears Them?

The costs for the installation and operation of smart metering systems are borne by the consumers or rather the producers. These costs vary depending on the specific conditions of the building and the respective electricity consumption and are subject to certain price caps. For example, for households and businesses with an annual electricity consumption between 6 000 and 10 000 kWh, the maximum price cap is 100 euros per year. In higher consumption categories, the costs increase accordingly. If the responsible metering point operator decides to install intelligent metering systems in consumption groups with lower annual consumption, i.e. below the mandatory installation threshold, the costs are 20 euros per year. The price caps for the standard services defined in the law must be strictly adhered to by the metering point operator.

Who Uses the Data From the Smart Meter and What is it Used for?

The recorded consumption and feed-in data are transmitted daily by the metering point operator via the smart meter gateway to the authorized market participants. The grid operator uses this data to predict and implement grid-stabilizing measures, and to justify their grid expansion activities. Electricity suppliers and direct marketers use the data to improve their procurement and generation forecasts. For those who are both producers and suppliers, the data aids in power plant deployment planning and optimization of their own energy trading activities. Individually commissioned service companies, on the other hand, use the information to advise their customers on the measures described above to optimize consumption.

Smart Metering with aedifion: A Reliable Partner for Efficient Energy Management

As a software provider and service partner, we are actively driving comprehensive operational optimization based on smart meter data and other information from the building:

Partnerships and recommendations: Upon request, our partner network provides support in the development of customized metering concepts as early as the planning phase. Our network for digital and efficient real estate encompasses a wide range of reliable hardware providers, covering the entire spectrum from concept creation to the subsequent installation and operation of the meters.

Data availability and integration: Using open interfaces and minimally invasive retrofit measures, aedifion enables the seamless integration of information from different sources into the cloud after the planning phase and, if desired, to other service providers involved in operational optimization. Our cloud platform is flexible, enabling all relevant providers and solutions to work together via open interfaces. This includes not only data from the smart meter but also from all other devices connected to the building automation system, such as analog meters or electricity meters (transformer meters). Existing M-Bus meters, which are not (or no longer) operated by a metering point operator, can be read out via an easy-to-install gateway and centrally recorded in the cloud. External data, such as those from the metering point operator itself, are integrated into the cloud via standard interfaces like MSCONS or a custom API integration, where they can also be used for optimizing building operation.

Data-based operational optimization: We use the collected data to ensure efficient operational optimization throughout the building. Our AI solution analyzes information from smart meters and other sources, optimizing building operation holistically through targeted recommendations and autonomous, predictive control. Additionally, the consumption data captured by the smart meter can be clearly processed and visualized using special dashboards. This creates transparency for users and and streamlines ESG reporting efforts.

Leverage the benefits of smart metering with us and embark on an efficient and sustainable future!