Using Smart Metering for Load Aggregation: Towards an Integrated Smart Grid/Active Network Management Framework

Abstract:
The process of load aggregation by which individual energy users are able to form an alliance to secure more competitive prices than they might otherwise receive working independently has been known for a number of years within competitive energy markets. However, the approach favours large industrial users and has been difficult to apply to smaller users due to the cost and complexity of standard metering solutions. With the introduction of smart metering for domestic and smaller demand sites and the significant interest for micro/embedded generation, an opportunity exists to develop a new form of energy purchase optimisation for smaller aggregated demand sites. Aggregation has been accomplished through a simple pooling arrangement or through the formation of demand clusters in the past with no reference to on-site generation capability (conventional or renewable). This paper provides a framework for the development of a number of new approaches that are under consideration to utilise the capability of smart metering for electricity and gas aggregated demand to: optimise energy source selection, decrease purchase costs and improve the environmental footprint.