Viktor Deyemanns — Business Development EngineerIn times of energy transition, the topic of energy consumption has clearly come to the fore. Companies are increasingly developing a need to obtain detailed information about their energy consumption. There are various reasons for this, and often several at the same time. Companies are also increasingly being asked to document their consumption in order to meet the requirements of ESG reporting, for example. However, energy consumption should also be reduced as part of an energy management strategy to save costs and promote sustainability. This is not only required by law, but is also part of modern and sustainable corporate governance.
In this context, transparency of consumption plays a crucial role. An annual statement cannot provide any information about the reasons behind the development of consumption. Manual on-site meter reading is cumbersome and expensive. As a long-term and targeted solution, it is therefore recommended to record consumption digitally and in close detail. In this blog article, we describe two technical options for how this can be implemented.
What’s it all about?
The use case can be simplified as follows: the company wants to create ESG reporting or introduce energy management. With the right software, such as ESG reporting or energy monitoring software, day-to-day work in this context can be carried out efficiently. Energy consumption is a key data source for this and must be closely and continuously reflected in the software. Therefore, it is essential that the energy meters are connected and that meter readings are transmitted automatically. 
The use cases and the software landscape at the end of the data stream can vary significantly depending on the need. Ultimately, it reflects the company’s requirements, which may change over time. However, a digital data bridge and interface to the software is always needed as a foundation to access the measurement data.
Option 1: Smart Metering
Germany is currently in the midst of a smart meter rollout as part of the energy transition: intelligent metering systems for the energy transition with modern metering devices (mME) and intelligent metering systems (iMSys). Modern metering devices are digital meters that allow consumers to view historical meter readings at the meter on-site. A smart meter gateway is required for the regular transmission of meter readings. The hardware to be installed is defined by the German Metering Point Operation Act (MsbG) and is based on specific consumption profiles set by the German Federal Network Agency - Metering Devices / Meters. The combination of the modern metering device and the smart meter (SMGW) forms the intelligent metering system (iMSys), enabling the transmission of meter readings. The technical specifications are highly regulated and subject to legal requirements. The primary purpose of these intelligent metering systems is to serve the energy industry. Billing-relevant information can be transmitted via the smart meter gateway, replacing the previously cumbersome manual reading of annual consumption. Additionally, the smart meter helps maintain grid stability, particularly with the rise of continuous electrical consumers, such as electric heaters and electric vehicles, as well as the ongoing decentralization of our energy supply. Smart meters aim to enable grid-friendly control of such consumers.
Hardware Setup
Modern and intelligent metering systems are generally provided by the metering point operator and are their property. They replace the current (analog) meters used for billing and are installed in the same place, i.e., at the meter location. The precondition is that the meter cabinet meets the minimum requirements, which are specified in the technical connection conditions (TAB) of the local metering point operator.
Measurement Scenario
The primary energy measured is electricity in the meter cabinet. The total electricity consumption of a property is recorded here unless separate consumers such as heat pumps, wall boxes, or generation systems require additional meters. Sub-consumption within a consumer unit (submetering) is not part of this basic setup. Installing an additional meter for this purpose is complex and costly.
Data Access
The smart meter gateway primarily transmits the meter readings to the metering point operator. The consumer or user does not have direct access to the meter data remotely. To continuously transfer meter data to third-party software, such as ESG reporting, interfaces are required to transmit the data to the third-party software. This service is typically provided by an external market participant with the role of ESA (energy service provider), who receives the meter readings via market communication (MaKo) and provides them. Both the data provision by the metering point operator and the services of the external market participant incur additional costs.
Costs
The legislature has set cost caps for the metering system in the German Metering Point Operation Act (MsbG), which apply to basic metering point operators. Within this framework, the costs per electricity meter are incurred. The legally prescribed standard services (cost and service summary) include the installation and operation of the metering point. For a voluntary installation, additional costs apply. In the standard setup, the data is stored in 15-minute intervals and transmitted once a day. If the use case cannot be covered by the standard services, additional individual costs will apply. The statutory price cap does not apply to competitive metering point operators, which means different prices may apply. For data provision, additional costs must be considered with the metering point operator and individual costs for the transmission service from the external market participant.
Option 2 - Remote Metering
An alternative to the regulated smart meter rollout is building a custom metering infrastructure with its own software environment. In this scenario, everything can be designed according to individual needs. The market offers many ready-made components to quickly and easily set up an infrastructure that is both customized and efficient.
Hardware Setup
Typically, individual metering devices are hardware mounted on a DIN rail. These electricity meters are often compliant with the Measurement Instruments Directive (MID) and provide consistently reliable results. Generally, they can be categorized into direct metering and transformer metering. The latter allows installation without interrupting the circuit being measured, which can be crucial in operations where power interruptions are not possible or are costly and time-consuming.
The meter data is transmitted via a gateway, such as Modbus Cloud Connect. To enable communication between the meter and the gateway, both must have the same interface, such as Modbus in this case. The correct communication infrastructure is required for transmitting the data to the software or final platform.
Measurement Scenario
Meters are generally installed in the counted area, i.e., downstream of the metering point operator’s meter. In this area, the distribution panel, you have the flexibility to install the meter where it’s needed. It’s possible to measure not only total consumption but also sub-consumption, such as specific areas, residential units, or major consumers. The design of the measurement scenario is entirely customizable.
Data Access
The transmission path is a strategic decision, especially for multiple locations. A heterogeneous infrastructure increases complexity and affects gateway hardware, availability, security, and rollout conditions. Installation time is a significant cost factor and can vary widely. Generally, the transmission infrastructure can be local (local internet access), public (cellular), or private ( LoRaWAN). Depending on the choice, the user is responsible for managing the operation of this infrastructure. Mobile networks, for example, are ideal when local infrastructure is unavailable or inconsistent. LPWAN technologies, like NB-IoT and LTE-M, often overcome challenging environments. Once the transmission path is secured, the data can be addressed directly from the gateway to the company’s software environment for capture and processing.
Costs
With the second option, a fully self-built solution, all costs must be covered by the owner. Most costs arise at the beginning, during the design, procurement, and installation phases. Operating costs are typically lower.
Comparison of the two options
The following table summarizes some relevant features of both solutions.
Conclusion
The two approaches described offer very different solutions for continuous access to energy consumption data for tool-based ESG reporting or energy management.
In the smart metering solution, the metering point operator handles installation and operation, covering a significant portion of the overall solution. If only a simple measurement of total consumption is required in the long term, this can be a technically and financially accessible solution. The total price consists of the "metering fee" and the sum of all additional services necessary for continuous data transmission. However, this also involves the complex structures of the highly regulated energy sector. Expanding the metering landscape with sub-meters and additional networked components is not easily achieved with off-the-shelf hardware but rather through compatible services and components specifically designed for this purpose. The degree of customization is thus limited to what the surrounding industry offers. It’s also essential to note that the price caps apply only to basic metering point operators, which are responsible depending on the meter’s location. If one prefers a competitive metering point operator (e.g., one that operates nationwide), one will encounter free-market prices.
With remote metering, the solution involves building and operating a connected metering landscape independently, which presents initial technical and financial challenges. However, if it becomes evident that the data from main meters are insufficient and that additional sub-meters or other individually connected devices (DC measurement, temperature, or other operational parameters) are foreseeable, then remote metering becomes a highly customizable solution. Subsequent adjustments to measurement points are easy to implement and do not conflict with the TAB, the German Metering Point Operation Act (MsbG), or limitations of data density. Access to IT expertise is crucial to monitor, operate, and expand the solution. Installation must be carried out by an electrician. For a large number of locations, this could be considered a rollout, where the focus is not on material costs but on the required effort for installation and setup.
Ultimately, the two solutions present different worlds. To fulfill legal obligations, the simplest form of measurement using the meters of the intelligent metering system (iMSys) may suffice. For sustainable corporate management with a focus on continuous monitoring and reduction of energy consumption, individual and detailed measurement data are essential for analysis and, therefore, crucial. In this case, it’s worth setting up an extensive metering landscape that goes beyond the measurement of total consumption.
