1The Danish DataHub The single source of truth! Morten Braae Nielsen Chief consultant IT – Strategy & Arcitecthure Direkte +45 76 22 43 04 Mobil +45 23.

1The Danish DataHub

The single source of truth!

Morten Braae Nielsen

Chief consultant

IT – Strategy & Arcitecthure

Direkte +45 76 22 43 04

Mobil +45 23 33 85 09

[email protected]

2The Danish DataHub

The Danish DataHub solution

Winter

2012/-13

From decentralized market management

to centralized market management

Keywords: Digitization, unbundling, efficiency and transparency

3The Danish DataHub

The electricity market in Denmark

SupplierSupplier Supplier

BRP

TSO

Whole

sale

mark

et

Reta

il m

ark

et

Nord Pool

Grid company Grid company Grid company

BRP

12 BRP’s

53 suppliers

78 grid companies

4The Danish DataHub

Problems in the Danish retail market - pointing to a DataHub solution

Lack of separation between grid company and electricity supplier supplyers experienced service from grid companies was not good suspicion of unfair competition (bidding process, supplier switching); the general story is

that Grid compagnies inform its own affiliated supplier when other power suppliers are asking for meter readings to give offerings to customers in the area.

Competitive barriers in the market lack of an overview especially corporate customers faster and simpler access to master data and measurement data to bid faster supplier switching IT investments in communications equipment

Varying quality of master data and meter readings one Ediel standard, but "shit Happens": organization, management, manual processes,

data discipline, training, IT equipment Uniqueness of who is the customer at each measuring point ID can be improved

Lack of objective overview of errors in transactions and data exchange timeliness, economic incentives

Consumers' ability to obtain an overview of electricity consumption especially corporate customers

5The Danish DataHub

Objectives

Those problems cause to ask for: freer competition

simpler approach to information

master data and meter readings is no longer the grid companies 'property'

more transparency for the electricity consumers who will switch supplier

one bill (combined billing)

ensure a more uniform practice

make administration of movement and switching easier

The DataHub is thought as a manifestation of these wishes and become a new neutral foundation for competition in the electricity market and between electricity markets

6The Danish DataHub

Energinet.dk's role in market development

Under the Electricity Supply Act Energinet.dk is committed to ensure a well functioning electricity market - in terms of both retail and wholesale market

a role normally filled by the regulator elsewhere

Energinet.dk is committed by law to develop and run a DataHub

Energinet.dk has therefore a legitimate interest in thinking about new-solving tools in the market and can afford to have a professional opinion on the subject

Regulations are prepared in cooperation with market players and interest groups

Regulations shall be approved by the regulator

7The Danish DataHub

Decision proces (1)

We realised the need for excellent data management and proposed a central data solution back i 2002, when we were going for a full market opening in Denmark by 1. January 2003

our previous owners - the grid companies - disagreed!

The full market opening has subsequently shown the weaknesses of decentralized data management and raised the question whether grid companies handle the retail market tasks in a non distortionary way

FSE (Association of energy end users) summarized the issues that end users and independent power suppliers experienced in the retail market for the Danish Energy Agency and proposed that Energinet.dk should be in charge of a datahub solution

Year

2003-2007

Year

2002

Year

2007

8The Danish DataHub

Decision proces (2)

Danish Energy Agency formed a working group with Energinet.dk, the regulator and Danish Energy Association in order to clarify whether there should be established a datahub as a solution tool in the Danish electricity market

the working group worked for two years, and discussions were loud! The mandate from the grid compagnies was clear: “Make it go away”

the work culminated with a report where Danish Energy Agency recommended the "big datahub solution" and that Energinet.dk should guide the work

Year

2007-2009

9The Danish DataHub

We started to investigate whether primary data management could be better with a DataHub

it can, but for this purpose alone you don’t launch a DataHub project. Data quality is already good in Denmark

In connection with the work there appeared to be significant additional benefits of a DataHub. Benefits which will improve competition in the retail market and allow the political desire for a borderless Nordic retail marketIn addition the DataHub can facilitate new products and possibilities, such as

combined billing clearinghouse for the public charge of electric vehicles Providing nationwide electricity consumers a simple overview of electricity

consumption at all locations (across all grid companies) New market products – using the sophisticated data infrastructure,

including hourly measurements of power consumption - which animates the electricity consumers to respond flexibly with their electricity consumption

Decision proces (3)

10The Danish DataHub

Decision proces (4)

The Danish Minister for Climate and Energy took a quick decision - with political acceptance from the Danish parliament - and instructed Energinet.dk to start the project work in April 2009

The industry was upset because the Minister gave Energinet.dk broad powers to define DataHub functionality and work sharing in the value chain

Year

2009

11The Danish DataHub

”Hegnspælsnotat”

godkendt af ENS den

15. juni

Dansk Energi,

Energitilsynet, FSE og

Forbrugerrådet har

kommenteret notatet

fence post note

To clarify our mandate, to ensure commitment to the upcoming project and to reassure the future project partners, we wrote a “fence post note” witch clarify DataHub functionality and work sharing in the industry

Input from the final DataHub

report from the Danish Energy

Agency, documents from the

political process etc.

Decision proces (5)

12The Danish DataHub

Are wee cutting all work out of the value chain in the industry - slice for

slice?

no, but we will be at the forefront of the political agenda and future developments in the Nordic countries and in the EU (for example, a fourth liberalization package – or regulations conserning retail market development)

Grid companies' fears…

13The Danish DataHub

Panda(existing IT-system)Settlement on the wholesale market: - balance settlement - tariff billing- support payment for environmentally friendly electricity

Sector Test SystemDataHub

WebportalWebservices

-submit meter readings-maintain master data for meter points-querying the status of meter/master data

- receive meter readings- querying master data- launch supplier switching

On the supplier website:- view their own meter readings- view their own master data- view supplier switching

- receive meter readings

- view statistical data

- get pre-defined data

- configure system- administration- monitoring- debugging Meter point

-GSRN number -address- electricity supplier- balance responsible- customer name- validity period

Readings- time (period)- value- status

Functions: -Processes -Calculations -Reconciliation -Audit trail -Statistics

- meter readings

BRP

Supplier

Grid company

customers

Authorities

Public

PandaService(existing IT system)Webservices to Webportal

Self-Service Portal(existing IT system)

Broker

- querying meter readings- querying master data

DataHub stakeholders and components

14The Danish DataHub

Business processes

BRS-001: Change of supplierBRS-002: End of supplyBRS-003: Managing an incorrect change of supplierBRS-004: Establishment of metering pointBRS-005: Request for master dataBRS-006: Submission of master dataBRS-007: Move-out - reported to the grid companyBRS-008: Move-in - reported to the grid companyBRS-009: Move-in - reported to the electricity supplierBRS-010: Move-out - reported to the electricity supplierBRS-012: Change of settlement methodBRS-013: Disconnection/reconnection of metering pointBRS-020: Consumption statement for profile-settled metering pointBRS-021: Submission of metered data for metering pointsBRS-022: Submission of proportional figuresBRS-023: Submission of calculated time seriesBRS-024: Historic data requestBRS-025: Request for metered data

15The Danish DataHub

System architecture

Energinet.dk DataHub system

MarketportalGUI, XML, EDIFACT, API

Sector test

system

Master data,

business processes

Meter data

Combinedbilling

AMR-central

M

KWh

M

KWh

M

KWh

M

KWh

M

KWh

M

KWh

Measurement operator

ICT-portalUtility

KundeKunde

Kunde

DataHubcustomer acess

Webportal supplier x

SSO

NBS

N-BRP 1N-BRP 1

S-BRP 2S-BRP 2

FIN-supplier 1FIN-supplier 1

N-supplier 2N-supplier 2

S-supplier 3S-supplier 3

FIN-DSO 3FIN-DSO 3FIN-DSO 3S-DSO 1S-DSO 1S-DSO 1

N-DSO 2N-DSO 2N-DSO 2

FIN-BRP 3FIN-BRP 3

ELBI LSOPERATØRELLEVERANDØR

NETVI RKSOMHED

OFF. LADESTANDER

Aftale

Op

rett

els

e a

f m

åle

pkt.

Aftale

Identifikation og validering af målepunkt id

KUNDE

Hjemtagning af

forbru

gsdata pr.

ladestander

Timeværdier og

fakturaoplysninger

Faktu

raoply

snin

g

Faktura Faktura

Oprettelse af kunden

Opladning af elbil

Afregning af kunden

kWh37 9

Forbrug pr. elbil o

g

fakturaoplysninger

Hjemtagning af

forbrugsdata pr. elbilkWh3 7 9

LADESTANDEROP.

ELBI LSOPERATØRELLEVERANDØR

NETVI RKSOMHED

OFF. LADESTANDER

Aftale

Op

rett

els

e a

f m

åle

pkt.

Aftale

Identifikation og validering af målepunkt id

KUNDE

Hjemtagning af

forbru

gsdata pr.

ladestander

Timeværdier og

fakturaoplysninger

Faktu

raoply

snin

g

Faktura Faktura

Oprettelse af kunden

Opladning af elbil

Afregning af kunden

kWh37 9

kWh37 9

Forbrug pr. elbil o

g

fakturaoplysninger

Hjemtagning af

forbrugsdata pr. elbilkWh3 7 9

kWh3 7 9

LADESTANDEROP.

Charging stand

Whole sale market hub

XML

SAP BI

ETL

Business Intelligence

16The Danish DataHub

Webportal - Supplier n

Webportal - Supplier 2

Webportal - Supplier 1

Datahubconsumption data

Datahubuser

accessSSO

Direct access to the DataHub consumption data

DatahubWebservices

DatahubWebapplication

End customers access to data i the DataHub

Iframe

17The Danish DataHub

Home Meter dataMy overview

Meter points

Adress Meter point ID Grid company Supplier

Jægergårdsgade 122… Nordjysk8000 Aarhus C 57071500000008866 EnergiMidt Elhandel

Logged in as Jens HansenHome > My overview

Search meter Search

Tonne Kjærsvej 65B…7000 Fredericia 12156784541564664 DONG DONG

?? ? ?

Adress Meter point ID Grid company Supplier

Tonne Kjærsvej 65B…7000 Fredericia 80007888812344342 DONG DONG

?? ? ?

Own meters (Master)

Other meters (Secondary)

Provide access

End customers access to data i the DataHub

18The Danish DataHub

DataHub roadmap

DataHub v

.1

Q1-2 2

013

Sector test

system

DataHub v.2

Mandatory, combined

billing Q2-Q3 2014

3. settlement group

utilization of hourly

metered values in final

settlement

”Extra meters” in the

household

for example, specific

measurement of

consumption for heat

pumps and electric cars

Cooperation with Statnett and later on a Nordic hub?.......

3. par

ty a

cces

s

”priv

acy

by

desig

n”

Combined billing in Denmark

A new legislative proposal on mandatory, integrated combined billing are made in the Danish parliament

Energinet.dk and Danish Energy Association supports the legislative proposal

Model:

• Mandatory, integrated combined billing

• Grid service is settled as a wholesale service between the grid companies and the electricity suppliers

• A larger portion of the bill may face competition

• PSO tariff, electricity tax and VAT is unchanged

• affiliated and non affiliated companies equated

19The Danish DataHub

20The Danish DataHub

Data per. meter point- grid subscription- Grid tariffs and various fees- TSO tariffs- Electricity taxes and VAT- Alerts on tariff adjustments

Payments

information/data

Grid company

Customers

Supplier

Nord Pool

Wholesale

Combined billing in Denmark from Q2-Q3 2014

maintain tariff information and provide alerts on tariff adjustments

forward basis for the invoice, reports and audit reports

send an invoice for energy consumption (x kWh)

settlement of wholesale electricity trading

maintain tariff information and provide alerts on tariff adjustments

forward basis for the invoice, reports and audit reports

provide master data or invoice lines

maintain information about electricity taxes

per. measuring point

mandatory guarantee system for electricity tax

Ex: DataHub as clearinghouse for the charge of electric vehicles

Fleet operatorElectricity supplier

Grid company

Public/private charging pole

contract

Est

ab

lish

men

t of

mete

rin

g p

oin

t

contract

Identification and validation of metering point ID (EV)

Customer

Importi

ng of consu

mption

data per. ch

arging poleHourly metered data and

invoice information

Invoic

e in

form

ati

on

invoice invoice

Creating the customer

Charging an electric car

Settlement of the customer

kWh37 9

Consumptio

n per. electr

ic

vehicle and in

voice in

formatio

nIm

porting of

consumption data per.

EV

kWh3 7 9

Charging pole operator

22The Danish DataHub

Summary of gains (1)

Excellent data management objective overview of all communication in the market -> much easier to troubleshoot

much easier to keep the grid companies up on their measurement responsibility

customers can easily access their own data and transmit them to for example an energy advisor or broker

Public records can easily be run together with informative notes on electricity consumption -> for example the Danish building register

Technocratic unbundling commercial players can easily access data and launch supplier switching in a way that is

anonymous to affiliated grid companies

Grid companies don’t know the supplier and BRP at each meter point, i.e. commercial relations is only kept in the DataHub

ensure that the market works after the same market rules by automating processes (preventing anti-competitive bilateral agreements)

Lowering barriers for new players to the market less IT investment for new commercial players

all commercial market processes can be started manually from DataHub webportal -> you can easily start a new supplier company

23The Danish DataHub

Summary of gains (2)

Improving the efficiency of tasks general data management

reduce errors associated with customer movement and supplier switching

only the DataHub do the reconciliation instead of 78 grid companies -> much easier to give suppliers consolidated billing reports and the data behind is easy to control

to some extent easier to change market rules or processes

consistent billing data supplied from one reference point will reduce very substantially the need for controling of commercial players

In addition the DataHub can facilitate new products and possibilities for the future, such as

combined billing

clearinghouse for the public charge of electric vehicles

New market products – using the sophisticated data infrastructure, including hourly measurements of power consumption - which animates the electricity consumers to respond flexibly with their electricity consumption

”Market integration” easier to implement a Nordic retail market (independently of the Nordic NBS Initiative)

24The Danish DataHub

Investment and operational costs- We look solely on the economy at Energinet.dk

Investment (CAPEX)

Preliminary project:

Developing new market rules and regulations

25 million DKK

~ 3,4 million EUR

It-development and Energinet.dk’s project costs 115 million DKK

~ 15,4 million EUR

Total investment 140 million DKK

~ 18,8 million EUR

Operational (OPEX)

Annual operational costs 25 million DKK

~ 3,4 million EUR

No separate payment for the use of DataHub services (settled over Energinet.dk's grid tariffs)

25The Danish DataHub

Our project has received much international attention

You can follow project development and view the new market design at www.energinet.dk/datahub

Don’t hesitate to contact project management for futher details or if you are planning a visit

It is our strategy to make the DataHub solution part of an international solution in the next few years

Thank you for your

attention!