The smart device, which is particularly useful for solar households, is also spreading in Hungary

In Hungary, only 9% of residential energy users will have had smart meters installed by the end of 2023, and these consumers will not have access to the near-real-time consumption data provided by smart meters – according to the Energy Union issued by the European Commission on September 11 meaning Pertaining to Hungary in his chapter.

Based on the wording of the report, the Commission uses the data from the 2024 report of the European Union Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER), which has not yet been officially presented, but for its evaluation, it is worth at least examining the performance of neighboring countries based on the report.

• According to them Austria It has achieved 80% coverage in the introduction of smart meters and provides access to near-real-time consumption data based on 15-minute periods.
• Slovakia It achieved a 15% smart meter penetration, mainly due to installations among consumers connected to the low-voltage distribution system with an annual electricity consumption of at least 4 megawatt hours (MWh) and solar households.
• A Romanian 23% of residential energy consumers have a smart meter.
• in Croatia smart consumption meters have so far also been installed in limited quantities, according to the European Commission, since no overall positive decision on their introduction has yet been made. However, even under these conditions, Croatia achieved 19% smart meter penetration, according to the report.
• Of the neighboring countries Slovenia achieved the best result in the introduction of smart meters: coverage reached 95% by the end of 2023.
• Still remaining in the region, but looking slightly further away, it can be determined that Poland It was able to show 27% smart meter penetration at the end of 2023, although consumers’ access to near-real-time data is not guaranteed.
• in the Czech Republic the process is in an even more preliminary phase than in Hungary, since only 3% of household consumers here were equipped with smart consumption meters at the end of last year.

The importance of the question is given by the fact that the installation of smart meters at users is a basic condition for the digitization and “intelligence” of the energy system, which is absolutely necessary for the electricity network to become suitable for serving the new and growing needs of producers and consumers. Smart meters can contribute to increasing the flexibility of the system in many ways by providing near-real-time data to users, the aggregators that connect them, network operators and the system manager.

According to the original ideas, the domestic smart meter installations would be implemented to a significant extent with the support of EU funds. In the recovery plan adopted by the EU at the end of last year, which focuses largely on the green transition and is supplemented by the REPowerEU chapter, it is also mentioned that, in accordance with the government’s commitment, the European Commission (in more detail) will finance the purchase and installation of a total of 816,000 smart consumption meters (smart meters). until June 30, 2026, which, together with the dynamic pricing that will also be introduced, may entail the transformation of the current overhead reduction system.

The Hungarian figure of 9% means that approximately 400,000 of the slightly more than 4 million domestic households could have been equipped with smart meters at the end of 2023, and meeting the 816,000 goal would mean reaching a penetration of about 20%.

The installation of smart meters is the responsibility of the distribution companies, and it is also mandatory for certain types of consumers: for low-voltage users with an annual consumption of 5,000 kWh or more, for new connections with a power requirement of at least 3×32 amps (A) but not more than 3×80 A, as well as for those for users who already have a household-sized small power plant – that is, typically a solar HMKE – or will install such a system in the future. The related regulatory reform also foresees the expansion of the range of users obliged to install until December 31, 2024.

What is a smart meter good for?

The smart meters to be installed must be remote controlled and able to switch the nominal power on and off. The data collection and communication functions of smart meters can be exploited in many application areas, and it is expected that they will play an important role in the precise definition of consumer profiles, in the optimization of electricity demand, and will also serve as the basis of their demand-side response solution, contributing to increasing the flexibility of the system.

Creating the possibility of the wide applicability of dynamic pricing in power purchase contracts will enable micro-enterprises and the general public to save on energy costs by timing their consumption during periods offering lower market power prices. However, only those users who have the appropriate (smart) meter will be able to take advantage of this opportunity. According to the plan, the regulatory framework would be modified by the end of 2025 in order to introduce dynamic pricing.

Part of the implementation of the investments undertaken in the plan has begun with the pre-financing of the government, and although Hungary still does not have access to the European Union’s Recovery and Resilience Building Facility (RRF), according to the news, the installation of smart meters will continue at a steady pace in 2024.

Penetration may have increased further

E.On already in April 2024 he announcedthat most of the smart meters provided by the RRF have been installed, thereby increasing the number of smart meters used in the service area to 432 thousand, and there are a total of 650 thousand smart meters in operation in Hungary. Achieving the agreed installation target of 819,000 is therefore within sight, but in view of the multiple advantages of smart meters and the examples of the leading neighboring countries, it is also desirable and feasible to achieve a multiple of the set target.

As E.On also pointed out, the spread of smart meters also provides tangible help on a national scale to solve domestic sustainability and security of supply challenges. The investment promotes the integration of renewable energy sources, especially solar systems, which are spreading with explosive speed, into the electricity system. In this way, it particularly supports the realization of Hungary’s climate goals.

The most important feature of new-generation, smart devices from the point of view of customers is that they make it unnecessary to read the meter in person. These devices are in constant contact with the service provider’s central office, sending and receiving data automatically.

The new type of smart meters are especially useful for customers who have a household-sized solar system. The meter display can easily read how much energy the customer used or fed back into the network. Solar panel owners can also use the smart meter to schedule the use of their household appliances for the period when the solar panels produce the most energy.

Smart meters also provide the opportunity for important additional services such as remote control of solar panels or remote switching of the power supply. Since the device continuously collects and transmits data, the energy company’s experts are informed almost immediately of a possible power outage, so the information also helps with quick troubleshooting.

The cover image is an illustration. Cover image source: Getty Images