Local energy optimization and DSO signal integration under §14a EnWG

Because §14a directly impacts how households manage energy consumption and costs, gridX dove headfirst into this regulation to decipher it, understand it and, ultimately, embrace it, guaranteeing that our energy management system (EMS) does what it does best: staying flexible, scalable and adaptable to changing regulations. Thus, our Grid Signal Processor module was born.

But how exactly does our Grid Signal Processor stand out from the crowd? What makes gridX the focal point of the §14a word cloud? Easy: local optimization and compensation.

Read on to learn more.

How §14a works with front-of-the-meter and behind-the-meter

In an energy system, 'front-of-the-meter' (FTM) refers to activities, assets and controls that occur on the utility or grid side of an electricity meter, that is installed at a customer’s premises. FTM processes are managed by utilities or grid operators to ensure system reliability and efficiency, and involve forecasting, monitoring and sending control signals through a distribution system operator (DSO). In contrast, 'behind-the-meter' (BTM) refers to activities, assets and controls located on the customer side of the meter. Once signals or energy reaches the Smart Meter, the process shifts to 'behind-the-meter,' where the customer-side implementations and adjustments occur.

The limitation process of §14a starts FTM with the DSO. It is here that the DSO monitors and manages the grid's load and stability to anticipate or resolve potential issues in the low-voltage network. Here, the current status quo is preventative control, i.e. solely relying on forecasts and statistics for potential grid overloads and controlling and/or dimming assets based on this information. In essence, controlling when a "bottleneck" in the grid is likely. To enable more exact and efficient control in the future – AKA dynamic (also referred to as “network-oriented”) control based on real-time stress on the grid – DSOs must first digitize their infrastructure. This is a costly and time-intensive process but one which they know must be worked towards in the coming years. Depending on the method they use, the DSO sets limitations on energy consumption or generation based on these forecasts and/or on the grid load measurement to ensure the grid's stability and prevent overloads.

Once the DSO decides on the necessary limitations, they send out a limitation signal. This signal travels through the utility’s infrastructure to reach the smart meter installed at the customer’s premises, thus transitioning the process from FTM to BTM. Given Germany’s slow implementation of smart meters, DSOs are also able to install a ripple control receiver at the customer’s premise but only as a temporary solution. These devices act as the door with utility providers and grid operators on one side and individual households on the other.

With the door open the limitation of power consumption signal is welcomed inside the household. The signal arrives at the smart meter gateway and is then communicated to the control box, to which the assets are connected via an EMS. The homeowner is then responsible for guaranteeing §14a-compatibility, for example by combining it with an energy management solution.

The door is open. Now what? 

Control signals can then be managed via digital or analog interfaces – with one option showing far greater potential. 

A control via analog surface, like relays, incorporates less future-proof processes and is more costly to implement in contrast to digital interfaces. It also does not enable infinitely adjustable control of the system output. That means the control system can’t adjust outputs continuously and instead switches between a limited set of already predefined states and levels. For example a §14a control signal might cause a controllable energy asset to shut down entirely because the favored power values couldn’t be maintained and defaults to the next available setting (e.g. 0 kW) instead. 

However if a  §14a compliant signal sets consumption limits, a digital interface in combination with an EMS enables precise dimming and limitation processes in which the EMS can use local compensation by integrating local energy generation (e.g. PV or batteries) to balance grid consumption. In addition to maintaining essential functions, this optimizes energy use while adhering to imposed limits.

In practice this could look like this: The consumption is limited to 9 kWh or less over a 2 hour period while the asset owner is charging their EV with 11 kWh, the heat pump operates at 5.6 kWh and the PV system is producing 10 kWh. This allows 7.6 kWh to offset the limitation, while the remaining 2.4 kWh is used for battery charging. Not having this compensation could create a need to extend charging time or result in inefficient temperature control which in return leads to increased operational costs and inefficient use of energy.

How does local optimization and compensation help?

As §14a encourages grid operators to monitor the load of defined controllable consumption assets to ensure a stable and powerful grid, control signals, as we already learned, now need to be issued by the operators to guarantee a minimum consumption of 4,2 kW per asset. And this is where local compensation and optimization come in handy:

Local optimization

Everyone who opts for §14a-compatibility saves money. But only with an advanced solution can end users minimize any loss of comfort. For example, with XENON, users can set prioritizations as to where available power should be directed – for example, the wallbox first, the heat pump second, the battery last. This helps to ensure that users, for example, can still get to where they need to go while also dimming household consumption in line with §14a.

Local compensation

The local compensation allows the EMS to use local energy generation, e.g. from photovoltaic systems or batteries, to compensate for grid-related consumption restrictions. If the grid operator sends a dimming signal, the EMS uses a compensation mechanism to utilize the locally-generated power to compensate for the restriction, without exceeding the limit specified in the signal. For example, energy stored in the battery could be used to maintain a desired level of heating in the home, if consumption is restricted during a winter’s evening.

In essence, the EMS intelligently controls energy consumption and generation to ensure the set signals are always matched, while simultaneously optimizing cost, comfort and efficiency. In this way, users can receive reduced grid fees without being forced to drastically change their behavior or habits.

Full transparency and seamless integration

Even though local optimization and compensation remove the hassle for end consumers, it is still vital that they understand the automatic processes that are taking place in their home. This is where the Grid Signal Processor’s many features that enable transparency truly shine. Push notifications keep users informed in real time of any control actions or changes, while the visual impact provides insight into the potential impact of emergency dimming on energy consumption and comfort. 

Another vital feature is protocol mapping, which ensures seamless communication between different devices and systems by translating different communication protocols. This is a core feature of any advanced home energy management system, but becomes even more important when navigating optimization logic both between the assets in a household and between the household and the grid. The Grid Signal Processor also provides detailed documentation of control interventions, including steering and dimming actions, allowing for thorough tracking and analysis, an important transparency tool for both energy companies and end customers. Finally, the Grid Signal Processor enables a smooth transition between different operating states and ensures that transitions are managed without significant disruption to the user's daily routine or system performance.

gridX and §14a: A beautiful pair

It is clear that not all §14a-conform solutions are equal. Reduced grid fees is just the first step – holistic optimization which allows local compensation and provides complete transparency brings out the full benefits of a HEMS conforming to §14a. But there’s even more. §14a-conformity is just one aspect. On top of that ensures our Grid Signal Processor module that customers can save costs and manage their assets comfortably. The ability to combine this with additional future-proof solutions, such as self-sufficiency optimization, time-of-use tariffs and more advanced features like explicit flexibility services, enables the highest savings potential and long-term value for energy companies and their customers.  gridX partners can install the gridBox in their customers' homes and benefit from a truly adaptable and future-proof solution that works with almost all assets and protocols. In accordance with our concept of value stacking, the Grid Signal Processor module, especially with the local optimization and compensation, is another “building block” along the value stream of distributed energy resources that our partners can make part of their product offer.