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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>The Role of Smart Meters in P2P Energy Trading in the Low Voltage Grid</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Christina Sigl</string-name>
          <email>christina.sigl@th-deg.de</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Alexander Faschingbauer</string-name>
          <email>alexander.faschingbauer@th-deg.de</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Andreas Berl</string-name>
          <email>andreas.berl@th-deg.de</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Jakub Geyer</string-name>
          <email>geyer@prf.jcu.cz</email>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Rudolf Vohnout</string-name>
          <email>vohnout@prf.jcu.cz</email>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Miloš Prokýšek</string-name>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>. Institute for Applied Informatics, Deggendorf Institute of Technology</institution>
          ,
          <addr-line>Freyung</addr-line>
          ,
          <country country="DE">Germany</country>
        </aff>
        <aff id="aff1">
          <label>1</label>
          <institution>. Institute of Applied Informatics, University of South Bohemia</institution>
          ,
          <addr-line>Ceske Budejovice</addr-line>
          ,
          <country country="CZ">Czech Republic</country>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2018</year>
      </pub-date>
      <fpage>1</fpage>
      <lpage>3</lpage>
      <abstract>
        <p>There are different approaches for energy trading shown in the paper. The peer-to-peer approach is the most interesting one of them. Therefore, the underlying subsystem is essential for fast and accurate trading. Smart meters are one of the most important parts within the infrastructure to provide high quality information and services for smart contracting and also for controlling the grid. Therefore, smart meters have to fulfill dedicated requirements. Especially the lowest layer of smart metering - the smart meter itself - is considered here. A very basic view on data acquisition and a possible architecture for a test bench are presented in this paper.</p>
      </abstract>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>INTRODUCTION</title>
      <p>Smart grids are based on smart measurement and control
of energy supply, transportation and demand. The intelligent
control of all components can be seen as a virtual grid, where
energy can be traded over short (low voltage grid connected
to a sub-station) and/or long distances (middle- and high
voltage grid). In both cases the complexity of the control and
trading system is very high.</p>
      <p>
        Fig. 1. Grid schematic [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ].
      </p>
      <p>Fig. 1 compares the traditional grid with a smart grid. In
traditional grid architectures there are producers (utility) and
consumers. Whereas in the smart grid renewable energy
sources and storages are integrated and therefore a consumer
can take the role of a producer as well.</p>
      <p>
        In case of peer-to-peer (P2P) trading also both roles
(prosumer) are used by each participant, which changes their
behavior. As such, to enable this system to be dynamic and
flexible it needs respective agile components to be able to
provide production-consumption control. Thus, smart meters
(SM) are important in such a P2P network. SMs provide
information about power consumption and distribution for
billing (longer time intervals as for grid monitoring). Maybe,
they can be used to detect problems in the power grid, too
[
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]. Within a P2P network SM are very important. Therefore,
required technologies, protocols and data quality must be
analyzed regarding to P2P trading. Thus, a simplified
consideration of measurement accuracy is given and some
gaps in the measurement chain (e.g. timing issues) are
depicted. Additionally, a test bed, especially for analyzing
SMs acquisition accuracy, is introduced. Moreover, in P2P
trading, business models and means of trustworthy evidence
of the contract (for example smart contracting/block chain)
must exist. Hence, P2P systems, business models as well as
energy pricing models are considered.
      </p>
      <p>The Paper is organized as follows. In section II, related
work is given. Section III presents P2P energy trading models
and a comparison of energy prices between Germany and
Czech Republic. Information, that SMs have to provide for
P2P trading, are shown in section IV. Required technologies
and protocols are pointed out in section V. The significance
of data quality, for P2P trading, is stated in section VI. A test
bed setup for analyzing SMs is shown in section VII. Finally,
the paper is concluded in section VIII.</p>
      <p>II.</p>
    </sec>
    <sec id="sec-2">
      <title>STATE OF THE ART</title>
      <p>
        P2P trading, smart contracting and micropayment are
modern concepts, which are widely used nowadays. There
are several pilot projects and examples dealing with this
topic. Murkin et al. show an example platform for P2P
energy trading using the block chain technology. This makes
the trading process accurate, authenticated and secure [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ].
Alvaro-Hermana et al. use electric vehicles for P2P energy
trading [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ]. In general, there are different approaches of P2P
energy trading systems on that we will take a closer look in
this paper.
      </p>
      <p>
        Matamoros et al. investigated P2P trading between two
micro grids, thus looking at central versus distributed control
[
        <xref ref-type="bibr" rid="ref4">4</xref>
        ]. Zhang et al. submit that communication and control
networks are very important for P2P energy trading. They
also show a future scenario of P2P energy trading [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ]. For
distribution costs and taxes. For bigger consumers like
houses there is a system of high and low tariffs.
      </p>
      <p>
        Fig. 2 shows pricing components of consumed energy
(E.ON, distribution rate D01d, 2018, [
        <xref ref-type="bibr" rid="ref12">12</xref>
        ], for Germany see
[
        <xref ref-type="bibr" rid="ref13">13</xref>
        ]) excluding fix costs (monthly fee for consumption point,
reserved input fee).
      </p>
      <p>CZ DE</p>
      <p>Fig. 2. Energy price components (excluding fix costs).</p>
      <sec id="sec-2-1">
        <title>Scheduled flexible pricing</title>
        <p>A flexible pricing model is based on PXE trading system
and uses intraday trades. The system is now usually operated
manually or with a low level of automation. This kind of
trading system is a good base for further P2P business models
and more advanced solutions. The amount of traded energy is
based on prediction of consumption and could be supported
by data gathering from smart buildings. For trading in PXE a
license is required. Therefore, a mediator with license
(usually an energy supplier) is an easier choice for end-users.
control of the P2P trading system data form smart metering
must be used.</p>
        <p>
          P2P energy trading bases on timing, a reliable
communication layer and accurate metering. Marshall et al.
did some investigations/simulations about the impact of
accurate metering. Most commercial metering systems
measure net flow only in intervals of 30 seconds or
30 minutes, which is a barrier for accurate accounting.
Therefore, sub-second level timing is required. Economic
impacts through faster energy fluctuations, than the
measurement intervals, lead to economic inefficiencies and
also possible inaccuracies through meter timing (the question
is stated, which time period is the best) [
          <xref ref-type="bibr" rid="ref6">6</xref>
          ]. Capodieci et al.
[
          <xref ref-type="bibr" rid="ref7">7</xref>
          ] present a hardware/software solution for energy trading
using agents which use only six time intervals per day for
trading. The hardware architecture consists of a real SM
which is connected to a SM gateway through a SM interface.
The data is sent to an energy trading platform.
        </p>
        <p>
          Nonetheless, SM accuracy also depends on temperature
effects of SMs [
          <xref ref-type="bibr" rid="ref8">8</xref>
          ]. SM accuracy is determined considering
ADC resolution, SINAD and THD [
          <xref ref-type="bibr" rid="ref9">9</xref>
          ]. Thus, we take a closer
look on data quality that is required especially for P2P
trading and to evaluate SMs a test environment is set up.
        </p>
        <p>III.</p>
      </sec>
    </sec>
    <sec id="sec-3">
      <title>P2P ENERGY TRADING</title>
      <p>
        In general, there are differences concerning the electricity
market of the neighboring countries Czech Republic (CZ)
and Germany. In CZ, the current electricity market can be
divided into several levels or areas. At first, there is a market
for trading energy between producers and suppliers operated
by market operator (OTE [
        <xref ref-type="bibr" rid="ref10">10</xref>
        ]). There also exists Power
Exchange Central Europe (PXE [
        <xref ref-type="bibr" rid="ref11">11</xref>
        ]). This market is
powered by EEX and provides also services for end-users,
especially bigger consumers as municipalities or SMEs.
      </p>
      <p>In Germany, there are two different business models for
the electricity market. The first one is the traditional
producer/consumer model. The second one can be called
prosumer model. It is based on own production and
consumption. Every customer (private/company) is
connected to the grid by a distribution network operator
(DSO) (e.g. Bayernwerk AG). The DSO is a direct customer
of the four transmission system operators (TSO) (e.g.
TENNET). Each customer has a contract with an electricity
supply company (e.g. E.ON), which does billing. Electric
energy is typically traded on the stock market.</p>
      <p>In a smart grid environment, the control of consumer
behavior and demand could be based on many things like
social influence or responsibility, but the price for energy is
the most important factor. Hence, the metering of
consumption and production is the crucial part of all P2P
trading systems (See TABLE 1 for overview).</p>
      <sec id="sec-3-1">
        <title>Current pricing model</title>
        <p>Electricity for smaller consumers is in CZ delivered by
energy suppliers, usually based on an end-user agreement.
For households, there are two common pricing models. For
smaller consumers (mainly in high density areas with
prefabricated houses) the price of energy is constant and
calculated from several parts, mainly from the price of power,
Distribution
Consumption
Renewable Energy Surcharge
Tax</p>
        <p>Other</p>
      </sec>
      <sec id="sec-3-2">
        <title>Linking energy production resources</title>
        <p>The system of linking/matching produced energy with
consumers is based on flexible pricing and fluctuating power
production of renewable energy sources. The idea is to offer
cheaper energy to consumers when there is a surplus of
energy and provide clear data about how the energy is
produced. Consumers can than prioritize from which energy
source and for what price they want to buy energy and move
some energy consumption tasks accordingly. This allows
savings for consumers while it also helps balancing local
energy production and consumption.</p>
      </sec>
      <sec id="sec-3-3">
        <title>P2P energy market</title>
        <p>P2P energy market is based on a similar idea as the linking
of energy production resources, the idea of balancing local
energy production and consumption. However, in this case,
any consumer can also become producer (prosumer) and his
energy surplus is primary offered to other local consumers
(usually for a better price). If the offer is accepted by another
local consumer, the transaction is realized (often using block
chain mechanisms). Any additional surplus (or if there is no
consumer at the time) is bought by a distribution company
according to the agreed pricelist.</p>
      </sec>
      <sec id="sec-3-4">
        <title>P2P energy trading platform (with battery storages)</title>
        <p>A P2P energy trading platform consist of 3 key parts:
• P2P energy market
• Virtual grid with distributed battery storages
• Grid operator/distributor cooperation</p>
        <p>Surplus energy can be stored and used in moments of low
production (peak shaving) if a battery storage is added to the
prosumer system. Based on the energy consumption profile
(done by prediction), the stored energy can also be sold. With
grid operator/distributor participation this can help balancing
even across multiple grid cells.</p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>SMART METERS IN P2P TRADING</title>
      <p>Especially in the P2P trading market a smart metering
solution is required, which is able to actively participate in
the smart shared grid infrastructure. This system has to report
electricity consumption values and trends. Additionally, it
has to provide information for P2P trading to enable it. Such
information is:
• Current demand of power consumption by a
household/SME
• Total power budget available for trading in the (micro) grid
shared (sub-) infrastructure
• Tariff and/or price per kWh of redundant power to be used
• Price for using/renting the infrastructure (distribution costs)
for such model
• Length of the contract (for example one hour) and smart
contract block chain evidence
• Amount of electricity units to be contracted
• Guarantee power supply to be provided for at least
contacted time frame and for unit price agreed</p>
      <p>The role of SMs in such a situation is to provide control
over the implementation phase of the P2P (smart) contract.
As such, the internal real time clock accuracy and
synchronization should be not lower than 5 x 10-3 seconds.
Because of the nature of smart contracts, SMs used in the
smart contract enabled grid infrastructure (with tariff less
trading) have to be able to store enough historical values.
Therefore, SMs primary oriented on distributed
infrastructures and based on tariff templates will not be
suitable for this scenario. Smart metering solutions available
on the market differ in several aspects. For our model, the
minimum accuracy level (we count only on transformer
connected SMs) must be 0.5 S (better 0.2 S) to be able to
provide a fair smart contract for parties involved even in low
power demand conditions.</p>
      <p>V.</p>
    </sec>
    <sec id="sec-5">
      <title>TECHNOLOGY/PROTOCOLS</title>
      <p>From the standardization point of view, SMs can be
divided into two groups:
• Using proprietary communication protocols and security.</p>
      <p>Backward compatible with SM standard protocols such
as DLMS or PRIME Alliance.
• Using standardized metering devices, certified by DLMS
and/or PRIME Alliance.</p>
      <p>The first group is mainly intended for island or isolated
smart grid installations, where no interactions with other
smart grid domains are expected and usually leads to vendor
lock-in situations. Most of the smart grid solutions use
standardized (certified) interoperable equipment to be able to
exchange information not only within the same grid
(domain), but also outside, to other installations supporting
the same communication languages. For P2P trading we need
only selected elements of xDLMS protocol structure protocol
structure, avoiding those intend for energy distributor
purposes.</p>
      <p>VI.</p>
    </sec>
    <sec id="sec-6">
      <title>DATA QUALITY</title>
      <p>Data quality is one of the most important topics in the
context of P2P energy trading. All parts of the described
subsystem can affect data quality. This starts at the very low
layer, where the signals are taped from the grid lines, as it can
be seen in the upper part of Fig. 5. Also the timing of the
whole system must be known. Some blocks have a
nondeterministic timing, which can lead to problems if the
fluctuation rate of supply and demand is higher than the data
processing by the P2P trading layer.</p>
      <p>The accuracy of the measured values is another important
topic. There are several parameters which affect accuracy and
data quality:
• Sensor type, attached to the grid lines
• Temperature
• Data reduction
• Communication protocols/gateways
• Processing speed
• Acquisition bandwidth (harmonics)</p>
      <p>Fig. 6 shows a simulation of the measurement error,
resulting from lowering the acquisition bandwidth, especially
for reactive power in dependence of the number of harmonics
considered.</p>
      <p>The following assumptions were done: Line voltage Urms
= 230 V, line current Irms = 10 A, grid frequency f = 50 Hz,
sample rate Fs = 100 kHz. The signal of the line current is a
sine wave superimposed with harmonics (damping by 100).</p>
      <p>The calculation is done 100 times, starting with adding
100 harmonics to the base signal and decrementing it after
each calculation step. For each loop the relative error is
calculated, using the actual test signal in relation to the first
signal.
VII.</p>
    </sec>
    <sec id="sec-7">
      <title>SMART METER TEST SETUP</title>
      <p>The whole data processing chain from grid to the control
system must be well known for well-balanced P2P trading.
Fig. 7 depicts a simple test setup for testing SMs concerning
their time delay.</p>
      <p>The grid signals are fed into a Software Defined Radio
(SDR) through a voltage/current tap. The type of the current
tap is a Hall sensor with higher frequency bandwidth
compared to current transformers. Both signals (voltage and
current) are applied to the SDR through filters, amplifiers,
attenuators and impedance matching circuitry. The SDR is
directly connected to a computer for controlling and
processing the incoming data. The used SDR provides
extremely high flexibility through the possibility of
reconfiguration. The SM is also connected to the grid lines
and considered as a black box, because the signal
conditioning and processing is not accessible from the
outside. A digital interface allows only access on the
measurement results. Both acquisition systems are connected
to the same computer to get synchronized datasets, for easier
post processing and comparison.</p>
    </sec>
    <sec id="sec-8">
      <title>CONCLUSION</title>
      <p>This paper is focused on differences between traditional
and smart grids from the view of business and metering. We
identified the important role of smart metering and its
necessary parameters for different business models of a P2P
trading systems. We also discussed the price of energy for
end-users/consumers on Czech and German energy market,
where the component of energy distribution was identified as
the most important and its reduction due the innovative
trading scenarios could be the crucial motivation factor for
P2P trading spread. Finally, we introduced a schema of a
smart metering test bench, developed by Czech-Bayern
crossborder laboratory of smart grid for testing different scenarios
of P2P consumption-production analyses and security tests.</p>
    </sec>
    <sec id="sec-9">
      <title>ACKNOWLEDGEMENT</title>
      <p>Smart grid in rural areas and SMEs – INTERREG V
(no.144).</p>
    </sec>
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