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The majority of public funding on energy efficiency within the EU is proposed for the building sector. The federal funds in that sector add up to €5.4 billion in 2014. A smart home system is one possibility to improve residential energy efficiency. A smart gateway, as an essential part of the system, connects the smart home with the outside world. This allows the mobile control of devices in the house from remote places. External systems and services can be used for better energy usage regulation. Furthermore, it can be connected to the smart grid as well as electric charging infrastructure to enable better energy efficiency and billing plans, for example, according to peak-time energy consumption or renewable energy content. 

Main Benefits

  • Reducing GHG Emissions

  • Enhances Grid Stability

  • Improving Energy Usage Efficiency

  • Shaving peak Energy Demand

  • Decreasing energy consumption in buildings

  • Reducing energy bills

  • Enhanced data collection

Functions help you to understand what the products can do for you and which ones will help you achieve your goals.
Each solution has at least one mandatory function, which is needed to achieve the basic purpose of the solution, and several additional functions, which are features that can be added to provide additional benefits.

Mandatory Functions

Potential Functions

Business Model

Implementation Facts

Average Implementation Time: 1-2 years (without smart meter rollout) according to estimates from the H2020 EU Triangulum project

Initial Investment Amount: approximately 150.000 €

 

Market overview

In the last few years, the Smart Home industry has grown very fast, with a 64% increase in sales in 2016 compared to 2015. Nevertheless, the household penetration is still low (5.2%) in Europe. However, it is expected that it will increase its presence to 15.3% by 2020.

(CNBC, 2017; Statista, 2016) 

Some marketable outcomes that Smart Home Systems provides are:

  1. Subscription-based services can generate constant stream of income
  2. The gateways have a big target group: It can be sold to hospitals and homes for elderly and disabled people, but also for those willing to increase their comfort in a smart home environment
  3. The gateways can anonymise and provide data to data platforms, to implement effective analytics and long-term improvement as well as product design. The data can be charged, and the analytic services and their results can also be seen as marketable outcomes.

 

Smart Meters

The technology with the highest presence and, at the same time, most promoted in smart homes is the smart meter. A smart meter is a device which records the amount of energy and/or gas consumed in a determined period. This information is sent to the service provider to bill the customer accurately, and it is also used by the client to regulate his/her energy/gas consumption. The main advantage of a smart meter with an integrated easy-to-read display is that consumers can decide to reduce their consumption level, especially during peak hours.

On average, the cost of installing a smart meter in the EU is between €200 and €250, allowing average savings of €160 for gas, and €309 for electricity per metering point (shared by consumers, suppliers, distribution system operators, etc.), and 3% reduction in energy demand.

(European Commission, 2014)

Driving Factors

Supporting Infrastructure

A stable and reliable data connection is required to send and receive information. Furthermore, cloud management and belonging IT data centre infrastructure is necessary for interconnected smart homes. Additionally, to have an integrated system, it is required that all devices use the same language. In 2015, the European Union created a new standard called SAREF (Smart Appliances REFerence ontology), with the goal of homogenise the market and allow communication among all devices.

 

Government Initiatives

Regarding the use of smart meters, the European Union has established the goal of replacing “at least 80% of electricity meters with smart meters by 2020 wherever it is cost-effective to do so” (Directive 2009/72/EC).

16 European countries[1] have plans or have already started, to roll out smart electricity meters with the goal of covering a significant proportion of consumers by 2020 or earlier, and 5 of them[2] have the same purpose for smart gas meters.

(European Commission, 2014)


 

[1] Austria, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Luxemburg, Malta, Netherlands, Poland, Romania, Spain, Sweden, and the UK.

[2] Ireland, Italy, Luxembourg, the Netherlands, and the UK.

Legal Requirements

Regulations

  • Regulation (EU) 2016/679: on the protection of natural persons concerning the processing of personal data and the free movement of such data
  • Directive 2009/72/EC: concerning common rules for the internal market in electricity –promotion of intelligent metering and target of 80% coverage by 2020
  • Directive 2009/73/EC: concerning common rules for the internal market in natural gas –promotion of intelligent metering
  • Directive 2012/27/EU: on energy efficiency
  • Directive (EU) 2016/1148: concerning measures for a high standard level of security of network and information systems across the Union

Use Cases

Smart Home Systems for Tenants in Mülheim
The SmartHome app allows tenants to turn off all electrical appliances and lights at any time and from anywhere. This can be done easily at home or on the move. In combination with smart plugs (Smart Meter), tenants can keep track of the current energy consumption of any connected devices.
Renovation of semi-attached homes of housing association using Woonconnect tool
The Use Case aims to involve tenants in the process of renovating and maintaining homes owned by the social housing association Woonbedrijf. The digital 3D-tool WoonConnect allows tenants to see the effects of their behaviour (i.e. showering, heating) and the expected results of the renovation.
Smart Home Solution Pilot in Tartu
Through the SmartEnCity project, in addition to retrofitting package that will see Tartu’s pilot area buildings fully renovated, the apartments will be supplied with a smart home system that connects to the Cumulocity cloud platform and enables data exchange and monitoring.
Smart control of individual rooms in existing buildings
With the aim of reducing energy consumption by 20% in the existing office buildings in Strijp-S, an innovative concept has been developed to optimise energy consumption while maintaining user comfort. The system allows interactive monitoring and control of HVAC system via mobile application.
Renovation of semi-attached homes of privately owned houses using woonconnect tool
The digital tool WoonConnect is used for the renovation choice in this project, allowing the home owners to see their energy use linked to their day-to-day behaviour and improve their homes.
Renovation of semi-attached homes of privately owned apartments using woonconnect tool
To achieve energy consumption improvement in the whole area, the consortium also addressed other apartment owners present in the area Eckart Vaartbroek by using the WoonConnect tool for the renovation choice.
Smart control of individual floors in existing buildings
Predictive control algorithm was used to independently control floors in a Strijp-S office building.

Related Solutions

Building Energy Management System
The majority of public funding on energy efficiency within the EU is proposed for the building sector. The federal funds in that sector add up to €5.4 billion in 2014. One way to increase the energy efficiency of buildings is to implement a building energy management systems (BEMS).
Virtual Power Plant
The increasing usage of renewable energy raises the risk of unpredictable energy generation drops or peaks. A virtual power plant reduces these risks by aggregating several small production units.
Smart Lighting
Smart streetlights enable the reduction of running expenses associated with public lighting by delivering several value-added services to cities and citizens.
Local Energy System
Approximately one-quarter of the energy price is owed by the transportation of the energy. The implementation of a local energy system can shift the energy production from a centralised system to a decentralised system.