2020: New demands. New possibilities.

At the beginning of the year, we looked into our crystal ball: Which important developments in district heating will 2020 be remembered for ten years from now? One of them was the defining legislative leaps. Time will tell if our predictions prove to be correct, but for now, we will explore this first one in more detail.

Legislation and regulation have evolved radically in recent years as sustainability and empowerment of consumers have become key focus points. One direct result is that 2020 is the year when the demand for remote reading of heat meters becomes effective. According to the revised EU Energy Efficiency Directive (EED), meters installed after October 25th, 2020, must be remotely readable, and after January 1st, 2027, this requirement will apply to all existing energy meters. Also, consumption data must be provided to the end user at least 12 times per year.

Another piece of legislation – specifically for Sweden – impacting 2020, is the requirement for individual metering and billing in flerbostadshuse with energy consumption exceeding 200 kWh/m2. This originated from the EED and took effect on December 1st, 2019, affecting 14% of all flerbostadshuse.

For some, legislative demands like the EED represent a welcomed opportunity for change. Others see it as added complexity to an already busy work life dealing with increasing customer demands, digital transformation and the green transition. We believe, now it is here, it is in fact an opportunity for utilities and housing associations to deal with many agendas at the same time.

The overall EED ambition is to generate energy efficiency through a change in consumption behavior. However, once the meters are installed, the additional expense for a utility to collect daily or even hourly data is minimal compared to the potential this new digitalisation unlocks throughout its value chain.

A whole new level of transparency of what goes on in your distribution network and beyond your point of delivery will allow you to improve your daily operations and core tasks. You will also be able to increase energy efficiency, optimise asset management – as well as enhance end-user involvement and customer satisfaction. It all comes down to having the right tools to turn your smart meter data into knowledge you can act on.

Despite all of its potential, digitalisation in district heating will not happen automatically. It will take the joint efforts and high ambitions of technology suppliers, industry players, legislators and, most importantly, utilities to learn how to best use cutting-edge technology to put into play the data available. This will pave the way for bottom lines that are as green as they are black, ultimately also benefitting consumers and society alike.

In the meantime, we are here for the every next step of your EED journey towards improved energy efficiency and better business.