Why is electricity cheaper at night than during the day?

As you know, one of the main advantages of using smart meters is the possibility of electricity metering in real time. Why is this important? This question is answered by the Head of the Marketing and Sales Department of ADD Grup Ruslan Casico.

In modern realia, electricity is purchased hourly, even at 15-minute intervals. Accordingly, there is a great need to predict its needs as accurately as possible. Electricity, unlike other products, is difficult to store. You cannot produce it and put it in a warehouse. In the event of incorrect forecasting of consumption, the power grid will suffer serious losses and pay large fines. The fact is that the electricity accumulated in the networks and wires leads to a strong increase of voltage, which can lead to serious accidents.

“Load curves”, which depend on the time of day, days, weeks and holidays, are calculated by ADDAX smart meters  (the so-called “detailed consumption profile”), and this information is used for the most accurate forecasting.

The second important advantage of measuring equipment is the ability to control the load. Pessimistic experts predict rolling blackouts in Moldova this winter. This awaits Moldova and countries similar to ours, which are not ready to use the load management of individual consumers (unlike Western European countries). This means that one distribution transformer will work while the other one at this moment will be disconnected, which will mean no electricity for all consumers connected to this distribution transformer for a certain period of time.

The electricity metering and management system promoted by ADD Grup makes it possible to control the load individually. As an example, let’s say that in Moldova the permissible load for household consumers is 7 kilowatts. What is 7 kW? This means that a refrigerator, TV, air conditioner, oven can work in the house. However, in conditions of electricity shortage, if you turn on all these devices  at the same time, someone will not have enough voltage. Smart meters allow you to LIMIT this load during peak hours to a smaller permissible value for example 1-2 kilowatts.

Thus, in conditions of shortage, the electricity metering system allows to provide minimal access to the resource to each consumer. A detailed consumption load profile gives the user an understanding of what hours he has an overconsumption of electricity, which can then be optimized.

What are the advantages of multi-rate?

In countries where multi-rate electricity metering is used, this makes it possible to move part of the load to the period of the day when electricity is cheaper.

As the practice of Western European countries shows, a detailed load profile based on statistical data saves an average of 10% per consumer.  This is quite a lot, not only for the consumer, but also for society as a whole. Reducing consumption by 10% reduces emissions of harmful substances into the atmosphere, especially when it comes to using coal to produce electricity.

What is happening in Moldova? So far, even the presence of smart meters in our homes will not give us the opportunity to save. Savings can be significant only when the country has a multi-rate electricity metering. If at different times of the day there is a different rate, then users have the motivation to move their consumption from the zone of high rates to the zone of low rates.

Why is electricity cheaper at night than during the day? Like any other product, electricity has a cost. The highest cost is during daytime, especially during peak consumption hours, when capacities that produce this resource are loaded to the maximum. At night, when consumption is low, there is a decrease in demand. These are normal economic indicators. Therefore, in advanced countries multi-rate metering is used.

When Moldova comes to the point of buying electricity from neighboring countries on a multi-rate scheme, it will also be sold in the same manner. But so far we do not have the appropriate legislation, which should create the need for smart metering solutions.

 ADD Grup is seriously committed to changing the energy sector. The products created by the company are aimed at the efficiency of use of natural resources.

“Let’s hope that in Moldova we will come to the point of motivating users to consume more reasonably. We do not encourage people to spend less electricity, we encourage them  to use it more efficiently,” says Ruslan Casico.

And in order for this to happen, you need to have incoming data to answer the question “Why am I  still not energy efficient?” This is the only way to make this world a better place.

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