Лоренцо Коловини, Enel Disttibuzione

Who Wants to Be Smart?

Moscow, November 19th 2013

Lorenzo ColoviniInternational Business Development, Russia, CIS, BalticEnel Distribuzione SpA

Outline

� Enel Group. Who we are

� Italian case history

� Smart metering projects on the Russian network: what

conditions need to be met for a widespread deployment?

2

Presence in:40 countries

Connection Points:61 mln

Listed on:Milano SE (1,3 mlnShareholders)

Enel: an International energy operatorItalian Core. European Base. Global Strategy

Installed capacity:97.800 MW

Annual output:295,7 TWh

Energy distributed:434 TWh

Employees:

3

EBITDA:16,7 bln €

< 500 MW < 1.000 MW < 2.000 MW < 10.000 MW > 10.000 MW

Representative offices, financial holdings, operative branches, commercial

companies

1st utility in Italy, 2nd largest in Europe by installed capacity.Present throughout the entire electricity and natural gas value chain

Employees:73.700 (< 50% in Italy)

NG Prospective Resources

NG Reserves *MMboe: Million Barrels of Oil Equivalent year-end 2011

Uso: pubblico

Enel networks positioningAreas of presence in Distribution Businesses as of 2012

COLUMBIA

• Second operator in distribution (24%)

• 2,4mln conn. pointsPERU

• Second operator in ROMANIA

•1,81 mln km lines

•430 TWh Energy Distributed

•61 mln connection points

4

ARGENTINA


• 2,3 mln conn. points

CHILE

• First operator in distribution (32%)




SPAIN


• 13 mln conn. points

ITALY


• 31,6 mln active conn. points



BRAZIL


A global energy player with a leading position in strategic markets

� 4 Field Ops Areas

� 11 Control Centers

� 18.600 Employees

� 1.4 mln km of lines

� 2.100 HV/MV Substations

� 4 Field Ops Areas

� 11 Control Centers

� 18.600 Employees

� 1.4 mln km of lines


Electricity NetworksElectricity NetworksBusiness AreaBusiness Area

The World’s second largestnetwork operator

Infrastructure and Networks DivisionKey information

Public LightingPublic LightingBusiness Area Business Area


� 432.000 MV/LV Substations

� 34 million customers


� 432.000 MV/LV Substations

� 34 million customers

� 5 Local Branches

� 330 Employees

� 1.9 mln Spot-lights

� 4.000 Municipalities served

� 5 Local Branches

� 330 Employees

� 1.9 mln Spot-lights

� 4.000 Municipalities served

Million customers

km network

(x 1.000)

Italian experience as the Enel Group benchmark5

Enel operational excellence: the Italian caseA 10 year path towards becoming the European benchmark

• Quality of Services

• Cost reduction

• Customer Satisfaction

• Efficiency in Maintenance

6

Opex reduction: - 40 %Quality of service: +65 %

2010201020112011

QoS(minutes)

• Efficiency in Maintenance

• Optimization of Financial

Resource Allocation

(42 min, 48 €/Customer)

Outline



� Smart metering project on the Russian network: what

conditions to be met for a widespread deployment?

7

Uso: pubblico

Remote activities & Readings(mln)

Enel Automatic Meter SolutionsItalian pioneering experience and leadership for successful implementations

2001-2006: Italy- 37 mln Smart Meters installed and managed

260270

336

2011-2015: Spain -13 mln Smart Meters deployment

Achievements/Targets

•14 years ahead of EU targets

2004

13

142

187

2005 2006

96

3.5

5.7

2007

12

2008

19

2009 2010

15

•14 years ahead of EU targets

• 38+ mln smart meters already in operation , 50+ mln in 2015

• The largest and most ambitious Automatic Meter Management roll-out worldwide

• Flexible, reliable/ field proven, robust, secure solution

• Support to liberalized Market

• Smart Grids functionalities

9

0.9

9

� Telegestore is fully operational on > 33 Mln Enel Customers with

� Leading Technology

� Proven excellence in operation

� The only fully operational system of such a large scale

� It is modular:one can choose only the functionalities he needs

� Completely scalable, supporting horizontal scalability (the

Enel Automated Meter Management SystemsTelegestore and Cervantes

9

� Completely scalable, supporting horizontal scalability (the

capability of managing an increase in the number of requests by

adding nodes to the System deployment infrastructure) and Vertical

capability of managing an increase in the System resources needed

to serve each request by adding HW resources to each System node)

� Cervantes is already operating on 2 ML meters in Endesa

Spain (13 ML end of the project in 2014).

�� New generation of robust and reliable PLC communicationsNew generation of robust and reliable PLC communications

�� Optimized relation of features versus costsOptimized relation of features versus costs

�� Automatic detection and meters commissioning based on Automatic detection and meters commissioning based on

installation and grid topology changes (installation and grid topology changes (Plug&PlayPlug&Play) )

Enel AMI – Automated Metering Infrastructure

PLC Architecture (New Generation)

Inexpensive, simple, manageable, effective

AMI System Control Centre

[Back-End system]

GPRS or otherTELCO

PLC 4.8* kbps

Data Communication

Centre

* 28,8 kbps theoretical threshold

HomesOffices

Smart Meter

Data Concentrator

(MV/LV Stations)

All metering new assets are installed and managed/integrated by the DSO

10

PLC communication (meter - concentrator)

� Cervantes uses the open protocol Meters and More, an evolution of Italian Telegestorepurposely tailored to PLC communication.

� Very effective in communication: meters can be directly engaged by the concentrator within a 2 km reach and can act as signal repeaters, allowing up to seven repeat steps

� The concentrator (CERCO) acts as initiator of the communication from the meters in a master- slave logic

� DLC communication speed: 4800 bit/s

repeat steps

PLC 4.8

kbps

GSM/GPRS communication (concentrator - AMM)

� The communication between the concentrator and the AMM Control Centre can beactivated by both ends.

� The concentrator communicates with the AMM Control Centre via TCP/IP.

� The primary connection is obtained through PPP (Point to Point Protocol) using CHAP(Challenge Authentication Protocol). A serial port is connected to a GSM (or similar)modem. PPP is password protected: a username and a password are coded in theconcentrator to establish and authenticate the communication.

GSM/

GPRS

GSM/

GPRS

Main system features serving the DSODSO and Electric Power Systems

•Remote meter reading

•Remote work order management

•Remote Load Profile reading and load limiting

•Bad payers management

•Tailored tariffs and TOU tariffs

•Support of free market development – trader

13

New tools for effective distribution operation

management

switching in real time and effective billing

•LV quality monitoring and service quality data

collecting for network management

•Energy Balancing

•Fraud detection tools (both onsite and from

remote)

Focus on energy balancing

Reduction of commercial and technical losses

Concentrator+

MV/MLSubstation

Technical

Σ EnergyBilled

Energy balance every 15 minutes (Syncronous reading between meters and transformer)

• Reduction of grid-losses

• Localization of energy fraud & theft

• Local Energy balance

• Planning of the LV Distribution Grid

Commercial Losses

+ Smart Meter

Technical Losses

Total Energy

Invoiced≠

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

0.15

1.00

1.45

2.30

3.15

4.00

4.45

5.30

6.15

7.00

7.45

8.30

9.15

10.0

0

10.4

5

11.3

0

12.1

5

13.0

0

13.4

5

14.3

0

15.1

5

16.0

0

16.4

5

17.3

0

18.1

5

19.0

0

19.4

5

20.3

0

21.1

5

22.0

0

22.4

5

23.3

0

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

AttivaBil

AttivaSom

DiffAttiva

Wh

Wh

Operational and financial improvements

Curtailment functionality instead of outright cut-offs

Minimum allowed for key social

reasons

Po

wer allo

wed

-80%

-60%

-40%

-20%

Minimum social protection

15

1 2 3 4 5 6

Full power availability Illustrative Example

Po

wer allo

wed

Increasing shortage of supply brings to a selective stop of home

appliances

Low Voltage Electronic Meters

CERM1 Single phase meter equipped with 80A latching relay

Type Description Certifications

MID

GOST

CERT1

CERS1

Polyphase meter equipped with 80A latching relay

Polyphase meter for semidirect connection (current transformers).

Used for power higher than 30 kW, up to 400 kW.

Meter average lifetime:

Meter failure rate:


Meter failure rate:

15 years

< 0,3 % year

15 years

< 0,3 % year


Meter failure rate:

15 years

< 0,3 % year

MID GOST

MID GOST

CERM GOST Certifications

CERM1

CERT1 & CERS1

(in progress)

The Cervantes meters

LCD display 16 characters+ 15 iconsPossibility ofRussianlanguage

DIN-Standardterminal block

Optical portIEC 62056-21

18

• bidirectional• remote supply disconnection with automatic rearm• remote programming and initialization of tariff system and contractual parameters• customer available power threshold remotely programmable• display of consumption data and other communication • voltage interruption recording• supply voltage variation recording• self diagnostics • fraud detection/anti-tampering functions• phase inversion immunity• support of downloading procedure and able to work also “stand alone” • load modulation procedure support • implementation of event register (e.g. quality of service parameters)• enabled to interact with in-home devices

The CERCO1 supports four main applications:

1. Aggregation of data from the meters and subsequent transfer to the AMM Control Centre at established frequency or upon specific AMM request

2. Performing of remote operations on meters upon AMM request (e.g. Deactivation, Tariffs or contractual changes)

3. Alarm signal detection for communication problems, meter tampering, metering failure. Communication of these signal to the AMM Control Centre

4. Remote firmware download for electronic meter and CERCO1

Concentrator features

4. Remote firmware download for electronic meter and CERCO1 software upgrade

It is normally installed in MV/LV substations, with protective boxes when on-poles substations

Outline



� Smart metering projects on the Russian network: what

conditions need to be met for a widespread deployment?

20

Q: Smart grids are fashionable but is it

possible to implement them withoutfirst adopting an automatic smart metering solution?

Smart grids without smart meters?

21

A: In our experience an AMI solution is the

forerunner to smart grids. It would be impossible to conceive smart grid functionalities without automating customers first.

The main issue of an AMI system is the initial investment which has a high impact on overall cost model. This issue can be overcome through systematic and long-term policies involving all the stakeholders.

The importance of defining meter ownership

Currently in the RF, meters can belong to any of these four subjects:

Retail company Others(e.g. building blocks)

Final customerUtility

22

This situation represents an obstacle for the following reasons:

1. It leaves the question open of who is responsible for investing in this innovation, delaying or even preventing investments, especially in cases of household ownership.

2. There is little possibility to execute large scale projects and therefore take advantage of economies of scale.

3. Savings for a utility who chooses to implement a smart metering system are obtained by the possibility to control all customers.

4. Some features are not possible to implement on only a portion of customers (e.g. energy balance)

It would be more cost effective to simply foresee the download of the data on a regular bases, eliminating the need for large storage capacity

Common oversizing in meter requirements/1Suggestions and tips to streamline investments

Large data storage capacity

Common requirements that increase costs and affect the reliability of the meter:

23

capacity

The possibility to insert different communication modules (for PLC, RF, etc.) increases the cost of the meter by up to 60% and gives only a theoretical benefit

Modularity

Meters should record events that affect the quality of service (e.g. SAIDI, SAIFI), like voltage drops and/or the overstepping of standard voltage range (+/- 10%).

Recording complex and sophisticated data, such

Recording of anomalies in

supply

Common requirements that increase costs and affect the reliability of the meter:

Common oversizing in meter requirements/2Suggestions and tips to streamline investments

24

Recording complex and sophisticated data, such as the duration of voltage dips and their depth,dramatically increases the complexity of the firmware while benefits are purely theoretical

Frequency is the same at all points of the network, therefore it can be recorded at any point of the network, it makes no sense to re-measure it at the meter level when the DSO is not responsible for maintaining the stability of network frequency

supply

Measurement of

frequency

Can there be a successful smart meters deploymentwithout a regulatory push?

Regulation vs. Implementation

25

Thank you for yourattention

Moscow, November 19th 2013

International Business Development, Russia, CIS, Baltic

Enel Distribuzione SpA