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WHAT IS A SMARTGRID?

“A Smart Grid is a rich transactional environment, a

market platform, a network connecting producers

and consumers who contract and negotiate their

mutual exchange of value (product, service) for

value (payment). A Smart Grid is a transactive grid.”

(Source Kiesling, L.)

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BACKGROUND

Global initiative to transform conventional utilities

Current infrastructure & systems cannot meet future requirements of:-

Reliability

Integration of distributed generation, renewable energy & microgrids

Low carbon footprint

Conventional model needs transformation into a decentralised and bi-directional network

To achieve transformation, utilities need to mesh an ICT network with the electricity network

The result will be a „Smart grid‟ (SG) which will be digital, intelligent, flexible, robust, adaptable, self-healing & autonomous.

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SMARTGRID DRIVERS – EUROPE

Consumption to double by 2050

Mandated GHG reduction of 20% by 2020

Mandated RE generation of 20% by 2020

Mandated reduction of 20% in energy consumption by 2020

Integration of renewable generation, distributed generation, distributed storage and micro grids in the distribution network

Energy security and reliability of supply

Electrification of road transport, EVs and electrification of heat

Reducing peak demand and expensive central generating & peaking plants

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SMARTGRID DRIVERS – EUROPE (CONT.)

Reduction in peak demand and expensive central

generating plants

Reduction in T&D expansion & losses

Reliability of supply

Increasing customer choices

Reduction in T&D losses

Increasing customer choices

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MARKET OVERVIEW-EUROPE

Smartgrid initiative in Europe driven by multiple players

Governments involved along with utilities, universities, research institutes and associated bodies like EU JRC, Eurelectric, SGTF, EEGI, EERA, Ofgem, DECC,ENA ,Tyndall Centre, ENSG, ENSF and Smart grid vendors

More than 220 Smartgrid RD&D projects are currently being implemented across Europe

These projects have been initiated to verify and validate innovative technologies and commercial models in large customer deployments before they are rolled out across Europe

The investment in these projects is around €5.5 billion up to Q4 2010

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MARKET OVERVIEW-EUROPE

EC & UK statutory bodies promoting innovative and low carbon technologies along with utilities and vendors

Low Carbon Network Fund, Ofgem and DECC have funded RD&D projects to the tune of £120 million till date

Ongoing projects :- Capacity to Customers (by Electricity North West Limited)

Flexible Plug & Play (by UK Power Networks)

Flexible Networks for a Low Carbon future (by Scottish Power Energy Networks)

FALCON (Western Power Distribution)

BRISTOL (Western Power Distribution)

New Thames Valley Vision (Southern Electric Power Distribution)

Northern Isles New Energy Solutions (NINES) in Shetland

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MARKET SIZE

Over €5 billion invested in Smartgrid projects

across Europe till 2010

The majority of the investment is in :- Smart Meters & AMI software

Integrating systems

Home applications

Distribution automation

In the lead-

Denmark, Germany, Spain, Netherlands, UK, Austri

a, Italy & Sweden

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MARKET SIZE

Total ICT Smartgrid spending across Europe will

reach $11 billion in 2012

Conservative estimates quantify Smartgrid

investments by 2020 at around €56 billion

67% of the project investment was undertaken by

DSOs/DNOs.

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MARKET TRENDS (2012-2015)

Smart Meter roll outs to reach 70 million across Europe in 2012 increasing to 200 million by 2017

Over the next 12 months the top three business solutions are- Customer Care and Billing

Asset Management/GIS &

Network Management Systems

Distribution Automation & Control will be a main focus of Smartgrid initiatives, even if AMI will continue to absorb investments

Integration of distributed generation and Microgrid management

Utilities will prioritize investments in asset management, mobile workforce management & improved analytics

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MARKET TRENDS (2012-2015)

Mobility applications will increase

Increased investment in business analytics to

support operations, customers insight, capital

investments, trading & risk management

Cloud will be considered for data management and

applications (MDM, HEM)

Utilities will look to more robust computing capacity

for handling BIG data (faster results, complex

event processing and analytics)

Demand side management will need

aggregation, dynamic pricing & trading platforms

linked to HEM systems

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MARKET OPPORTUNITY

Consultancy-SG Architecture/frameworks

Systems Integration ( NMS/ DMS/ OMS/ CIS/

MDMS/ CIS/Dynamic rating& Billing/HEMS)

Cloud-data warehousing and hosting

Dealing with Big data (volume, speed, real-time

analysis, infrastructure)

Data mining & data analytics

Integrating system expertise (Distributed

generation, storage, VPPs, microgrids)

Cyber security

M&A opportunities

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ROUTE-TO-MARKET

Phase 1

Define Value propositions aligned to target market

& opportunities

Align & build technology competence

Build strategic partnerships with Smartgrid

vendors, research labs & academia

Build & increase visibility in SG forums

Leverage & cross pollinate with other initiatives

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ROUTE-TO-MARKET

Phase 2

Become consortium partners in SG projects across Europe

Preferred & recognised vendor for SG deployment/ expertise

Initial revenue stream ~ $10-20 million

Scan M&A opportunities & growth

Explore IP creation in niche areas

Phase 3

Primary IT services player in SG Europe

Scale up annual revenues from SG to + $100million

Strategic M&A growth opportunities

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MARKET RISKS & FACTORS

Continuing economic downturn in Europe & UK

can have an impact on SG rollout timelines

Political uncertainty impacting fuel prices can

speed up SG implementation

Negative impacts hedged by the EU 20-20-20

policy mandates

Impact from Fukushima & other extreme weather

events will increase implementation of Smartgrids

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CONCLUSION

Right time to invest & grow Smartgrid IT initiatives

to address this expanding multibillion $ market.

For information/discussion/assistance contact :-

sanjay.das@dash-itsystems.com

Ph: +44 7855420610;+44 1189547923

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