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Delivering successful smart metering projects in Asia
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At a conservative estimate, 90 million to 130 million smart meters will be installed worldwide every year until 2022,1 at a cost to power and utility companies estimated at US$62b.2 The overall investment in the smart meter rollout, including deployment of field forces, could be three times this figure.
In the Asia-Pacific region, smart meter installations are expected to soar to 380 million units by 2016, led by China. Across the Chinese continent, the rationale for smart meters is integral to the success of the country’s smart grid vision.3 Meanwhile, Australia has shifted its approach toward its Government-mandated smart meter rollout, now favoring a consumer-driven program after strong criticism stemming from cost overruns. South Korea has adopted a national plan to roll out smart meters to all residential customers by 2020.4 Several leading utilities in Japan are moving ahead with plans to deploy 80 million smart meters by 2021.5
But we also know that managing this transformational effort presents major strategic, operational and technological challenges. Smart metering programs are complex because of the sheer scale of change required and ongoing uncertainties, such as regulation and shifting supplier market offerings.
In addition to major logistics issues, there are complex impacts on the energy supply chain, technology and data handling, and the whole customer experience. This presents utilities with multiple new challenges, for which they need to develop new expertise.
EY has the experience and capabilities to help utility companies deliver successful smart metering projects. Our power and utility professionals, many of whom have deep and proven smart meter experience, are highly experienced in managing complex transformations. Our multidisciplinary approach encompasses strategy and business case management, project financing, regulatory control, supply chain and procurement, complex IT solution definition and deployment, and customer management. We share our experience and insights from around the world to help our clients avoid typical pitfalls and deliver benefits quicker.
In addition, by retaining our independence, EY is able to gain detailed perspectives and take a holistic view. We purposefully maintain our independence and have no interest or conflict,
Smart metering: major challenge for utilities in Asia
1. Smart Meters: Smart Electric Meters, Advanced Metering Infrastructure, and Meter Communications: Global Market Analysis and Forecasts, published 3Q 2013. Navigant Research. ©2013 Navigant. Consulting, Inc., Source table 5.3, p69.2. ibid; figure aggregated from source tables 5.7, 5.8, 5.9, 5.10 and 5.11, pp 72–76.3. “Smart Metering in North America and Asia-Pacific,” Berg Insight, www.berginsight.com/ReportPDF/ProductSheet/bi-smnaap2-ps.pdf?bcsi_scan_debb0e326e6a7dd8=0&bcsi_scan_filename=bi-smnaap2-ps.pdf, accessed 19 November 2013.4. “South Korea Guns for Smart Grid Finish Line,” Greentechgrid website, www.greentechmedia.com/articles/read/south-korea-guns-for-smart-grid-finish-line, accessed 26 November 2013.5. “Tepco Picks Mitsubishi Electric, Others as Smart-Meter Providers,” Bloomberg, www.bloomberg.com/news/2013-11-14/tepco-picks-mitsubishi-electric-others-as-smart-meter-providers.html, accessed 26 November 2013; “Itron Announces Alliance with Panasonic to Deliver Smart Metering Solutions in Japan,”Itron website, http://investors.itron.com/releasedetail.cfm?ReleaseID=721914, accessed 26 November 2013.
Delivering successful smart metering projects in Asia
Why choose EY?We have the right “smart” people
Our multidisciplinary know-how helps create value for you
We have deep industry knowledge
We are truly independent
“ Smart meters will transform our business and our relationship with the customers. We selected EY as a partner to help drive our smart meter transformation. Through their global smart meter experience, they are helping us to deliver value to our shareholders and customers.”
Neil Pennington RWE npower
Smart Programme Director
financial or otherwise, in any of the smart metering/smart grid products or services for sale, either as an internally managed or outsourced solution.
Our role is simply to help our customers make the best decisions by providing sound, independent and unbiased advice, gleaned from a global vantage point.
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EY is a leading utility advisor and is engaging with forward-thinking businesses and communities on pioneering smart metering programs around the world.
Our global smart network has the knowledge and experience to guide utilities with a multidisciplinary approach that covers the whole change journey.
We work with clients to:
1. Define smart meter strategy and develop the business case: We can help you build a robust business case for smart metering, with the flexibility to respond to local regulatory and economic factors, while keeping costs under control and delivering the benefits you seek.
2. Build a positive experience for customers and drive future revenue: We help clients engage practically and operationally with customers, to secure long-term value from smart; communicate effective messages; prioritize smart meter rollout by segmenting the customer base; extract value from the big data and redesign the back office to fit smart requirements.
3. Define the optimum supply chain for an efficient, reliable smart meter rollout: We can help you select, contract and manage supply chain partners to control the primary costs of the smart metering rollout. We are independent of any single technology solution and have deep experience in meters, field forces and technology solutions.
4. Change the business to be smart enabled: We help define and implement solution and process architecture for smart, focusing the business process design on key value drivers. We help clients to plan and run a smooth transition to a smart metering environment, preparing contact center and field forces for new ways of working.
Advice throughout the “smart” journey
Delivering successful smart metering projects in Asia
“ We have worked with EY as our advisory partner for smart metering since 2010 to help us through our entire program journey from strategy to implementation … EY has been instrumental to the success of the program so far and we particularly value their breadth of expertise, fresh perspective on smart metering based on their global experience and their independence from technology providers.”
Jim Poole Director of B2C, EDF Energy
Our advisory services encompass four key areas of change
Source: EY
What is the cost/benefit model?
How do we build a positive experience for the customer and drive future revenue?
How can we change the business to be smart enabled?
What is the optimum supply chain for an efficient and reliable smart meter rollout?
Build
ing
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cust
omer
eng
agem
ent
and
inst
alla
tion
Competin
g for a
share
of th
e “home”
Converting big data
into customer value
Selecting the right delivery partnersacross the value chainOptimizing the
number of successful
installations per day
Securing meter
availability and
affordability
Guar
ante
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y an
d pr
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y
Enga
ging e
ffecti
vely
with th
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to
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Implementing new
technologies at scale
Managing regulatoryand market uncertainity
Obtaining best
available funding
Building confidence in
the business case
Supply Ch
ain
Busi
ness
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engagement
and fin
ance and value
Business changes —
technology and
processes
Smart strategic
considerations
Smart contacts at EYOur worldwide network includes more than 27,000 Advisory Services and 3,000 Power & Utilities professionals. We have global experience in smart metering and grid implementation, advising utilities and governments worldwide. To discuss your needs, please get in touch with your usual EY contact, or one of our team members below.
Benoit Laclau Global Advisory Power & Utilities Leader London, UK [email protected] +44 20 7951 8453 @BenoitLaclau
Alain Bollack Global Smart Metering Lead London, UK [email protected] +44 20 7951 7147 @bollack
Paul Micallef Global Smart Metering Technical Lead London, UK [email protected] +44 20 7951 4500
Global
Asia-Pacific
About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
About EY’s Global Power & Utilities CenterIn a world of uncertainty, changing regulatory frameworks and environmental challenges, utility companies need to maintain a secure and reliable supply, while anticipating change and reacting to it quickly. EY’s Global Power & Utilities Center brings together a worldwide team of professionals to help you succeed — a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant sector issues. Ultimately it enables us to help you meet your goals and compete more effectively.
© 2013 EYGM Limited.All Rights Reserved.
EYG no. DX0226CSG/GSC2013/1222661ED None
In line with EY’s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content.
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
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Stuart Hartley Asia-Pacific and Australia Advisory Leader [email protected] +61 3 9288 8646
China Xiaoping Zhang [email protected] +86 21 2228 2660
India Guru Malladi [email protected] +91 124 464 4188
Asean Richard Keany [email protected] +61 3 9655 2933
Indonesia Hari Purwantono [email protected] +62 21 5289 4327
South-Korea In Sang Yoo [email protected] +82 2 3787 6533
