Imraan MohamedMarketing Manager

ITRONSouth Africa

Case studies - Smart Meter Project Implementation & rollout– Lessons learnt from

Europe, US and Africa.

• CONTEXT FOR SMART METERING

• Key Drivers for Smart Metering.

• Smart Meter Global Deployment Map Snapshot.

• Recap on Terminology

• CASE STUDIES (US,Europe, Africa)

• Europe: EDF, Netherlands, UK

• North America: US/Canada

• Africa: South Africa

• EMERGING TRENDS & SOME LESSONS LEARNT

• CONCLUSION

• Prestige

Electricity Smart Metering Key Drivers

• Supply-side shortage

• Revenue Protection: Fraud

• Revenue Collection: Prepayment

• Market Deregulation• Energy Efficiency• Distributed generation• Architecture for Smartgrid• Deferred Generation Capacity Investment or Supply-side shortage.

Smart Metering (AMI) & Prepayment Deployment Snapshot

AMI Active

AMI Imminent

AMI Planning

Prepayment Active

Prepayment Active & AMI Planning

AMI/ Prepayment Planning

Prepayment Planning

First - Clarify Some AMI Terminology

System(s)GatewayProduct+Interface Communication

Data Collection,& AMI Systems

LAN

Create/Local Manage

Route

WAN orBack-Haul

HAN

CIU

Collect

Other applications

Manage

BACK END

CASE STUDIES

• Europe

• France

• Netherlands

• UK

• North America

• South Africa

Case study. France. ErDF

1) Market Drivers• Market deregulation• To allow new resellers• Architecture for smart grid• Energy efficiency,

1) Market Drivers• Market deregulation• To allow new resellers• Architecture for smart grid• Energy efficiency,

2) Pilot• Date Installation: 2010• Quantities : 300 000

meters• 2 areas: Lyon and Tours (

Urban and rural)• 3 suppliers for meters &

communication:• Supplier 1 & 2: 100 000

meters 3500 concentrators• Supplier 3: 100 000 single

phase meters only• 1 supplier for system and

integration (ICT)• Technical aspects:

• PLC for LAN : sFSK 2400 bites/sec

• GPRS for WAN

2) Pilot• Date Installation: 2010• Quantities : 300 000

meters• 2 areas: Lyon and Tours (

Urban and rural)• 3 suppliers for meters &

communication:• Supplier 1 & 2: 100 000

meters 3500 concentrators• Supplier 3: 100 000 single

phase meters only• 1 supplier for system and

integration (ICT)• Technical aspects:

• PLC for LAN : sFSK 2400 bites/sec

• GPRS for WAN

3) Mass Deployment• Deployment Date: 2012• Quantities: 35 000 000 points• Functionalities• 2 tariffs bank: one for

distributor, one for the reseller.• 4 Quadrant meter• Integrated contactor 100 A• Local communication for

installation and commissioning Euridis II

• LAN communication: PLC sFSK PLAN

• Local link for end user: one way RS 232 type

3) Mass Deployment• Deployment Date: 2012• Quantities: 35 000 000 points• Functionalities• 2 tariffs bank: one for

distributor, one for the reseller.• 4 Quadrant meter• Integrated contactor 100 A• Local communication for

installation and commissioning Euridis II

• LAN communication: PLC sFSK PLAN

• Local link for end user: one way RS 232 type

Electricity

Case study. ErDF. TimelineElectricity

Case study. Netherland.

Feedback

• Dutch Senate rejected proposed legislation including a compulsory roll out of smart metering for reasons of privacy and security. Proposed legislation and smart meter standards are now being revised.

• Compatibility and interoperability issues to be addressed. Collaborative effort with parties in energy sector defining the functionalities of the smart meter: National Technical Agreement(NTA 8130).

• In the mean time Oxxio (4th largest energy supplier)has installed 100 000 residential smart meters!

Feedback

• Dutch Senate rejected proposed legislation including a compulsory roll out of smart metering for reasons of privacy and security. Proposed legislation and smart meter standards are now being revised.

• Compatibility and interoperability issues to be addressed. Collaborative effort with parties in energy sector defining the functionalities of the smart meter: National Technical Agreement(NTA 8130).

• In the mean time Oxxio (4th largest energy supplier)has installed 100 000 residential smart meters!

Electricity Gas

Key Drivers• Energy saving objectives consistent with EU Directive about Energy Efficiency.

• Realize cost savings through more efficient network operations and data exchange

• Simplicity for the end consumer.

Key Drivers• Energy saving objectives consistent with EU Directive about Energy Efficiency.

• Realize cost savings through more efficient network operations and data exchange

• Simplicity for the end consumer.

Case study. Netherlands Timelines

Case study. United Kingdom

Key requirements• Complex tariffs• Remote software and

firmware upgrades • Real-time data to consumer• Load management in the

meter• Remote disconnection

/reconnection• Smart

payment/prepayment• Micro-generation and

export energy

Key requirements• Complex tariffs• Remote software and

firmware upgrades • Real-time data to consumer• Load management in the

meter• Remote disconnection

/reconnection• Smart

payment/prepayment• Micro-generation and

export energy

Market• Large prepayment segment

(>5 million)• Dual fuel (electricity + gas)

-> 47 Million meters

Market• Large prepayment segment

(>5 million)• Dual fuel (electricity + gas)

-> 47 Million meters

Drivers• Moderate consumption at

peak times• Boost energy efficiency• Reduce carbon emissions

• Transform customer experience

• Evolve prepayment to smart payment

Drivers• Moderate consumption at

peak times• Boost energy efficiency• Reduce carbon emissions

• Transform customer experience

• Evolve prepayment to smart payment

Feedback from trials• Consumers very positive

about in-home devices, ability to monitor consumption, ability to pay directly through the device

Feedback from trials• Consumers very positive

about in-home devices, ability to monitor consumption, ability to pay directly through the device

Electricity Gas

Case study. North America

Market• North America has the largest installed

base of smart meters in the world• > 65 Million contracted end points in

the US & Canada (2008 to 2015) –Pike research

• Multi-Energy (electricity + water+ gas)

Market• North America has the largest installed

base of smart meters in the world• > 65 Million contracted end points in

the US & Canada (2008 to 2015) –Pike research

• Multi-Energy (electricity + water+ gas)

Drivers• Demand Management.• Market deregulation.• Operational efficiency• Energy Efficiency.

Drivers• Demand Management.• Market deregulation.• Operational efficiency• Energy Efficiency.

Feedback from trials• RF is preferred technology. • Less sensitive to interoperability issues as

smart metering systems can be in independant networks.

• Deployment schedules a major challenge [4000 to 12000 meter installations per day!]

Feedback from trials• RF is preferred technology. • Less sensitive to interoperability issues as

smart metering systems can be in independant networks.

• Deployment schedules a major challenge [4000 to 12000 meter installations per day!]

Electricity Gas Water Heat

Case Study. South Africa

Key requirements• Specified in NRS049

standards.• Complex tariffs• Real-time data to consumer• Load restriction in the meter• Load management• Remote disconnection

/reconnection• Smart payment/prepayment• Split metering• Micro-generation and export

energy considerations. (Solar panels)

• Remote software and firmware upgrades

• Modular communication options

Key requirements• Specified in NRS049

standards.• Complex tariffs• Real-time data to consumer• Load restriction in the meter• Load management• Remote disconnection

/reconnection• Smart payment/prepayment• Split metering• Micro-generation and export

energy considerations. (Solar panels)

• Remote software and firmware upgrades

• Modular communication options

Market• High-end Residential Customers

using >1000kWh p.p. (est. 670,000)

• What about Commercial and Industrial customers who contribute to the morning peaks?

Market• High-end Residential Customers

using >1000kWh p.p. (est. 670,000)

• What about Commercial and Industrial customers who contribute to the morning peaks?

Drivers• Generation Supply Shortage • Revenue Protection Issues.• Energy efficiency (PCP)

Drivers• Generation Supply Shortage • Revenue Protection Issues.• Energy efficiency (PCP)

Feedback from trials• Many POC’s and pilots running. (from 10

meters to >20,000 meters) with many different vendors.

• Lack of available unified smart metering standards encompassing both prepayment and post payment needs. (Full interoperability)

• RF, PLC, Long wave Radio solutions.• Many proprietary solutions installed.• Lack of sufficient funding limiting pilot size• Lack of end consumer involvement

Feedback from trials• Many POC’s and pilots running. (from 10

meters to >20,000 meters) with many different vendors.

• Lack of available unified smart metering standards encompassing both prepayment and post payment needs. (Full interoperability)

• RF, PLC, Long wave Radio solutions.• Many proprietary solutions installed.• Lack of sufficient funding limiting pilot size• Lack of end consumer involvement

Legislative changes for smart metering in South Africa

Aims to minimise electricity load shedding and blackouts through compliance with

all the technical and operational requirements for electricity networks

Electricity Regulation Act of 2006

Initial Timeframe

Deadline for implementation: Jan 2012

Targeted Market

Residential Consumers:1000KWh of electricity consumption per month

Definition of a Smart Meter

Contained in NRS049 smart meter specification.Being reviewed presently.

2008 20122010Beginning of smart metering rollout

Completion of smart metering rollout

Previous deadline for implementation

Rollout

Period

Estimated 700kcustomers

Main challenges for the implementation of smart meters in South Africa

Communication Infrastructure Development

South African Smart Metering Market

Delivery Time

Delivery Time

Price Competitiveness

Long Term Product & System Compatibility

1

2

3

4

5

6

7

8

9

10

Skills Shortages

After Sales Service and

Support

Clear Strategy (Tariffs,

Load management,

Load limiting, funding)

BEE Compliance User Friendliness

Project Roll-Out - AMI Project Delivery Cost Drivers

Cost DriversCost

Drivers

Project DurationProject

DurationEndpoint Qty & MixEndpoint Qty & Mix

Run vs. OperateRun vs. Operate

Installation ManagementInstallation

ManagementTesting &

Acceptance

Testing & Acceptance Performance

Levels (SLA)

Performance Levels (SLA)

Architecture & IntegrationComplexity

Architecture & IntegrationComplexity

Organization Size & Project

Complexity

Organization Size & Project

Complexity

It’s much more than a technology choice!

EMERGING TRENDS

Where are we Today? UTILITY CHALLENGES

� Supply Capacity Shortages linked to tariff increases.

� Energy Efficiency directives.

� Accelerated Electrification Programmes. (Africa, South America, Asia)

� Increased need for Revenue Protection

INDUSTRY CHALLENGES

� Standardisation taking longer and issues not fully understood.

� Convergence of Technology well progressed but not fully there in totally inter-operable manner.

� Funding Issues - Many AMI Pilots planned but delayed.

END CONSUMER CHALLENGES

� Need to be convinced of benefit and savings to them.

� Concerns about security & privacy

� Lack of involvement/education.

EMERGING TRENDS

� Initial expected deployment (2005-2010 projections) of smart metering not materialising.

� There are Large number of “Pilots” of varying sizes in progress to evaluate impact and learn while technical, legal and social issues are addressed. A significant slowing down of execution indicating a cautious approach.

� Initial lack of sufficient end consumers engagement and lobbing. (Dutch situation a case in point). Other pilots now improving on this (eg, UK), Wide selection of CIU’s and web portals emerging for end consumer use to allow understanding of how they can contribute/benefit in the smart metering initiatves.

� Economic Barriers

� There are many parties involved, and the benefits of smart metering may accrue to parties than do not necessarily bear the costs

� Large scale AMI deployments are very long and costly. Opposition from regulators to increase the tariffs and ask final users to pay for it.

� Business case Justification or target segment strategy not always clear.

� Funding Issues - Many AMI Pilots planned but delayed.

EMERGING TRENDS

� Legislation Barriers

� Technical barriers coupled with some advances in smart metering system technology.

� Lack of interoperability between different smart meter systems. No open registered standards exists which properly scopes all of the different functions (metering, communications, presentation,and network).

� Availability of multi vendor Technology modularity progressing especially in larger scale multi-vendor pilots. (Eg EDF)

� Small pilots with single vendors and proprietary solutions are a“No go”, especially while issues like standardisation and required functionality are still work in progress.

� Lack of skilled resources and general capacity to deploy projects on a large scale without proper planning and prior to evaluation of pilot results.

Technical Challenges of Smart Metering

• Interoperability

• System connectivity

• Building networksCommunication media agnostic

• Combating fraud

• End-to-end Approach

21

• CIM• CIM

• Split Metering

• Load Balancing

• Data Analysis

• Split Metering

• Load Balancing

• Data Analysis

• IDIS

• STS

• IDIS

• STS

• Power Line Carrier

• GPRS

• Radio, other, future

• Power Line Carrier

• GPRS

• Radio, other, future

G

Create

Collect

Manage

Utilise

Create

Collect

Manage

Utilise

AMRAMR

AMI

Smart Grids

• Meter Reading Cost & Efficiency• Meter Reading Cost & Efficiency

• Revenue Cycle Improvements • Revenue Cycle Improvements

• Operational Improvements• Operational Improvements

• Voluntary Time Based Rates / Opt In• Voluntary Time Based Rates / Opt In

• Revenue Protection / Theft Detection• Revenue Protection / Theft Detection

• Outage Reporting• Outage Reporting

• Support for SmartGrid• Support for SmartGrid

• Mandatory Time Based Rates / Opt Out• Mandatory Time Based Rates / Opt Out

• Remote Disconnect / Prepayment• Remote Disconnect / Prepayment

• Demand Response • Demand Response

• Enterprise Meter Data Management• Enterprise Meter Data Management

• Smart Meter• Smart Meter

• TOU / Demand / Net Metering• TOU / Demand / Net Metering

• RTP / CPP / Hourly Rates• RTP / CPP / Hourly Rates

• New Products & Services / Voluntary TOU• New Products & Services / Voluntary TOU

• Home Automation• Home Automation

Walk

-by

Walk

-by

Drive-by

Drive-by

Fixed N/W

-AMR

Fixed N/W

-AMR

2-Way

2-Way

Open P

roto

cols

Open P

roto

cols

Changing Requirements

Open SolutionsSolving one the Technological Challenges

• IDIS – Interoperable Device Interface Specification

• DLMS/COSEM – Industry-standard metering

communications

• STS – Standard TransferSpecification

• ZigBee – Smart Energy Profile

• M-Bus

• …

An Image From The Real World ….

• “Gudrun” storm hit west Sweden in January 2005, during a smart meter project implementation phase.

• 25,000 metering points were affected for 9 months, with lots of consequential impacts.

• Supplier had project responsibility, but Utility could not restore their poles quickly in mid-Winter.

How To Decide Whether To start with an AMI & With What ?

• Well defined drivers to implement AMR / AMI today.

• Well defined performance level requirement.

• Carefully evaluated life cycle costs of the solutions available,which meet this performance requirement.

• Risk assessment: supplier, technology, environment, deployment, customer acceptance, security, …..

• Potential future additional requirements of the system.

• Learn from Experiences from all around the world.

• Need industry to evaluate what is happening and “steer the ship in the correct direction”

This decision should logically be based on the following:

“The only way to meet the energy demand in a carbon constraint environment is through government policy and regulation but Politics is more difficult than Physics”

Clay Sell ( Deputy secretary DOE – US)

CONCLUSION