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1 Smart Grids drive integration of utilities and ICT infrastructures

Smart Grids drive integration of utilities and ICT infrastructures


1. Introduction 3 1.1. Executive summary 3 1.2. Why Nokia Siemens Networks? 4 2. Market view 5 2.1. Market trends 5 2.2. Facts and figures 5 2.3. Regulatory and legislative environment 5 2.4. Environmental aspects 6 2.5. Summary 6 3. ICT in utility networks 7 3.1. Communications backbone 7 3.1.1. Providing carrier grade reliability 7 3.1.2. Evolving to packet technology 8 3.2. Key applications 9 3.3. Control and management systems 10 3.3.1. Data collection and forwarding 11 4. Leveraging Telco capabilities and assets 12 4.1. Breaking down the silos in utility network management systems 12 4.1.1. Open EMS Suite modeling capabilities 13 4.1.2. Application functionality 13 4.1.3. Third party application development capabilities 13 4.2. Charging solutions help maximize revenue opportunities from Smart Metering 14 4.2.1. An effective solution for Smart Metering 15 4.3. Analyze and anticipate customer behavior in real-time 16 4.4. eMobility: proven technology helps address ICT requirements 17 4.5. Managed services improve efficiency and reduce risks for utilities 17 5. Conclusions 18

Smart Grids drive integration of utilities and ICT infrastructures


1.1. Executive summaryThis paper addresses some of the major Information and Communication Technology (ICT) challenges that energy utilities face in adopting Smart Grids. These challenges go beyond the traditional requirements to provide highly robust and resilient communications systems with failsafe redundancy mechanisms.

As energy utility networks evolve from centralized to distributed architectures, bidirectional communications become critical to efficient operations. Effective bidirectional communications can help to provide energy generation on demand, as well as reduce peak loads through intelligent energy consumption in enterprises and households. Smart Grids are also driving the integration of utility and ICT networks. And as these two different infrastructures converge there are opportunities for energy utilities to leverage proven experience and assets from the Telco world.

For instance, Smart Metering applications will create a trickle of information that very quickly turns into a data flood. But merely collecting and storing these increased data volumes is not enough for energy utilities. They need to be able to process the received information in near real time - and act on the results. Many of the world’s most successful Telco operators rely on Nokia Siemens Networks’ solutions to analyze and anticipate customer behavior. Utilities can use the same proven technology to differentiate their offerings through innovations in service creation and customer service – for example, by creating ‘smart tariffs’. And our next generation network management systems can also help utilities to bridge the organizational silos that have been built up as legacy networks have evolved slowly over time.

1. Introduction

eMobility (transportation based on plug-in electric vehicles) is another area where Telco capabilities can provide added value to utilities. Vehicle charging will happen at different locations and using multiple service providers - but offering a convenient customer experience is essential. In order to provide payment and customer services consolidated through a single provider, identification, authorization, and roaming functionalities are needed. These functionalities are well established in mobile communications and Nokia Siemens Networks is a market leader in this area. Our networks handle huge volumes of data and connect over 1.5 billion customers around the world. Smart Grids, Smart Metering, and eMobility all have the potential to disrupt existing value chains and bring new competitive forces to the utilities market. Now, more than ever, energy utilities need trusted partners who can help them to transform their operations and adapt to new business models.


1.2. Why Nokia Siemens Networks?Nokia Siemens Networks has inherited a strong legacy from our parent companies. From Siemens we can draw on extensive experience across the entire energy value chain and from Nokia we gain insights into the latest communications trends, mobile devices and consumer behavior. Nokia Siemens Networks itself has proven capabilities from the Telco world that can help utilities as they adopt Smart Grids:

Nokia Siemens Networks also demonstrates leadership through sustainable business practices:

1) Bonding is a process by which several Very High Speed Digital Subscriber Lines (VDSL) can be virtually combined to expand the reach and bandwidth of the copper access network. For more details, see: http://www.nokiasiemensnetworks.com/press/press-releases/nokia-siemens-networks-breaks-distance-barriers-dsl

2) For more details, see http://www.nokiasiemensnetworks.com/portfolio/services/energysolutions3) CTIA E-Tech Awards 2009, for Flexi Multiradio base station 4) Global Mobile Awards 2009, awarded to the Nokia Group

• 75 of the top 100 operators are our customers• Clear number 1 in Subscriber Data

Management, connecting around 1 billion subscribers globally

• Leader in prepaid and charging solutions serving more than 500 million online end-users

• Proven network management systems in use with over 600 customers around the world

• Successful track-record of over 170 consulting engagements and 500 systems integration projects around the world

• Over 200 managed services contracts, connecting over 220 million subscribers globally

• Number 1 IP integrator in fixed and mobile environments

• Joint Venture with leading packet infrastructure vendor Juniper Networks

• First in VDSL 2 bonding1 for broadband access

• First commercial 40G DWDM (Dense Wavelength Division Multiplexing) network rollout

• Nokia Siemens Networks helps operators to lower the power consumption of telecoms networks by exploiting more efficient technology and renewable energy with the industry’s most comprehensive range of Energy Solutions 2

• More than ninety percent of the material in our base station equipment can be reused or recycled

• We have hundreds of base station sites running on renewable power in around 30 countries, mostly in Africa and Asia

• Nokia Siemens Networks is a market leader in the energy efficiency of base stations and has committed to improve energy efficiency of its GSM/EDGE and WCDMA/HSPA base station products by up to 40 percent by 2012

• We have committed to decrease our CO2 emissions by around 2 million tons annually through the World Wildlife Fund’s Climate Savers program

• And we are the winner of various awards, including ‘Greenest Network Innovation’3 and ‘Outstanding Environmental Contribution’4

Nokia Siemens Networks has experience providing reliable, complex and secure end-to-end solutions - in a sustainable manner. We believe that these strengths can be a major asset for energy utilities.


2.1. Market trendsEconomic recession brings both challenges and opportunities. And energy is a commodity unlike any other: it will always be needed, irrespective of the general state of the economy.

From the demand side the key focus is on improving energy-efficiency – both consumers and companies are looking for ways to control their energy usage and expenditure. From the supply side utilities aim to optimize energy generation and delivery, and their own operations. This will be necessary to retain customers, remain competitive and to meet shareholder expectations.

Smart Metering is perhaps the most high profile trend at the moment. However, soon the focus will turn to service and element management - and how they can help utilities to produce and deliver electricity more efficiently. In other words: operating true Smart Grids.

In the longer term eMobility (transportation based on plug-in electric vehicles) will bring further change. While the technologies, infrastructures and business models that are needed are currently immature it nevertheless has the potential to significantly disrupt existing value chains in the energy market.

2.2. Facts and figuresResearch reports5 estimate that the installed base for smart electrical meters will grow to 180-200 million by 2014 at a CAGR of 20%. Communication Service Provider connectivity revenue from Smart Meters is expected to grow to $5 Bn in 20146. But continuously falling meter and connectivity prices combined with funding from governmental stimulus plans are expected to accelerate Smart Metering deployments.

Governments have allocated significant parts of their economic stimulus packages to Smart Grids – and as a consequence utilities have started to spend serious money. For instance, the Obama administration has called for the installation of 40 million smart utility meters as part of its economic stimulus package. In total $8.1n will be spent by the government and utilities on Smart Grids7. China is expected to follow suit with another stimulus package, which aims to double their output of alternative energy by 2020.

2.3. Regulatory and legislative environmentBecause of its crucial impact on society, energy is never far away from the tables of legislators. Traditionally this takes the form of ensuring energy availability, but protecting the environment is an increasing concern. For example, the EU 20-20-20 directive seeks to lower carbon emissions by 20% from their 1990 levels - by 2020. Additionally the EU seeks to increase the share of renewables in energy use to 20% over the same time period.

The regulatory and legislative environment brings an aspect of uncertainty to all energy utilities. Indeed as one industry executive recently remarked: “what is a recommendation today, becomes a requirement tomorrow”.

5-6) ABI Research, 20097) Matt Rogers, senior adviser to the secretary at DOE quoted in Smart Grid Today, October 2009

2. Market view


2.4. Environmental aspectsElectricity production is faced with ever-intensifying ecological pressures. Reducing carbon footprints and making sure energy production is as environmentally conscious as possible is a key priority.

In this respect, Smart Grids are neither a surprising nor a new idea. It is well known that systems transmitting and distributing electricity are exceedingly wasteful (and vulnerable). Huge amounts of power are lost to technical problems or theft: up to 10% in the US and Europe; more than 50% in some big cities in developing countries8.

eMobility is another major technological shift with the potential for large-scale positive environmental impact. Electric-powered vehicles may also receive governmental support and incentives (legislative and financial) – to speed up the required investments in technology and related infrastructures. This will open up new opportunities for energy utilities to capitalize on.

2.5. SummaryChange in the energy market is being driven by a number of compelling external forces including government stimulus packages, increased legislation and rising environmental concerns. Reducing waste and moving to more efficient generation, transmission and distribution systems is a necessity for energy utilities. The following sections will explain the role of communications technology in existing networks, some of the limitations of these legacy networks and how ICT can help utilities as they make the transformation to Smart Grids.

8) ‘Wiser wires’ article in the Economist, October 2009


While telecommunication is not the core, revenue-generating business for energy utilities, highly reliable communications are essential to support mission-critical activities.

ICT plays a critical role in responding to operational problems and ensuring that energy generation and distribution remain at the required levels. Communications solutions must take into account the stringent safety, reliability and security requirements placed on energy utilities. Utilities normally require their own (dedicated) networks because public networks are either non-existent or unable to deliver the required bandwidth, network availability, service quality or security.

The unique operating environments of energy utilities also place their own demands on how solutions are built, and the communications systems that are needed. The walled, electrified, shielded and even hazardous environments of energy generation and distribution all have implications for communications projects.

3.1. Communications backboneEfficient operations necessitate an efficient communications system that connects the plants, facilities and substations. When considering which technologies to deploy in the communications backbone, utilities are faced with a number of viable choices. Naturally, a number of factors will influence the final decision, including capital expenditure, operational costs and the existing infrastructure that may already be in place.

3.1.1. Providing carrier grade reliability Nokia Siemens Networks has a wide range of end-to-end connectivity solutions that provide true, carrier grade reliability and are suited to the needs of utilities. For example, our Narrowband/ Multiservice products have been developed specifically to meet such requirements and have been serving utilities for over 20 years9. Teleprotection features help to rapidly isolate faults in the energy network and prevent outages and blackouts. These products can cope with the harshest operating environments and the most extreme temperature ranges, yet still deliver network availability of 99.999% and provide very fast fault recovery (sub-50 milliseconds).

While copper and increasingly fiber are the mainstays of the communications backbone, microwave radio also has a role to play. Microwave Radio can be a popular choice because of flexibility, reliability, and fast rollout – and where other transmission media are not available because of challenging topography it becomes the only choice! Nokia Siemens Networks’ microwave radio supports a wide range of capacities, with 99.999% uptime and a variety of protection features. It is also based on future proof platforms that are ready to support full packet transmission.

9) Our public references include Tenaga Nasional Berhad (TNB) who provide nearly 40% of Malaysia’s power generation. Nokia Siemens Networks products were first deployed in 1989 and there are currently over 6000 nodes installed in TNB’s communications network.

3. ICT in utility networks


Alternatively, Carrier Ethernet technology can provide a very effective solution by combining the performance and flexibility of Ethernet - with the reliability of TDM. Our Carrier Ethernet switches deliver end-to-end traffic assurance and service availability through guaranteed ‘hard’ quality of service.

3.1.2. Evolving to packet technology Because of the growing data demands of Smart Metering and Smart Grids, utilities are increasingly moving to packet based technologies to provide the most efficient networks. Where legacy SDH networks are in place Next Generation SDH10 offers a safe, non-disruptive way to exploit the existing infrastructure. Our Next Generation SDH has proven inter-working with IP environments and supports a wide range of Time Division Multiplexing (TDM), Ethernet, and transparent interfaces. These allow different traffic types to be carried seamlessly, benefiting from the agreed Quality of Service (QoS) and ensuring the reliable delivery of voice and data. Due to its inherently synchronous nature Next Generation SDH is also an ideal solution to support timing-critical applications.

10) Next Generation SDH (Synchronous Digital Hierarchy) is a development of SDH. Benefits include more efficient and less wasteful transmission of data through the use of Virtual Concatenation allowing for a more arbitrary assembly of lower order multiplexing containers.

Nokia Siemens Networks is also a world leader in optical transport and our solutions can help utilities to substantially reduce the total cost of ownership while at the same time increasing scalability and capacity. To cope with the highest bandwidth requirements in the core transmission network Dense Wavelength Division Multiplexing (DWDM) technology provides the best solution. DWDM enables the transmission of multiple wavelengths over 1 fiber, each one carrying 2.5G, 10G, 40G and in the near future 100G. While these bandwidths may seem somewhat excessive today, they do provide a future-proofed solution when planning for the demands of the next generation of utility networks.


3.2. Key applicationsManaging energy generation and distribution relies on a number of key applications. The applications used are mission-critical in nature due to their close connection and/or interlinking with operational technology.

The applications run on a highly reliable and redundant backbone that handles both the applications and the data related to security, protection, SCADA11, telemetry and control. The backbone is used simultaneously to provide operational voice capabilities and even physical security applications from CCTV to intrusion detection. In addition, latency-sensitive TDM networks and high-capacity Ethernet networks support voice and data transmission between locations.

Applications must also be able to support the wider company infrastructure – for instance, integration with business information and other operational and IT systems.

11) Supervisory Control and Data Acquisition - a computer system monitoring and controlling an operational process.

Fig 1: Key ICT applications in utility networks

Broadband services

CCTV Video surveillance

Communication networks �and solutions metering

SCADA for grid supervision and control

Network administrationTDM network management

TeleprotectionRedundant fibre optic/microwave backbone

Public address system

Emergency phone

Surveillance camera

Bandwidth for leasing purposes (e.g. TV, data)Substation

End-user Industry

Telephone communications


3.3. Control and management systems Electricity grids are for the most part controlled by a variety of legacy systems that are purpose-built for a specific task or function. While in themselves these systems work extremely well, providing unified and efficient management of them is a challenging task:

• Incompatibility – different systems cannot share data with each other

• Non-automation – operational processes are cumbersome, because manual steps are required to exchange information between various teams or departments

• Separation – the network models are built separately for each application

• Lack of reusability – it is difficult to give access to the data residing in the systems to third parties that may require data for their own planning or reporting purposes

• Cost factor – maintenance of bespoke systems is increasingly expensive

These systems have been developed for existing grid architectures with specific emphasis on current fluctuation management, energy generation and demand balancing. An example of the existing architecture is shown below:

Fig 2: Example of a legacy control and management architecture

External Systems (ERP, CRM, Work order mgmt etc.)

Data Communication Network(point-to-point, narrow bandwith)

SCADA and other local control systems

OPERATIONS CENTER:Used for specific tasks only

LOCAL MANAGEMENT:Day-to-day managementheavily dependent on this

• Applications developed for a single task

• Interaction between systems tailor-made

• Process modeling and development difficult

• Local interaction with the network

• Pre-planned scenarios

• Proprietary systems for management and control

AssetMgmt

FaultMgmt

PerformanceMgmt

Simulation Control


3.3.1. Data collection and forwardingThe current mechanisms for collecting data and passing it to the management system (e.g. SCADA) are based on purpose-built point-to-point communications. In order to provide additional data in near real time bandwidth must be increased and new sources of data need to be made available. New sensors and probes will also be needed to collect the data. Unfortunately, on its own this is not enough! The data needs to be made available to the various control and management systems that may need it. Formatting and forwarding the data is also required. This is because each application or system has its own way of modeling the network and therefore no consistent way of representing the data exists.

Furthermore, interaction between the control and management applications is cumbersome due to the fact that they have not been designed for this purpose. Thus multiple manual processes are needed to transfer data from one system to another – or to perform data analysis in another system. Consequently, the overall network operation can be both error-prone and inefficient.

As Smart Grids are deployed, more dynamic management of the grid becomes necessary and the bottlenecks and inefficiencies caused by these systems will become unacceptable for energy utilities. The diagram below provides a simple illustration of the layered architectures that can be used in future control and management systems:

Fig 3: Layered architecture for use in future control and management systems

External Systems (ERP, CRM, Work order mgmt etc.)

Enterprise Integration Bus

Authorized Network Modeling Layer

Data Communication Network(IP-based, broadband)

SCADA and other local control systems

OPERATIONS CENTER:Used to manage thenetwork as a whole

LOCAL MANAGEMENT:Needed only forspecific tasks

• Applications share data and models

• Flexible use cases and processes

• Third party development and standard components used

• Close to real-time updates of network status

• Dynamic network optimized end-to-end

• Standards-based control and management interfaces

AssetMgmt

FaultMgmt

PerformanceMgmt

Simulation Control


Developer tools Customer-developed EMS applications

Open EMS Suiteapplications

Softwaredevelopment kits

FM Platform:- FM engine- Monitoring tools

PM platform:- PM engine- Reporting tools

Application platform

GUI framework (web, Java-rich client)

Application Platform Services- Topology (MDF)- Licensing- Security- Adaptation management

MediationFramework

O&M Agent

- XML- SNMP- OSS/J- NE3S/SOAP

O&M Interface elements

Customer-developed interfaces

4.1. Breaking down the silos in utility network management systemsAs discussed in the previous section, the communications networks of many energy utilities have evolved slowly over time to meet the needs from the industry for well-proven and resilient ICT infrastructures. Unfortunately in many cases this has left a legacy of fragmented technologies and systems in use which is often reflected in organizational silos and sub-optimal processes.

In order to cope with the additional challenges posed by Smart Grids, energy utilities need an integrated ICT infrastructure that supports different applications, and avoids duplicated investments.

Nokia Siemens Networks has created a next generation management system platform called

4. Leveraging Telco capabilities and assets

Open Element Management Suite (OES) for use in the telecom market. OES has been specifically developed to accommodate multiple technologies in network management – something that would also benefit utilities.

OES incorporates powerful network modeling capabilities that can accommodate the different vendors and technologies that will be needed when deploying Smart Grids. These have been developed to provide management functionality for millions of individual managed objects (MOs) – both physical and logical, and to allow the collection of data from these MOs. The key difference to existing management system architectures is that the model resides in a system dedicated for the purpose, rather than being built into each separate system or application.

Fig 4: OES building blocks


4.1.1. Open EMS Suite modeling capabilitiesOES contains an advanced technology called Instant Adaptation Architecture (IAA). IAA allows easy and modifiable adaptation of various types of equipment, and it also notifies the applications of changes in the network.

IAA provides the users of OES systems with the following advantages:

4.1.3. Third party application development capabilitiesOES has been designed to fit into an ICT environment that requires efficient information sharing. It includes multiple interfaces to make the data available to other applications and systems. Most importantly, application development can be performed quickly and simply.

For example, Irish company ServusNet has developed a management solution based on OES that delivers reduced operational costs and improvedefficiencies for wind farm operators12.

OES enables the effective integration of third party applications into the same run-time environment13, thus ensuring that the applications can share the same data on the network topology (element naming, connectivity, capabilities and restrictions). This leads to efficient design of operational processes e.g. related to fault-finding and corrective actions as well as network optimization and simulation. Because third parties can develop applications within the OES framework energy utilities can freely select the application that best suits their purpose – rather than being dependent on a single supplier.

Functionality typically residing outside of the OES system includes the following systems:

12) For more information please visit: http://www.servusnet.com/home/index.php13) Nokia Siemens Networks provides a Software Development Kit, newsletter and developer forum to help software developers create

applications on top of OES as well as facilitating adaptations to multi-vendor network elements

• Quick integration of new network elements directly or via existing SCADA systems

• New types of elements can be introduced using simple metadata (no coding needed)

• Efficient tools to model network elements and create metadata

• Minimum interruption at runtime when deploying new adaptations

IAA is also tightly linked to the adaptation capabilities (i.e. data feeds into the system). Multiple protocols are available to connect the system to different SCADA systems or the network infrastructure itself. Most importantly these adaptations are separate software modules which means that they can be updated and modified independently of the OES platform itself, or the applications that have been developed on top of OES.

4.1.2. Application functionalityIn addition to the platform capabilities of OES, it also contains the following application capabilities:

• Event and fault management and correlation

• Performance data collection, storage and analysis

• Graphical User Interface (GUI) development tools

• Trouble ticketing systems - e.g. Remedy ARS

• Graphical Information Systems (GIS) - e.g. ESRI

• Workforce management and automation systems - e.g. Microsoft

• Financial and Enterprise Resource Planning (ERP) systems - e.g. SAP

• Enterprise identity management systems - e.g. IBM Tivoli

Interfaces and integration capabilities exist for all of these. To help break down the barriers between silos and lower the Total Cost of Ownership during the operational lifetime of the control and management system we have implemented open and standardized interfaces to outside functionalities.


4.2. Charging solutions help maximize revenue opportunities from Smart MeteringThe ability to make meter readings in near real time opens up opportunities related to so-called ‘smart tariffs’. A good example is where the price of the utility depends on seasonal or daily changes in utility consumption. Meter data collection and consumption analysis will shift from yearly overview to daily, hourly or even more frequent insight and detailed invoicing will be possible every month. If the energy utility decides to increase (or decrease) the price of the utility, the new tariff can be introduced almost immediately without sending the workforce into the field to read and reset the meters. Smart Metering is a stepping stone towards smart grids, and will bring more transparency to consumers and help utilities to reach the energy efficiency targets set by governments. The other drivers for energy utilities are operational efficiency, reduced theft/loss, demand management, customer service, and changes in the competitive landscape.

Energy utilities with legacy ICT systems face a challenge to handle the much larger amounts of metering data. Smart meters with bidirectional communication need to be installed and an ICT infrastructure capable of coping with the resulting data flood is required.

The collection of charging data needs to happen in near real time14. Although the amount of data per charging record is small, due to the large number of customers and increasing frequency of the data uploads the total amount of data handled will become very large, very soon. Nokia Siemens Networks’ charge@once product family has been developed to deal with very large amounts of data in near real time15. This capability ensures that adequate scalability and performance in meter data management solutions is available from the start, thus avoiding potential bottlenecks which could slow down the deployment of alternative tariff structures and the growth of revenues.

Charge@once provides all the necessary functionality to collect meter data from the smart metering infrastructure and deliver it to the existing billing system of the energy company. It is very important to note that the existing billing system can continue to provide its current functions - and therefore risks from customer and data migration can be avoided.

14) In some countries it may be necessary to provide ‘pre-paid electricity’ to ensure accurate billing of electricity, if conventional banking facilities are not available.

15) The strict requirements of the telecom industry (especially for pre-paid environments) have been met with charge@once which lends itself well to the energy sector.


Supports flexible energy traffic controlled by energy provider

Interface to energy provider invoicing/financial system

Energy billing supporting postpaid, prepaid, hybrid

Consumber data & energy comsumption history

Meter data collection & storage

Energy service rating & bonus programs

Energy charging layer

charge@once unified

charge@once mediate

Offe

r man

ager

Integration layer to energy

Billing

Centralized data bases

Charging & rating engine

Data collection from meters

4.2.1. An effective solution for Smart MeteringTo fully exploit the opportunities presented to utilities by Smart Metering Nokia Siemens Networks proposes an effective two-layer solution, which is shown below:

At the Enterprise layer, the tasks are standard across industries and energy utilities may choose to use their own Customer Relationship Management (CRM), ERP and billing systems. However, charge@once business can also provide customer care, reporting, invoicing, payment collection, and accounts receivable for relevant energy services. In addition, Service Oriented Architecture (SOA) over Enterprise Service Bus (ESB) is used. This allows easy interworking, and for changes to be made without significant impact to the other enterprise systems.

• create alternative billing methods for consumers• utilize alternative charging options to manage energy consumption• create incentives for consumers to generate energy themselves• reduce time-to-revenue for their own renewable energy investments

Process templates are pre-integrated with charge@once unified which means that payment methods are efficient and accurate.

At the Energy Charging layer, charge@once mediate manages the collection and storage of metering data, while charge@once unified provides the core charging solution (see below). Specific functionality for energy utilities is delivered through charge@once customization capabilities.

Amongst other benefits, the Nokia Siemens Networks’ charging solution allows the energy utilities to:

Fig 5: Two layer architecture of the solution

Fig 6: Charge@once delivers specific functionality for utilities

Unified and customer centric

Enterprise layer


Enterprise layer

charge@once business


Integration layer

Customer care

Customer selfcare

Order management

Reports

Invoicing

Account receivables

Collections

Integration logic

CRM ERP invoicing Billing

Billing

Unifiedcharging

Mediation

Centralized data bases

Charging & rating

Mediation

charge@once unified

charge@once mediate

Prod

uct l

ifecy

clem

anag

emen

t


4.3. Analyze and anticipate customer behavior in real-timeThe evolution to Smart Grid technology also provides an opportunity for energy utilities to analyze and anticipate customer behavior in real-time. In mobile communications, Telco operators are facing increasing price competition and commoditization pressures. Many are responding by using customer insights to drive innovation in service creation and to differentiate through customer service16. In mobile communications customers are referred to as ’subscribers’ – but nevertheless there are many similarities to the challenges now facing the energy utility industry. And more and more frequently communications solutions are being deployed in scenarios where the subscriber is not a person, such as with machine-to-machine applications.

In addition, Nokia Siemens Networks supports the creation of new applications by partners17 and the openness of the system itself permits easy integration of utility-specific applications. One-NDS and Nokia Siemens Networks’ applications are hosted on open, commercial off-the-shelf (COTS) computer hardware, and the applications run on open, standard Solaris or Linux IT platforms. Consequently, utilities may find that the capital cost of introducing this new architecture is much less than that of maintaining legacy silos systems. Administrative costs are also lower because all subscriber data is held in one place, eliminating problems associated with the synchronization of service data across many systems, and speeding up time to market.

One-NDS and all Nokia Siemens Networks-supplied applications have been proven to scale from 100,000 to over 250 million subscribers, letting utility applications start small and scale up according to needs. Data can be held across 1 to 256 geographically separate sites, thus providing the high resilience that energy utilities need from network disruption.

Nokia Siemens Networks’ Subscriber Intelligence Framework is a complementary solution that shadows One-NDS and allows one or more concurrent applications to access One-NDS and historical data warehouses. Information can be processed in sub-second near real time without degrading the One-NDS performance. Data such as identities, locations, devices, preferences and network usage status can all be stored in a single repository and because it can be accessed in real time it provides a powerful analytical tool for utilities to exploit.

Besides the profiling of customer utility usage patterns, which allows for the creation of ‘smart-tariffs’ as described above, the behavior of the utility devices themselves can also be seen, analyzed and acted on. For example, a change of state for a fixed sensor if it is detached from the network due to loss of power or coverage, or if pairing between the device and a SIM card or unit is broken.

16) As an example, see Nokia Siemens Networks’ report ‘The drive to enrich customer experience’: http://www.nokiasiemensnetworks.com/sites/default/files/Enriched_Customer_Experience.pdf

17) SDM Partner Program provides a professional framework including Software Development Kits, reference documents and training that allows developers to build on the success of our market leading Subscriber Data Management solutions.

Nokia Siemens Networks is the world’s leading provider of Subscriber Data Management solutions, with around 1 billion subscribers in 48 countries. Our proven solutions are based on the One-NDS unified data repository, and include other elements such as the Subscriber Intelligence Framework.

Nokia Siemens Networks’ One-NDS is an open, customer-centric directory containing all subscriber and service data in one logical entity for existing and future domains and applications. Nokia Siemens Networks’ applications provide the standard building blocks for mobile, fixed and converged networks – including Home Location Register (HLR), Home Subscriber Server (HSS), Authentication, Authorization and Accounting (AAA), Equipment Identity Register (EIR), Mobile Number Portability (MNP) and Bootstrapping Server (BSF). Many of these can be used by utilities. Open interfaces enable data to be linked to business applications such as reporting, analytics and dashboards, giving the ability to fully leverage knowledge about customers.


4.4. eMobility: proven technology helps address ICT requirementsElectric Mobility (or eMobility) based on plug-in electric vehicles is expected to have a transformational effect on several aspects of the modern economy: automobile manufacturing, electricity generation & distribution, primary energy consumption and transportation infrastructure. It also has the potential to disrupt existing value chains and introduce innovative services and business models. While the excitement around eMobility is quite evident from various announcements around the world, large scale deployment and successful market development depend on overcoming many challenges in the energy, automotive and ICT sectors. Load station infrastructure is required to offer access to adequate charging in different areas, to support longer driving distances. Offering a convenient customer experience is essential – for example, vehicle charging from multiple locations and service providers but with payment and customer service consolidated by a single provider. To provide user friendly and secure charging mechanisms identification, authorization, and roaming functionalities are needed.These functionalities are well known in mobile communications, meaning that the ICT infrastructure needs of eMobility can be addressed through proven technology. And as mentioned in the previous sections, Nokia Siemens Networks is a world leader in these areas18.

4.5. Managed services improve efficiency and reduce risks for utilities Managed services provide a tool to improve efficiency and operational performance as energy utilities face up to the challenges of changing consumer demand, ever-changing regulatory frameworks and an uncertain economic climate. They also allow utilities to free up their own resources (both human and capital), allowing them to focus more closely on their core business.

Nokia Siemens Networks provides a range of managed solutions to operate communications networks and optimize end-to-end performance, service platforms and communications terminals. With extensive experience of successful managed services projects we can help design and implement the best business models for utilities - based on agile and efficient processes.

Managed services can deliver faster time to market and reduce the risk of introducing new technologies and end-user services. Operational efficiency improves through guaranteed service quality, the use of global best practices and a single point of contact for network operations. As a business strategy, adopting managed services depends on choosing the right partner. Nokia Siemens Networks is a trusted partner for major companies around the world and in addition has a very strong track record of managing multi-vendor technology networks. Our portfolio includes:

• Outsourcing: Reduced risk and sharper business focus

• Build Operate Transfer: End-to-end introduction of new technology

• Operations Start Up: Start-up support and competence transfer

• Managed Service Operations and Assurance: combines assured end-user quality of experience and efficient service operations

18) For example, 20% market share in mobile prepaid charging and over 1 billion subscribers using our Subscriber Data Management solutions


• External forces such as government stimulus packages, and rising environmental concerns are accelerating the adoption of more efficient power generation, transmission and distribution systems

• As Smart Grid technologies are deployed they are driving the integration of traditional utility networks with modern ICT infrastructures

• As utility and ICT infrastructures converge, knowledge and experience from the Telco world can be applied to the challenges that energy utilities face

• These challenges include operational silos caused by fragmented legacy control systems, and handling vast amounts of data from smart metering applications

• Nokia Siemens Networks’ OES platform can help utilities to break down the barriers between silos by providing open and standardized interfaces, and effective network management across multiple technologies

• And our charge@once solution can help utilities to process near real time data from smart meters and deliver the most effective tariffs to customers

• Nokia Siemens Networks is also the clear number 1 in Subscriber Data Management with around 1 Billion customers served

• Energy utilities can also use our well proven products to gain insights about their customers

• By analyzing customer behavior patterns utilities can differentiate through innovative service offerings and improved customer experience

• In summary, Nokia Siemens Networks has experience providing reliable, complex and secure end-to-end solutions - in a sustainable manner

• We believe that these strengths can be a major asset for energy utilities as they adopt Smart Grids.

5. Conclusions

Copyright © 2009 Nokia Siemens Networks. All rights reserved.

Nokia Siemens Networks Corporation P.O. Box 1 FI-02022 NOKIA SIEMENS NETWORKSFinland

Visiting address:Karaportti 3, ESPOO, Finland Switchboard +358 71 400 4000 (Finland) Switchboard +49 89 5159 01 (Germany)

Nokia is a registered trademark of Nokia Corporation, Siemens is a registered trademark of Siemens AG. The wave logo is a trademark of Nokia Siemens Networks Oy. Other company and product names mentioned in this document may be trademarks of their respective owners, and they are mentioned for identification purposes only. Nokia Siemens Networks – 11/2009 Activeark Ltd.

http://www.nokiasiemensnetworks.com

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