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SMART METERING SMIP project_

Telefónica Smart Metering Value Proposition

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Page 1: Telefónica Smart Metering Value Proposition

SMART METERING SMIP project_

Page 2: Telefónica Smart Metering Value Proposition

DISCOVER, DISRUPT, DELIVER 2

SMIP basics!

*Compared to 1990 Values

20/20/20 EU Directive: o  80% roll-out in 2020 (Electricity) o  20% reduction of primary energy

consumption o  20% reduction of greenhouse

gas (GHG) emissions* o  20% of energy to come from

renewables

UK Government Directive: o  100% roll-out in 2020 (Electricity &

Gas) o  80% GHG reduction target by 2050*

Nationwide Smart Metering Implementation Plan: SMIP

34 M homes and SME

61 M meters (34M electricity – 27M gas)

Page 3: Telefónica Smart Metering Value Proposition

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SMIP basics!

Reduce energy consumption through real-

time data

Part of sustainability

agenda

End estimated billing and

manual meter reading

Drive innovation as ‘gateway’ to Connected

Homes

Page 4: Telefónica Smart Metering Value Proposition

DISCOVER, DISRUPT, DELIVER 4

SMIP Benefits!

Consumers: o  UK Energy Savings 6

Billion £

National Economy: o  Carbon use savings 1.5

Billion £

Utilities: o  Energy Suppliers savings 9

Billion £

o  Network Operator savings 1 Billion £

o  Generation & Distribution savings 800 million £

Source: DECC” Smart meter roll-out for the domestic and small and medium non-domestic sectors (GB)”

Page 5: Telefónica Smart Metering Value Proposition

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SMIP Ecosystem!

•  Uses data from meters to

reduce energy costs

Customer

•  Own customer relationship & install meters & hubs

•  Regulated by Smart Energy Code

Energy Suppliers

•  Subcontracts to DSP & CSP

•  Regulated by Ofgem

DCC

•  Provides comms hub to Energy Suppliers & provides connectivity services

•  Potential for follow-on value added services sales

•  Divided in three lots: North, Central and South.

CSP

•  Provide data services to DCC

including systems

integration, IT hosting and

application management

DSP

Page 6: Telefónica Smart Metering Value Proposition

DISCOVER, DISRUPT, DELIVER 6

SMIP Award!

Communication Service Provider Award o  Areas: Central & Southern o  Contract Value: 1.5 Billion £* o  Years: 15 o  # Communication Hubs: 23.5 M o  Meters: 42.3 M

North

Southern

19 m

illio

n

* NOTE: Total quotable contract value is £1.5B - There is an extra £112m due to TEF including 100% of the finance charges

Page 7: Telefónica Smart Metering Value Proposition

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SMIP Telefónica’s Solution! Architecture

Cellular Only: 2/3G

Cellular + RF MESH

Customer Premises CSP Communications Hubs DSP / DCC

Page 8: Telefónica Smart Metering Value Proposition

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SMIP Architecture! Elements

Smart Gas meter replacing traditional meter

Communications Hub attached to the electric meter: element that provides the communication capacities to the HAN & WAN Network

Smart Electricity meter replacing traditional meter

In-Home Display (IHD): A display installed in the customers home or business, that provides near real-time information on their energy use and cost

Page 9: Telefónica Smart Metering Value Proposition

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SMIP Architecture! Technologies

Ø  Home area network (HAN): Network to achieve communication between the smart meter system components within the home à Zigbee SEP 1.x @ 2.4GHz unlicensed spectrum

Ø  Neighborhood Area network (NAN): RF mesh network to connect Communication Hubs as infill access technology à 802.15.4g @ 868MHz unlicensed spectrum

Ø  Wide area network (WAN): Cellular network to provide secure communication between meters and the Data Service Provider à 2G GPRS at GSM900 / 3G HSPA at U900

Ø  Protocols: o  DLMS/COSEM GBCS (Great Britain Companion

Specification) compliant o  Zigbee SEP 1.x (Smart Energy Profile)

Page 10: Telefónica Smart Metering Value Proposition

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SMIP Key Success Points!

99.25% Connectivity Network Coverage

M2M dedicated elements: •  Network (GGSN, HLR) •  Managed Connectivity

Platform Fast Implementation

Full Security (cellular network technology + virtual network ) compliant with CNI classification

RF Mesh infill for uncovered areas

Page 11: Telefónica Smart Metering Value Proposition

DISCOVER, DISRUPT, DELIVER

Telefónica Smart Metering Value Proposition!

Telefónica Value Proposition

When does it apply! Capabilities / Assets!

“We manage your

connectivity”

Bid process focus on metering

infrastructure. Communications

not a priority

Basic connectivity (2-3G) Smart M2M

“We manage your

communication network”

Bid process focus on the communication

network

Basic connectivity (2-3G) Smart M2M

HW (comms hub) Service management

“We operate your metering

network”

Bid process led by operation

department

Basic connectivity (2-3G) Smart M2M

NOC capabilities

“We provide an e2e metering

solution”

Bid process oriented to turn-

key solutions

Basic connectivity (2-3G) Smart M2M

NOC capabilities Data Collection

11

Page 12: Telefónica Smart Metering Value Proposition

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Telefónica Smart Metering Value Proposition!

SMART M2M

Metering capabilities In-house capabilities & assets

HARDWARE (Comms Hub)

DEVICE MANAGEMENT

MIDDLEWARE / PROTOCOL MANAGEMENT

INVENTORY

DEVICE MANAGEMENT

ALARMS

TICKETING

CONSUMPTION DISPLAY

DATA COLLECTION & ANALYSIS

• Scope: Managed connectivity • Assets: SM2M

1. “We manage your connectivity”

On & off footprint

• Scope: Communication Service Provider • Assets: SM2M, Device Management, Hardware (Comms Hub)

2. “We manage your communication network” On

footprint

• Scope: Metering NOC • Assets: SM2M, Connected Metering Platform

3. “We operate your metering network”

On footprint

• Scope: e2e metering solution • Assets: SM2M, Device Management, DCA, Connected Metering Platform

4. “We provide an e2e metering solution” On

footprint

1

2

2

2 3

3 4 4

Page 13: Telefónica Smart Metering Value Proposition