Post on 12-May-2020
LEARNING FROM METER ROLLOUTS IN AN AFRICAN
CONTEXT: THE ZIMBABWEAN EXPERIENCE
Presenter: Eng. Wilfred Shereni
17th September 2015
ZIMBABWE ELECTRICITY TRANSMISSION &
DISTRIBTION COMPANY
PRESENTATION OVERVIEW
Objective of Presentation
Part I – General Metering Project Issues
Part II – ZETDC STS Prepayment Metering Project
Part III – ZETDC Smart Metering Project
Metering Project Benefits & Lessons Learnt
INTRODUCTION
ZETDC is Changing its metering technology in an
endeavour to improve operational efficiency & effectiveness
The two metering technologies being deployed are : STS Prepayment metering and Smart Metering technologies
To date ZETDC has deployed 552,000 STS prepayment Metering to residential and small business customers
ZETDC planning on Deploying Smart metering project to Medium & Large Power Users
PART I
ZETDC HIGHLIGHTS
FACTS ON ZETDC
Wholly Owned by Govt of Zimbabwe
Number of customers: 650,000
Asset Value: USD 800 million
Distribution area: 75 000 km2
Number of employees: 7,000
Revenues: PA. USD 830 Million
Our Mandate
manage resources
deliver services to communities
in a sustainable manner
uplift Life of citizens
ZETDC MANDATE
ZIMBABWEAN ESI MODEL
OBJECTIVE OF PRESENTATION
ZETDC STRATEGIC MAP
INCREASE REVENUE
PROVIDE AFFORDABLE &
EFFICIENT SERVICES
MANAGE COSTS
IMPROVE CUSTOMER AND
STAKEHOLDER RELATIONS
IMPROVE EFFICIENCY
OPTIMISE STRATEGIC USE
OF ICT
RETAIN AND GROW
CUSTOMER BASE
DIVERSIFY PRODUCTS &
SERVICES
CUSTOMERS/STAKEHOLDERS
CREATE A HIGH PERFORMANCE &
INNOVATIVE CULTURE
ATTRACT, DEVELOP AND RETAIN SKILLED
PERSONNEL
MANAGE TRANSFORMATION
AND CHANGE
PEOPLE
IMPROVE CORPORATE
GORVENANCE
IMPROVE SAFETY, QOS &
SYSTEM SECURITY
INTERNAL PROCESSES
FINANCIAL
Growing Demand
from Citizens
Poor payment
culture
Reduced
Revenue Inflow
Resource availability
& quality of service
Aging Infrastructure
Vandalism
Increased
Operational &
Maintenance costs Energy Theft
ZETDC faces many
challenges
ZETDC CHALLENGES
Power Shortage
PART II
GENERAL ISSUES ON METERING
PROJECTS
METERING PROJECTS
Mission critical
Thin line between project and production, especially for retrofit projects
Unit cost low but cumulatively the value can be high
ZETDC MIGRATING TO
SMART/PREPAYMENT METERING
New Drivers, New Forces!
THREE KEY PROJECT DELIVERABLES
WITHIN
BUDGET
DELIVERED
ON TIME
TO
SPECIFICATION
AVOID COST
OVERRUNS &
SCOPE
CREEPAGE
ADDRESS ISUES
AS THEY ARISE &
CONSTANTLY
MONITOR
PROGRESS
PERFORMANCE
AND
FUNCTONALITY
Comprehensive Framework to guide
the Metering Project Implementation
COHERENT TACTICAL PLANS FOR METERING
PROJECTS
STAKEHOLDER
ENGAGEMENT/INTERACTION CUSTOMER EDUCATION
ENGAGEMENT
METER OEM
UTILITY
CUSTOMERS
1 2
3 4
PRODUCT PROMOTION
UTILITY SPECIFICATION (CUSTOMISATION)
FEEDBACK/ CONFRONTIONAL REACTION
KEY DRIVERS FOR THE METERING
PROJECT
Key driver Critical Success Factor (CSF)
1
Reduction in Revenue Leakage (NTL)
Drop in cases of meter tampering to desired levels. Meters being installed have tamper evident features and the system runs exception reports to help identify
2 Energy efficiency Realisation of energy efficiency objectives
3
Address collection Challenge which had gone down to around 60%
Collection index to improve to more than 100%
TARGETTED & TAILORED APPROACH
METERING TECHNOLOGY CUSTOMER CATEGORY KEY DRIVERS
STS Prepayment Metering
Technology
Residential and Small
Business Customers
with Capacity of 100A
and below
(650,000)
Address MBC Issues
Enhance revenue
protection
Encourage
Efficient utilisation of
electricity
Smart Metering Technology
The Meters must support
pre-payment operation
with the credit “purse in a
higher-order system such as
MDMS
Medium & Large Power
Users (CT & CT/VT
Connected Meters).
(40,000)
Address MBC Issues
Key milestone
towards
establishment of
Smart Grid
Societal benefits
PART II
OVERVIEW OF ZETDC
PREPAYMENT METERING
PROJECT
PREPAID METER PENETRATION
Region
Total Meters to be
Retrofitted Retrofitted To Date % Penetration
Single
Phase
Three
Phase Total
Single
Phase
Three
Phase Total
Single
Phase
Three
Phase Total
Harare 200,714 13,313 214,027 164,092 13,457 177,549 82% 101% 83%
Western 131,905 8,200 140,105 96,736 10,446 107,182 73% 127% 77%
Souther
n 57,186 7,200 64,386 68,774 6,029 74,803 120% 84% 116%
Norther
n 79,038 12,000 91,038 92,687 9,846 102,533 117% 82% 113%
Eastern 62,777 7,000 69,777 82,317 6,471 88,788 131% 92% 127%
Total 531,620 47,713 579,333 504,606 46,249 550,855 95% 97% 95%
Contractor
Meters Installed As At 11 September 2015
Harare
Region
Western
Region
Southern
Region
Northern
Region
Eastern
Region
Total Per
Contractor
Solahart (Single Phase) 90,755 83,946 728 623 35,403 211,455
Finmark (Single Phase) 19,873 2,623 45,844 44,215 0 112,555
Finmark (Three Phase) 12,070 1,366 5,054 9,571 0 28,061
Nyamezela (Single
Phase)
33,891 331 19,697 42,080 44,514 140,513
Nyamezela (Three Phase) 229 0 83 0 5,971 6,283
ZTE (Three Phase) 0 6,988 0 0 0 6,988
Landis & Gyr (Single
Phase)
13,239 6,761 0 0 0 20,000
Landis & Gyr (Three
Phase)
1,158 2,092 975 275 500 5,000
Itron (Single Phase) 6,334 3,075 2,422 5,769 2,400 20,000
Total Per Region 177,549 107,182 74,803 102,533 88,788 550,855
PREPAID METER INSTALLED TO DATE
CHALLENGES & PROJECT RISKS
0
1
2
3
4
5
6
7
ProjectManagement
Risks
— People andCulture Risks
— TechnologyRisks
— Process Risks
—MarketingRisks
Project Risks Before Pilot
Project Risks After Pilot
DAMAGED METER BOXES& KIOSKS
NEW METER KIOSKS REPLACING DAMAGED ONES
POLE TOP BOXES FOR HIGH RISK AREAS
BENEFITS FROM THE PREPAID
METERING PROJECT
ITEM DESCRIPTION EXPECTED
IMPROVEMENT
1 Improvement in Revenue collection, from 60% to
140% ( Including Arrears collection @40%) 80%
2 Improved Efficient Utilisation of energy by
Customers 22%
3
Reduced revenue leakage due to pole mounting and
capability to run exception reports, tamper evident
features
25%
4
Improved service delivery and service reliability to
customers to a achieve a customer satisfaction
index above 80%.
15 – 20%
CHALLENGES & BARRIERS FOR
THE PREPAYMENT METERING PROJECT
Funding challenges delayed implementation
The use of third parties exposed the company to risk of meter tampering
Meter failure above the acceptable industry standard of 0.1 – 0.3%
Lack of buy in by some stakeholders – Customers & Employees
Challenges with Implementing Step Tariff for Prepaid Customers
CHALLENGES & BARRIERS
PREPAYMENT METERING PROJECT
Issues regarding data integrity
Retrofiting – difficulties in applying new technology to old infrastructure
Lack of Skills and Competency in key areas
Challenges with Implementing Step Tariff for Prepaid Customers
Policies & legal issues – e.g. Dealing with Debt
CHALLENGES & BARRIERS
PREPAYMENT METERING PROJECT
Difficulties with Financing & Funding
Issues of Technology – dealing with uncertainties
Resistance to change – employees & customers
Procurements Issues
VALUE FOR MONEY AUDIT BY TE AUDITOR GENERAL
POST IMPLEMENTATION SUPORT MODEL
2nd Level support - METERING -10%
2ND LEVEL SUPPORT HEAD OFFICE IT - (10% )
3RD PARTY PREPAYMENT VENDING (Only Vending
Services)
3RD LEVEL SUPPORT METERING -2%
1ST LEVEL SUPPORT (REGIONS) - 90%
3RD LEVEL SUPPORT IT - 2%
ZB, CBZ, etc
IT HARDWARE SUPPORT
CALL CENTRE CONTROL CENTRE
REGIONAL IT
REGIONAL METERING
COMMERCIAL
IT HELP DESK APPLICATION
SUPPORT
DB SUPPORT
NETWORK SUPORT
SAP (TTC)
INDRA
ITRON
METERING DEPT
DB & APPLICATION
SUPPORT
METER TEST HEXING
ITRON
L & G OTHER
INHEMETER
AXIS
OTHER
CUSTOMER
PART III
OVERVIEW ON SMART METERING
PROJECT
SMART METERING PROJECT SCOPE
Region Number of CT
Metered Points LV
Large Power Users (LPUs) Metered at
MV/LV
Consumer Substations Supplying Multiple
Consumers
Mobile Network
Operators (MNOs)
Consumers With
Renewable Energy
Generation Capacity
Total
EASTERN 1,059 144
5,296
262
5
6,766
HARARE 3,821 407
4,671
2,000
-
10,899
NORTHERN 2,719 272
6,000
268
-
9,259
SOUTHERN 343 106
3,498
340
-
4,287
WESTERN 856 274
4,000
311
-
5,441
Sub TOTAL 8,798
1,203
23,465
3,181
5
36,652
CONCEPTUAL MODEL FOR PILOT PHASE
REQUIRED SMART METER FUNCTIONALITY
Specified Smart Metering functionality should be guided by business requirements – envisaged operational and societal benefits
Due Diligence should be carried out to deal with technological uncertainties and ensure value will be derived from the investment
Consider operability issues to avoid lock in
Multiple communication Channel
SMART GRID OBJECTIVES
Item Description Expected
Improvement
1 Sustainable reduction in Zimbabwe’s peak energy demand
relative to the 2014 national baseline 20%
2 Grid availability to serve all critical loads as defined nationally 100%
3
Improvement in system efficiency (measured against the
national and local technical and non technical losses baseline)
and asset utilization to achieve a load factor of 70%.
40%
4 80MW electricity capacity integrated into the Distribution
networks from renewable energy sources 800MW
5 Improved service delivery and service reliability to customers
to a achieve a customer satisfaction index that exceeds 80%. Above 80%
TYPICAL SMART GRID MODEL
TYPICAL AMI SYSTEM
ENHANCED FUNCTIONALITY (PULSE
INPUT S/ OUTPUTS)
P/I-High Temp Oil P/O 1 - NPA
P/O 2 - PA
P/O 4 - 10MW
P/O - 20MW
P/O 3 - 5MW
PULSE INPUTS PULSE OUTPUTS
pulse outputs for remote disconnection /connection when operating in prepaid mode
Load Control
P/I from External Devices
SMART METER
P/I-from Devices
Pulse Inputs
P/I - From Devices
P/I- Low Tx Oil
Other Pulse outputs
Other Pulse Outputs
MODICATIONS TO TRIPPING CIRCUITS TO ENABLE
REMOTE DISCONNECTION FOR NON PAYMENT
E/F
NPA
50V +
FTCWLLR
O/C
50V -
BTC
MODICATIONS TO CLOSING CIRCUIT TO ENABLE
REMOTE RECONNECTION AFTER PAYMENT OF ACOUNT
A/R2
PA
50V +
OTHER
A/R1
50V -
BTC
COMPLEMENTARY CHANGES NEEDED TO REALISE BENEFITS
There is need for ZETDC to review the operational
practices (processes and procedures) to align with the
change in metering technology
There is need for ZERA to review tariff structures to
support smart metering initiative
There is need for ZETDC to carry out intensive
customer education and campaigns to ensure
customers accept and embrace the change to smart
metering
INDICATIVE SMART GRID SEQUENCING
ROADMAP
SMART METERING PROJECT ROAD MAP
Project Initiation Feb 2014
√ Scope Definition √ Business case
Planning & Design June 2014
√ Project Governance √ Project Budget √ Board Resolution √ Design & Specifications
Benchmarking By Oct 2014
√ Benchmarking
Due Diligence & Spec Drafting Dec 2014
- Due diligence on technology - Draft Technical spec to met Business requirements
Tendering Sept 2015
- Float Tender
Tender Award by Dec 2015
-Award Tenders for Meters/HES Contractors - Award Tender for MDMS
Installation of Smart Meters by March 2016
-Install 300,000 meters
1
2
3
5
4
6
7
PART IV
EXPECTED OUTCOME FROM
METERING PROJECTS
EXPECTED OUTCOME
EXPECTED OUTCOME
Objective: Optimally
Performing Utility
Profitability
Sustainability
Reducing
Costs
Increasing
Revenues
Information
Systems
Business Structures
& Processes
Skilled Management
& Staff
A FRAMEWORK FOR
SMART METERING SOCIETAL BENEFITS
Demand Response (DR)
Changes in Consumptive
Behaviour
Modified kWh, kW Profile
Improved Energy Efficiency (EE)
Other Products and Services
Enhanced Service Quality
Macroeconomic Impacts
Externalities
Reduced Consumption
Demand for Supplemental
Services
Reduced Outage Frequency, Duration Changes in
Consumptive Patterns
Reduced Carbon emmission
Reduced kWh, KW
$ Revenues
Reduced kWh outages
Changes in Employment,
Wages
$ /kWh Societal Value
SOURCE OF BENEFITS MANIFESTATION MEASUREMENT
PURPOSE OF PRESENTATION
LESSONS LEARNT FROM ZETDC PROJECTS
Define and control processes and sub-
processes at a programme and project
level
Carry out risk Analysis and come up with mitigation
plan
Follow best practice Project Management
Methodologies (PRINCE 2, PMBOK)
Consult all stakeholders
before making key decisions
Installation of protective structures must be done
in parallel with meter installations
Carry out Due Diligence to address
technical uncertainties & Be clear of benefits
upfront
Metering project should be consistent with Utility’s broad Corporate strategy
Closely manage integration points at various levels and
across value chain to avoid gaps
Verify formal competencies and
ensure the right skill level