Copyright © 2010 Accenture All Rights Reserved. Accenture ...

Some turbulent years: economy

Copyright © 2010 Accenture All Rights Reserved.

2008 2009 2009 2010

2

Some turbulent years: energy and climate change


2008 2009 2009 2010

3

Three key issues

Energy Security

Economic Growth Climate Change

4

Drivers of the new energy era


Consumers

Policy Technology

5

Level of concern with energy-related issues% Extremely + Somewhat concerned

Consumers are concerned

Source: Accenture The New Energy World: The Consumer Perspective

6

What actions should be considered the top priority in order to reduce your country’s reliance on fossil-fueled power?

Developing low -carbon sources of energy is the top priority

37%Use less energy

63%Develop low-carbon sources of energy

Use less energy

Source: Accenture The New Energy World: The Consumer Perspective

Copyright © 2010 Accenture All Rights Reserved. 7

National policies and investments are in place

• EU 20-20-20• EU ETS

• Canada ecoENERGY Efficiency Initiative

• South Korea ETS

• Bio-fuel program

• EU ETS

• Japan Top Runner Program

• Tokyo ETS

• US RGGI• US Western Climate Initiative• US EPA• US CLEAR Act• US Kerry-Graham-Lieberman bill

• China Sustainable Energy Program

• Tianjin Climate Exchange

• Carbon Pollution Reduction Scheme (CPRS)

• Mexico ETS

Korea ETS

Under consideration

8

Technology is there

9

Things will go faster than we think

MaturityBasic R&D Pilots Diffusion

Mass deployment


Time10

•Serve their customers with greater relevance

•Influence policy in a more holistic way

What should Energy and Utility companies do?

•Influence policy in a more holistic way

•Drive technology at scale

Serve customers with greater relevance


Influence policy with a holistic view


Drive technology at scale


There is increasing global recognition of the pivotal role of smart

grids in transitioning to a low-carbon economy

South Korea – KEPCO to pilot beginning in 2010

Japan – Kyushu Electric

Canada – varies by province

Ontario: set to fully deploy by end of 2010

British Columbia: set to fully deploy by 2012

Quebec: shelved plans

U.S. - varies by state

See details

See details

Russia – implementing smart meters

There are an estimated 90 smart grid pilots around the world today

1515Copyright © 2009 Accenture All Rights Reserved.

Japan – Kyushu Electric Power & Okinawa Electric Power to

beginning in late 2009

Utility pilots initiated

No activity

Announced plans/evaluating

Smart Grids/ smart meters in process of being deployed

Accenture project

Australia – Ministerial Council for Energy has agreed to install smart meters in 4

states. Roll out in Victoria to be complete by 2013.

South Africa – proposed regulations - by 2010, all

commercial and residential have smart meters

China – possible stimulus package for smart grid to be

run by State Grid

New Zealand – implementing smart grid

Mexico – 22M meters deployed by CFE

Pilots in:

• Brazil

• Colombia

• Ecuador

• Nicaragua

See details

European Snapshot of the Pace of Adoption of Smart Grid

U.K. – All homes to install by 2020

Norway – waiting for Swedish conclusions on technology before

creating its own specificationa

Netherlands –Amsterdam Smart City

Sweden – implementing smart meters

12

34

56 15

313233

343536 37

3839

4041

43

424445 46

474849

Finland – implementing smart meters

Denmark – implementing smart grid / meters

Germany– implementing smart meters

Austria– implementing smart meters

Ireland – implementing smart meters


Accenture project

Utility pilots initiated

No activity

Announced plans/evaluating

Smart Grids/ smart meters in process of being deployed

Smart Grid/AMI

AMR

Implementation Activity

1 567

8

9

10

11 121314

1516

171819

20

21

2223

2425

26

27282930

Italy – ENEL pioneered European deployments in 2001 when announced it’s intention to replace all 27

million electric meters

Current and future mandates/requirements are expected to accelerate deployment of smart technologies, however they are not required.

NJ: 22.5% by 2021

CT: 10% by 2010

MA: 4% by 2009 + 1% annual incr

MN: 25% by 2025;(Xcel: 30% by 2020)

CA: 20% by 2010

ME: 30% by 2000;10% by 2017 goal -new RE

RI: 15% by 2020

NY: 24% by 2013

MT: 15% by 2015

IA: 105 MW

WA: 15% by 2020NH: 25% by 2025

3

1 2

6

23

24

7 8

5051

16

21

444546

47

4849

43

17

585960

616263

VT: RE meets load growth by 2012

WI: requirement varies by utility; 10% by 2015 Goal

1819

205253

54

5556


State Goal (non-mandated)

PA: 18% by 2020

NJ: 22.5% by 2021

TX: 5,880 MW by 2015

NM: 10% by 2011

AZ: 15% by 2025

NV: 20% by 2015

State RPS

MD: 7.5% by 2019

HI: 20% by 2020

CO: 10% by 2015

DC: 11% by 2022

DE: 10% by 2019

IL: 8% by 2013

64

3

4

25

2627

28

29

5

30

31

3334

35

36

329

10

11

12

22

37

38

39

41 1340

42

141516 43 56

57

Smart Grid/AMI

AMR

Implementation Activity

Accenture project

Australian Smart Grid / Smart Metering SummarySmart metering and smart grid have become pervasive in the Australian market, against a backdrop of record capital programs and a drive towards sustainability

WA –Electricity AMI / Smart Grid Pilots / strategy

• Most T&D utilities now have a smart metering and/or smart grid agenda – including the gas and water utilities

− Victoria – AMI focussed, large transformational programs in place driven by regulatory mandate to implement AMI for all customers (2.4 million)

− Other states – Wider smart grid view, strategy & pilot projects in progress, driven by emphasis on network reliability and carbon reduction (pilots range from 50 to 20,000 customers)

QLD – ElectrictyAMI / Smart Grid trials & strategy, 20K customer AMR trial for water


reduction (pilots range from 50 to 20,000 customers)

• In general, the impetus is coming from the Electricity Distribution companies, who are seeking improvements in network reliability, and deferral of network capacity upgrades.

• With the exception of Synergy, Electricity retailers are mostly taking a passive, compliance-based approach to smart metering, due to lack of perceived benefits in the mandated distributor-led model.

• In general, Water and Gas utilities are just starting to undertake smart metering trials, seeking to “piggy back” off electricity trials to achieve cost synergies and overcome communications technology issues with non-electric utilities.

• Federal and State Governments are encouraging this “piggy back” model to reduce their costs in funding smart metering / smart grid programs, which is creating a sense of urgency in Water and Gas utilities to get on board before it is too late.

TAS –Electricity AMI / Smart Grid trials & strategy

NSW –Electricity AMI / Smart Grid trials & strategy, small AMI pilots for electricity & water

SA – Electricity AMI / Smart Grid trials, Water trials for irrigation users

VIC – Electricity Smart Metering mandated for all customers. Small trials of water & gas

For today’s pilots to effectively lead to the scale up of smart grids, a

number of challenges need to be overcome

• The struggle to create strong smart grid business cases in environments where regulatory

incentives have not evolved to reflect today’s policy agenda

• The uncertainty of future legislation

• Challenges around data privacy, cyber-security, interoperability and standards

• Conflation of objectives, whereby new technologies and pricing structures are rolled out in

1

2

3

4

19

• Conflation of objectives, whereby new technologies and pricing structures are rolled out in

parallel

• Consumer engagement challenges, both in communicating effectively with the consumer and

in delivering high-quality implementations

• Difficulty in convincing regulators and customers of the true benefits

Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

4

5

6

• Pilots should be used as a

mechanism to improve regulatory

incentives

• Pilots needs to be carefully

How do we position Smart Grid pilots for success?

•

• Pilots needs to be carefully

planned and scoped to ensure

objectives are met

• Pilots need to develop greater

consumer insight and systematically

engage with consumers

20Copyright © 2010 Accenture All Rights Reserved. Accenture, its

logo, and High Performance Delivered are trademarks of

Accenture.

These pilots will evolve with time from a pure technology focus, to

an operating model focus and finally to a business model focus

21Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Short-term

‘Lay the foundations for

success’

Medium-term

‘Reshape the agenda

and roll-out proven

technologies’

Long-term

‘Change the model’

� POLICY MAKERS Encourage

Smart Grids will transition to the mainstream

with the right support

Time

� POLICY MAKERS

Create the right

conditions for

investment

� INDUSTRY

Focus on creating a

stable technology

platform

� POLICY MAKERS

Align incentives to

encourage

investment

� INDUSTRY

Utilise pilot data to

influence policy

� POLICY MAKERS Encourage

new market entrants

� INDUSTRY

Position the value case for

full roll-out of technologies

22Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Key findings of new WEF report

Political and Regulatory Context• The right regulatory and policy framework for innovation and investment• Drive for global standards

Scoping Phase• Be clear about the test parameters and understand when customers will be engaged

• Clarity and ambition in design• Grid vs consumer pilots’ capability

• Collaborate to develop commercial capability that trials new operating and business models• Successful commercial collaboration

Copyright © 2010 Accenture. All Rights Reserved.23

• Successful commercial collaboration• Experiment with new operating and business models

• Develop consumer insight• Segment consumers by behavior• Target business customers

Executions• Engage and educate consumers• Re-engineer in the field

Dissemination of the Lessons Learned• Share lessons from the field• Inform the regulatory/policy environment

We all must play our role in moving to a smarter,more sustainable future

25

Consumers

Governments Technology companiesIndustry

Business Community

Copyright © 2010 Accenture All Rights Reserved. Accenture ...

Documents

Transcript of Copyright © 2010 Accenture All Rights Reserved. Accenture ...