African Utility Week 2008, Cape Town, South Africa

Enabling Smart grids for the future

Frits Bruggink

Senior Vice President and General Manager

Echelon Corporation

USA

African Utility Week 2008, Cape Town, South Africa

• From electro-mechanical to digital

• From isolated to networked• From basic measurement to rich base functionality

• From limited to flexible tariff plans

• From single application to a flexible network platform

• From fixed function to remote upgradeability

Metering Is At a Generational Turning Point

African Utility Week 2008, Cape Town, South Africa

• There has not been a clear and consistent use of the terminology within the industry

• AMI and smart metering are, in fact, not limited– More than just two-way communications

– More than just kWh monthly and interval metering data

– More than just supporting meter reading applications

– Should not utilize electro-mechanical meters

– Required to enable smart grid capabilities

Our Industry Blurs AMR, AMI and Smart Metering

African Utility Week 2008, Cape Town, South Africa

Some Industry Definitions of AMI

• An advanced metering infrastructure is a comprehensive, integrated collection of devices, networks, computer systems, protocols and organizational processes dedicated to distributing highly accurate information about customer electricity usage throughout the power utility and back to the customers themselves.

• Such an infrastructure is considered “advanced” because it not only gathers customer data automatically but does so securely, reliably, and in a timely fashion while adhering to published, open standards and permitting simple, automated upgrading and expansion.

• A well-deployed advanced metering infrastructure enables a variety of utility applications to be performed more accurately and efficiently including time-differentiated tariffs, demand response, outage detection, theft detection, network optimization, and market operations.

• Advanced metering infrastructure (AMI) supports increased functionality in revenue meters, two-way communications to take advantage of that functionality, and new system applications that utilize information from advanced meters. AMI has the potential for dramatic improvements in utility operations, reliability, and customer service. Much more than just automated meter reading, AMI serves as the primary information-gathering system for utility operations.

African Utility Week 2008, Cape Town, South Africa

• AMI provides true two-way meter communications• Scheduled communications• On-demand and real-time communications• Secure and encrypted communications

• AMI and smart metering also provide• Customized interval meter data and peak demand readings• Forward and reverse measurements with programmable calculations• Dynamic rate capabilities (TOU, RTP, CPP) • Power quality and reliability data

• Voltage and current readings, power factor, and frequency• Real-time control and demand response functionality• Supports energy conservation programs• Outage and theft detection• Prepayment services• Integrated software-controlled disconnect switch• Remote programmability and firmware upgrades• Ability to add new functionality

• AMI sets the stage for local area (in-home) communications

What AMI and Smart Metering Really Are

African Utility Week 2008, Cape Town, South Africa

Next-Generation Smart Metering Has Already Taken Hold in Parts of Europe

African Utility Week 2008, Cape Town, South Africa

“… during the tender process, a generation change in technology took place…”— Göran Lundgren, CEO of Vattenfall distribution

“… Enel will save 500 million euros in operational costs a year, which will repay the investment in four years,“— Vincenzo Cannatelli, Enel's head of distribution and markets

“Duke likes to refer to these new technology advances as the “Utility of the Future.”— Jim Rogers, Chairmand and CEO of Duke Energy

Some Leading Executives’ Opinionson AMI and Smart Metering

African Utility Week 2008, Cape Town, South Africa

The Telegestore Project

• Largest advanced metering project in the world• Over 27M meters networked with Echelon’s technology in initial 2001 – 2006 deployment

• 2.5M to 6.5M Echelon-powered meters in new 2006 agreement

• Over 350K Echelon data concentrators

• 2.1 billion € total investment; 500 million € savings per year

• Delivering better service at lower cost • 6 million fewer field visits each year• Able to respond to 98% of customer requests within 24 hours• Created ability to tailor offering to consumers with “downloadable” tariff plans – 7 plans with over 1.3 million customers

• Fraud reduction, network planning and load balance

African Utility Week 2008, Cape Town, South Africa

For customers:• Invoices on real consumption• Remote contract management• Tailored tariffs• Savings in billing

For the electric power system• Peak shaving • Energy efficiency and CO 2 reduction• Reduction of commercial and technical

losses

For Enel• Leader in innovation• Customer satisfaction• Operating cost savings

Enel’s Telegestore Project: Main Benefits

African Utility Week 2008, Cape Town, South Africa

For Success, Design Center Must Change From the Smart Meter to the Smart Grid

• Next-generation utility systems are networked systems that contain meters, not just metering systems• Meters are the most common connected device today, but not the only connected device in the future

• The network is the core component of a successful advanced metering deployment and on-going smart grid expansion• Security and scalability need to be “network-grade” and designed in from the ground up

• Expandability and flexibility are essential to “future proof” the system

African Utility Week 2008, Cape Town, South Africa

Vattenfall Group

• Europe’s fourth largest generator of electricity and the largest generator of heat

• Vision: To be a leading European energy company

BG Vattenfall Nordic(Sweden, Finland, Denmark)

BG Vattenfall Poland

BG Vattenfall Europe(Germany)

• Operations in Sweden, Finland, Denmark, Germany and Poland

• Electricity generation, transmission, distribution, sales and trading

• Heat generation, distribution and sales

• More than 32,000 employees

• Turn-over 13,697 MEUR (2005)

• Vattenfall AB is wholly owned by the Swedish State

African Utility Week 2008, Cape Town, South Africa

Market Development vs. Investment

Functionality

Cost

AMR1st Deployment

AMR+ 2nd Deployment

AMI 3rd Deployment

(Using NES)

African Utility Week 2008, Cape Town, South Africa

Advanced Metering…Not Only for Billing Data

Remote upgrading

Vattenfall 3rd system can be upgraded remotely

Power Outages

Vattenfall 3rd system can report all power outages > 3 minutes

Power Quality

Vattenfall 3rd system can report: Under and over voltage, Over-current Frequency, Phase loss

Power Control

Vattenfall 3rd system can: Remotely disconnect customers as well as load control customer equipment and water heaters

Tamper detection

Vattenfall 3rd system can detect: Terminal Cover Removal, Magnetic Tamper, Reverse Energy, Phase Inversion, Current Flow with No Voltage

African Utility Week 2008, Cape Town, South Africa

• Smart Meters create a paradigm shift and drive a change in generation planning and peak shaving strategies

• Utilizing AMI and Residential Smart Meters …

– Creates a real time market for energy

– Reduces peak demand

– Protects the system/generators from capacity shortfalls

– Eliminates theft and fraud

– Helps optimize T&D and generation resources

– Opens access to all smart meter data

– Makes smart meters pay for themselves

• Everything you need to do today as well as in the future

– …but only if your meters, network and processing are truly smart enough and obsolescent resistant!

What can AMI and Smart Meters do?

African Utility Week 2008, Cape Town, South Africa

Manual meter reading

•Monthly kWh reads

Automatic Meter

Reading (AMR)

•One-way or two-way

•Monthly kWh reads

•Interval data

•Basic theft detection

•Outage/Restoration Detection

Advanced Metering

Infrastructure (AMI)

•On-demand reads

•Programmable load intervals

•Bi-directional and net

metering

•TOU, RTP, CPP pricing

options

•Demand response

•Gas & Water metering

Smart Meters

•Solid-state platform

•Integrated communications

•Integrated disconnect switch

> Remotely disconnect

> Remotely connect

•Power quality data

> Voltage readings

> Current readings

> Power Factor

> Frequency

> Detailed power outage data

•Advanced theft detection

•Remote programmable

•Remotely upgradeable

•Internal expansion port

> Future functionality

Investment Cost

Opportunity Cost of Investment

Business Process Changes delivering ROI

Smart Grid

•Energy Management Services

> Residential, Commercial

•Home Area Network gateway

> PLC (i.e. LONWORKS®)

> RF (i.e. Bluetooth, Zigbee)

•Web-based applications

> Demand Response

> Prepayment

> Load Control

> Revenue Protection

> Web Move in/out

•Distribution

> Load profiling / engineering

> Phase balancing

> Transformer optimization

> Energy forecasting

> Outage detection and GIS

> Restoration automation

> Work Force Management

> Automated Field Dispatch

> Asset Management

AMI and Smart Metering Bring Utilities to a New Level

African Utility Week 2008, Cape Town, South Africa

Advanced Functionality Without Extra Cost

• Every meter is an advanced meter —providing a “future proof” platform• Power quality• Multi-tariff• Data logging• Power limiting• Direct load control• …

• Integrated disconnect in every meter• Expensive if retrofitted to existing meter designs

• Cost-effective if designed into meter as an integral component

African Utility Week 2008, Cape Town, South Africa

Summary

• Next-generation systems are the future of metering and the utility industry

• Creates a paradigm shift in the industry

• Creates a new tool for generation planning

• Only enabled by using truly smart meters

• Requires a network-centric approach to reliability, security, and scalability

• Next-generation systems deliver substantial benefits to utilities and consumers

• Dramatically more beneficial than just AMR with two-way communications

• Next-generation systems enable in-home and smart grid applications

• Next-generation systems provide the infrastructure for meeting today’s requirements and the platform for delivering future applications

African Utility Week 2008, Cape Town, South Africa

AMI

Q&A / Discussion

African Utility Week 2008, Cape Town, South Africa

Thank You!