Imraan MohamedMarketing Manager

ItronSouth Africa

1.Context : Smart Grids and Smart Metering.

2.The Smart Metering Value Chain.

3.Key Tenents for Smart Metering Technology.

4.Conclusion- Take-aways.

Agenda: Architecture for Smart metering

1. Context : Smart Grids & Smart Metering

1.1 What will a Smart Grid look like?

Intelligent sensors

Smart, unified systems

2-way communication

Disconnected, basic sensors

Disparate systems

Limited communication

1.2 What changes will the Smart Grid bring?

1.3 Where does smart metering fit in?

2. SMART METERING VALUE CHAIN

Revenue assurance» Automated correct

Billing» Non-technical loss

detection & reduction» Smart Payment options» Remote Contract

Management

Energy efficiency» Customer

awareness and automation of home energy use.

» Reduce Carbon Emissions

» Support DSM.» Micro-Generation» Multi-Energy

Smart Grid» Data for Demand

Forecasting» Load Management

(DSM)» Distribution Network

monitoring» Near real time

Optimised performance of the grid.

2.1 SMART METERING DRIVERS2.1 SMART METERING DRIVERS

9

2.1EVOLUTION OF METERINGDEVICES

Smart Grid

Smart Grid

Distribution ManagementDistributed Generation Intelligence

Grid Digitization

2.2 Evolution of the Value of Meter DataC

osts

–V

alue

Cha

in

Technology IntegrationM

eter

Sho

p

Ente

rpris

e

Cos

t per

poi

ntT

rans

form

atio

n

AMI

Open StandardsTwo-way

Communicationsto a smart meter

Mandatory Time Based RatesRemote Disconnect/prepaymentMass Market Demand Response

Home Automation

Utility and Customer Benefits

Simple consumptionread

Distribution Reliability

Interval Meter Data

AMR

Walk-By Reading

Pre-payment/Drive-byMeter Reading

Customer service improvementsRevenue Protection

External remote connect/disconnect

Outage/Restoration NotificationVoluntary TOU

3rd party load control

HandheldMeter

ReadingLow Meter Reading Costs

Operational EfficiencyRevenue Cycle Improvement

Security

2.3 Smart Metering Value Chain

� Accurate customer billing.

� Black-out prevention.

� Reduction of non-technical and technicalloss.

� Involvement of end consumers.

� Leverage Communication Infrastructure.

� Integration to existing Utility IT landscape

� Process efficiency / productivity

� Cost controls

� Massive Data Management, Analytics and Business Intelligience.

� Support different Energy Market models.

� Integration of Renewable energies.

� Support Muti-Energy: Electricity, Water, Gas, Heat, Cooling

Main benefits of Smart Metering:

BillingCustomer Management

EnergyManagement

Enable/support the following:

Smart Grid

Field operations

DistributedGeneration

Meter MGT

Multi Energy,E,W,G,H,C

Data processing

SMART METERING IS NOT ONLY ABOUT THE METER

MDM System

Systems Integration

MetersOther Field Devices

Communi-Cation

End ConsumerEngagement

Meter Data CollectionSystems

System Operation

3. INVESTING in SMART METERING

AMRAMR

AMI

Smart Grids

• Meter Reading Cost & Efficiency• Meter Reading Cost & Efficiency

• Revenue Cycle Improvements • Revenue Cycle Improvements

• Operational Improvements• Operational Improvements

•Net Metering, Distributed generation•Net Metering, Distributed generation

• Revenue Protection / Theft Detection• Revenue Protection / Theft Detection

• Outage Reporting• Outage Reporting

• Support for SmartGrid• Support for SmartGrid

• TOU tariffs: Mandatory or Voluntary• TOU tariffs: Mandatory or Voluntary

• Remote Disconnect / Prepayment• Remote Disconnect / Prepayment

• Demand Response • Demand Response

• Enterprise Meter Data Management• Enterprise Meter Data Management

• Energy Efficiency• Energy Efficiency

• TOU / Demand / Net Metering• TOU / Demand / Net Metering

• RTP / CPP / Hourly Rates• RTP / CPP / Hourly Rates

• New Products & Services• New Products & Services

• Home Automation• Home Automation

Walk

-by

Walk

-by

Drive-by

Drive-by

Fixed N/W-AMR

Fixed N/W-AMR

2-Way

2-Way

Open Pro

toco

ls

Open Pro

toco

ls

3.1 Changing Requirements

A. Standards

B. Security

C. Unified Platform & Architecture

D. Extensibility

3.2 Key Tenets for Investing in Smart Metering

A. From Standards to Interoperability

� Standards are not enough

� Interoperability requires a support framework

From Standards to Interoperability

Close the gap

1. Limit the scope of application -> define use cases

2. Select from the existing standards3. Define the options left by the standards

4. Provide a companion specification to the standards

5. Provide interoperability testing6. Manage the test label

Eg: Standards to Interoperability

“(IDIS) … is the only true open, multi-vendor interoperability effort we can point to worldwide.”Pike Research Sept 28, 2010

InteroperabilitySpecification

StandardsAgreements

Test Tools

Development

DeviceTesting

test report12-JUL-2011 10:34:45 iCTT version 1.0.3 Licensed to: KEMA-IDIS Cert. Tester: Bas Roelofsen

*************************************************** ***************************** ****************** * Identification * ******************

Manufacturer = { Name = '\ITRON Metering Systems' ThreeLettersId = '\ACE' } DeviceUnderTest = { IDISDeviceType = 100 IDISFunctionType = [EXTENSION_D, EXTENSION_L, EXT ENSION_M]

SerialNr = 10091488 } *********** * Summary * ***********

PASSED 1203 FAILED 0 DISABLED 0 INAPPLICABLE 295 INCONCLUSIVE 0 FATAL 0

TOTAL 1498 ********************************** Test Case 1 : Discovery, 1 item(s) ********************************** (1) Meter Discovery PASSED

******************************************** Test Case 2 : Connect and release, 4 item(s)

Test Report

InteropTesting

B. Security Architecture

� Secure by Design Methodology

� Secured Data , End-to-End� Symmetrical key encryption for point-to-point messages� Asymmeterical key encryption for broadcast messages

� Secured Communication Network, End-to-End� Standards based

� Unified Security Management across the Connected Grid� Keys, Encryption, Processes, Monitoring

Smart Metering Architecture

Existing proprietaryvertical applications…

Smart Grid are transforming utility networks

Converged Network

Network Infrastructure

Application Infrastructure

Business Application 1

Business Application 2

Business Application N

Gateways /

Concentrators

Applications share common infrastructure, networks and data

T & DSubstation FAN / HAN

TO

CONVERGEDPLATFORM

PLATFORM APPROACHStandards based hardware, software, and communications platform

A POINT SOLUTION APPROACHHigh cost and complexity.

POINTSOLUTION

C. Unified Platforms

… translate this to smart metering architecture …

Unified Network ManagementUnified Network Management

Performance

Diagnostics

Configuration

Network security

Firmware download

All metering

end-users

consistently

managed Unified Metering Architecture

APPLICATIONS / USE CASES

e.g.

Prepayment

Tariffs

Load Management

Data securityUnified Device ManagementUnified Device Management

D. Extensibility

� Ability to accommodate new (smart grid) applications and use cases

� Secure, robust upgradability of firmware without impacting or interrupting metrology

� Communications modularity , logically and physically, for both Home Area and Wide Area Networks (HAN & WAN)

� Investing now in an asset that will remain on the wall for 20 yearsBUT that can be flexible and upgradable for new smart metering & smart grid applications.

D. Extensibility

Meter lifetime evolution

Coms lifetime evolution New

communication technology – New module

20 years (tech lifetime)

Interoperable Modular

Future Future proofproof

New version of existing communication technology appearing in the market

Interoperability

Upgradable

+ Integrated Security+ Integrated Security

In Summary … for South Africa

� Standards and interoperability� NRS 049, being revised…….� STS, support for smart metering ?� Progress, but standardisation and a qualification framework is mandatory …

� Security� Good knowledge base … STS and Key Management� Needs logical extension for data security and standards based communication

security (IP…)� Unified Platform and Architecture

� Good skills basis� Need architectural strategy / roadmap, and standards based harmonization

at systems and meter level … end to end� Extensibility

� Today decisions are NOT based on Total Cost of Ownership over 15-20 years, but on immediate CAPEX investment? ….

Take Aways� Business Case – Be clear on this. Are you solving a short term DSM problem or a want smart metering

for all the long term benefits that span across the value chain. What is your target segment?

� Communication Technology – The communication layer is critical for the success of AMI.

No one solution fits all.

» Meter Interoperability – Essential for a competitive Smart Meter implementation and drives Technology

Innovation.

» Conduct Pilots Small pilots with single vendors and proprietary solutions are a “No go”, especially while

issues like standardisation and required functionality are still work in progress. Use Pilots to prove end to

end solution/interoperability for mass roll-outs.

� Process/Technology/People – Drive the AMI vision through firm processes, Technologies and

practices, and up-skill People to ensure a solid support structure.

� Meter Deployment Process – Establish realistic deployment plans within your constraints. Not all

implementations will work the same.

� Smart Metering is NOT about the meter. However request a flexible, modula r, upgradeable meter.

� Engage with the End Consumer. Engage with the End C onsumer. Engage with the End

Consumer.

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THE ARCHITECTURAL APPROACH TO BUILDING A

SMARTER GRID IS ONE OF THE MOST IMPORTANT

STRATEGIC DECISIONS STANDING BEFORE US

INVESTING IN THE RIGHT END TO END PLATFORM FORMS

THE CORNERSTONE OF ANY INVESTMENT DECISION

27

THE ARCHITECTURAL APPROACH TO BUILDING A

SMARTER GRID IS ONE OF THE MOST IMPORTANT

STRATEGIC DECISIONS STANDING BEFORE US

INVESTING IN THE RIGHT END TO END PLATFORM FORMS

THE CORNERSTONE OF ANY INVESTMENT DECISION

The advent of the "smart

meter" marks the first real upgrade to end to end end to end electrical electrical

billing billing since our

grandparents were born.

It will allow energyenergy

providersproviders and endend consumersconsumers

to communicate directly with each other.

2.2 Metering Evolution to AMI benefits

Manual

Meter

Reading

Advanced Metering Infrastructure (AMI)

Automated Meter Reading (AMR)

e.g. MV90

In Field Meter Reading

e.g. Drive-by

Electronic Meter Reading

Smart Grid/

Home Automation

(Customer Energy Market participation)

Shift from AMR to AMI is occurring

• Lowers meter reading costs

• Can increase frequency of reading

• Reading & Billing data more accurate data received

• On demand data received

• Fewer exceptions

• Enhanced system control

• Better demand and supply mgmt

• Self healing networks

• Billing options and tariffs can be changed more quickly and more easily

• Improved revenue protection

• Reduced Customer complaints

• More flexible tariffs

• New tariffs can be implemented quicker

• Reduced calls

• Fault detection easier and more cost effective

• Outage restoration quicker and easier

• Upgradeable firmware

• New services

• Job opportunities for meter installers

• Greater awareness of energy use leads to greater energy efficiency

• Smart meters create opportunities for new energy management options

• Supports the first steps towards home generation

• Micro grids

Distributed Generation

Smart GridMeter

Ownership

Meter Instal-

lation

FieldOpera-

tions

Comms Infra-

structure

Data Processing

BillingCustomer

ManagementEnergyManagement

Meter Data Management

(MDM)

& System Integration

LESSON LEARNT (1)DEPLOYMENT CHALLENGES

� Initial expected deployment plans (2005-2010 projections) of smart metering not materialising as envisaged.

� There are Large number of “Pilots” of varying sizes in progress to evaluate impact and learn while technical, legal and social issues are addressed. A significant slowing down of execution indicating a cautious approach.

� Lack of skilled resources and general capacity to deploy projects on a large scale without proper planning and prior to evaluation of pilot results.

� Indications are that momentum picking up in 2011 and new targets set towards 2020.

ECONOMIC BARRIERS

� There are many parties involved, and the benefits ofsmart metering may accrue to parties than do not necessarily bear the costs.

� Large scale AMI deployments take long and are costly. Oppositionfrom regulators to increase the tariffs further and ask final users to pay for it.

� Business case Justification or target segment strategy not always clear.

� Funding Issues - Many AMI Pilots planned but delayed.

LESSON LEARNT (2)END CONSUMER CHALLENGES

� Initial lack of involvement/education. (Dutch case, Improving in UK)

� Need to be convinced of benefit and savings to them.

� Concerns about security, privacy & health

TECHNOLOGY CHALLENGES

� Standardisation taking longer then expected.

� Convergence of Technology well progressed but not fully there in totally inter-operable manner.

� Lack of interoperability between different smart meter systems. No open registered standards exists which properly scopes all of the different functions (metering, communications, presentation, and network). Availability of multi vendor Technology modularity progressing especially in larger scale multi-vendor pilots. (Eg EDF and DSMR 4.0)