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

END

THANK YOU

Cell: +263 774668303

wshereni@zedc.co.zw