IEA smart energy systems roadmap Technology frontier. Régis Hourdouillie Global Head of Smart Grid Ericsson 1 March 2016
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1 IEA smart energy systems roadmap Technology frontier Régis Hourdouillie Global Head of Smart Grid Ericsson 1 March 2016
2 Industries in Transformation MOBILE INFRASTRUCTURE OSS&BSS SERVICES MEDIA DELIVERY & IPTV $35 b. $5 b. 118,000 65,000 Net Sales In R&D Employees Services professionals IEA Ericsson March 2016 Page 2
3 The Networked Society Utilities transformation IoT platform Functions and Analytics Power Grid Operations Networks Cloud Access everything from the cloud Processes IT Multi-dimensional changes across Business-IT-Networks 4G / 5G wireless Broadband & Narrowband 15 years 50 billion connected devices IEA Ericsson March 2016 Page years 1 billion connected places 25 years 5 billion connected people
4 Ambition Utilities transformation path Innovating operations and consumer service enhancements Smart tariffs Demand side participation Consumer value creation Customer segmentation and tailored solutions New business and operational models IT/OT convergence Distributed Intelligence Decentralization and micro grids Dynamic and automated operations Utilities future state Customer service oriented Efficient and sustainable Flexible - adaptable to new market and regulatory developments Critical partners in emerging integrated smart societies Transformation need recognized by utilities Consumer expectations Changing network utilisation Smart Metering (mainly electricity) Smart Grid Communications Smart Metering evolutions (increased capabilities and functionality extended to gas and water) Smart Grid evolutions (control and DA) Initial Integration of analytics and Customer Asset & Protection Grid Control Leading end-to-end transformation projects Distributed Intelligence Platforms Utilities Service Enablement Platforms XaaS/Cloud Service platforms that enable Utility industry adaptation through flexible ICT innovation and implementation. Reduced dependency on internal capabilities and large scale ICT investments Expanded application of scale and scope economies to utilities operations Interconnected society smart grids, cities, countries Utility outlook Technology & market focus IEA Ericsson March 2016 Page 4
5 Source: IDC 2015, Mobile Communication Powers Utilities' Adoption of the Internet of Things What Utilities say about IoT Utilities Top Strategy Drivers Utilities Top Use Cases Customer Experience 86% BEMS Customer Engagement Demand EV Customer Operations 77% HEMS Revenue Protection DERM SM Workforce 72% Fleet Remote WFM Sensor-Based Staff Id Asset Utilisation 70% DA Asset Diagn. & Maintan. Leakage Reduction Quality Control Substation Automation Remote Asset Surv. Weather Sensors
6 IoT solutions for utilities Data bases SERVICE & INFORMATION MANAGEMENT SERVICE ENABLEMENT Command & Control Center Applications Predictive Maintenance Functions Asset Monitoring Data Protection Device Repository Grid control Functions Device Fraud/Revenue Protection Functions SIM Data Consistency Com Quality Functions Metering applications Real Meter time Analytics Power Quality Functions Notification Device Config. Assurance Meter Mgmt Functions Cloud Platform & Managed Operations Smart Metering As a Service Smart Grid As a Service CONNECTIVITY MANAGEMENT & NETWORK SERVICES Communication Networks Com Network Operation Integrated Operations ICT INFRASTRUCTURE & BACKHAUL PHYSICAL INFRASTRUCTURE & ASSETS/DEVICES PEOPLE IEA Ericsson March 2016 Page 6 Access Networks Performance Fault & Incident E2E IP Networks Private Virtual Network QoS Data Integrity SMART GATEWAY (SMART GRID NODE)
7 First Connectivity solutions dedicated to IoT 90% MODULE COST REDUCTION 10+ YEARS BATTERY LIFE 7x BETTER COVERAGE 1M+ DEVICE CONNECTIONS NB-IoT devices support Extended life (LTE-M & NB-IoT) Extended Coverage (NB-IoT) Support massive number of connections per cell site IEA Ericsson March 2016 Page 7
8 Cellular Low Power Wide Area serves much more MODULE COST/ PERFORMANCE <$20 10 Mbps LTE-M CAT1 1 Mbps <$10 100s kbps <$5 10s kbps 100 bps Unlicensed LPWA EC-GSM NB-IOT INDUSTRIAL PROCESS MONITORING & CONTROL SMART GRID SMART CITY, SMART BUILDING WEARABLES, KIDS /PET TRACKING SMART METERING VOICE SERVICES CONNECTED ELEVATORS VEHICLE TRACKING ASSET TRACKING SMART AGRICUTURE, ENVIRONMENT USE CASE DIVERSITY 10 km 10+ years COVERAGE / BATTERY IEA Ericsson March 2016 Page 8
9 Impact of analytics Sample Use Cases (Project Estonia) Event Visualization Power Quality Communication Supervision Configuration Outage Visualization IEA Ericsson March 2016 Page 9
10 global utility footprint and relevant IoT references >50 Smart Meter aas MILLION METERS Smart Meter and Grid analytics - 20% TCO FOCUS ON COMMUNICATIONS NETWORKS OPTIMISATION World s largest GRID EDGE NODE DEPLOYMENT Grid edge massive deployment Demonstrator IoT for grid control First LTE network for grid control IEA Ericsson March 2016 Page 10
11 Full range of solutions available Addressing diversity of use cases in the short/medium term EC-GSM 2016 Global cellular IoT for all GSM markets LTE-M 2017 Wide range of applications Massive IoT NB-IoT 2017 Ultra low-bitrate applications IEA Ericsson March 2016 Page 11
12 IN 2030? Millions of people have a life expectancy of 150 years or more Learning a second language is no longer necessary Food is grown in skyscrapers You don t need to drive your car unless you want to 3D printing and drone delivery provides close to real time supply Actors are out of work, replaced by animated artists New buildings generate more energy than they consume Cash is digital and virtual currencies capture a large share of GDP IEA Ericsson March 2016 Page 12
13 Change will never be as slow as today! Mr. Hans Vestberg, CEO of Ericsson since 2010 IEA Ericsson March 2016 Page 13
14 Key Take aways UTILITIES GOING THROUGH DISRUPTIVE CHANGE HORIZONTAL AND AGILE PLATFORMS DATA DRIVEN TRANSFORMATION IOT / SMART GRID IS INDUSTRY TRANSFORMATION CONNECTIVITY EVERYWHERE NEW BUSINESS MODELS
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