Advance Metering Infrastructure (AMI) in South Africa Eskom s Challenges and Lesson s Learnt
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1 Advance Metering Infrastructure (AMI) in South Africa Eskom s Challenges and Lesson s Learnt By: Kennedy Subramoney 9 May th ANNUAL METERING BILLING / CRM ASIA 2012 Bangkok (Thailand)
2 Presentation Contents Overview of Eskom Overview of Eskom s AMI Project Challenges and Lessons Learnt Scope of work approach Meter System issues Meter supplier contracts Field installations issues Organisational Change Management Specifications and Standards Accomplishments Way Forward 2
3 Eskom Key Facts Eskom generates, transmits and distributes electricity for South Africa Generates: Approx. 95% of electricity used in South Africa and Approx. 45% of electricity used in Africa Number of employees: 41,778 Electricity customers: > 4,7M Residential customers: 97% but only make up 4.7% of Eskom s electricity sales. 3
4 Eskom Power Grid 27 Power stations 13 Coal 6 Hydro 1 Wind 4 Gas / Liquid 2 Pump storage 1 Nuclear Net max. capacity: 41,194 MW 28,790 km transmission lines kv 160 substations 4
5 Project Overview - Drivers for Residential AMI Comply with National regulation - National regulation (773) mandates the use of smart systems and time-of-use tariffs (TOU) for customers consuming over 1,000 kwh per month. Shift Residential Peak Load - Shift load of medium to high consuming residential consumers (> 700 kwh / month) through TOU tariff. The objective is to reduce the morning and evening peaks. Promote Customer Behaviour Change - Incentivise the efficient use of electricity, promoting energy conscience lifestyle changes, by providing the customer with real-time energy usage information and supporting the TOU tariff. Empower the customer!!! Improve Customer Service and Operational efficiencies Reduce the need to estimations through automated meter readings. Reduce nontechnical losses and meter reading costs. Provide Demand Response Implement Load management and load limiting functionality as a possible alternative to load shedding during periods of system constraints. 5
6 Project Scope Phase 1 Pilot and Test (10K) Install and test 10,000 AMI Meters, supported by Data Concentrators (DCs), Customer Interface Units (CIUs) and Appliance Control Devices (ACDs). Analyse the Process and Technology impacts to embed the changes into the business. Integrate AMI head-ends with Eskom s billing system (CC&B) Implement automated meter readings (AMR). Pilot and test the residential time of use (TOU) tariff - HomeFlex Target conventionally metered customer s consuming 500 kwh and above per month. Monitor and evaluate the solution. Conduct lessons learnt in preparation for the next Phase. Phase 2 Enhanced solution, additional functionality and mass meter rollout (110K) 6
7 Phase 1 Solution Providers 2 AMI metering system suppliers were selected through an open tender process Comply with, NRS 049 : Advanced Metering Infrastructure (AMI) For Residential And Commercial Customers (A recommended utility specification for South Africa) To supply and install meters, DCs, CIUs, and ACDs To supply and integrate the head-end systems To operate the head-end systems until transfer They are, Landis and Gyr (L&G) and Unique Mbane South Africa (UMSA) System Integrator and Implementation Partner Accenture was selected as the system integrator and implementation partner. To design and build a multi-vendor integration layer based on Common Information Model (CIM) To jointly test and deliver the end to end integrated solution 7
8 Multivendor Integration Layer with Meter Stations / Head-Ends Phase 1 Solution Overview Eskom owns the meter, display unit and ACD ACD used to control non-essential appliances, such as Geyser, etc Meters communicate to the DCs using Power Line Carrier (PLC) technology Uses GPRS to communicate between Concentrator and Head-ends Managed by Meter Suppliers Web Services 8 8
9 UMSA Metering Solution Appliance Control Device (ACD) PLC Data Concentrator (DC) AMI Meter Cellular Data (GPRS) PLC PLC Customer Interface Unit (CIU) 9
10 L&G Metering Solution Appliance Control Device (ACD) PLC Data Concentrator (DC) AMI Meter PLC Cellular Data (GPRS) Radio Frequency (RF) Customer Interface Unit (CIU) 10
11 AMI Project Phases and Approach Current Phase Scope Phase 1 (a) Meter exchange Go Live - 28 Feb 2011 Automated Meter Reading Tariff Transition (Qualifying customers) Appliance Control - TOU Phase 1 (b) Meter exchange Automated Meter Reading Tariff Transition Appliance Control - TOU Multivendor integration layer Go Live - 15 Dec 2011 Future Scope Phase 2 Enhanced functionality Load Control on Demand AMI Monitoring / Reporting Malfunctions/Outages/Tampers Remote Disconnect/Connect Meter reading on demand Customer information delivery Prepaid support READY SET GROW 1,000 meters 500 meters per meter supplier Learn & refine processes - controlled deployment Monitor and evaluate technology Meter readings via existing handheld meter read interface (text file Route Master) Roll-out all Phase 1 meters Remaining 9,000 Total of 10,000 meters in urban sites Implement updated processes. Focused TOU tariff marketing effort. Multivendor integration layer using CIM based web services. Roll-out all Phase 2 meters (100,000) Meter Data Management System (MDMS) and Gateway Implement end-state processes for Phase 2 business capabilities National roll-out (urban and rural customers) 11
12 Implementation KPI s Achievements Phase 1 Target Area Progress Data Concentrators installed 167 Central Eastern Western Total to date 117 Meters installed Meter Changes captured in Billing System Customer interface units installed Appliance control devices installed Achievements - Forums Area Progress Total Customer Forums Total number of customers reached Customer Forums (events) Central Eastern Western** Customer conversion to TOU tariff N/A 15 12
13 Challenges and Lessons Learnt Scope of Work approach Challenge: Introduced multiple capabilities simultaneously: AMI Meters Lesson Learnt: In-home devices - CIUs, ACDs In-transformer devices - Data Concentrators (DCs) New meter reading integration paths New meter data integration paths New residential TOU tariff Updated business processes Updated maintenance processes Stager the release of capabilities: Reduce your scope risk exposure: Once a capability has been implemented and operationalised then introduce the next capability 13
14 Challenges and Lessons Learnt Meter System issues Challenges: Meters disconnecting customers and changing functional mode randomly Communication problems; between meter and CIU; meter and DC; DC and headend. CIU and meter display failures Incorrect meter register values Meter recalls Inconsistency of information display between CIU and Meter Lessons Learnt: Ensure that the regulatory, performance, quality, security and reliability certifications for the devices and head-end is available Perform comprehensive solution (end to end) testing Perform meter accuracy tests and sample testing of meter functionality, accelerated life testing (ALT) Perform stringent performance monitoring and evaluation post installation 14
15 Challenges and Lessons Learnt Meter Supplier Contracts Lessons Learnt: Payment terms - payment on installation and communication with the head-end Specify the requirements for local support and maintenance Specify the requirements for device storage and transportation prior to installation Specify the regulatory, performance, quality, security and reliability specifications and standards for the AMI devices and head-end system Specify the installation design, safety, health, environment and quality specifications and standards Specify the quality system compliance requirements for the supplier (ISO 9001) Specify that suppliers are responsible to ensure that the proposed system can operate as designed within the utilities environment Include the service level agreement (SLA) requirements for the operation and maintenance of head-end (E.g. Disaster recovery, Business Continuity, Archiving, QA / Testing environments, Response times (manual and automated processes; Daily / Weekly / Monthly Reports) Purchase additional meters as required by the utility based on meter performance (task based contract). 15
16 Challenges and Lessons Learnt Field Installations Challenges: DC installations were dependant on 5 week lead times for transformer outages Identified field issues, e.g. faulty circuit breakers, hot connections, unlocked kiosks / customer locked kiosks, ant mounds in transformers, meter bypasses / tampers, meters installed with customer premises Space constraints in certain existing transformer and meter housings for DC and Meter installations respectively Contractors do not comply with installation specification, safety, quality and data capture requirements Dependence on area personnel availability - outages and maintenance work CIU installations introduced complexity: Customer s were required to be available for basic CIU training and sign for CIU acceptance Customer billing data had to be correct and synchronised with head end Lessons Learnt: Undertake pre-installation audits and plan to rectify field issues identified Ensure that the installation designs, safety and quality requirements are standardised and adhered to Automate the field installation data capture process 16
17 Field Issues Live work DC installation Transformer Ant Mound Hot connections 17
18 Challenges and Lessons Learnt Organisational Change Management Challenges: Maintaining the existing business processes while introducing AMI changes Field / Technical services, Customer services, IT Application and System Support Devices such as the CIU and ACD deviate from existing maintenance philosophies - utility technicians do not operate beyond the metering point Area offices not resourced to handle large volumes of AMI meter change-outs Area offices have their own priorities Lessons Learnt: Ensure hands-on executive management sponsorship that champions and communicates the priority of AMI Appoint project managers from area offices this provides an understanding of local environment, challenges and promotes local buy-in Ensure that the current business processes are properly understood clearly document the impact of AMI on these processes (especially resource impacts) Ensure training and buy-in of area office staff, field service staff and contact centre staff Supplement area office with staff to accommodate AMI impacts 18
19 Organisational Change Management 19
20 Challenges and Lessons Learnt Field Data versus System Data Challenges: Inaccurate Customer Network Link (CNL) data - meter to transformer link Lack of Low Voltage (LV) network diagrams Inaccurate AMI DC installation schedules Discrepancies between billing and field data in billing system Meter installations and movements / change outs not captured Meter installations incorrectly captured Meter in kiosks are not properly marked as to the premise being supplied Inaccurate AMI meter installation schedules Lessons Learnt: Perform pre-installation audits to verify and correct CNL data Perform pre-installation billing data versus field data audits 20
21 Challenges and Lessons Learnt Specifications and Standards Challenges: NRS 049 : Advanced Metering Infrastructure (AMI) For Residential And Commercial Customers (A recommended specification for South Africa) Version 1 - Untested. Metering focused (limited head-end and integration specifications) Type testing for CIUs and ACDs not suitable. Explicit standalone operation (no communication with DC) not specified. Limited application layer use cases, e.g. Get CIU / ACD status, paired / unpaired No standardised communications and application layer protocols Head end down to meter Lessons Learnt: Note: The intention was to standardise these protocols however, no consensus was possible at the time of publication New specifications will have limitations but a limited specification is better than no specification Allow for pragmatic deviations from the specifications based on experience and / or changing business requirements 21
22 Challenges and Lessons Learnt Customer Interaction and Marketing Challenges: TOU tariff marketing and installations Customer non-availability for forums and appointments Historically incorrect customer contact information Lack of historical load profile data made target marketing Perceived abnormal increase in customer bills: Tariff increased in April 2011 (meters installed just prior) Colder winter resulted in increased consumption Old mechanical meters have a probability of inaccuracy Lessons Learnt: Customer centric approach is required Utilise different channels to engage customers Incentivise customers to participate (if possible). Ensure all meters have a accuracy test report and the meters can be tested for accuracy in situ. 22
23 Customer Meetings 23
24 Accomplishments Eskom has realised the following benefits: Reduction of non technical losses Automated meter reading cost savings Avoided peak generation cost due to load shifted Avoided generation due to customer energy efficiency Reduction in Field Costs (Remote disconnect/reconnect) Developed AMI skills, knowledge and capacity Current install base offers Eskom an opportunity to test additional AMI functionality / use cases Eskom now has an appreciation of the challenges and complexity introduced by AMI and is more informed with regards to future AMI implementation strategies and investments 24
25 Way Forward - Eskom will focus on Internalising the lessons learnt Completing some outstanding scope items ACD implementations Refining and enhancing the functional, technical, interoperability and performance requirements Enhance the field installation and business process designs Revise AMI implementation plans 25
26 Remember your power!!! Thank You Acknowledgements: The Eskom AMI Project Team Accenture (Phase 1 Implementation Partner) Landis & Gyr (L&G) and Unique Mbane South Africa (UMSA) Phase 1 Meter Suppliers If you re not using it, switch it off! 26
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