Making smarter decisions with Smarter metering

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1 aking smarter decisions with Smarter metering 4 6 ay, 2009 Dubai, UAE Tony Clarke Head of International Sales Siemens etering Services United Kingdom

2 Smart etering is more than just smart meters The drive for Smart metering is focussed on the residential multi-utility segment However, in order to deliver the true value of Smart metering 1. The supply and revenue processes have to be considered as one 2. It must provide a platform for optimisation from power production to account settlement 3. Has to cope with increasing complexity without impacting performance

3 The traditional market was easy to manage Forecast Production Transmission Local distribution Consumer Power to the point - Immediate process Billing - Historical Process 3 month cycle Settlement Bill Tariff Reading

4 The smart world is faster, complex and immediate Forecast Production Transmission Local distribution Consumer Storage The end to end process is now immediate! Secondary production Local generation Local storage Consumer Choice Settlement Bill Tariff

5 Capturing the Entire Benefit through Smart etering Smart metering generates significant value : Generally parties that make the savings and those that have to invest are different Therefore, Requires strong high level leadership and direction. The value can only be released by integration at all levels : Wholesale, Industrial and Retail customer groups Single integrated process where all parties contribute and gain value Smart metering will be unavoidable as network complexity increases : Driven by sustainability, efficiency and regulated targets Open platforms become essential for all participating parties Should consider smart metering as part of a larger solution : Smart meters are a means to end they are not the solution

6 Understanding how to Control the Smart World Automatic Optimisation Key Parameters Temperature Forecast Generation capacity Generation impact Generation choice Generation availability Quality Storage capacity Price Delivery capability Smart Grid Control aximising the Outcome Best value Highest quality of supply Delivery of customer choice Lowest Carbon Impact Highest availability anual Choices

7 aking new connections Wholesale metering is on top of the agenda : - Provides the commercial interface for new generation - Integral to electrification programmes Highly accurate metering combined with real time network control : - anages high volume, high value relationships between generation and transmission - Developed to suit a range of new generation sources - On shore and off shore wind - Solar - PHEV grids Wholesale metering provides the essential control and improved settlements within the smarter world

8 Smart etering New Applications

9 High Accuracy Smart etering : Renewable Energies 140 turbines arranged in 16 arrays Offshore COP2 metering 16 circuits (1 per array) On shore Real time control data quality and transient reporting DS DS DS WAN National Grid Control Centre Undersea Cable QoS QoS QoS Power Grid PSTN Settlement Near time data Fiscal settlement, billing

10 Residential Deployment Home automation network allow consumers to make choices around consumption In home energy controls Internet energy information services Smart etering back office eter data management (D) Interfaces to the Enterprise Communications Gas, electricity and water

11 Smart etering Goes Live in New Zealand Roll-out Deployment : Case Study

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13 Do not underestimate the contracting issues Service Delivery Smart Smart and traditional Asset anagement Work force management Data Services On Demand Services aintenance Asset Supply Field Service

14 The field is the largest area of risk

15 Design for safety and then automate

16 Proactively use the data to drive performance Incorrectly connected load from another circuit kwh :00 01:30 03:00 04:30 06:00 07:30 09:00 10:30 12:00 13:30 15:00 16:30 18:00 19:30 21:00 22:30 Time

17 Tackling loss Smart metering provides unrivalled scope for loss control : On line meter status Load assessment and correlation across the LV network Remote and secure reading validation Data mining and profiling etering device may be used to inform that monitoring is underway : ajor impact in non-technical loss reduction Limits load or disconnects if the warning is ignored! Skilled mining of data enables a targeted response : Release of high value assets for deployment only where necessary Identifies cause & effect to customer, field or front office anagement of Non-Technical Loss through deployment of advanced metering is one of the most accessible benefits

18 The four corners of Loss Data Cleansing isallocation Advanced metering provides the information to resolve 3 of the 4 corners Asset management Inspection Property management Audit Asset Upgrade Theft Losses Fraud Security Profiling Route sequencing Validation Supervision Complicity Customer Validation

19 Optimising operations Global Solutions Asset telemetry eter Equipment In home devices Distribution automation Data anagement Creating time to invest Asset optimisation Infrastructure Planning Regulation Demand slope reduction Consumer display Home efficiency Load management Paying the price Value based pricing Wastage based penalties Carbon responsibility Asset recovery contribution Field Services Networks System Integration Local deployment and support

20 Summary - Smart metering is a major investment The justification for investment is complex and in some cases speculative - Defining the short and medium term outcomes provide focus Smart metering does not necessarily require a smart meter in every home - Effective Smart metering links wholesale supply and retail delivery and settlement Facilitates maximum value from the investment - Once installed enables re-use of data : For loss management and service update Improved network management ore targeted asset investment based on actual loading patters Improved customer segmentation and enhanced portfolio of services

21 Thank you. Thank you for your Attention and Interest Questions Invited