What utilities must consider in implementing STS smart metering systems. Lawrence Juku PIESA - VICTORIA FALLS SEPTEMBER 2015

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1 What utilities must consider in implementing STS smart metering systems Lawrence Juku PIESA - VICTORIA FALLS SEPTEMBER 2015

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3 The famous Africa at night picture This image represents different things to different people. So why is it here!!!!!!!!!! To me as Head of Sales - $$$$$$$ Energy generation opportunities Energy metering opportunities Smart metering innovations and solutions lying dormant at the moment

4 Africa another view In 2002 there were 49m mobile devices in Africa In 2012 there are about 500m mobile devices in Africa First mobile device in 1973 costs $ Current average cost of mobile device in Africa is about $15.00 Prepaid cell phone first developed in Africa MPESA revolutionised East Africa non-banked sector Prepaid metering first pioneered in Africa and played key role in electrification drive

5 What comes next for Africa Energy metering sector Do we understand each other when referring to smart metering What have we learnt from the success of the telecom mobile sector Do manufactures make smart metering devices and solutions affordable thus accessible to utilities who s focus is customer satisfaction and ROI Do utilities understand why TOU if customers can t shift load also do we even need TOU at this point in time Do utilities need demand response with customer incentives as opposed to TOU Are we designing smart metering devices and solutions for Africa with a touch of innovativeness or are we just saying It worked in Europe and USA so it must work in Africa We need to think around fit for purpose metering solutions We need metering solutions that cater also for Renewables etc.

6 Current Metering Trend Analysis within African Utilities Remarks: The figures given are typical of total turnover patterns per type of metering methods within African utilities 100% 80% 60% 40% 20% Low Typical Metering points within Utilities Conventional PPM ICG Prepayment is increasing driven mainly by electrification initiatives and also convenience i.e. affordable to deploy and upfront cash flow benefits it brings to utility Conventional type Smart Metering Solutions has huge growth potential but deployment costs are currently high ICG meters which if well managed contribute a bigger portion of utilities turnover. With growth in African industry and commercial sector these metering sector must be smart AMR to secure utilities revenues. Turnover Contribution Low 20% 20% 60% 80% 100% High

7 PLANNING PHASE

8 BRAINSTORM SESSIONS (Use Case definition) Do we know what we want What are the drivers for going smart What model and solution structure (Utility funding, vendor funding etc) Project management approach (Turnkey or Utility managed) Clarity of technology adoption model, roadmap and governance arrangements Smart Metering Solution Country legislation, Energy Regulator, Consumer Laws etc Alignment of the smart meter solution to the entire business structure/model. Business rules and processes 8

9 The planning process must address some of the following key considerations: Build Business Case The business case needs to build around sustainability and customer focus while remaining future focused. The review should include all costs elements to include aspects like customer marketing and communications, process integration, systems integration and all the relevant Use Cases for a successful smart meter rollout. Key KPI to enable tracking of business benefits should also be clearly articulated to provide a baseline against which the programme s success can be tracked Project Staffing Issues Project resource assignment needs to be addressed. The current model of part-time/secondments is not adequate. The normal staff get involved in multiple initiatives and they need to be fully dedicated to the smart meter project to enable focus and ensure success Establish relevant team performance compacts and accompanying incentives, these must be designed and agreed upon during project planning. Integrate smart metering into utility business model Address integration gaps between Smart meter project processes with Distribution, Customer Services and Engineering as these are resulting in a potential risk for continuity and sustainability of the smart meter solution. Employ effective Change Management and Leadership alignment interventions to harmonise the sometimes conflicting requirements from the diverse stakeholders Customer- as a focal point Customer psychology Place emphasis on customer needs and place the customer at the centre of the smart meter initiative to make it more palatable and increase customer adoption. Employ innovative marketing techniques and other incentive models.

10 Experience beyond Technology Focus Areas for Smart Meter deployments 1. Internal Preparation 2. Anticipate Future Requirements Security 3. Technical Decision Drivers 4. Customer Engagement 10 Landis+Gyr Smart Grid 9/22/2015

11 Suggested solution approach

12 Smart Meter Bid team for Tender Business Case Steering Committee Utility Technical Solution Team Prepare specs and also review what other utility specs and processes have been structured Bid Process Management Solution Consultant (if required) Customer Services Dept. Project Management Post Solution and Service Management IT/Legal and Risk Management Commercial Dept. 12

13 PROJECT MANAGEMENT PHASE

14 JIGSAW PUZZLE APPROACH - Don t start a project without having figured out your puzzle Project Management Business Integration Employee commitment Customer Education

15 . Project Steercom committee Project reporting structure Best practise investigations and possible interface with other industry experts (talk to your PIESA peers) Governance Identification of key stakeholders Stakeholder requirements Stakeholder structures & procedures Strategic alignment Stakeholder Management Quality & Financial Management Budgetary & timeline controls & processes Data integrity of project schedules & reporting Customer Focused Policies and Procedures framework Where required develop new policies to support smart metering initiatives Alignment to approved standards Policies & Procedures Project Management Project objectives, charter & schedule Clear roles & responsibilities Project checkpoints & reporting Document management Resource management Communication management Change control procedures 15

16 High Level Roles and Responsibilities Provides overall guidance and final decision making authority Approves funding & resources requirements Provides overall programme governance and oversight Executive Sponsor Chairs Smart Metering Project Steering Committee Ensures executive sponsorship & leadership alignment with project strategy Project Manager Responsible for overall project execution Project organizational structure including roles and responsibilities Project plan Project status reports Issue management plan and log System change control process and log Risk management plan Deliverables and management procedure Results Management Project Communication plan Deployment strategy Systems & process integration within the utility SLA Framework linked to solution contract structure Post Project - Business Line Manager Responsible for value realization of the project benefits as outlined in the business case Develop a method and approach to track and measure actual benefits achieved Implement and execute benefit tracking and monitoring processes

17 TYPICAL STS SMART METER SYSTEM ARCHITECTURE

18 Meter High Level Minimum Requirements Smart Metering Meter must able to operate in an off-line configuration offering STS prepayment (kwh token) operating mode With the addition of a Data Concentrator and Head End System (HES), the meter must be able to operate in an on-line configuration which provides the following capability: Two way communications NRS considerations and guidelines on specs Assisi is providing system network information from smart meter system network planning Real Time Clock synchronisation by the DC Ability to interface to smart grid future solutions Interface to GIS systems Meter events reported to the HES with date and time stamp STS prepayment (kwh) token transfer and kwh display STS Prepayment with Time of Use using Currency Token Transfer and currency display Post-payment with or without TOU Remote disconnect and reconnect Load management without using external load switch i.e. ability to reduce meter load by remote control (brown out) e.g. reduce meter from 60A to 20A etc DLMS/COSEM for meter communications and interoperability The latest in 3rd generation international open standard G3-PLC based on OFDM or other open international standards. IDIS to ensure maintenance and promotion of publically available technical interoperability specifications based on open standards and supports the implementation of interoperable products or other international interoperable standards IEC62055 suite of standards, including IEC /51 i.e. Standard Transfer Specification, aka STS

19 Minimum requirements of AMI system Utility Systems Enhanced Business processes + Billing + Customer service Network management processes + Network monitoring + Load management + Investment planning Overview HES is the communication and data collection layer between the metering data management system and the metering network Main Functions Billing Process Actual consumption information and automated process Readings according to pre-defined schedule or on-demand Automated re-reading process Remote disconnection/ reconnection of energy supply Gridstream HES Gridstream HES HES Data collection IEC Integration Data collection interface IEC IEC AMM Integration infrastructure interface management AMM infrastructure tools management tools Improved customer service On-line access to actual metering data for customer service personnel On-time consumption information and power quality data as well as meter events for a single meter Disconnections /reconnections can be done by service personnel

20 Combo type of smart & prepayment IEC /51 (STS Standard) Smart Metering STS prepayment - Improve efficiencies on current standard STS prepaid solution - Reduce metering related NTL s - Use the smart meter to address current technology challenges - Be aware that technology without supporting internal processes will still produce inefficiencies - Remember always that its all about securing and increasing $$$$$$$ but it an integrated manner - NRS STS smart prepayment solution 20

21 Smart Meters Meter Data Management System (MDMS) Smart Meters System architecture Multi Vendors Multiple head end systems +IEC HES integration to Data Warehouse +IEC integration to Utility systems + IEC/DLMS/MBUS/ Used Cases AMI Master Data Meter Reading Interval Data TOU Blocks Interface Utility System Current back Office AMI Process Data Event Data Technical Infrastructure Business Process Execution

22 TYPICAL SOLUTION ARCHITECTURE

23 USE CASES - MODEL APPROACH

24 Use Case Scenario USE CASE DESCRIPTION Additional Notes CURRENT Installation Scenario Have FUTURE Installation Scenario Need Utility is an existing customer split prepayment metering solution Din Rail/BS Footprint Yes/No Prepayment Yes/No Pole or ground mounted Yes/No Revenue protection (DC and HES) Types of meters installed Prepayment (standard kwh token) Future Yes/No Prepayment (currency token) Yes/No Utility have revenue protection strategy/solution in place Utility focus on retrofit or total replacement of old post paid meters or old prepaid meters Is there a requirement for STS currency token transfer future? Utility does not require a postpayment solution Post-Payment Yes/No Smart Meter Prepay (kwh only) Prepay ($ with TOU) Post-pay (no TOU) Post-pay (with TOU) On-Line Off-Line DC HES Remote Disconnect 2 way comms Proposed Rules Enabled Enabled in future YES/NO YES/NO Allow offline or online Enable d Enabled YES/NO Enabled in online cofig. 24

25 Conclusion