Martin Kuhlmann martin.kuhlmann@siemens.com Smart Metering AMI Program - AFRICA Advanced Revenue Program: Large Power Users March, 2017 siemens.com
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Table of Contents What is the benefit of prepaid to the LPU consumer? How does a utility introduce complex electricity tariffs into prepaid smart metering AMI system? Case Study: City of Tshwane (TUMS) How do water and gas meters interface into the same framework as above? Conclusion Page 3 March 2017
Abstract.. This presentation leads into the topic of Advanced Revenue: Large Power Users in a Smart Meter AMI Program Case Study: Prepayment, the bigger picture for a Smart Metering Program It attempts to help with the question of how prepayment fits into modern Smart Metering programs? Questions that are typically asked are: 1. What the benefit of prepaid to the consumer, particularly the Bulk and LPU C&I consumer? 2. How does a Utility introduce complex electricity tariffs into prepaid such as: Linear Tiered Max Demand Above linked to Time of Use (TOU) etc Page 4 March 2017
Abstract.. Case Study: Prepayment, the bigger picture for a Smart Metering Program 3. Is the future direction of prepayment linked to the STS and split meter ( Thick meter), or by controlling prepayment in the AMI backend system with a Thin meter? 4. What benefits come out of prepayment for both Utilities and Consumers? 5. How do Water Meters interface into the same framework as asked above? This presentation explores these questions and provides some answers Page 5 March 2017
Large Medium Power Users (LPU MPU) What the benefit is of prepaid to the consumer? Large Medium Power Users (LPU MPU). LPU Multiple meters per account High Accuracy meters: (typically 0.2 and 0.2S three phase CT meters) Positive Cash Flow typically minus 15 debtor days due to prepayment Data is instant not waiting for 30 60 days for bill to arrive with post-consumption meter data Real time account reconciliation MPU Multiple meters per account High and Medium Accuracy meters: (typically 0.5 to 1.0 three phase CT or DC meters) Positive Cash Flow typically minus 15 debtor days due to prepayment Data is instant not waiting for 30 60 days for bill to arrive with post-consumption meter data Real time account reconciliation Page 6 March 2017
Large Medium Power Users (LPU MPU) What the benefit is of prepaid to the consumer? Large Medium Power Users (LPU MPU). LPU Real time complex tariff rating: TOU Max Demand etc No manual meter reading and data capture reduces inaccurate billing to zero Meter tampering alerts and events reduce NTL CT PT ratio detection MPU Real time complex tariff rating: TOU Max Demand etc No manual meter reading and data capture reduces inaccurate billing to zero Meter tampering alerts and events reduce NTL CT PT ratio detection Phase data measurement and detection Phase data measurement and detection Meter Population: 1% Meter Population: 29% Total Revenue: 50% Total Revenue: 30% Page 7 March 2017
Revenue Contribution Large Medium Power Users (LPU MPU) 60% 50% 50% 40% 30% 20% Combined Revenue Contribution 80% 30% 20% LPU MPU SPU 10% 0% 1% 29% 70% Meter Population Page 8 March 2017
Large Medium Power Users (LPU MPU) Prepayment for Large Medium Power Users (LPU MPU) The benefits for LPU MPU s in a prepayment environment are:- LPU users can download and view online data in terms of real time consumption, billing data etc LPU consumer are able to plan according to real time data (e.g. when to switch on their smelter etc) Account reconciliation happens in a real time mode No manual meter reading and inaccurate data Tariff rating is done in real time and therefore they can determine their costs despite the tariff codes being complex Cash flow management the customer can pay according to their cash flow and consumption plan Strategy, as well as optimise cost saving etc Page 9 March 2017
Small Power Users (SPU) What the benefit is of prepaid to the consumer? Small Power Users (LPU) SPU Multiple single meters per account Low Accuracy meters: (typically 1.0 single phase DC meters) Positive Cash Flow typically minus 15 debtor days due to prepayment Data is instant not waiting for 30 60 days for bill to arrive with post-consumption meter data Real time account reconciliation Page 10 March 2017
Small Power Users (SPU) What the benefit is of prepaid to the consumer? Small Power Users (LPU) SPU Real time complex tariff rating: TOU Max Demand etc No manual meter reading and data capture reduces inaccurate billing to zero Meter tampering alerts and events reduce NTL Meter Population: 70% Total Revenue: 19% Page 11 March 2017
Revenue Contribution Large Medium Power Users (LPU MPU) 60% 50% 50% 40% 30% 20% 30% 20% LPU MPU SPU 10% 0% 1% 29% 70% Meter Population Page 12 March 2017
Prepayment Central Wallet Siemens Prepayment Central Wallet portal Page 13 March 2017
Prepayment Benefits Benefits of full Smart Metering AMI advanced revenue to the Utility Municipality Benefits of AMI prepayment to Utilities Municipalities are:- Utility cash flow typically moves from 150 debtor days to minus 10 to 15 days This means that the Utility gets cash in advance before electricity consumption thus allowing for growth planning and strategy. Real time data is available to the Utility Allows for planning, growth and value add support to the end consumer, be it LPU s MPU s or SPU s Grid control is enhanced as a real time view of load consumption and trends is available. Depending on the MDM, this type of data can be linked into a SCADA system for grid control applications such as DRMS, Load Management etc Page 14 March 2017
Prepayment Benefits Benefits of full Smart Metering AMI advanced revenue to the Consumer Benefits of AMI prepayment to the Consumer are:- Improved cash flow i.e. reduce debtor days? Instant account and meter data visibility for the consumer more consumer centric control? Ease of information and electricity payment: smart phone apps etc Prepayment cash payments link existing STS vending PoS to backend system? Page 15 March 2017
Prepayment Tariff Rating How does a Utility introduce complex electricity tariffs into prepaid Smart Metering AMI system? Current STS prepayment tariff code structure is based on tiered linear or static pricing. Post payment tariffs were difficult to include in prepayment purchases as most of these tariffs require post consumption calculations as well as timing calculations Time of Use (TOU) Max Demand Energy Charge Network Demand Charge A prepaid Smart Metering AMI system is able to incorporate many different tariff codes and structures as the data we receive on a real time basis allows for intelligent tariff rating. Also, a Smart Metering AMI system is able to offer more complex tariff structures than even the post paid billing allows for! All tariffs in an AMI solution are done on a real time basis and real time reconciliation. Page 16 March 2017
Siemens Advanced Payment System Siemens Advanced Payment System Page 17 March 2017
Siemens South Africa - Local expertise as technical service provider through City of Tshwane project Scope of Supply: Supply and installation of 13,000 smart electricity meter Set up of local datacenter and relocation of existing environment Release development of entire software applications as per contractual requirements Managed back-end-solution (managed data center, managed applications) Managed services (field operation/investigation, field call-outs, reconciliations, reporting, account/meter rectifications, network operations center) Not responsible for: Rollout planning Operational analytics (e.g. identification of possible tampers) Grid infrastructure GPRS communication End-Customer interaction (e.g. Call-Center) Vending provider and payments Municipal interaction Revenue Management (Approval of account adjustments, Management of disconnections) Page 18 March 2017
HES MDM PPES FWMS Smart Metering Back-End-Solution Restricted Siemens AG 2016 siemens.co.za
Smart-Meter Backend-Solution Solution overview City of Tshwane Read frequency: 15 minutes System update: every 30 minutes Delay between meter to cash: 3 hours Page 20 March 2017
Smart-Meter Backend-Solution Application data flow Page 21 March 2017
Smart-Meter Backend-Solution Data Center Infrastructure Page 22 March 2017
Smart-Meter Backend-Solution Core Applications of the Solution Head End System AMM+ / UDIS Interfaces with meters to pull meter reads and events via secured connection. It also triggers additional services like remote (dis)connections. AMM+ / UDIS stores raw data in DB and pushes structured data to IEC adapter. EnergyIP Meter Data Management System MDM Processes and analysis meter reads and events. It matches customer data with meter data. After processing it forwards reads and event data to PPES via DTS (Data Transfer Service). EnergyIP Prepay PrePayment Energy System PPES Applies different tariff structures to consumption data and performs rating of consumption data. It automatically triggers remote disconnect / reconnects as required via head-end system. Provides customer usage and payment portal and performs customer wallet deductions and recharges. Page 23 March 2017
Smart-Meter Backend-Solution Smart Meters open a new era even where Prepaid Energy is already adopted Traditional Prepaid Metering Balance Wallet is managed locally at the pre-payment (STS) meter Cost, complexity and reliability of pre-payment meters Physical tokens (smart cards/keys) are required to transfer payment Specific physical pre-payment meter needed High NTL no remote data access manual access No complex tariff codes STS meter determines type of tariff rating Prepayment with Smart Meters Balance controlling is done in the back-office Support of different payment methods, tariffs & incentives Easy support both LPU s and SPU s Remote disconnect reconnect Easier consumer access through a variety of channels to account and status information e.g. balance alerts, recharge & transaction history, consumption graphs Remote change from postpaid mode to prepayment, no field activities needed Reduced NTL improved cash flow security of revenue Page 24 March 2017
Smart-Meter Backend-Solution The key benefits of transforming to a digital smart meter solution Key benefits for end consumers Almost real-time reads instead of once a month Improve your electricity usage and see direct improvement Maintain your balance and spending wherever you are (manage your own cash flow) Transparency of charging (correctness) Closer interaction, get feedback on the grid and on your usage Key benefits for utilities Demand management / Load management Revenue protection (non technical losses) Full cash flow positive reduce debtor days to minus i.e. total upfront cash flow Transparency of grid stability / faults Improved operational costs Improved customer satisfaction Page 25 March 2017
Smart Water and Gas How do Water and Gas Meters interface into the same AMI Backend? Typically in a utility, Water and Gas departments are very separate and no interoperations between them are found from a billing perspective. Each department duplicates each other forcing high cost budgets such as: field service engineers support personnel separate systems separate billing admin staff etc. Page 26 March 2017
Smart Water and Gas How do Water and Gas Meters interface into the same AMI Backend? One of the most pressing issues to a utility or municipality is revenue collection and profitability. Electricity revenue is very important to both a utility and municipality as budget allocation is very high. In a water department, there are high costs with, normally, large revenue losses and no profitability. Combining Electricity Water and Gas Meters onto one system allows for: Instant view of all the meters with one end user portal login. Instant account and meter data visibility for the consumer more consumer centric control? Ease of information and electricity payment using smart phone apps etc. Improved cash flow i.e. reduce debtor days? Combined Central Wallet allows for easy revenue collection and security of revenue Page 27 March 2017
Smart Electricity Water and Gas Benefits of combining Smart Electricity Water and Gas Meters Page 28 March 2017
Conclusion Conclusion. With the growing acceptance of Smart Metering to provide real time big data, and with Utilities in developing countries requiring a solution that caters for security of revenue, the effectiveness of a well managed and run Smart Meter AMI deployment needs to include the manageability of advanced payment (prepaid) that enhances cash flow and profitability, reduces NTL, and adds huge value to both the end user and utility itself. Despite the huge capital expenditure (CAPEX) a Smart Metering AMI solution sets back a Utility, in the long run it has far reaching benefits and features that justifies the project. Return of investment can be easily justified for any Utiltiy CAPEX can also be avoided in setting up and operating a Smart Meter AMI Advanced Revenue Payment deployment by opting for an OPEX solution typically this is referred to as AMI in the Cloud or Smart Metering as a Service (SMaaS) solution. Page 29 March 2017
Conclusion SMaaS Conclusion.SMaaS Smart Metering as a Service - SMaaS The biggest benefit of a SMaaS solution is OPEX vs CAPEX cash flow spend. Yes, the arguments by many Utilities are: where is the data kept and also the security of their data. These questions and concerns can be answered easily, but the reassuring point is that a Utility can engage with a SMaaS deployment at a low base, i.e. they pay on a meter-per-month basis as and when they install a smart meter. Later on they can invest in an on-premise solution. Siemens South Africa is a global specialist for both on premise and cloud Smart Meter AMI Advanced Revenue Payment deployments. We would love to share more on our solution for those that are interested. Please visit our stand in the front to discuss and view a basic demonstration. Page 30 March 2017
Conclusion SMaaS SMaaS... Page 31 March 2017
Contact Martin Kuhlmann Technical Martin Stur Sales Support Professional - Digital Grid SWS Siemens Head of PLM (Pty) CMMS Ltd. & Industry Billing Johannesburg, South Africa Solution Line Management Smart Grid Mobile: +27 (72) 750 4497 E-mail: Siemensmartin.kuhlmann@siemens.com Vienna, Austria Mobile: +43 664 80117 45549 E-mail: martin.stur@siemens.com Page 32 March 2017