Smart Grid, Smart City Monitoring and Measuring the outcomes of the Smart Grid, Smart City Trial Lauren Marcellin – Smart Grid Program Manager

Smart Grid, Smart City Monitoring & Measurement Process The Smart Grid, Smart City Project has developed a Monitoring & Measurement Process that sets out a plan on how and what data will be captured during the project and how that data will be evaluated and released in a semi annual Monitoring & Measurement Report (MMR).

The Smart Grid, Smart City Monitoring & Measurement Process includes: 1. Monitoring & Measurement Plan consisting of a Monitoring & Measurement Evaluation Framework; 2. Monitoring & Measurement Reporting to be released on a semi-annual basis to the Australian Government, Industry and the broader Australian and International Communities; and 3. Monitoring & Measurement Dissemination and Validation Process.

Applying the trial outcomes to other networks Australian Government Objective: Locate the Smart Grid, Smart City initiative to be broadly representative of Australian conditions

1. Climate - The Sydney/Newcastle region exhibits the main climatic zones found around the majority of the Australian population. 2. Network Characteristics – Ausgrid offers all of the following characteristics: CBD, Rural (radial networks), Metropolitan (meshed) with both distribution and transmission assets

3. Customer Demographics • Newcastle has an extremely high correlation of customer demographics to the rest of Australia. • The introduction of new product trials are often carried out in Newcastle due to its demographics. • Additional precincts were added to test variations from the average.

Monitoring & Measurement Plan The Monitoring & Measurement Plan is structured to outline the approach to data capture, evaluation and dissemination during the Smart Grid, Smart City Project. Activity Target Outcomes Proposed delivery milestones for implementing project (as per the Funding Agreement). These map to Tests.

Data Priorities The Australian Government specified requirements for the SGSC project (as per the Funding Agreement). These map to Hypotheses.

Relate to

Activity Target Outcomes

Data Priorities Are proven (or not) by Testing hypotheses Define the tests To execute

Hypotheses to be Tested Technology to be trialed Desired Outcomes

Step 1: Validate Hypotheses Outline the key issues or hypotheses that are being tested by trial

Tests to execute/ Actions to take

Results in information requirements

Report outcomes related to the tests and the extent to which the Data Priorities have been satisfied

Step 2: Validate Tests Outline the key tests that will be performed for each hypotheses

Data Collected and Created Historic Baselines

Operations histories Consumption histories

Grid and Equipment data

Non-Grid Data

Activities and Events

Reference and External


Grid Equipment and Grid Measurements

Installation visits Installation details Service calls Survey results Portal usage stats

Simulations Events Actions Surverys

Customer Premise Tariffs Weather

Before After Implementation

Step 3: Validate Data Ensure that appropriate data is being collected from each test and to inform hypotheses

The Data is available to be reported and analysed

Step 4: Validate Evaluation Ensure data is being evaluated consistent with industry relevance

Derived data rends Patterns Calculations Project accounting to compile

The MMP will Identify Reporting against the Data priorities

Monitoring And Measurement Plan

Repeat & Update The process is designed to be iterative and requires each part of the framework to be reviewed and updated as the trial matures

Monitoring & Measurement Evaluation Framework The Monitoring & Measurement Evaluation Framework is structured to outline, at a high level, how data will be evaluation during the Smart Grid, Smart City Project.

Assessment 1

Technical Performance


Treatment 2

Treatment X

Assessment 2


Treatment 1

Gathered & Stored Data



Assessment 3

Evaluated Data Matrix

Application Outcomes

Evaluation Framework

Monitoring & Measurement Evaluation Framework Below is an example of how the framework may be applied: Customer Application Example Assessment 1

Baseline Treatment 1 Simple IHD Treatment 2

Simple IHD/Offer Treatment X Advanced IHD

Technical Maintainability Reliability Performance Functionality

Assessment 2 Device Costs Cost Backend Costs Retailer Costs

Technical Performance Treatments

Customers will change behaviour based on positive feedback technology

Customer Segments Geography Gathered & Stored Data



Take up

Behaviour Change





















Assessment 3

Evaluated Data Matrix

Application Take-up Rate Behaviour Outcomes Change

Data published through the “Information Clearing House” for other parties to analyse, interpret and build their own conclusions.

Evaluation Framework Results (Reported in the MMR) In evaluating the results for the SGSC trial it demonstrated XX result and it suggests YY.

Monitoring & Measurement Report The Smart Grid, Smart City Project has developed a Monitoring & Measurement Report (MMR) to share data and key learnings derived from the Smart Grid, Smart City trial Project Applications as well as key learnings from Ausgrid’s own smart grid initiatives. Each MMR will be prepared to: 1. Report on the “… outcomes of deploying a demonstration and/or commercial scale rollout that informs a business case for key Applications and technologies of a smart grid”; 2. Be used to “… build public and corporate awareness of the economic and environmental benefits of smart grids and obtain buy-in from industry and customers”; 3. Provide access to “… robust information and data to inform broader industry adoption of smart grid applications across Australia”; and 4. Report on the outcomes of investigating “… synergies with other infrastructure (such as gas and water) and the National Broadband Network”.

Monitoring & Measurement Report The MMR is provided in the format of an overarching summary document that appends a number of key additional reference materials. The content and structure of the report fall into two broad categories: Content Categories In-Kind

Information collected and provided by Ausgrid without the use of any funding from the Australian Government. It is provided as part of historic smart grid activities or funded as new investment during the SGSC trial.

Activity Material

Information that has been created through the use of Australian Government funds.

Information Types Implementation artefact

Key artefacts that are created as part of the project as well as Ausgrid in-kind artefacts that will assist to inform industry on how the project has been delivered..

Analysis & Conclusions

Analysis of SGSC project data and information relevant to the Ausgrid network that can inform conclusions against the original project hypotheses or key benefits that were ascribed to the trials.

Access to raw data

Data collected by Ausgrid during the testing of the SGSC applications that will assist in analysis of project hypotheses. A subset of raw data that is relevant for industry will be made available via the portal for further review.

Monitoring & Measurement Q4 FY10/11 Report The Q4 FY 10/11 MMR focused predominantly on releasing information from the existing Ausgrid funded smart grid initiatives. Highlights of the Q4 FY10/11 Monitoring & Measurement Report Network Pricing Study*

Analysis of Ausgrid’s activities to test Time of Use pricing, operational learnings from smart metering and network pricing investigations

Ausgrid’s Smart Metering Business Case

Ausgrid’s model smart metering business case and impact assessment which provides a network distribution business perspective on the costs and benefits to be validated for a rollout of smart metering

Smart Grid, Smart City Smart Metering Testing Approach

Design documentation that outlines the Ausgrid smart metering design and testing approach for customer applications delivered as part of the Smart Grid, Smart City trial

Distribution Monitoring & Control*

A study of Ausgrid’s Distribution Monitoring & Control project that will be useful to inform other network distribution businesses on this rollout

Transmission Enhancements Program*

The benefit areas and strategy for Ausgrid’s Transmission Enhancement that describes the approach being taken to implement and identify benefits areas on the high level distribution network voltage levels

Supporting Infrastructure for Smart Grids*

Implementation and planning materials from the deployment of Ausgrid’s telecommunications networks and operational technology platforms to support moving to a ‘smarter grid’

Electric Vehicles

Preliminary results of the Electric Vehicle trials have been collected and some early analysis prepared in the report based on data from January to June 2011

Energy Resource Management

A study developed as part of Ausgrid’s Smart Grid, Smart City bid exploring different battery storage options and designing the appropriate testing regime for battery solutions.

Customer Applications Summary The customer applications component of the Smart Grid, Smart City Project builds on the existing Ausgrid initiatives in smart metering, network pricing and load control. Smart Grid, Smart City trial will release information across these different scenarios

Ausgrid has to date rolled out in excess of 400,000 smart meters and investigated pricing options, specifically Time of Use for a large number of customers.

Ausgrid has extensive historical experience in these rollouts

Ausgrid’s pilots and trials prior of smart metering had focused on evaluating the operational impacts and challenges of this option.

Current state – starting point

Build flexible pricing options

Automate a range of processes through remote connection

Electromechanical Smart Metering

Electronic Smart Metering (no comms)

Electronic Smart Metering (with comms)

New technology solutions as part of Smart Grid, Smart City trial focused on assessing this technology proposition.

Develop a range of new products both for network and retail businesses.

Electronic Smart Metering (with comms & HAN)

Customer Applications Summary Ausgrid’s Network Pricing Study - Customer Research Ausgrid has undertaken numerous pricing studies since 2006 in order to understand how implementation of new pricing structures, enabled by a smarter meter, would impact both its business and its customers. Some of the key findings of the Network Pricing Study – Customer Research were as follows: • Impact of Time of Use Pricing on Customers - The study saw a reduction in maximum demand for residential customer’s on a TOU product between 1.9%- 6.33%. • Customer Pricing and Demographics Survey - The survey, which included Critical Day TOU, Critical Peak Pricing, and Capacity Charge, saw a positive response to new pricing concepts from both residential and SME customers assuming their were compensating benefits. • Customer Pricing and Tariff Trial - The largest influence on the choice of preferred pricing structures was the availability of information about electricity use. It was also noted that most customers preferred more of an average rather than a single, one-off pricing period per season. The Smart Grid, Smart City Project looks to revalidate many of the concepts above as well as implement some of the findings (access to information as a key driver of adoption, etc) to understand customer behaviours and acceptance of new pricing models.

Customer Applications Summary Ausgrid’s Network Pricing Study – Strategic Pricing Study Ausgrid undertook its Strategic Pricing Study to explore tariff structures that enable greater alignment between cost and revenue. This included understanding how customers respond to information as well as price signals as a mechanism to reduce peak load. Some key findings of the Network Pricing Study – Strategic Pricing Study were: • Domestic customers who signed up to DPP and STOU tariffs responded well, and are willing to reduce their energy usage during uncomfortable weather. • Despite the fact that a DPP tariff is much different in nature to current tariffs, customers understand them enough to respond well and express satisfaction. • 0-160MWh p.a. business customers showed no response to the DPP tariff. • DPP’s dynamic price could probably be set at 50-70c/kWh for domestic customers and still achieve comparable reductions. Certainly above $1/kWh the demand response is saturated. • Domestic peak reductions strongly correlated to temperature: the further away from the comfortable 18° to 21° Celsius range, the greater the demand response.

Grid Applications Summary The Smart Grid, Smart City Project will investigate a range of grid applications associated with utilising smart grid technologies within the energy sector. Key Benefits to be realised by Smart Grid, Smart City Grid Applications and Ausgrid’s current grid investments Incentive regulation – performance recording and reporting with penalties and rewards associated with network performance (regulatory driver); The need to provide substantive information to customers affected by outages and faults (regulatory, and customer driver); Maintaining network performance – both system-level (average) and also that experienced by the ‘worst-served’ customers (regulatory and customer driver); The encouragement of demand-side solutions (including embedded generation) as a means of achieving carbon (emission) reductions (government driver) and capex management; Increasing network reliability and resilience without incurring significant increases in capex and opex (regulatory driver); and Reducing network capital and operating costs (shareholder driver) and reducing payments to distribution network operators (customer driver).

Grid Applications Summary Ausgrid has made a number of investments aligned to deploying smart grid technologies. Each investment has been designed and implemented in such a way to achieve benefits for both Ausgrid as well as its customers. Two key investments Ausgrid has deployed are: Distribution Monitoring and Control – Network infrastructure (substation equipment, communication devices, and back office systems) strategic placed at distribution substations allowing Ausgrid to remotely collect data and develop real-time visibility of the health of the network. Some key benefits include the ability to better plan, operate and maintain the network through: • automating the manual reading of maximum demand meters in substations; and • improving the reliability of the Ausgrid network by better understanding equipment utilisation and remote fault detection capabilities. Transmission Enhancements Program – The delivery of Operational Technology capabilities to improve asset management and increase control and monitoring of the system-wide operations of the 33kV, 66 kV and 132kV network. Some key benefits include: • timely data acquisition and control to meet network outage management and restoration requirements; • better use of existing data sources and the ability to correlate these data source to provide more reliable and evidence based view of the health and performance of the network; and • a technology architecture that will facilitate a less complex and lower cost integration of transmission applications and data in the future.

Supporting Infrastructure Summary Ausgrid has made considerable investment in implementing a common infrastructure to support a smart grid. This is primarily aimed at the telecommunications and IT platforms built to transport two way data between smart devices and users of the data. These investments include: Platform for Intelligent Network Communications (Pinc)– Ausgrid rolled out an IP/ MPLS telecommunications platform using predominately fibre infrastructure to enable high speed, carrier grade telecommunications between Ausgrid’s substations and corporate sites. The Last Mile Project – Ausgrid is currently investing in a last mile communication strategy that extends current telecommunications infrastructure to distribution and customer endpoints through the deployment of 4G wireless technology. Operational Technology Infrastructure – Ausgrid has adopted an industry best practice IT architecture to develop a technology environment that supports the smart grid. This architecture is a ‘Services Oriented Architecture’ approach that integrates a number of new interfaces and systems. In the MMR, Ausgrid has released the technical designs, installation standards and network details for the Pinc Network; the coverage and field testing approach for the last mile communication deployment; and an overview of the operational technology environment being used to deliver the Smart Grid, Smart City trials.

MMR Dissemination and Validation Process Ausgrid is committed, as part of the Smart Grid, Smart City Project, to report, validate and share the results and data from the various application trials. The following principles will be followed in order to meet these obligations: • Monitoring & Measurement Reports will be created every six months during the Smart Grid, Smart City Project; •

It will be reviewed and approved by the Australian Government and then released as appropriate to industry stakeholders for review and validation;

Access to the report will be granted through the Smart Grid, Smart City Information Dissemination Portal

Information sessions will be scheduled with industry stakeholders as appropriate to discuss the findings reported in the Monitoring & Measurement Report; and

Access will be granted as it becomes available to more detailed data sources so that industry participants and other stakeholders can utilise the raw data to inform their business cases and investment decisions.