Smarter Metering Maximise Your Relationship With IBM - Technology for Smarter Cities David Lee Wed 29th Sept 2010

© 2009 IBM Corporation

Smarter Metering - Ireland

Agenda

– What is Smart Metering ? – What is happening in Ireland ? – What next ?

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© 2009 IBM Corporation

What is Smart Metering ?

© 2009 IBM Corporation

Smarter Metering - Ireland

What is an Intelligent / Smart Energy Grid ?

Transmission System

Typical Existing Network Today Transmission Supply Substation

Low Voltage Transformer

Medium Voltage Substation

Current/Voltage sensor

Intelligent meter Switch Power flow

End User

Meter Reader

Failure indicator Condition sensor

Output Controller

Voltage controller Shared Comms

Point to Point Comms

Control Room Transmission System

Intelligent Energy Grid Transmission Supply Substation

Medium Voltage Substation

Low Voltage Transformer

End User

Micro generation / Domestic CHP

Control Room

Where transformation starts depends on local ‘pain points’, and regulatory framework 4

© 2009 IBM Corporation

Smarter Metering - Ireland

Advances in metering, network, and alternative generation technologies are accelerating the move to Smart Grids Traditional Utility Infrastructure

“Intelligent Energy Grid”

• Customer energy management • Net metering

Meter

Smart Meter

• More accurate billing • Improved power forecasting • Remote shut on/shut off • Improved outage restoration

Standard Grid

Network Automation and Analytics

• Lower GHG emissions • New products and services • Improved safety for line-workers • Automated information about equipment status • Reduced power costs • Reduced impact on climate

Centralised Generation

Distributed Generation

• Improved power availability • Fuel diversity • Decreased capital cost • Decreased transmission load

Source: IBM Institute for Business Value (IBV) analysis 5

© 2009 IBM Corporation

Smarter Metering - Ireland

Future will be driven by customer involvement, influenced by climate change concerns and enabled by technological evolution Evolving Future

Past Climate and Technology Drivers Centralized generation

Participatory generation

Little investment in new generation

Find new ways to meet demand

Most utilities 5% of sales from renewables

Decentralized asset management

Asset lifecycle management

Little interaction between grid and home

Connected home

Customer Drivers

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Passive receipt of power

New choices in power supply (green energy)

Limited choice in consumption decisions

Dynamic, value-based pricing of power

Decision-making driven solely by price

Many factors: price, climate change, etc.

Limited customer interaction

Mandatory customer involvement

Consumer indifference to GHG emissions

Utilities expected to lower GHG emissions

© 2009 IBM Corporation

Smarter Metering - Ireland

But Smart Metering is more than just meters – it’s a complex integration of sensors, devices, communications, and software technologies Customer Premise

Last Mile LAN

WAN

Load Control 1 Devices Displays

Data Center – NMS and MDMS

Data Center – Legacy Apps

Customers and Other Stakeholders

Meter Data Management System Suppliers

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2

CIS

Meters 3

OMS

5

7 WAN

LAN

Web

Customers

ERP

12 External Data GIS

8 Data Collection Systems

Provision

11 Integration with Existing 4 Field staff

6 Field staff

10 IT System

Distributor Systems

Operators

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© 2009 IBM Corporation

Smarter Metering - Ireland

What is Smart Metering ?




Term used to cover a wide range of automated solutions Need to decide on type of Smart Metering System to be implemented in Ireland. - i.e What are our requirements Significant impact on cost and time to implement HIGH Meter Meter Ops Ops Centric Centric Smart Smart Metering Metering with with IHD IHD Comms Comms

Implementation Risk, Duration & Complexity Meter Meter Operations Operations Centric Centric Smart Smart Metering Metering

AMR AMR

LOW LOW 8

Cost to Implement & Operate

HIGH © 2009 IBM Corporation

Smarter Metering - Ireland

What is Smart Metering ?

Automated Automated Meter Meter Reading Reading

Meter Meter Operations Operations Centric Centric Smart Smart Metering Metering

Meter Meter Ops Ops Centric Centric Smart Metering Smart Metering with with IHD IHD Comms Comms

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Focus on replacement of house to house meter readers Meters transmit monthly or daily consumption totals to a central collector One way communication





Supports interval data collection—not just daily totals Two way communications to support range of meter operations activities – e.g remote disconnects





Support communications with In Home Display Units Consumer Behaviour impact

© 2009 IBM Corporation

Smarter Metering - Ireland

IBM Smart Metering - Experience and Capability

American Electric Power ATCO Electric BC Hydro BELCO CenterPoint Energy Consumers Energy CPFL Energia Dominion Energy Entergy EPCOR Hydro One Hydro Ottawa Hydro-Québec IESO London Hydro NB Power NV Energy NYC-based utility Oncor Ontario Energy Board Pacific Gas & Electric Pacific Northwest National Laboratory Pepco Holdings Inc Progress Energy Sempra Energy Smart Meter Texas Southern California Edison Texas TDSPs Toronto Hydro 10

A2A - AEM Torino A2A - ASM Brescia DONG Energy EDP E-Energie EnBW Enemalta Enel E.On EnergiMidt

Enexis ESB Networks Göteborg Energi Liander Nuon Oxxio UK Energy Retailers Terna 30 Italian distributors

Country Energy Energy Australia Jiangsu Power KEPCO NDPL Western Power Xin'Ao Energy

© 2009 IBM Corporation

What is Happening in Ireland ?

© 2009 IBM Corporation

Smarter Metering - Ireland

Smarter Energy & Ireland Government Policy Context
Strong government commitment to Smart Metering and wider Smarter Energy initiatives
Minister Ryan committed to deployment of Smart Metering and Electric Cars
Aug 2008 – "With this Smart Metering plan, Ireland is leading the world. I wish to commend all the agencies and companies who are part of this plan. I will work to ensure that all Irish homes have Smart Meters over the next four / five years


Nov 26th 2008 – Energy Minister Eamon Ryan and Transport Minister Noel Dempsey today set out the Government’s plans for the mass deployment of electric vehicles in Ireland. The Government has set a target of 10% of all vehicles in the transport fleet to be powered by electricity by 2020. This will represent some 250,000 cars on Irish roads over the next 12 years. – Announcing the Government’s plans, Minister Eamon Ryan said, “The Irish Government is signalling its intentions to national and international players that Ireland is ‘open for business’. We are positioning ourselves as a centre for electric vehicles. The Government expects considerable international investment to emanate from this plan.

Smart Metering – Pilot Project of AMI
In 2007 The Commission for Energy Regulation in Ireland (CER), in consultation with ESB Networks and a number of other key stakeholders, announced plans to examine the feasibility of an Advanced Metering Infrastructure (AMI) for Ireland.
CER directed ESB Networks to proceed with a Pilot Project of AMI.

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© 2009 IBM Corporation

Smarter Metering - Ireland

Smart Metering – Centre of An Integrated Sustainability Strategy

Distributed Storage & Generation




Renewable & Clean Generation

Smart Networks

Smart Metering

Active Customers Electric Vehicles

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Smarter Metering - Ireland

Smart Metering Project – Plan

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© 2009 IBM Corporation

Smarter Metering - Ireland

Smart Metering Pilot – Story So Far

Electricity Customer Behaviour Trials
Designed to ensure that statistically robust results will be produced
Inform the Smart Metering Cost Benefit Analysis.
Customers participating in the CBTs will be allocated to “control” groups & “test” groups.
Various energy efficiency initiatives enabled by Smart Metering will be introduced to the “test” groups. – Price signals that will encourage customers to transfer some of their electricity usage away from times of the day when demand for electricity is at its peak i.e. Time of Use (ToU) Tariffs. – Enhanced & more frequent information on electricity usage & costs for customers – Financial incentives that will encourage customers to reduce their overall electricity usage
Excellent customer response rates to invites (35% acceptance)
Recruitment was completed in June 2009 of all 6,139 customers required (5,375 residential & 764 SME).
All meters installed and baseline data collection commenced 15

© 2009 IBM Corporation

Smarter Metering - Ireland

Smart Metering Pilot – Story So Far

Technology Trials
ESB Networks have agreed plans with vendors for trialing of various representative smart metering systems and communication technologies. – Distributed Line Carrier (DLC) trial (Using Meters and systems from Sagem) involving c.2,000 meters in Limerick & Ennis. – Radio Frequency (RF) 2.4GHz trial (Using meters and systems fromTrilliant/Iskraemeco) involving c.2,500 meters in Cork city & Bandon. – RF 868MHz trial (Using meters and systems from Elster/ Energy ICT) – Power Line Carrier (PLC) desk-top study underway (Aclara).

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© 2009 IBM Corporation

What Next ?

© 2009 IBM Corporation

Smarter Metering - Ireland

Smart Metering – Next Steps


Focus turning to planning full scale implementation
CER running public consultation process on ‘the Possible Roll Out of Smart Metering’
In terms of timeframe talking about a four year deployment phase commencing in 2014 - 2015
The challenge is to move from pilots to full scale implementation

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© 2009 IBM Corporation

Smarter Metering - Ireland

Smart Metering – The Journey from Pilots to deployment….


There are a number of phases in the life cycle of an Smart Metering Programme. 3 -10 years 6 - 36 months

1 - 4 years

12 -24 months

Phase 1:– Discovery and Exploration –

Phase II - Planning & Product Selection –

Phase III: Pre-Deployment Preparation –

Phase IV: Full Deployment

(Think About It)

(Plan It)

(Prepare for It)

(Do It)

 Conduct Technology & Proof of Concept Pilots  Develop Preliminary Business Case  Develop Initial Smart Metering Strategy  Identify High-Level Requirements  Collect Vendor and Product Information (e.g., RFI’s)  Establish Small work group and initiate contact with stakeholders 19

6 -12 months

Illustrative – Smart Metering Project Lifecycle

 Establish and Begin Execution of Regulatory Strategy/Approach  Begin Regular Dialog With Stakeholders  Refine Smart Metering Strategy and Business Case(s)  Develop Initial Work plan and Schedule  Begin Technology/ Product Selection  Negotiate and Sign Initial Contracts

 Continue Regulatory Process and Stakeholder Dialog

 Establish Benefits Realization Framework

 Refine Business Case, Work plan, and Schedule

 Begin Full Scale Network and Meter Installation

 Begin Meter/ Coms Testing and Field Test

 Deploy Additional MDMS and Meter Functionality

 Finalize Technology Selections and Sign Contracts

 Release Management and upgrades

 Business Process Design,  MDMS Installation and Systems Integration

 Internal Change Management  Smart Metering Operations Support and Application Maint. and Stability

 Deployment Vendor Prep/ Field Test  Organizational Redesign

© 2009 IBM Corporation

Smarter Metering - Ireland

Smart Metering – ….. Difficult and costly to turn back

AMI Programme Management

Phase 1:– Discovery and Exploration -

Phase II - Planning & Product Selection

Phase III: PreDeployment Prep 2009

Year 1

2010

Year 2

2011

2012

Year 3

Year 4

2014

2013

Year 5

Year 6

Phase IV: Full Deployment

Total Meters Installed

Full Scale Deployment Begins

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Questions ?

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