ZIMBABWE ELECTRICITY TRANSMISSION & DISTRIBTION COMPANY. Presenter: Eng. Wilfred Shereni
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1 ZIMBABWE ELECTRICITY TRANSMISSION & DISTRIBTION COMPANY LEARNING FROM METER ROLLOUTS IN AN AFRICAN CONTEXT: THE ZIMBABWEAN EXPERIENCE Presenter: Eng. Wilfred Shereni 17 th September 2015
2 PRESENTATION OVERVIEW Objective of Presentation Part I General Metering Project Issues Part II ZETDC STS Prepayment Metering Project Part III ZETDC Smart Metering Project Metering Project Benefits & Lessons Learnt
3 INTRODUCTION ZETDC is Changing its metering technology in an endeavour to improve operational efficiency & effectiveness The two metering technologies being deployed are : STS Prepayment metering and Smart Metering technologies To date ZETDC has deployed 552,000 STS prepayment Metering to residential and small business customers ZETDC planning on Deploying Smart metering project to Medium & Large Power Users
4 PART I ZETDC HIGHLIGHTS
5 FACTS ON ZETDC Wholly Owned by Govt of Zimbabwe Number of customers: 650,000 Asset Value: USD 800 million Distribution area: km 2 Number of employees: 7,000 Revenues: PA. USD 830 Million
6 ZETDC MANDATE Our Mandate manage resources deliver services to communities in a sustainable manner uplift Life of citizens
7 ZIMBABWEAN ESI MODEL
8 OBJECTIVE OF PRESENTATION
9 ZETDC STRATEGIC MAP FINANCIAL INCREASE REVENUE MANAGE COSTS CUSTOMERS/STAKEHOLDERS PROVIDE AFFORDABLE & EFFICIENT SERVICES IMPROVE CUSTOMER AND STAKEHOLDER RELATIONS RETAIN AND GROW CUSTOMER BASE DIVERSIFY PRODUCTS & SERVICES INTERNAL PROCESSES IMPROVE EFFICIENCY OPTIMISE STRATEGIC USE OF ICT IMPROVE SAFETY, QOS & SYSTEM SECURITY IMPROVE CORPORATE GORVENANCE PEOPLE CREATE A HIGH PERFORMANCE & INNOVATIVE CULTURE ATTRACT, DEVELOP AND RETAIN SKILLED PERSONNEL MANAGE TRANSFORMATION AND CHANGE
10 ZETDC CHALLENGES ZETDC faces many challenges Growing Demand from Citizens Energy Theft Power Shortage Resource availability & quality of service Aging Infrastructure Poor payment culture Increased Operational & Maintenance costs Vandalism Reduced Revenue Inflow
11 PART II GENERAL ISSUES ON METERING PROJECTS
12 Mission critical METERING PROJECTS Thin line between project and production, especially for retrofit projects Unit cost low but cumulatively the value can be high
13 ZETDC MIGRATING TO SMART/PREPAYMENT METERING New Drivers, New Forces!
14 THREE KEY PROJECT DELIVERABLES TO SPECIFICATION WITHIN BUDGET DELIVERED ON TIME PERFORMANCE AND FUNCTONALITY AVOID COST OVERRUNS & SCOPE CREEPAGE ADDRESS ISUES AS THEY ARISE & CONSTANTLY MONITOR PROGRESS
15 Comprehensive Framework to guide the Metering Project Implementation
16 COHERENT TACTICAL PLANS FOR METERING PROJECTS
17 STAKEHOLDER ENGAGEMENT/INTERACTION CUSTOMER EDUCATION PRODUCT ENGAGEMENT 1 PROMOTION 2 METER OEM UTILITY CUSTOMERS 3 4 UTILITY SPECIFICATION (CUSTOMISATION) FEEDBACK/ CONFRONTIONAL REACTION
18 KEY DRIVERS FOR THE METERING PROJECT 1 Key driver Reduction in Revenue Leakage (NTL) 2 Energy efficiency 3 Address collection Challenge which had gone down to around 60% Critical Success Factor (CSF) Drop in cases of meter tampering to desired levels. Meters being installed have tamper evident features and the system runs exception reports to help identify Realisation of energy efficiency objectives Collection index to improve to more than 100%
19 TARGETTED & TAILORED APPROACH METERING TECHNOLOGY CUSTOMER CATEGORY KEY DRIVERS STS Prepayment Metering Technology Smart Metering Technology The Meters must support pre-payment operation with the credit purse in a higher-order system such as MDMS Residential and Small Business Customers with Capacity of 100A and below (650,000) Medium & Large Power Users (CT & CT/VT Connected Meters). (40,000) Address MBC Issues Enhance revenue protection Encourage Efficient utilisation of electricity Address MBC Issues Key milestone towards establishment of Smart Grid Societal benefits
20 PART II OVERVIEW OF ZETDC PREPAYMENT METERING PROJECT
21 PREPAID METER PENETRATION Region Harare Western Souther n Norther n Eastern Total Single Phase Total Meters to be Retrofitted Three Phase Total Single Phase Retrofitted To Date Three Phase Total Single Phase % Penetration Three Phase Total 200,714 13, , ,092 13, ,549 82% 101% 83% 131,905 8, ,105 96,736 10, ,182 73% 127% 77% 57,186 7,200 64,386 68,774 6,029 74, % 84% 116% 79,038 12,000 91,038 92,687 9, , % 82% 113% 62,777 7,000 69,777 82,317 6,471 88, % 92% 127% 531,620 47, , ,606 46, ,855 95% 97% 95%
22 PREPAID METER INSTALLED TO DATE Contractor Harare Region Meters Installed As At 11 September 2015 Western Region Southern Region Northern Region Eastern Region Total Per Contractor Solahart (Single Phase) 90,755 83, , ,455 Finmark (Single Phase) 19,873 2,623 45,844 44, ,555 Finmark (Three Phase) 12,070 1,366 5,054 9, ,061 Nyamezela (Single 33, ,697 42,080 44, ,513 Phase) Nyamezela (Three Phase) ,971 6,283 ZTE (Three Phase) 0 6, ,988 Landis & Gyr (Single 13,239 6, ,000 Phase) Landis & Gyr (Three 1,158 2, ,000 Phase) Itron (Single Phase) 6,334 3,075 2,422 5,769 2,400 20,000 Total Per Region 177, ,182 74, ,533 88, ,855
23 CHALLENGES & PROJECT RISKS Marketing Risks Project Management Risks People and Culture Risks Process Risks Project Risks Before Pilot Project Risks After Pilot Technology Risks
24 DAMAGED METER BOXES& KIOSKS
25 NEW METER KIOSKS REPLACING DAMAGED ONES
26 POLE TOP BOXES FOR HIGH RISK AREAS
27 BENEFITS FROM THE PREPAID METERING PROJECT ITEM DESCRIPTION Improvement in Revenue collection, from 60% to 140% ( Including Arrears Improved Efficient Utilisation of energy by Customers Reduced revenue leakage due to pole mounting and capability to run exception reports, tamper evident features Improved service delivery and service reliability to customers to a achieve a customer satisfaction index above 80%. EXPECTED IMPROVEMENT 80% 22% 25% 15 20%
28 CHALLENGES & BARRIERS FOR THE PREPAYMENT METERING PROJECT Funding challenges delayed implementation The use of third parties exposed the company to risk of meter tampering Meter failure above the acceptable industry standard of % Lack of buy in by some stakeholders Customers & Employees Challenges with Implementing Step Tariff for Prepaid Customers
29 CHALLENGES & BARRIERS PREPAYMENT METERING PROJECT Issues regarding data integrity Retrofiting difficulties in applying new technology to old infrastructure Lack of Skills and Competency in key areas Challenges with Implementing Step Tariff for Prepaid Customers Policies & legal issues e.g. Dealing with Debt
30 CHALLENGES & BARRIERS PREPAYMENT METERING PROJECT Difficulties with Financing & Funding Issues of Technology dealing with uncertainties Resistance to change employees & customers Procurements Issues
31 VALUE FOR MONEY AUDIT BY TE AUDITOR GENERAL
32 POST IMPLEMENTATION SUPORT MODEL 3 RD PARTY PREPAYMENT VENDING (Only Vending Services) ZB, CBZ, etc 3 RD LEVEL SUPPORT IT - 2% AXIS OTHER SAP (TTC) INDRA ITRON CUSTOMER 1 ST LEVEL SUPPORT (REGIONS) - 90% CALL CENTRE COMMERCIA L REGIONAL METERING CONTROL CENTRE REGIONAL IT 2 ND LEVEL SUPPORT HEAD OFFICE IT - (10% ) IT HELP DESK NETWORK SUPORT DB SUPPORT APPLICATION SUPPORT 2 nd Level support - METERING -10% METERING DEPT 3 RD LEVEL SUPPORT METERING -2% METER TEST ITRON HEXING DB & APPLICATION SUPPORT IT HARDWARE SUPPORT L & G INHEMETER OTHER
33 PART III OVERVIEW ON SMART METERING PROJECT
34 SMART METERING PROJECT SCOPE Region Number of CT Metered Points LV EASTERN 1,059 HARARE 3,821 NORTHERN 2,719 SOUTHERN 343 WESTERN 856 Sub TOTAL Large Power Users (LPUs) Metered at MV/LV Consumer Substations Supplying Multiple Consumers Mobile Network Operators (MNOs) Consumers With Renewable Energy Generation Capacity Total 144 5, , ,671 2,000-10, , , , , , ,441 8,798 1,203 23,465 3, ,652
35 CONCEPTUAL MODEL FOR PILOT PHASE
36 REQUIRED SMART METER FUNCTIONALITY Specified Smart Metering functionality should be guided by business requirements envisaged operational and societal benefits Due Diligence should be carried out to deal with technological uncertainties and ensure value will be derived from the investment Consider operability issues to avoid lock in Multiple communication Channel
37 SMART GRID OBJECTIVES Item Description Expected Improvement 1 Sustainable reduction in Zimbabwe s peak energy demand relative to the 2014 national baseline 20% 2 Grid availability to serve all critical loads as defined nationally 100% 3 Improvement in system efficiency (measured against the national and local technical and non technical losses baseline) 40% and asset utilization to achieve a load factor of 70%. 4 80MW electricity capacity integrated into the Distribution networks from renewable energy sources 800MW 5 Improved service delivery and service reliability to customers to a achieve a customer satisfaction index that exceeds 80%. Above 80%
38 TYPICAL SMART GRID MODEL
39 TYPICAL AMI SYSTEM
40 ENHANCED FUNCTIONALITY (PULSE INPUT S/ OUTPUTS) PULSE INPUTS PULSE OUTPUTS P/I from External Devices P/I - From Devices P/I-from Devices Other Pulse outputs Other Pulse Outputs Pulse Inputs P/I-High Temp Oil P/I- Low Tx Oil SMART METER P/O 1 - NPA P/O 2 - PA pulse outputs for remote disconnection /connection when operating in prepaid mode P/O 3-5MW P/O 4-10MW Load Control P/O - 20MW
41 MODICATIONS TO TRIPPING CIRCUITS TO ENABLE REMOTE DISCONNECTION FOR NON PAYMENT 50V + 50V - O/C E/F BTC FTCWLLR NPA
42 MODICATIONS TO CLOSING CIRCUIT TO ENABLE REMOTE RECONNECTION AFTER PAYMENT OF ACOUNT 50V + 50V - A/R1 A/R2 BTC OTHER PA
43 COMPLEMENTARY CHANGES NEEDED TO REALISE BENEFITS There is need for ZETDC to review the operational practices (processes and procedures) to align with the change in metering technology There is need for ZERA to review tariff structures to support smart metering initiative There is need for ZETDC to carry out intensive customer education and campaigns to ensure customers accept and embrace the change to smart metering
44 INDICATIVE SMART GRID SEQUENCING ROADMAP
45 SMART METERING PROJECT ROAD MAP Tender Award by Dec Project Initiation Feb Award Tenders for Meters/HES Contractors - Award Tender for MDMS 6 Installation of Smart Meters by March Install 300,000 meters Scope Definition Business case Tendering Sept Float Tender 5 2 Planning & Design June 2014 Benchmarking By Oct 2014 Benchmarking Due Diligence & Spec Drafting Dec 2014 Project Governance Project Budget Board Resolution Design & Specifications Due diligence on technology - Draft Technical spec to met Business requirements
46 PART IV EXPECTED OUTCOME FROM METERING PROJECTS
47 EXPECTED OUTCOME
48 EXPECTED OUTCOME Objective: Optimally Performing Utility Profitability Sustainability Increasing Revenues Reducing Costs Business Structures & Processes Information Systems Skilled Management & Staff
49 A FRAMEWORK FOR SMART METERING SOCIETAL BENEFITS SOURCE OF BENEFITS MANIFESTATION MEASUREMENT Demand Response (DR) Improved Energy Efficiency (EE) Other Products and Services Enhanced Service Quality Macroeconomic Impacts Externalities Changes in Consumptive Behaviour Reduced Consumption Demand for Supplemental Services Reduced Outage Frequency, Duration Changes in Consumptive Patterns Reduced Carbon emmission Modified kwh, kw Profile Reduced kwh, KW $ Revenues Reduced kwh outages Changes in Employment, Wages $ /kwh Societal Value
50 PURPOSE OF PRESENTATION
51 LESSONS LEARNT FROM ZETDC PROJECTS Metering project should be consistent with Utility s broad Corporate strategy Carry out Due Diligence to address technical uncertainties & Be clear of benefits upfront Follow best practice Project Management Methodologies (PRINCE 2, PMBOK) Carry out risk Analysis and come up with mitigation plan Verify formal competencies and ensure the right skill level Define and control processes and subprocesses at a programme and project level Consult all stakeholders before making key decisions Installation of protective structures must be done in parallel with meter installations Closely manage integration points at various levels and across value chain to avoid gaps
52 END THANK YOU Cell:
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