DRIVING SUCCESSFUL SMART METERING PROGRAMMES

Transcription

1 DRIVING SUCCESSFUL SMART METERING PROGRAMMES A Global Experience African Utility week 14 th May 2013 Alain Bollack - Global Power & Utilities Centre Eduard Stephenson - SSA Infrastructure

2 Agenda Smart Metering Geographic Drivers Global Adoption Rates The African Macroeconomic Environment Smart Drivers & The Expected Benefits (Sector, Customer & Utility) Driving Successful Smart Metering Programmes Smart Benchmarking Ernst & Young s Smart Thought Leadership A Call to Action! Page 2

3 Smart Metering A Smart Meter is an advanced type of meter that monitors consumption and communicates automatically via a 2-way link with the supplier How does a Smart Meter work? 8 Customer 1 Sends automatic meter reads to provider (improved data accuracy and better forecasting) Data analysis, billing 3 Electricity Supply No more physical meter reads (saves opex) Customer gets accurate bills (resulting in fewer queries, disputes and complaints) and can operate on pre-paid Consumption analysis available online Energy Retailer Consumption analysis sent in real-time to In-Home Display Customer monitors energy usage and reduces consumption Energy retailer can communicate with meter for remote disconnect (reduce debt) and tariff changes Better usage data enables better energy service offerings Benefits: Network Optimisation Energy Reduction Operational Cost Reduction (Opex) Theft Reduction (non technical losses) Cash Collection Enabler of new services (Energy Services, EV, MicroGen) Page 3

4 Geographic Drivers Source: EY Global Power & Utilities Centre Page 4

5 Adoption Rate (%) Global Adoption Rates According to a report by Pike Research, the market for smart grid technologies will grow from $33 billion annually in 2012 to $73 billion by the end of 2020, totalling $494 billion in cumulative revenue over that period North America Europe Asia Pacific Latin America Middle East / Africa Total 10 0 Source: Smart Meter Penetration - Pike Research Page 5

6 The African Macroeconomic Environment Political Focus on Developing Energy Infrastructure Foreign Investment Interest Growing Technology Appetite Increasing Demand Economic Growth Page 6

7 Smart Drivers & The Expected Benefits Sector Benefits: 1. Carbon savings Driver: Reduction in energy consumption. 2. Smart grid enabler Driver: Smart meters will provide the information required to power the shift to a smarter electricity grid. 3. Economic growth Driver: Through assembly and/or manufacture plants. Customer Benefits: 1. Demand reduction Driver: Access to better information on energy use and costs which drives behavior change. 2. Financial management Driver: Pre-pay nature and access to information on energy use means consumers can plan their expenditure. 3. Customer satisfaction Driver: Customer is empowered by information, subject to less billing related disputes and has access to multiple ways of recharging their meter. Page 7

8 Smart Drivers & The Expected Benefits (Continued) Utility Benefits: 1. Reduced site visits 2. Reduction in customer service enquiries 3. Improved customer service delivery 4. Debt management Driver: Automated meter reading, decreased maintenance costs, remote disconnection / connection possibilities. Driver: Lower demand through reduction in billing enquiries, complaints and outages. Driver: Greater access to information will allow quicker resolution of enquiries. Driver: Pre-pay will eliminate arrears and provide a mechanism to incentivize settlement of outstanding debt. Page 8

9 Smart Drivers & The Expected Benefits (Continued) Utility Benefits: 5. Theft / tampering detection & prevention 6. Outage detection & control 7. Decision optimization for electricity network enforcement 8. Power quality monitoring Driver: Detection of theft or technical losses will become easier through increased data access. Unmetered customers can also be indentified. Driver: Information will allow for more efficient resolution of network failures - facilitating effective maintenance and planning. Driver: Greater information will allow the operator to more efficiently identify where the network needs reinforcing. Driver: Information will allow the operator to monitor voltage / power quality. Page 9

10 Smart Drivers & The Expected Benefits (Continued) Utility Benefits: 9. Improved cash flow 10. Better understanding of energy consumption patterns 11. Energy efficiency 12. Energy smart customers Driver: This will result from increased revenue collection. Driver: Access to more information. Driver: Information will allow for a more optimal use of electricity. Driver: This will result from increased awareness of electricity consumption behaviour. Page 10

11 Smart Drivers & The Expected Benefits (Continued) Utility Benefits: 13. Regulatory Compliance 14. Shift load 15. Remote demand control Driver: Mandate on the use of smart systems and time-ofuse tariffs for customers consuming over 1000kWh (i.e. National Regulation 773). Driver: Shift residential load from Morning & Evening peaks using Time of Use ( ToU ) tariffs. Driver: Shed commercial, industrial and residential load as a result of grid capacity constraints to the extent required. Page 11

12 Driving Successful Smart Metering Programmes Interim / Enduring Solution Incremental revenue New customer props Cross-selling Churn improvement New customers Degree of importance L H Added green power sources Benefits Cost savings Working capital Reduced meter reading Reduced customer care WC improvement Plug-in hybrid electric cars (storage device) NPV Deployment profile Costs Installation costs Asset costs IT & Com. Field force cost Field force efficiency Meter cost Meter replacement cost Meter stranding cost IHD, comm. unit, battery Hardware, software, SI Communication cost Tele-health Services Smart appliances (e.g. thermostats, dynamic controls, Smart Meter Real-time & green pricing signals (portal/stats) Other Reduced energy consump. What is the Cost/Benefit model? How to change the business to be Smart enabled? Smart strategic considerations How to build a positive experience for the Customer and drive future revenue? What is the optimum Supply Chain to roll-out Smart Meters efficiently and reliably? Impact on Processes UK UK EU Australia EU country plc plc Jobs per day0 20 Procurement Logistics Installation & Maintenance Planning and Order Management Customer Service (Appointment Booking) Other MAPs Asset Manufacturer (Supplier) Central warehouse (Hub) Local warehouse (Sub -Hub) Field Operative (Van) Customer (house) Utility suppliers / Recycling / disposal Shared Services (i.e. IT / HR / Finance) Page 12

13 What is the Cost/Benefit model? How to build a positive experience for the Customer and drive future revenue? Smart strategic considerations How to change the business to be Smart enabled? What is the optimum Supply Chain to rollout Smart Meters efficiently and reliably? Page 13

14 Smart Benchmarking Total business case cost per meter Asset cost per meter (cost of the meter) $220 EU country 1 $ US co.1 $260 US co. $60 1 mass rollout est. 172 Australia co. $66 Elec $315 US co. $70 DECC elec $408 EU Country $0 $ EU country $90 DECC gas $107 1 Pilot $123 Gas $0 $154 Installation cost per meter $0 $45 DECC elec $60 Single fuel $76 DECC Gas $97 $104 DECC Dual fuel $115 elec $130 gas $180 Dual fuel $145 Jobs per day France 8-15 Australia EU No access and abort rates 20-30% 22% and Australia co 30-40% EU country 0% 100% Page 14

15 Ernst & Young s Smart Thought Leadership Economic benefits of smart grid Launched by the Minister of Energy, this report examines potential benefits that might accrue to the British economy as a result of the development of smart grid, including potential GDP and job creation that could arise through the required upgrades to the UK distribution network Big data deluge threatens utilities Ernst & Young regularly publishes leading articles on smart grid and metering issues facing utilities This article focuses on the capabilities required to manage the major increase in data from smart grid and metering technologies The rise of smart customers what the sector thinks The rise of smart customers what consumers think The smart agenda is forcing Utilities to reassess what their business should be and how they need to operate This publication explores the smart customer strategy of 75 business leaders across 12 countries, to find out how the key players in each market believe the implementation of smart metering will change the relationship between utilities and their customers The roll out of smart meters provides a challenge to utility companies to transform their relationship with consumers This publication explores the sector s readiness to respond to this challenge. We asked domestic energy consumers how they viewed their relationship with energy providers Attacking the Smart Grid Penetration testing techniques for industrial control systems and advanced metering infrastructure This publication outlines the changing landscape in Smart grid control system architecture and the implications this has on security. Specific penetration testing are explained for each component to provide insight for control system engineers and management into how penetration testing can benefit their organization. Private eyes Privacy concerns and protection for Smart Extensive consumer data usage will be essential to delivering the vision of smart grids and delivering true benefits from the huge investment in smart metering. The British Government has made good progress, but creating a flexible approach to governing data access one that balances protecting the privacy of consumers with enabling data centric innovations will be a key element of success. Smart metering controls: invest upfront to minimise risk Ernst & Young published a point of view to address the timing of investing resources to mitigate risks arising from smart metering. The document highlights the key challenges to be considered by suppliers and some ideas of how to mitigate these challenges Smart customers How consumer behaviour will be the UK Driving force This article reviews how the Smart Meter programme will open up a number of opportunities for energy retailers to really understand their customers and provide targeted, relevant products and services to those consumers to encourage energy efficiency. Advanced Metering Infrastructure in CSE countries current implementation status, plans and perspectives Smart Control Transforming controls to reduce cost, enable growth and keep the business safe This publication describes the current state of electric energy markets in CSE countries Bulgaria, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia, and Turkey. It then explains the current state of AMI implementation followed by detailed analysis of the state of AMI implementation in these countries. There is a common failure to recognize controls as foundational to all business processes and a key contributor to process costs. Despite this significant spend, today s control environment is not fit for purpose. This brochure looks into the value of smart control, discovering the pain points in the control environment as well as the approach for achieving smart control Consumer Attitudes towards Smart Metering Cyber security how safe is your smart grid? This article looks into the challenges of maximising the smart opportunity, the motivations for having a smart meter and how important the consumer engagement is for cost efficiencies and revenue opportunities. Ernst & Young s IT risk professionals recommended ten key measures companies should take to create a solid foundation for a cyber security strategy within a real-time operational technology environment Page 15

16 A Call to Action! Africa is a near if not at the top of the list of continents that need intervention in our power sector and especially generation and distribution networks Smart is definitely seen by the rest of the world as the way to go! What does Africa need to do to get its self off the bottom? Understand the benefits and drivers that form the basis of the business case with an understanding that Africa s drivers are different to the rest of the world from a financial and social perspective. Develop and enforce regulations and standards to assist the market find their way and to attract funding/ Investors. Manage stakeholders show them the benefits so they become believers not blockers. Provide incentives for the adoption of these technologies TOU, remote control of appliances etc. See smart metering wider than just utility benefits it s an opportunity to create jobs and develop the supply chain on the continent. Page 16

17 THANK YOU! Questions?