Meter Magazine_4_2015_DIGITALMAG

METERING.COM METERING & ISSUE 4 | 2015

SMART ENERGY
INTERNATIONAL

Multi Utility.
Solutions for a
smarter future.

European

UTILITYUtility
Week
FaenadBatudrnieag: atldayatticas modernisation



CONTENTS pg 22

Cover Story pg 50

22 Clear solution for bold architecture Product showcase

The new market hall in Rotterdam is an architectural milestone that brings 54 Meter Testing 2.0: A detailed view of the
a high quality of living and enjoyable shopping under a horse-shoe-shaped German market
roof – with smart building services included.
62 Smart transformer condition monitoring with
Utility Modernisation smart meter and Rogowski coils

24 Weather and the smart grid – asset management in the age of 72 AMI for smart power consumption
distributed generation and climate change 86 Elster providing growth through interoperable

27 The eBADGE project – Final outcomes and key messages solutions
94 Security as an essential part of the AMI
Smart Grid Technology
deployment in Latvia
32 An introduction to Faham, the national smart metering program 98 smartEMU meters critical components of Smart
in Iran
City Wrocław
38 Data Concentrators: Unfairly ignored parts of modern smart grids 110 ARGUS: monitoring MV-LV substations with
74 Gibraltar drives lower carbon emissions
81 MesInfos Energies self data for the benefit of energy transition integrated WAN-communications
112 Battery analysis service delivers new life
Digital Transformation
insights for meter fleet asset management
40 The three pillars of digital transformation 132 The Power Solution for metering
44 Smart City Wrocław
46 Value creation in the digital energy network communication
137 PLC OFDM built in Solution
Internet of Things 142 Split-core current transformer for distribution

48 Grid apps: Four ways distributed intelligence is transforming transformer monitoring
the smart grid business case

Cybersecurity

50 NERC CIP 6 standards – What’s next ?

European Utility Week

56 European Utility Week promotes fresh thinking from the
outside in

58 GRID4EU, best worldwide example of excellence in smart grids
for renewable energy integration

64 Embracing the digital transformation
66 Pathway to the future for utilities
68 Innovation at the heart of the utility future

Prepayment

70 Prepaid electric metering gains ground, but trend is playing out
in different ways



rethink
everything

Deploy a network of devices with the intelligence to anticipate and
manage rapidly changing grid conditions in real-time.
Introducing OpenWay Riva,™ a revolutionary approach to active
grid management, providing distributed intelligence and adaptive
communications. Innovation for a more resourceful world.

itron.com/openwayriva

pg 108 CONTENTS

pg 112 Gas Metering

Regulars 78 Selecting a shut-off valve for gas meters

6 Editorial Revenue Protection
8 Global Snapshot
10 Current Affairs 88 Revenue protection: one goal, many approaches
146 Compos Mentis
148 Advertisers Index Communication Infrastructure

96 PRIME sub-networks, a secure multiservice
telecommunication infrastructure

102 Meters & More – beyond the meter

Communication Technology

36 A new “SUN” rises for AMI wireless solutions
104 Is cognitive radio the paracetemol for dark meter pain?
108 Unpacking the ZigBee protocol for the global smart

energy market

SPECIAL SUPPLEMENT:
Big Data and Data Analytics

114 Taking away the pain: IT-OT integration is essential to
making analytics more valuable

116 Analytics in action
120 Customer based data – big opportunities for utilities and

their customers

Energy Storage

124 Energy storage market: A global overview
126 Energy storage challenges conventional thinking

Australian Utility Week

129 The digital utility: Realising the vision in Australia and
New Zealand

Home and Building Automation?

134 Pervasive Broadband Internet: fuelling the connected
home of the future

140 Smart home energy management facing up to regional
challenges

AdAvdavAnadcnvecadendMcMetdeetMreirenitgnegrIniInfnrgfarIsantsrftruracustcturtruerceture
++373723+2239273930320210291320 012 infion@fo@[email protected]
++373723+2239273930320210591350 015 wwwww.awdw.adwdgdwrgu.arpud.cpdo.gcmroump.com

EDITORIAL

Digital vulnerability

A quick run through the articles in
this edition highlights the growing
intersection between the traditional power
grid and digital technology. Enhanced
communications bring many benefits
to utility companies, but additionally,
introduces vulnerabilities.

Claire Volkwyn This was highlighted again in a recent
Editor statement by the FBI in which it was made
[email protected] clear that responsibility for Internet of
Things (IoT) security lies with the user as
much as with the manufacturer.

In a public notice, the law enforcement agency notes that “as more remotely unlocking car or a smart thermostat – may look pretty and
businesses and homeowners use web-connected devices to enhance work well, but as IoT popularity increases, security can no longer be left
company efficiency or lifestyle conveniences, their connection to the on the sidelines.”
internet also increases the target space for malicious cyber actors.” If the responsibility lies with the user – what is the impact on utilities
and what needs to happen in the way we train, educate and empower
Vulnerable devices listed include: current and future employees to appreciate and embrace security as
a way of life, not as an afterthought? And how is the need for security
Automated devices which remotely or automatically adjust lighting balanced by the operational needs of the business? Or, more succinctly
or HVAC put – does the business drive IT, or does IT drive the business?

Security systems, such as security alarms or Wi-Fi cameras European Utility Week
Thermostats
Wearable devices This edition has a strong European flavour, which coincides with its NB
Lighting modules which activate or deactivate lights release at the upcoming European Utility Week. Taking place from
Smart appliances, such as smart refrigerators and TVs 3 – 5 November in Vienna, this year’s event sees a move to a new
location after a number of years in Amsterdam. This is an exciting
However, the question has to be asked – where does the line between development and we are particularly excited to have the opportunity
user responsibility and manufacturer responsibility blur? A report to engage with an ever expanding audience of visitors, delegates and
by ZDNet’s Zero Day security blog indicates that there are still “many exhibitors at the event.
issues relating to the security of IoT devices [which lie] squarely on the As always, Metering & Smart Energy International will be covering the
shoulders of the vendor.” event, reporting on industry developments and engaging with utilities
and industry stakeholders alike. If you are in Vienna at the time, we’d
Where does the line between love to see you, so be sure to visit the exhibition at Messe Wien.
user responsibility and
New website
manufacturer responsibility
blur?” We are pleased to announce that we will be launching a new
look website in November, which will enable easier navigation,
This includes updates and security patches, which the report says are integration of a variety of multi-media sources, and enhanced
often out of date. engagement features. We look forward to hearing your views on the
new look, and to welcoming you as part of the Metering & Smart
According to Charlie Osborne, the author: “This is something that Energy International community online.
vendors must get on top of. A connected device – whether it is a Be well!

Managing Director: Publisher: Head Office: Production:
David Ashdown Philip Vander Gucht 2nd floor, North Wing, Great Westerford, 240 Main Road, Reproduction by Spintelligent and printing by Tandym Print.
Rondebosch, 7700 Subscription: $40 / Euro35, for 6 editions. See subscription form on
Assistant Publisher: Editor: P O box 321, Steenberg 7947, South Africa page 148.
Bernice Bredenkamp Claire Volkwyn Phone: +27 21 700 3500, Fax: +27 21 700 3501,
E-mail: [email protected], www.spintelligent.com Copyright:
Sales Executives: Deputy Editor: The copyright for all material published in this magazine is strictly
Gerald Schreiner, Alick Lee, Amy Ryan Disclaimer: reserved.
Neal Esau The views expressed in this publication are not necessarily those of
Production Manager : the publishers. Whilst every effort is made to ensure accuracy the ISSN 1025-8248
Design/Layout: Dane Adriaanse publisher and editor cannot be held responsible for any inaccurate
Cathy van Dyk information supplied and/or published.

METERING INTERNATIONAL ISSUE – 4 | 2015
6

World Class Switching Solutions for Energy Management

Customized IEC Latching Relays
Compliant Solutions
To Meet Your Needs

SHORT CIRCUIT
PER IEC 62055-31
UC2 COMPLIANT

SHORT CIRCUIT FULLY UC3 COMPLIANT AT
PER IEC 62055-31 RATED AT 277 VAC
UC3 COMPLIANT
EXCEEDS ALL SAFETY STANDARDS

AVAILABLE WITH AUXILIARY CONTACTS
TO DETECT STATE OF RELAY

How Long Do You Want
Your Latching Relay To Last?

In a perfect world, meters would only need to handle resistive Most notably, our K125 allows meter manufacturers to produce
loads. However, in today's grid, meters are subjected to high smaller meters with no decrease in performance at an
inductive loads as well. Thankfully, KG Technologies’ customers advantageous price point.
rest assured knowing that our latching relays have been tested
and certified to meet both resistive and inductive loads at rated KG Technologies Delivers
currents specified by IEC 62055-31. As the world switches to a greener and smarter tomorrow,
KG Technologies is raising the bar for quality, value, and service.
In addition, with our K125 relay, you have the added protection We welcome the challenge of delivering high quality IEC compliant
that your meter will remain operational under the most extreme solutions customized for your energy management needs.
conditions. Beyond exceeding all electrical endurance safety We work with you so that our products work for you!
requirements of IEC62055-31:UC3, our K125 relays remain
functional even after a 6kA short circuit. For relays that meet Toll Free: +1.888.513.1874
ALL of the UC3 requirements—Pass UC3 with KG. www.kgtechnologies.net

We Give You the Power To Make Your Supply Chain Leaner
Decades of engineering and close collaboration with our
customers give us the insight to design innovative solutions
that help our customers successfully achieve project outcomes.

With our UC2 compliant K119, UC3 compliant products, and
fully UC3 compliant K125 rated at 277Vac, we provide a
range of customized solutions to meet your needs.

Switch to a greener tomorrow with KG Technologies today!

CURRENTAFFAIRS
GL BAL
Germany: RWE looks to distributed energy to
SNAPSHOT transform its utility business model

Southern Europe: Gibraltar selects Elster for Germany’s second largest utility RWE is looking to distributed energy
smart meter pilot technologies to transform its business model, through several pilot
projects, to avoid succumbing to the so called“utility death spiral”.
The Gibraltar Electric Authority has awarded Elster a contract The Essen-based utility has embarked on the rollout of numerous
to supply an end-to-end solution for a smart meter pilot. pilot projects across Europe in efforts to bring together large-scale
Gibraltar Electric Authority, the principal utility for the British renewable energy, customer-sites energy resources and local control
Overseas Territory off the south coast of Spain, plans to systems to identify new cost-effective and reliable methods of
get the smart meter pilot off the ground by the end of the integrating clean energy into its operations. The project includes virtual
year. Elster will supply 1,066 AS220 smart meters and 27 power plants, tying together combined heat-and-power systems,
AS3000/AS3500 modular smart meters, with AM540 G3-PLC backup generators and small-scale hydropower resources. The German
communication modules, 12 RTU+Server2 transparent utility has also created a“Smart Operator”system, used to regulate
gateway data concentrators and the EIServer head end and energy flows and grid conditions on a local level.
meter data management software.

The smart meter pilot will use Gibraltar Electric’s own fibre
optic network currently being installed for data flow between
the gateways and the EIServer Meter Data Collection system.
Delivery of the hardware is to be expected by August, and
the full system is due to be operational by end of 2015.

US: California’s SCE seeks ‘pre- UK: Schneider‘future-
engineered’ energy storage solution proofs’North West grid

Southern California Edison (SCE) has put forth a request German engineering firm Schneider
for proposals (RFP) for pre-engineered energy storage Electric has launched a project to help
systems with plug and play capability for changing secure and future-proof the electric grid
distribution grid project planning cycles. The utility in the North West of England. Electricity
said that it would like to see energy storage solutions North West, a British electricity distribution
providers offering ‘pre-engineered’ storage systems, network operator, will utilise Schneider’s
between 1MWh and 16MWh that can be built, shipped Fault Level Assessment Tool which the
and installed and operational within seven months of company claims to‘intelligently’manage
commissioning. SCE’s definition of ‘pre-engineered’ fault currents – boosting capacity on
storage systems include a combination of batteries, electricity networks, reducing disruption
power converters and control systems that have been and lowering costs for the operator’s
proven in field tests, and are capable of communicating more than five million customers. The
with utility control systems via standard protocols. The collaboration with Schneider forms part of
RFP is aimed at reducing long lead times and specific the Electricity North West’s GBP 5.5 million
requirements, while increasing flexibility of storage ‘Respond Project’backed by Ofgem’s Low
projects at multiple sites. SCE added that it would also Carbon Networks Fund. The project will run
use storage solutions for other purposes such as selling until October 2018.
excess energy into grid markets.
METERING INTERNATIONAL ISSUE – 4 | 2015
Distribution automation: Brazilian utility’s deal with Silver Spring

Brazilian electricity supplier CPFL Energia has confirmed plans to extend its smart grid
programme to include distribution automation technology. EPFL has awarded Silver Spring
Networks the task of adding a distribution automation programme to its IPv6 mesh networking
platform. The technology will be used for a grid reliability programme across 50 cities in the
state of São Paulo, totalling 4 million customers.

Under the project, more than 600 reclosers on the distribution network, supervised and
controlled in real time by CPFL’s operations centre, will use the Silver Spring mesh network
technology, allowing energy flow redirection to avoid service outages and accelerate system
restoration.

8

Middle East: Qatar to complete phase one of smart CURRENTAFFAIRS
meter rollout in 2016
East Asia: Electricity liberalisation:
Middle East smart meters rollouts continue as Qatar expects to Japan’s new retailers eye US$65bn market
complete the first phase of a deployment in 2016. State-owned utility
Qatar General Electricity & Water Corporation, known as Kahramaa, Japan has taken a further step towards the liberalisation
will replace all analogue meters in its Doha service territory by 2016. of its electricity system with the opening of a registration
The rollout forms part of a government-approved smart meter system to give market entry to retail start-ups. New
programme launched in January 2015. Qatar has opted for a smart electricity retailers will be able to register with Japan’s
water and electricity meter system using GPRS as its communication Economy, Trade and Industry Ministry. In the runup to
method. In June 2014, Northeast Group predicted that Middle East April 2016 when restrictions on which companies can
and North African (MENA) countries will spend US$9.8 billion on sell electricity are lifted, retailers will be compiling rate
smart grid infrastructure by 2024, including smart meters, distribution and service plans while the ministry will compile rules on
automation and smart city technology. consumer protection. Under the government electricity
liberalisation plan, households will be able to choose
retailers and rate plans.

North Africa: Egypt prepares for smart meter rollout

Egypt’s Ministry of Electricity and Renewable Energy (MoERE) will be
implementing a smart meter rollout plan, with an estimated cost of
US$7.6 billion. MoERE will install four million smart meters annually until
2024. The ministry has actioned a transition plan, which will see an existing
30 million electric meters converted to smart meters over a 10-year period.

France: Sagemcom wins share Australia: Connected home market
of InovGrid smart grid project worth US$3.2bn by 2019
in Portugal
The Australian market for connected home devices is
Portuguese energy operator Energias forecast to grow 11 times in the next four years from
de Portugal (EDP) has offered French US$289 million in 2015 to US$3.2 billion in 2019,
technology company Sagemcom the according to technology analyst company Telsyte.
chance to contribute to its smart grid New research by the Sydney-based advisory firm
project InovGrid. Sagemcom, which predicted that by 2019, the average household will
operates in smart grid, smart city and contain 24 internet-connected devices, compared to
Internet of Things markets, will supply an average of nine in 2015. The Australian connected
240,000 AMM PRIME PLC meters home market will be boosted by home appliances
through local partner Enermeter. such as smart fridges, smart home security systems,
and home sensor driven smart energy systems.
METERING INTERNATIONAL ISSUE – 4 | 2015 Telsyte added that tech giant Samsung has
expressed its commitment to connect 90% of its
new products to the internet by 2017 and all of them
by 2020. The research company added that this was
an indication that“even non-tech savvy consumers
would become more connected by default”.

9

CURRENTAFFAIRS

Honeywell buys Elster for US$5.1 billion Honeywell said it was paying 12.6 times
Elster’s estimated 2015 consensus core
Multinational conglomerate Honeywell Dave Cote, chief executive of Honeywell, earnings.
International has agreed to purchase explained that Honeywell showed interest in
manufacturer and supplier of integrated Elster because the utility metering market is The all-cash deal, which is expected to close
metering and utilisation solutions, Elster, in an “rapidly evolving as new smart technologies in the first quarter of 2016, would have a
for £3.3 billion (US$5.1billion). and software and data analytics capabilities minor dilutive impact on Honeywell’s 2016
are being adopted around the world”. earnings per share, the company said.
The acquisition will give Honeywell access
to Elster Group’s niche technologies and He added that Elster “also creates a The agreement is subject to customary
customers in the highly regulated heating, new platform for acquisition targets for closing conditions, including regulatory
controls and metering industries. Honeywell”. review and Melrose shareowners’ vote.

Melrose Industries plc is a British investment
company specialising in the acquisition
and performance improvement of
underperforming businesses, which acquired
German-based Elster in 2012.

Melrose said it would return more than
£2 billion (US$3.12 billion) to shareholders
after the sale.

Honeywell acquisitions

Honeywell said in March 2014 that it would
spend about US$10 billion on deals through
2018 as part of its five-year financial plan,
double its budget for the previous five years.

The company has since spent about
US$5.5 billion on acquisitions, including the
Melrose purchase.

MODEM Smart meter semiconductor market grows by 8%
RF 169 MHz annually
GPRS
Global demand in the smart meter semiconductor market will
IEC 60870-5-104 see a five-year CAGR of 8%, according to new research by US
analyst company IHS.
RTU
Global revenues for semiconductors used in water, gas and electric
PSTN meters reached US$1.2 billion in 2014, with a year-over-year growth
GSM of 11% and a five-year compound annual growth rate of 8%.

Midvoltage The firm notes that with global shipments of communicating
sensor meters forecast to reach 132 million units in 2015 then
growing to 150 million units in 2019, the need for smart meter
Praxis semiconductor technology will also grow.
Management
Average semiconductor selling prices are expected to
System increase over time, as industry needs increase for 32-bit
micro-controller units, memory chips, single system-on-
Datalogger chip solutions and other components used in secured
‘EV’ charging communications and other applications.
electronics
Smart meter semiconductor trends
Tiensesteenweg 54
Korbeek-Lo, 3360 Belgium Robbie Galoso, associate director, semiconductor market
+32 16461288 +32 16463151 shares and industrial electronics for IHS Technology, said: “The
[email protected] semiconductor industry for electric meters is moving toward a
www.bauschdatacom.be single-chip solution for measuring and communicating with the
grid station, which is an important industry trend to watch.

Noman Akhtar, analyst for IHS Technology, said the movement
from 8-bit microcontrollers to higher margin 32-bit
microcontrollers is a key industry trend.

The microcontroller segment is a significant part of the
market with two thirds of meter semiconductor revenue
coming from microcontroller and analogue components, the
reports maintains.

The datacommunication expert! 10 METERING INTERNATIONAL ISSUE – 4 | 2015

CURRENTAFFAIRS

Flexible rate plans can save households 40% annually – report

A new study by firm Rocky Mountain Institute found that homeowners It added: “High fixed charges have the most adverse impacts on

could save up to 40% on their electricity bills and utilities save billions consumers, the environment, the economy and society.

every year in grid upgrades if demand-flexible rate plans were employed. “Good rate design addresses the legitimate concerns of all major

The RMI examines demand flexibility -- the ability to shift energy usage interests, provides a framework for stable regulation of utilities, and

across the day based on price signals. RMI considered factors such as enables the growth of renewable energy.”

residential air conditioning, domestic hot water heaters, clothes dryer

timers and timed electric-vehicle charging.

Thr report sugests that if third parties offered guaranteed bill savings by
pairing available technology (such as distributed storage) with dynamic
utility rates, utilities benefit too. It adds that some“states and utilities are
looking at better aligning rates to take advantage of those resources and
compensating the customers, or the third-party companies, that own them.”

According to a report summary by GreenTech Media, Con Edison is
looking for residential load to help defer a US$1 billion substation. In
Hawaii, Hawaiian Electric is testing distributed energy assets such as hot
water heaters as grid assets to balance solar PV.

ToU – future of energy services billing

The summary added that another report by the Regulatory Assistance
Project (RAP), which examined modern rate design more closely,
suggested that “customers should pay for grid services in the proportion
they use it and relative to the time they use it.”

According to the RAP study, a future electric system without increased
use of “time-differentiated pricing is hard to envision.”

25proven tyo leasat rs Example devices Smart Metering
requires reliable power sources

Visit us at

3 – 5 November 2015, Vienna, Austria
Hall A, stand k40

Tadiran Batteries GmbH | Industriestr. 22 | 63654 BÜDINGEN | GERMANY The heart of your device
Tel: +49 6042 954-0 | Fax: +49 6042 954-190 | E-mail: [email protected]

Download our application guide from www.tadiranbatteries.co.uk >> Products >> Applications >> Utility metering

Clearseal CURRENTAFFAIRS

Public roads to soon charge EVs?

PREMIUM In the UK, Highways England, a government-owned company with responsibility for
QUALITY managing the core road network in England, announced that it is embarking on an 18-month
project to trial electric vehicle charging lanes after completing an early feasibility study.
SEALS
During the trial stage, EVs will be fitted with wireless technology and special equipment
FEATURES will be installed beneath roads to replicate motorway conditions. Once the trials have been
completed, on road trials will begin depending on results.
• Durable high grade acrylic
• Clear Body reveals tampering According to industry news reports, electric cables buried under the surface of the road will
• Available in 16 standard colors generate electromagnetic fields, which will be picked up by a coil inside a device in the EV
• Stainless steel wire and converted into electricity.
• Custom imprinting
Says the Secretary of State at the Department for Transport, Andrew Jones: “The government
options is already committing GBP 500 million over the next five years to keep Britain at the forefront
• Choose from general purpose of this technology.”“Vehicle technologies are advancing at an ever increasing pace and
we’re committed to supporting the growth of ultra-low emissions vehicles on England’s
Clearseal padlock or Twist-Tite motorways and major roads.”
Wire Seal
• Sold only to utilities In a similar vein, in Milton Keynes, a large town in Buckinghamshire, There, after a night
charing at the depot, the buses receive ‘boost’ charges throughout the day at the beginning
Contact us today: and end of their routes. Here, the bus parks over plates buried in the road. The driver then
508-829-6361 lowers receiver plates on the bottom of the bus to within 4 cm of the road surface and the
bus is charged for around 10 minutes before resuming service.
www.inner-tite.com
[email protected] In South Korea, a 7.5 mile (12 km) road charges up electric buses as they drive along.
Charging is accomplished by using a process called Shaped Magnetic Field in Resonance
(SMFIR), the technology of charging vehicles electronically through a magnetic field to
generate electric charge.

Twist-Tite According to industry news reports,
Wire Seal electric cables buried under the
surface of the road will generate
electromagnetic fields...”

12 METERING INTERNATIONAL ISSUE – 4 | 2015

CURRENTAFFAIRS

Brazil smart grid project to create Smart grid investment to reach US$38.1 billion by 2025
communication protocol by 2016
US research and consulting firm Northeast indicators that point towards immediate
Brazil expects to complete a communication Group states that in South America, benefits from smart grid infrastructure.”
protocol for smart grid interoperability by smart grid investment is expected to reach
the end of 2016. Its advanced metering US$38.1 billion by 2025. Ben Gardner, president of Northeast Group,
project, Sibmah, is a platform that aims to said: “Brazil is by far the largest market in the
standardise different types of smart meter as Northeast notes that investment in smart region for smart grid investment.
part of the country’s future smart grid. grid will aid efforts in addressing
electricity theft, poor reliability and “Beyond Brazil, countries such as Colombia,
John Acyr, business development operational inefficiencies. Ecuador, Chile and Argentina are serious
manager at distribution company about grid modernization and are planning
Companhia Paranaense de Energia (COPEL The Washington-based firm reported significant investment.”
Distribution), reports that the first phase that nearly 9% of South America’s electricity
of the Sibmah protocol is complete. is stolen and this figure escalates to 30% in The total investment of US$38.1 billion
The second phase is already underway some territories. includes investment in advanced
with developers able to test their metering infrastructure (AMI), distribution
solutions. Acyr said a uniquely Brazilian Despite this, South America is still automation (DA), wide area measurement
communication standard will make considered an attractive market in which (WAM), home energy management
the difference between projects being to invest, “with developing regulatory (HEM), information technology, and
financially viable or not. frameworks and core business case battery storage.

He explains: “The existence of this protocol Brazil is by far the largest
will be critical to the viability or not of market in the region for smart
a project. For example, if utilities have
to customise their server software for grid investment.”
the meter, this will result in increased
expenditure so that the project becomes
unfeasible. “With a model tailored to the
needs of Brazil, there is no risk [posed by]
further developments.”

CURRENTAFFAIRS

Island grid news: Hawaii and Jamaica

Hawaii’s prinicipal electric utility has confirmed it plans to extend its
deployment of technology across the state later this year as part of
its Hawaii smart grid project.
An earnings report by the parent company of Hawaiian Electric,
the state’s largest utility, indicated that the energy company plans
to seek regulatory approval for an extension of the rollout on Oahu
island as well as Hawaii island.
The Honolulu-based utility is asking the Hawaii Public Utilities
Commission for a green light to continue the Hawaii smart grid
rollout in the fourth quarter of the year.
Since launching the smart grid project in the Q2 2014, Hawaiian Electric
has replaced about 5,200 residential and commercial meters with smart
meters, 160 direct-load control switches, fault circuit indicators and
remote-controlled switches in selected areas across Oahu.
The initial phase implementation is expected to be completed by
the end of 2015.
Jamaica smart grid upgrades
In the Caribbean, the Jamaica Public Service Company (JPS) utility
announced its plans to spend US$40 million over the next five
years to improve the Jamaica electricity grid including deploying
residential smart meters.
Gary Barrow, senior vice-president, of energy delivery, technology and
Innovation at JPS, said the company will spend US$6 million to US$8
million per year on technology upgrades including smart meters.
Barrow told newspaper The Jamaica Gleaner that suspected
electricity theft, which cost the utility US$18.4 million in 2014, has
prompted the grid modernisation effort.
JPS launched a smart meter pilot in 2012, known as the Smart Grid
Interface, and now 10% of its residential customers have advanced
meters in their homes equivalent to 60,000 smart meters.
Barrow said over the past 24 months, the electricity distributor
had quietly acquired and tested new equipment and conducted
“systems shakedowns” ahead of large-scale rollouts.

...the company will spend
US$6 million to

US$8 million per year on
technology upgrades

14 METERING INTERNATIONAL ISSUE – 4 | 2015

CURRENTAFFAIRS

Smart water meters: California utilities prefer apps to big data

In the US state of California, municipal water utilities are opting to use software apps to monitor
consumers’ consumption rather than a smart water meters.

Software companies such as Dropcountr and WaterSmart are working with district-level water utilities
to develop apps for both customers and municipality.

The services deliver information on websites or mobile devices to homeowners, and separately
delivers detailed customer water use breakdowns to water utilities.

Smart water meters – too much data

While admitting that smart water meters are the most efficient to gain consumption data,
one city water utility said, the volume of raw data collected once a day from its advanced meters
is overwhelming.

Don Smith, the water conservation coordinator City of Folsom Water Service, said working with smart
water meter data has been compared to “trying to get a drink out of a fire hose. You have to come up
with a way to handle that data, and that is what Dropcountr lets us do.”

Smith added that the software tracks trends for customers – using percentages compared to the
previous month; the same month in 2014; and the same month in 2013 – the year California Governor
Jerry Brown set as the baseline for water conservation measurements.

Putting water usage into context

California implemented its first mandatory water restrictions this year as the state is affected by
drought for the fourth year running.

Robb Barnitt, founder of Dropcountr, said the solution was less about ‘drought-shaming’ and more
about “empowering people with access to information”.

The service delivers information on websites or mobile devices to homeowners, and separately
delivers detailed customer water use breakdowns to water utilities.

Regulations are driving global smart water demand

The global market for smart water management is forecast to grow 䨀吀 愀爀攀 攀砀栀椀戀椀琀椀渀最 愀琀 䔀唀圀㈀　㄀㔀 嘀椀攀渀渀愀☠瀀氀攀愀猀攀 瘀椀猀椀琀 甀猀 愀琀 漀甀爀 猀琀愀渀搀 䄀⸀欀㔀㜀
by 20% over the next five years driven by government regulations to
maintain water quality. ⬀㐀㐀 㜀㜀㤀㜀 㜀㤀㈀㘀㈀　

New research suggests the value of the market will increase from
US$7,340 million in 2015 to US$18,310 million by 2020, according to
US-based market intelligence company Markets and Markets.

North America is expected to have the largest market size
while the Asia Pacific region will see the highest growth rate
during the forecast period where the market is less restricted by
legacy infrastructure.

IT/OT integration

The report suggests that the need for water utilities to maintain the
quality standards is seeing a move towards integrating operational
technologies with ICT.

The regulatory environment is also prompting water utilities to roll
out advanced water meters and use sensors for monitoring the
distribution network with the aim of reducing non-revenue water
loss due to leaks, thefts, pipe bursts, and metering errors.

Markets and Markets adds that as the energy consumed during
water distribution is relatively high and costly, water companies
are integrating different solutions to optimize the consumption of
energy in water distribution.

Cloud-based data collection

The report suggests that water utilities are apprehensive about
shifting towards cloud-based deployment which has the potential for
minimizing expenses, states the research.

This apprehension is acting as a restraint to the implementation of
smart water management system as the cost of on-site infrastructure
is huge.

METERING INTERNATIONAL ISSUE – 4 | 2015 15

CURRENTAFFAIRS

Innovyze wins contract to The Ireland water meter rollout
modernise Abbotsford Water continues to battle with consumers
Distribution System
resisting the programme...”
In Canada, the city of Abbotsford in
British Columbia has chosen Colorado- Ireland water meters: Customers threaten staff with violence
based business analytics software and
technologies provider Innovyze to provide The Ireland water meter rollout continues to battle, with consumers resisting the
real-time modeling and management of programme as a local newspaper reports that installation staff have faced multiple acts of
Abbotsford water distribution system. violence and threats with guns.

The city of Abbotsford chose Innovyze Local utility Irish Water told the government in a series of letters that staff installing
for its DemandAnalyst water demand meters had been assaulted 63 times and threatened with guns at least twice in the past
analysis software which will compute 18 months.
accurate, customer-specific water usage
patterns directly from AMIs for real-time Head of Irish Water John Tierney informed Ireland’s environment minister Alan Kelly about
modeling and management of the city’s a series of violent incidents that took place between January and May 2015 that included
water networks. attacks with fireworks, rocks and broken glass.

According to a news report by Water Other staff members have been stalked, while the national utility said it recorded two
Online, the software complements incidents where workers were threatened with a firearm.
Abbottsford’s smart water network
modeling innovation initiative. Ireland water meter charges
DemandAnalyst will help the city to
“directly import its entire Itron meter The incidents follow Ireland’s introduction of an automated meter reading system for water
population and automatically determine and introducing water charges for the first time.
accurate, representative baseline demands
and associated diurnal patterns for its Unlike most member states of the European Union, Ireland had imposed no household
comprehensive water distribution charges for water until the government approved a billing structure starting from
network model.” 1 October, 2014.

Adding to this, Abbotsford will be able to Irish Water has installed some 750,000 meters thus far, almost three quarters of the total
continually update nodal demand values due to be installed.
directly from its smart meter system to aid
decision making. Capped water bills

Commenting on the solution, Jeff Cowburn, As part of its new system of domestic water charges, Ireland has introduced capped bills
hydraulic network specialist for Abbotsford, where the maximum rate of domestic water charges for a single-adult household is
said: “Today, the water industry faces unique €160 per year or €40 per quarter for a household that uses both water supply and
challenges. The need for water conservation, wastewater services.
data accuracy and timeliness, operational
efficiency and maintenance of distribution The maximum rate for a multi-adult household is €260 per year or €65 per quarter.
system hydraulic and water quality integrity
has never been more pressing.

“These capabilities [real-time water
distribution management] are powerful
aids in improving our water system
performance and resiliency and
reducing inefficiencies.”

CURRENTAFFAIRS

Germany’s RWE unveils power-to-gas energy storage plant

Essen-based electric utility RWE has unveiled its €2m power-to-gas energy storage plant in Germany,
centred on the cities of Arnsberg, Bielefeld, Osnabrück, Dortmund, Minden, and Münster.

The gas-to-power plant uses electrolysis to convert excess electricity from renewable sources
into hydrogen. The hydrogen is then stored within the natural gas network and converted
back into electricity when needed.

Adding to this, the waste heat from the electrolyser is also utilised via a connection with
the local district heating network.

RWE Germany chief technical officer Dr Joachim Schneider said: “The benefit of this form
of electricity storage is the enormous infrastructure already offered by the natural gas
network, which has huge storage capacity and a high-performing network.

“But that is not all – with a utilisation rate of 86%, this power-to-gas plant is the most
efficient of its kind in Germany”.

RWE Germany CEO Dr Arndt Neuhaus said that energy storage projects like RWE’s new
power-to-gas energy storage plant would be vital to meeting German Government targets
to source 50% of electricity from renewables within the next 15 years.

In the longer-term, the German Government has targeted an energy transition –
energiewende – to a 100% renewable grid.

“Our electricity grid will have to perform at an even higher level than before to achieve
this,” said Neuhaus. “Under these changed conditions, the power-to-gas technology will be
an exemplary solution, as it makes it possible for us to respond immediately to fluctuating
volumes of incoming power”.

It is reported that without energy storage, it is expected that Germany will be unable to use
around 38 TWh of electricity generated from renewable energy sources by the year 2050,
due to imbalances in supply and demand.

CURRENTAFFAIRS

PG&E opens digital control centre for improved Southern Company buys natural gas distributor
electricity and gas delivery AGL Resources for US$8 billion

Californian investor-owned utility Pacific Gas & Electric (PG&E) Electric utility holding company Southern Company has agreed to
is opening a new control centre complex in Concord, which will purchase AGL Resources, the third largest utility owner and natural gas
manage the grid to enhance electric reliability for PG&E customers distributor in the US for US$8 billion – expanding its customer base to
throughout the Bay Area and Central Coast. 9 million customers spanning 9 states and 11 electric and natural gas
The US$40 million, 38,000 square foot electronic distribution distribution companies.
control facility is set to be the “nerve centre” of the utility’s power
operations – improving the dependability of its electricity and According to the Wall Street Journal (WSJ), the deal gives Southern
gas system. Company “a big chunk of the fast-growing gas market from New
Director of PG&E’s business applications organisation, Gary Jersey to Florida”.
Cassilagio, said: “[The control centre] will allow us increased
visualisation and awareness of what is going on with the electricity AGL, based in Atlanta, has 4.5 million natural-gas customers in
grid in real time.” Georgia, Tennessee, New Jersey, Maryland, Florida, Illinois and
Improving service reliability Virginia. It serves additional customers through a joint venture called
The facility will oversee management of the company’s more than SouthStar Energy Services.
140,000 miles (225,300 km) of electricity lines distributing power to
nearly 16 million customers. Southern Company will gain operational control of 200 000 miles
The facility houses six “pods” or multi-user work areas that (322,000 km) of electric transmission and distribution lines and more
technicians can use to monitor power transmissions. than 80,000 miles (128,748 km) of gas pipelines.
“This is really a one-stop shop to understanding what’s going on
with the grid, either power flow or outage-wise,” said Cassilagio. “Natural gas will play a greater and greater role in primary energy
“Those tools are not necessarily available in the legacy needs,”Tom Fanning, Southern’s chief executive.
centres today.”
“Driving this deal are growth opportunities.”

By 2020, company management hopes as much as 55% of its
electricity will be generated from gas (currently 40%) if prices stay low,
while coal would be reduced to 21% (currently 40%).

WSJ adds that AGL operates several gas storage plants and is
developing gas pipeline projects, according to John Somerhalder II,
AGL’s chief executive.

AGL and natural gas distributor based in North Carolina Piedmont
Natural Gas have partnered with Duke Energy and Dominion Resources
to build a US$5 billion, 550 mile (885 km) natural gas pipeline that will
stretch from West Virginia to Virginia and North Carolina.

Obama’s Clean Power Plan

The deal also upholds President Obama’s Clean Power Plan which sets
achievable standards for power plants, and customised goals for states
to cut the carbon pollution that is driving climate change.

Forbes reports that the deal will ensure that both companies have
the necessary bandwidth and infrastructure in place to meet the rise
in consumer demand of natural gas as the Clean Power Plan comes
into effect.

Forbes adds that due to the phasing out of coal, “natural gas is set to
make the most gains and has attracted the attention of many electric
utility providers.”

AGL has 4.5 million
natural-gas customers
in Georgia, Tennessee,
New Jersey, Maryland,
Florida, Illinois and

Virginia. ”

18 METERING INTERNATIONAL ISSUE – 4 | 2015

CURRENTAFFAIRS

Australia’s AGL Energy ships first gas from NSW storage facility

One of Australia’s largest integrated energy companies AGL industry as it seeks lower carbon-emitting fuels in a cost-effective
Energy has shipped first gas from the AUS$310 million Newcastle manner.
Gas Storage Facility (NGSF) at Tomago – an industrial/semi-rural
suburb located in New South Wales. “The use of LNG may offer significant cost savings over LPG or diesel;
it produces 10-15% less CO2 than LPG; and with significantly lower
The NGSF is Australia’s largest LNG facility serves the country’s particulate emissions than coal or diesel, it represents an eco-friendly
domestic market. It first LNG shipment (17 tonnes) comes just and cost efficient fuel alternative for regional Australian businesses that
two months after the facility’s official opening. are located off the gas network.”

Doug Jackson, AGL’s executive general manager for Group Jackson added that initially there would be two to three LNG
Operations, said: “Not only does the NGSF ensure gas supply deliveries a week from the facility. Australian Mining magazine
security for peak usage periods or supply disruptions, but we explains that the LNG is stored and vapourised at the customer’s
can help meet the growing commercial LNG needs of Australian premises, the pressure is regulated and its usage is metered.

ASSOCIATION NEWS

ESMIG and EDSO launch consumer-focused website Stedin joins European Network
for Cyber Security (ENCS)
The European Distribution System Operators awareness campaign, said the two founding
for Smart Grids (EDSO) and ESMIG have organisations. The pair kick-started a public Stedin, one of the largest distribution
launched a consumer-focused website for consultation in parallel, seeking views on the utilities in the Netherlands, is the newest
smart grids and smart metering. new website as well as considerations for member to join the European Network for
phase two. Cyber Security (ENCS).
The My Smart Energy web portal aims to deliver
accessible explanations and materials targeted Commenting on the new consumer site, ENCS is non-profit member organisation
at consumers as well as local authorities, utilities EDSO stated: “In the short-term, they that brings together critical infrastructure
and national information campaigns. [customers] will be confronted with stake owners and security experts to
technological changes necessary to adapt to deploy secure European critical energy
The site content covers smart meters and this new energy paradigm. grids and infrastructure.
smart grid and the benefits for the consumer;
as well as information on smart meter “Before we can expect households to Stedin joins other critical infrastructure
rollouts in each member state and language- engage in the energy transition, becoming operators and national distribution and
appropriate videos and materials for each EU active energy players, stakeholders have a transmission operators working to improve
member state. responsibility to help them understand: what security in European energy networks.
is happening in their energy system, why it
European consumer awareness campaign is happening, and what the benefits are for “The security related threat is a global one.
them and society.” It is therefore self-evident that operators
The My Smart Energy site is considered phase www.my-smart-energy.eu of vital critical infrastructure need to
one of a potentially far-reaching consumer cooperate to be able to address this threat,”
commented Mark van den Brink, CIO, Stedin.
Phase one of a potentially
far-reaching consumer Anjos Nijk, managing director at ENCS,
awareness campaign.” added:“We are very happy to welcome
Stedin as a member of the ENCS community.
Together with our other members we are
working together to raise the bar higher on
cyber security for smart grid and smart meter
deployments across Europe.”

001000011001111100
11001111100 001110101111110000
111100

YOUR BUSINESS YOUR DATA YOUR CHANNEL

01011111100001100

Medium Voltage
PowerLine Communication
Up to 35 kV
Maximum reliability DaitsEcouvroepr eoaunr UnetiwlitpyrWodeueckt,sBooth B.b09
Over 30 km distance
No repeators necessary 111100
Communication rate 1 MBit/s 11001111100
Line & channel diagnostics 001000011001111100

Your Smart Grid www.modemtec.com
Technology Partner

ASSOCIATION NEWS

European Commission proposes SGIP releases smart grid interoperability model for facilities
energy ‘Summer Package’
The Smart Grid Interoperability Panel (SGIP) has released a public review paper on a new
The European Commission has put forth standard that aims to make facilities’ energy management systems interoperable.
several proposals for implementing its Energy
Union strategy. The proposals are focused The SGIP created a working group in response to facilities – defined as a home, commercial
toward “energy efficiency first”, supporting EC office building, factory or campus. The Facility Smart Grid Information Model (FSGIM) is not a
President Jean-Claude Juncker’s emphasis on protocol but can be used by other protocols to aid them in adapting to the smart grid.
climate change.
The FSGIM supports energy management applications and grid interactions including
The EC’s ‘Summer Package’ includes a ‘new on-site generation, demand response, electrical storage, peak demand management and
deal’ for energy consumers, the redesign of end load monitoring. SGIP asked the American Society of Heating, Refrigerating, and Air-
the European electricity market, an updated Conditioning Engineers (ASHRAE) to coordinate the development of the standard.
energy efficiency labelling and the revision of
the EU Emissions Trading System. The model simulates the information that would need to be exchanged within a facility to
participate in the smart grid and is based on four basic building blocks:
Consumer empowerment, energy
labelling and market redesign • Load component used to model devices that consume energy
• Generator component used to model devices that provide energy
The Commission proposed a new deal for • Meter component used to model devices that measure energy, power, or pollutant
energy consumers, based on a three-pillar
strategy – firstly, helping consumers save emissions that result from generating power
money and energy through better information; • Energy manager component used to model devices that make decisions based on
secondly, giving consumers a wider choice
of action when choosing their participation power, energy, emissions, costs, weather, etc.
in energy markets; and lastly, maintaining the
highest level of consumer protection. The FSGIM is modular so that users can ignore parts that do not apply to their domain.
For example, if the user does not do anything with generation or energy storage, they can
Adding to this, the EU’s Energy Labelling ignore the generator component. The Publication Public Review, which was held between
Directive put in place to help consumers August and October 2015, is the last major step before the draft standard will become an
choose energy efficient products will return official ANSI/ASHRAE/NEMA standard.
to the original A to G energy label scale. The
EC notes that since its introduction twenty ... moves beyond smart energy
years ago, the success of energy labelling measurement towards smart
has encouraged the development of ever
more energy efficient products leading to the energy management.”
current label becoming too complex.
ESMIG expands scope to include smart energy
Also on the Commission’s agenda is the
redesign of the European electricity market to ESMIG, formerly known as the European Smart Metering Industry Group, has
deliver on its 2030 climate and energy targets. extended its scope to reflect its members’ evolution towards a smarter future
in energy supply and demand.
To this end, the EC launched a public
consultation on what the new electricity ESMIG states that its broadened approach “moves beyond smart energy measurement towards
market design should look like in order to meet smart energy management”.
consumers’expectations, deliver real benefits
from new technology, facilitate investments, The association’s new scope includes smart meters, communication infrastructure, consumer
notably in renewables and low carbon energy management systems, distribution automation components for demand side
generation; and recognise the interdependence management and business IT systems for metering and flexibility services.
of EU Member States regarding energy security.
In line with its expansion, ESMIG has created a new logo which reflects the evolution from
Lastly, the Commission revised the Emissions measurement to management (ESMIG as the button that controls energy), shows the digital
Trading System to ensure that it remains the focus (the dots) and the orientation towards making energy smart and sustainable (from dark
most efficient and cost-effective way to cut blue to green).
emission in the decade to come – citing that
greenhouse gas emissions are to be cut by at Maher Chebbo, president of ESMIG, commented: “This is an evolution rather than a revolution.
least 40% domestically by 2030. It suggests During the past 7 years, ESMIG has successfully focused on smart metering as an enabling
that revenues from the emission trading are technology for smart energy services.
used by Member States to finance actions to
help third world countries adapting to the “We had many important deliverables which supported the policy makers and other
impacts of climate change. stakeholders in the development of regulations and legislation. Now, the market and political
scenes need more and more a broader expertise that would focus on complete solutions for
EU Commission Vice-President for Energy smart energy services to meet the European Energy targets 2020 and 2030.”
Union Maroš Šefčovič commented:“… Five
months after the adoption of the Energy Union John Harris, vice president of ESMIG, added: “As the customer and the marketplace are evolving,
strategy, this Summer Package shows our we need to be a step ahead in order to remain a relevant actor in the EU political arena. We aim
determination to decarbonise our economy to offer a complete and integrated solution to smart energy management, rather than focusing
and to give consumers a central role in Europe’s solely on the smart meters.”
energy transition. It marks not only a new deal
for consumers, but also a new deal for Europe´s 21
entire energy system.”

METERING INTERNATIONAL ISSUE – 4 | 2015

COVER STORY

Clear solution for

Bold visions call for intelligent solutions. The new market hall in Rotterdam is
an architectural milestone that brings a high quality of living and enjoyable
shopping under a horse-shoe-shaped roof – with smart building services
included. Diehl Metering is supplying the fixed network.

Diehl Metering won the contract for automatic meter reading in the
Rotterdam market hall through its intelligent and economic solution.

Until the spectacular building was This was particularly challenging as some SHARKY meters. All meters measure the
completed in 2014, the ideas of the energy meters were hidden behind 400cm consumption of the combined heating
Dutch architect Winy Maas created great of reinforced concrete in the basement. and cooling system – and were supplied
challenges for all the players involved in Diehl Metering won the contract with integrated radio. Installation was
the construction. The front and rear walls for automatic meter reading of the completed by Diehl Metering together
are made of glass panels and wire cables complex consumption situation inside with partner Fortes Import.
that allow the glass facade to stretch by up the Rotterdam market hall through its The successful design of the fully
to 75cm in the event of a storm. intelligent and economic solution. automatic reading in the fixed
Fifty-six shops on levels one and two network was easier than originally
Demanding – but solvable were equipped with SHARKY 775 energy imagined due to Diehl Metering’s powerful
meters. The 228 apartments reaching radio technology.
The aluminum cladding on the inside up into the horse-shoe-shaped roof on Two IZAR RDC radio data collectors
of the large arch may have permitted a levels three to 12 were also equipped with installed in the central market level
lightweight construction, but it also created
a complication: it reflects radio signals. METERING INTERNATIONAL ISSUE – 4 | 2015

22

COVER STORY

BOLD ARCHITECTURE

on the ground floor collect the energy unnecessary. Continuous measurement ABOUT THE AUTHOR:
data. Another collector is located in the of consumption is possible, even at Roland Buckl, Key Account
underground garage in the basement. The fifteen-minute intervals if required. Manager
building’s normal 230 volt connections are The Rotterdam market hall project Roland has worked for Diehl
used to supply power for the collectors. has shown once again that Diehl Metering since March 1991.
Metering’s system architecture is an He worked on several projects
High-quality living and shopping economic problem solver – especially as a product manager within
without disturbance in demanding building situations. Thus, the development process. He
the groundbreaking architecture of the now holds the position of key
100% of the meters installed in the building also reflects the outstanding account manager for strategic
building are read reliably and fully technologies incorporated in the interior important markets. He is
automatically. The specialists from of the building. MI responsible for implementation
Dutch energy utility installer Unica were of AMR projects in various
amazed that only three collectors were European countries.
necessary for this and that the installation
was so easy. The customer is also 23
delighted with the high-resolution quality
of the energy data.
Apart from the efficiency of the solution
and the architectural challenges mastered
over the course of the project, the fixed
network is an intelligent solution for the
market hall in Rotterdam for another
reason: Both the owners of the prestigious
apartments and the shop tenants do
not need to be disturbed as arranging
appointments with meter readers is

METERING INTERNATIONAL ISSUE – 4 | 2015

UTILITY MODERNISATION

Weather and the
smart grid –

asset management in the age of distributed
generation and climate change

Rod McLauchlan, event director for Australian Utility Week, speaks with Frank Crisci and
Martin Palmer, speakers at Australian Utility Week 2015, in the run up to the event about the
impact of the weather on utility operations

Palmer, a senior meteorologist at in severe thunderstorm weather such as Networks, and his responsibility extends
Weatherzone, says: “There is no doubt damaging winds, flooding rainfall and hail. to monitoring weather forecasts and
within the vast majority of the scientific Thankfully, the latest science suggests a “estimating their likely impacts on our
community that climate change is taking gradual increase in thunderstorm activity electricity network. I’m also SA Power
place, with 2014 one of the world’s over decades rather than an abrupt change, Network’s liaison officer with our state’s
warmest on record. In Australia, the impact so this should allow utilities time to prepare Emergency Management Organisation for
of climate change is arguably already more robust grids and operations.” state emergency incidents.”
impacting with some of our hottest years Frank Crisci is the man on the ground “I worked with the state emergency
on record in the last decade, with 2013 the having to handle issues stemming organisation to agree on a set of guidelines
hottest ever. “ from storm damage. He is manager of for prioritising the restoration of supply
He explains that ‘global warming’ does not emergency management for SA Power during a state emergency incident.”
mean increased heat universally, but that
as the earth warms, the sensitive ocean The issue for utilities will be the increase in
and atmospheric processes affecting lightning both overall and per
weather are impacted. This can be seen, thunderstorm event...”
among other things, by an increase in the
severity and frequency of thunderstorms METERING INTERNATIONAL ISSUE – 4 | 2015
across the globe. While 2014 was a fairly
average year in Australia for thunderstorm,
research would suggest that an increase
of up to 160% in thunderstorm activity is
likely across eastern and southern Australia
in the future.
“The issue for utilities will be the increase
in lightning both overall and per
thunderstorm event, as well as the increase
24



UTILITY MODERNISATION

Early warning alerts and direct
briefings give utilities an opportunity

to prepare for weather related
eventualities”

“Our response to network (electricity business specific apps for mobile field
grid) emergencies has been refined units and even a lightning forecast system,”
over a number of years, and is based Palmer says.
on the learnings from past events. We The evolution of the electricity grid,
have specific plans for different Network distributed generation and smart grid
emergencies. For example, our plans for technology – and its impact on operations
managing powerlines affected by storms – is of interest to SA Power Networks,
differ from our plans for managing our although the exact impact on business is
network when there’s a forecast of high still unclear according to Crisci.
bushfire danger weather. In any case the “Our aim is to be a leader in electricity
final operational plan is developed by our distribution and infrastructure services
Emergency Response Team and is scoped in Australia. One component of this is
to the ‘size’ of the emergency i.e. the actual to optimise our response to network
impacts of the emergency on our network.” emergencies. So after a major event, we
SA Power Networks uses weather forecasts, review how we went and identify things
work management tracking, resources we could do better. We try to restore
tracking and networks“to manage resource supply to customers as efficiently as
allocation and keep customers informed possible while keeping them informed
through our call centre, social media such as of progress. So we have job dispatch
Facebook and Twitter, and smart phone apps.” and monitoring systems and mobile
Specialised services for weather computing in our field vehicles
monitoring Weatherzone offers so that field crews can provide job
meteorological services to utilities which status information.”
is specific and aligned to utility operations. Information is shared on social media
Palmer believes that having access to and smart phone apps, as well as being
more accurate, specific and relevant available on the voice response system
weather information is vital for utilities. and the call centre.
Early warning alerts and direct briefings “We estimate restoration times based
give utilities an opportunity to prepare for on a number of factors including an
weather related eventualities. assessment of the job ‘size’, the number of
“Following close liaison with our clients we outage jobs at the time and the available
have developed a number of industry leading resources at the time. These estimated
systems over the years, including Opticast, a restoration times are then posted to our
high precision forecast system that‘learns’and various customer information systems and
adapts to local conditions in real time, utilised updated as required.
for severe weather and demand forecasting, SA Power Networks is working on
precise lightning and bushfire proximity implementing technology which will
alerting (on network assets) to help rapidly improve grid reliability and security.
diagnose network faults and customised This includes technology such as
fire weather indexes for proactive network self-healing networks, fast response
management during fire bans.” protection systems and smart grid
A recent deployment – the Total Lightning information systems.
network and Dangerous Thunderstorm “The challenge is to implement
Tracking system – brings further visibility technologies that are effective but which
to the risks posed by lighting and storms. won’t adversely affect the cost of electricity
“Looking to the near future, we have a for our customers,” Crisci concludes. MI
number of projects underway including

26 METERING INTERNATIONAL ISSUE – 4 | 2015

UTILITY MODERNISATION

The eBADGE
project – Final outcomes
and key messages
The overall objective of the three-year
eBADGE European project is to propose been accomplished and explored. Key results show that economic savings are
an optimal pan-European intelligent achievements are presented herein. possible by integrating balancing markets
balancing mechanism that is able to For the evaluation and study of the across borders.
integrate VPP systems by means of economic and operational impact of a In order to support cross-border balancing
an integrated ICT that can assist in cross-border balancing mechanism on the mechanisms and enable balancing/
the management of the electricity transmission capacities between Austria, reserve entities like VPPs to participate on
transmission and distribution grids in Slovenia and Italy, the simulator and the market, appropriate eBADGE cloud
an optimized, controlled and secure modelling tool of a trans-national balancing based communication infrastructure was
manner. To achieve these objectives the market has been developed and connected developed. To connect residential and C&I
developed components like the balancing into the eBAGDE cloud. The economic (commercial and industrial) customers
market simulator tool, Message Bus feasibility and performance of a cross- into Slovenian and Austrian eBADGE pilots
communication protocol, Home Energy border balancing energy exchange has respectively, the HEHs (Home Energy Hub)
Cloud (HEC), Home Energy Hub (HEH) and been evaluated based on a set of various and BEHs (Business Energy Hub) were
Business Energy Hub (BEH), VPP system long-term fully automatic scenarios. The developed and installed.
integration, optimisation and forecasting
module, have been integrated into a single
system. The system performance has been
validated and tested in laboratory and field
trials in order to evaluate its impact.

What are the contributions of
the eBADGE project?

The eBADGE is a smart grids project The eBADGE is a smart grids project
covering cross-border balancing and covering cross-border balancing and
demand response and founded by the
European Commission under the demand response...”
FP7 framework. According to the goals
that have been set within the project’s
scope most of them have already

METERING INTERNATIONAL ISSUE – 4 | 2015 27

UTILITY MODERNISATION

For two-way communication and data The overall eBADGE infrastructure
exchange between all the entities performance has been evaluated during the
connected into the eBADGE cloud, the dry-run procedures; each participant played
fast and reliable eBADGE Message Bus its own role and placed its bids according to
communication protocol, based on predefined cross-border balancing scenarios
RabbitMQ was implemented. In the near
future, the already established OpenADR by using the eBADGE web portal.”
2.0b communication protocol will likely
be implemented and tailored to eBADGE usage in close collaboration with projects VPPs are optimising the energy value
project requirements. The protocol like Mobincity and hybridVPP4DSO . chain and benefiting local business and
is going to be evaluated in terms of communities
performance and suitability for resource Key messages about the eBADGE
data collection purposes. project Cross-border (XB) exchange of
The overall eBADGE infrastructure balancing power can significantly
performance has been evaluated during the Over the three-year period there have been decrease overall balancing costs.
dry-run procedures, where each participant many challenges related to cross-border
played its own role and placed its bids balancing issues and mechanisms, ICT Telecommunication companies
according to predefined cross-border communications and the role of VPPs for can liberalise the energy data
balancing scenarios by using the eBADGE providing capacity that have been tackled
web portal. The results provided from and considered within the eBADGE project. Electricity companies, utilities or internal
trans-national balancing market simulations Based on the know-how and experiences companies within the utilities usually
were analysed from a system point of view. obtained during the project the following collect electricity data. It’s well known
After a two-day dry-run session valuable key messages are reasonable to point out. that utilities don’t like to share this data
feedback from participates was gathered Three important messages about the due to different security or policy reasons
and analysed in order to improve usability eBADGE project: and they like to keep it for themselves.
and functionality of the system especially Consequently, this presents a difficult
from a TSOs point of view. Telecommunication operators can barrier for new start-ups or new market
By using the VPP as part of the Austrian liberalise the energy data players who wish to offer some advanced
pilot, 15MW of capacity, comprised from services (e.g. energy efficiency, demand
C&I customers with curtailed capacity response services, etc.). The new market
for a 4-hour block, was successfully players are then forced to develop their
collected. Based on this demand response own communication infrastructure,
pool the analysis of resource parameters which is also costly. For this reason,
(curtailment capacity, switching times, many of these programmes never start
limitations, etc.), various demand or are not financially viable. This is where
response programmes and Message Bus telecommunication companies come into
communication protocol performance play, by offering their communication
during collecting consumption energy data network and infrastructure that is based on
were conducted. modern heterogeneous communication
One of eBADGE’s advantages is that it technologies (either mobile or fixed line).
brings a great opportunity to prove the Telecommunication operators usually
positive results and added values of real already have some equipment and smart
devices installed in the customer’s premises
28 and only small changes are needed in order
to get electricity data into the infrastructure.
Within the eBADGE project, the
telecommunication company developed
the HEH, which represents a smart box
that connects different appliances, collects
electricity consumption data, and enables
remote control of connected appliances.
Therefore, HEH devices enable a wide
variety of services, such as monitoring,

METERING INTERNATIONAL ISSUE – 4 | 2015

European Utility Week 2015
3-5 November, 2015 | Vienna | Austria
For more information please contact us:

[email protected]

Maia

Wireless Sub-GHz Module with proven M-Bus and OMS Stack

Maia is a single embedded low cost wireless M-Bus RF Module developed
specially for the AMR (Automatic Meter Reading) smart metering and smart
grid infrastructure where the wireless M-Bus standard (EN13757-4) and OMS
standards are used.
Its high quality, small form factor: 15mm x 14mm makes it ideal for SMD
assembly. The module offers low power consumption which is achieved with
STM’s ultra-low power microcontroller STM 32L05 and SPIRIT1, the low power
Sub-GHz data rate transceiver. Also on board is an ultra-miniature balun, BALF-
SPI-01D3 matching SPIRIT1 and supporting the connection to an external
antenna, therefore saving space and cost. In addition, Maia includes an industry
proven wireless M-Bus and OMS-layer to OMS 3.X and OMS 4.X specifications.
For application support and design know-how just contact your local
EBV Elektronik partner, the leading EMEA semiconductor distributor or
visit ebv.com/maia.

Distribution is today. Tomorrow is EBV!

www.ebv.com

UTILITY MODERNISATION

With demand response programmes and merging it with the neighbouring markets is
active involvement of VPPs, which includes economically beneficial.
Benefits include having access to bigger
C&I customers, a reasonable reserve markets, more competition and a better
capacity can be obtained for a competitive mixture of resources. For example,
price that can be activated automatically for some countries have more hydro power
plants, other countries more gas or coal
a certain timeframe.” power plants or other natural sources for
generation of electricity. Incorporating
energy efficiency, demand response and concepts it is also possible to help local demand response and renewable
remote control of distributed generation communities and for their local economies generation into this mix of resources
applications, to be developed. The energy to benefit. One of the illustrative examples provides a better chance of finding the
consumption data acquired from HEH is demand response. Normally, in the case cheapest and most efficient resources in
devices are transferred to the Cloud of of local or regional peak consumption, order to balance the electricity grid and
the telecommunication company, and are conventional power peaking plants that provide higher reliability of power supply.
therefore available to other market players burn foreign gas are engaged in order
or end users. to solve network constraints. Instead of Final words
In this manner, energy data can be activating these conventional resources, a
liberalised globally – not only on this signal can be send to local C&I customers Within the eBADGE project an optimal pan-
region but in the whole Europe – and to reduce their power or to curtail their European Intelligent Balancing mechanism,
telecommunication companies may play consumption or generation automatically together with supporting ICT infrastructure,
a significant role jointly with utilities in and get paid for their participation. With was developed. The balancing mechanism
ensuring availability of energy data to new this option, the money flow actually has been conducted, tested and analysed
players on the market. stays within the community and the on the borders of Austria, Italy and
involved C&I customers are rewarded for Slovenia. Two pilots in Austria and Slovenia
VPPs are optimising the energy their flexibility. This way, utilities can also contain VPP systems that can assist in the
value chain and benefiting local support local businesses. management of the electricity transmission
business and communities and distribution grids in an optimised,
Cross-border exchange controlled and secure manner. The eBADGE
It is well known today that electricity still of balancing power can project, which contributes to balancing
cannot be stored economically or efficiently significantly decrease overall the European electricity market, brings
in huge amounts; however one of a TSO’s balancing costs. great value to Europe because it enables
tasks is to maintain balance between the market to function more efficiently
generation and consumption in real time. Balancing energy and balancing reserves and with less wastage. The project also
Traditionally this is performed by quick are the most valuable services that TSOs has demonstrated the potential for
gas power plants that can immediately be or DSOs are buying on the market. The lowering costs of balancing services
activated and supply the balancing energy definition of balancing markets and throughout Europe, empowers consumers
in short response timeframes (e.g. 1 min, their integration with other markets was to participate, and engages them in the
5 min, 15 min, etc.). presented in a previous paper, in relation to energy market of tomorrow – it supports
With demand response programmes and the eBADGE project, titled ’’VPP and its role the transition from being a consumer to
active involvement of VPPs, which includes in the eBADGE project and balancing energy being a prosumer. MI
C&I customers, a reasonable reserve markets’’ and also published in Metering &
capacity can be obtained for a competitive Smart Energy International magazine. If the 1 – eBADGE FP7 Project, http://www.ebadge-fp7.eu
price that can be activated automatically for market is small or it has certain limitations 2 – Mobincity Project, http://www.mobincity.eu
a certain timeframe. This could help TSOs (e.g. geographical position, etc.) then 3 – hybridVPP4DSO Project, www.hybridvpp4dso.eu/
and DSOs to more efficiently manage the
grid. Therefore, demand response and VPPs AUTHORS: Peter Nemček, M.Sc.
represent another element in the energy (cyberGRID GmbH)
value chain that helps power systems to run Mitja Kolenc, B.Sc.
more efficiently and smoothly. (cyberGRID GmbH)
Today demand response programmes,
distributed generation and storage are
becoming a reality and represents one of
the key elements toward to the goal of de-
carbonising our future. By applying these

30 METERING INTERNATIONAL ISSUE – 4 | 2015

Want to be positively surprised?

736 3-phase 100 A 723 1-phase 120 A 741 2-phase 100 A

The metering market is full of surprises. For example, a counterfeit product that cannot match the genuine Gruner quality
of the original. As the pioneer and technological leader in everything to do with latching relays, Gruner is helping to secure
your investment. We prefer to attract your attention with innovative products for energy-management applications that
set benchmarks in performance, reliability and functionality.

Innovation, not imitation.

GRUNER AG

Postfach 1149 · 78560 Wehingen · Germany
Phone +49 7426 948-0 · Fax +49 7426 948-200
www.gruner.de · [email protected]

SMART GRID TECHNOLOGY

An introduction to

the national smart metering
program in Iran
“FAHAM”

By Saber Nourizadeh, Hadi Modaghegh and Behnaz Sabet, Iran Energy Efficiency stands for the
Organization abbreviation of

Iran is located in the Middle East and has a the advisory supervision and planning of the project title
total population of less than 80 million in the national smart grid development to the in Farsi that
2015, which has 100% access to electricity. Iran Power Generation, Transmission, and can be stated
Power generation capacity is more than Distribution Company (Tavanir). in English as
70 GW. As first steps, Tavanir decided to focus on smart metering
From the total 32 million customers of the distribution network loss reduction, both and energy
Iran grid, 35% and 32% are industrial and technical and non-technical, as the main management
residential consumption, respectively. Also, feature of the national Advanced Metering infrastructure”
the remaining 16%, 9%, 6%, and 2% are Infrastructure (AMI) program. Then, Tavanir
agricultural, public sectors, commercial, and appointed the Iran Energy Efficiency
lighting, respectively (Fig.1). Organization (IEEO/SABA) as head of the
In Iran, the Ministry of Energy (MOE) is the smart grid development program and the
most powerful role-player in the development regulatory entity to unify the technical
of the smart grid. In 2009, MOE assigned and functional specifications, and manage
the tendering process for engineering,

2% 35% industrial procurement, installation, tests and
6% residential users commissioning, operation, etc.
9% agreicultural As a conclusion, the Electricity Distribution
public loads Companies (DisCos) we require to be in
16% comercial complete coordination with SABA not only
lighting in the high level strategic decision making
but also in terms of all the details of smart
32% grid development.
In 2009, SABA issued the roadmap for the
Figure.1: The electricity consumption share per different consumer types in Iran smart grid rollout in Iran as shown in Fig.2 and
32 also took the first steps in the implementation
and deployment of advanced metering and
energy management infrastructure. SABA
named this Project“FAHAM”an abbreviation
of the Farsi project title, which translates
in English as the national smart metering
program in Iran.
It should be noted that FAHAM was
nominated for the Green Project Award and

METERING INTERNATIONAL ISSUE – 4 | 2015

PWS 2.3 genX in class 0.1 The Portable Working Standard PWS 2.3 genX is a three-
Portable Working Standard phase portable electronic meter test unit in accuracy class
0.1, used for testing single- and three-phase electricity
meters on-site. The PWS 2.3 genX allows checking of all
meter installation parameters and associated circuits.

Direct current connections up to 12 A or using different current clamps
for measurements in the range 100 A up to 3000 A

Data transfer and communication via USB, ETHERNET and WLAN.
Data storage on removable SD memory card

Built in web server for transfer of values to different media and
remote control of the unit

User-friendly functions such as integrated operation manual and
clearly arranged user interface

Large 7" TFT touch screen colour display with graphical user interface

MTE Meter Test Equipment AG

Solutions for Dammstrasse 16 Phone: +41-41-724 24 48
a testing future P.O. box 4544 Fax: +41-41-724 24 25
6304 Zug Internet: www.mte.ch
Switzerland E-Mail: [email protected]

SMART GRID TECHNOLOGY

Data can be
provided at the
customer level

either on a
scheduled basis
or on demand.”

meters and accounting mistakes in the
billing systems should be avoided.

The more advanced technologies
needed for periodic or on demand reads,
Figure 2: Iran roadmap for smart grid rollout remote tariff, load profile, power quality

information, interruption information,
tamper history, remote connect and
received the green management certificate specifications of FAHAM. The most disconnect, threshold management, send
of the European Association of Green important use cases are listed below: long message, shift tariff times, clock synch,
Management in 2014. Shift electricity tariff times, remote upgrade, retrieve status, perform
Provide on-demand meter reads, self-check, verify topology, etc. should be
FAHAM background Provide periodic meter reads,
Disconnect/connect electricity, seen in the FAHAM design.
From the technical viewpoint, FAHAM Apply electricity threshold and load Data can be provided at the customer
background objectives can be stated level either on a scheduled basis or on
as follows: management, demand. FAHAM will transmit this data
Modification of the customers’ Clock synchronization, to the control center. There, information
Remote firmware upgrade, is sorted and analyzed for a variety of
consumption patterns, Provide interruption information, purposes such as customer billing, outage
Management of energy in normal and Provide tamper history (tamper response, system loading conditions and
demand side management. FAHAM as a
critical operational conditions, detection), two-way communication network will also
Improvement of meter reading and Provide load profile, and send this information to other systems,
Provide power quality information, etc. customers and third parties, as well as send
billing processes, information back through the network and
Reduction of non-technical loss Goals of FAHAM meters to capture additional data, control
equipment and update the configuration
and monitoring of technical loss FAHAM should handle distribution and software of equipment.
(distribution), network loss reduction to the most
Improvement of quality of service feasible level. Electricity theft should be
(improvement of lost load and power avoided; equipment with poor operational
quality),
Development of distributed generation
and clean energy utilization, conditions should be supported with
Establishment of retail electricity remedial measures; calculation errors in SABA designed the high level structure of
FAHAM as shown in Fig.3.
markets and prepayment,
Optimization of operation and
maintenance costs, and
Management of water and gas meters. Customer Side Distribution Central System
Substation (AHE & MDM)

The functional, technical, security, GPRS, 3G, LTE OMS
economic, and general requirements Billing
document of FAHAM were published PLC GPRS, 3G, LTE DMS
with the participation of all stakeholders EMS
based on EPRI Methodology (IEC 62559).
All the business and functional use
cases, the conceptual architecture,
mandatory international standards for
electric, water and gas metering systems,
telecommunication requirements, system
interfaces, and security mandates are
now defined.

Because of the aforementioned background Figure 3: The high level architecture of FAHAM (OMS, DMS, and EMS stand for
needs and objectives, 23 use cases outage, distribution, and energy management systems, respectively)
have been included in the technical

34 METERING INTERNATIONAL ISSUE – 4 | 2015

SMART GRID TECHNOLOGY

Zanjan Mashhad
 2,000 customers technology pilot
 200, 000 customers plan for roll‐out  Tehran and Alborz  2,000 customers technology pilot
 200, 000 customers plan for roll‐out 
(all types of metering points)
(all types of metering points)
Ahwaz
 2,000 customers technology pilot  2,000 customers technology pilot
 200, 000 customers plan for roll‐out   120, 000 distribution substations, lighting feeders, loss monitoring 

(all types of metering points) purposes, large and demand customers plan for roll‐out

300, 000 meters for large Bushehr
customers (Demand Customers)  2,000 customers technology pilot
in all 40 DisCos (All around the  200, 000 customers plan for roll‐out 
country)
(all types of metering points)

Figure 4: More than 1 million customers will be connected to FAHAM in the first step
(This map cannot be assessed as reference for international borders and state boundaries)

Design standards for Tehran+Alborz, it should be noted that Clarification of the role of GenCos,
distribution substations, lighting feeders, TransCos, DisCos, and consumers,
The technical specifications of FAHAM loss monitoring purposes, large and demand
have been developed based on a wide customers have been included in the plan. Management of the interoperability of
benchmarking. The major references which For the other areas, the residential customers different vendors,
have been considered as the basis of FAHAM have also been included in FAHAM.
specifications include, but are not limited to, Moreover, 300,000 meters for large Development and installation of MDMS,
the following international codes. customers (demand customers) in all Application of AMI system in outage
40 DisCos (all around the country) will be
IEC 27001 IEC 60950 IEC 62056 connected to FAHAM in parallel with the management, demand response, etc.,
IEC 27002 IEC 61334 IEC 62559 aforementioned rollout plans. A detailed Clarification of the security issues and
IEC 27005 IEC 61968 NIST 7628 FAHAM action plan is shown in Fig.4.
EN 50065 IEC 61970 NIST 800-30 In the final state of FAHAM, all 32 million necessary considerations of standards,
customers of the Iran grid, all distribution Development of load management
Action plans substations, and all feeders will be included
in the metering infrastructure. system, and
The distribution section of the Iran grid Integration of existing EMS/DMS
management system comprises Application system design and
40 companies from which six companies future works systems in smart grid. MI
across 5 areas have been selected as the
main priority for the FAHAM rollout. Zanjan, Looking toward the future, the following REFERENCES
Bushehr, Mashhad, Ahwaz, and Tehran+Alborz steps will be taken in the coming years: • http://www.metering.com/irans-smart-grid-
are the first companies that will execute bulk
rollout. Considering FAHAM action plans deployment-from-smart-meter-to-overall-
system-architecture
• https://en.wikipedia.org/wiki/National_Smart_
Metering_Program_in_IRAN
• http://www.iransg.com/
• FAHAM technical documents published by the
deputy of metering & smart grid of IEEO/SABA
• SGSM2014, Iranian Advanced Metering
Infrastructure, Feb 2014

ABOUT THE AUTHORS

Dr. Saber Nourizadeh is an electrical engineer with Mr. Hadi Modaghegh is an electrical engineer with Mrs. Behnaz Sabet is a software engineer with over 5
over 10 years of experience in management of smart over 20 years of experience in operational planning of years of experience in planning and development of
grids, transmission, system operation, protection power systems and management of smart grids. He is smart grids. She is currently IT Expert of FAHAM in the
and control, energy system planning, and reliability currently head of smart metering and smart grid at the Iran Energy Efficiency Organization (SABA).
analysis. He is currently engaged in mobile application Iran Energy Efficiency Organization where he is a board
developments as a self employed project manager. member and deputy CEO.

ABOUT THE ORGANISATION
Iran Energy Efficiency Organization (IEEO/SABA) is a government organization, founded in 1996, to execute, coordinate, and conduct all energy optimization activities
in Iran. SABA was established with the aim of improving energy efficiency and promoting environmental behaviors. In Iran, SABA is the program manager for smart
grid development.

METERING INTERNATIONAL ISSUE – 4 | 2015 35

COMMUNICATION TECHNOLOGY

A new “SUN” rises for AMI
wireless solutions

The IEEE standard 802.15.4g-2012 with focus Figure 1. Smart WAN Home Area Network
on Smart Utility Networks (SUN) is a value Grid Example. (HAN)
proposition for wireless communications HAN (home area Neighborhood/Metro
in the smart metering industry. This network), NAN 802.15.4g, 802.15.4 ZigBee
global PHY/MAC standard targets the (neighborhood PRIME, G3-PLC
neighborhood area network (NAN) with a area network), PRIME,G3-PLC
distance up to 5km and supports different WAN (wide area HAN or
schemes of modulation, allowing different network). Neighborhood
data rates and receiver sensitivities at various
RF bandwidth, especially on the Sub-1 GHz.” 802.15.4g
IEEE 802.15.4-2006 & IEEE 802.15.4- 802.15.4 ZigBee
2011 revisions mainly target home area
networks (HAN). For utilities, this release based on requirements such as RF bandwidth, standards including the IPv6 network layer,
brings the advantages of standardization data rate, output power, receiver sensitivity which routes transport protocols ( RPL, UDP
together with improvements of network and current consumption. For example, and TCP). See figure 1.
coverage, communication throughput and with the MR-OFDM optional modulation Wi-SUN is an alternative Field/Neighborhood
cost efficiency. scheme we can achieve up to 800kbp/s and Area Networks communication solution for
A very well-known topic is that utilities support data package lengths up to 2Kbytes, Smart Utilities and Smart Cities applications
expend 10 to 20 percent deploying a which helps to support upper software (smart lighting, smart parking, etc.), based
communication system, covering 80 to 90 layers with better efficiency like IP based. on IEEE 802.15.4g and 6LoWPAN networking
percent of the network, but then invest 80 O-QPSK provides extra robustness to the layer. The Wi-SUN Alliance specification for
to 90 percent of their resources to access communication to improve point-to-point the wireless protocol between smart meter
the pending 10 to 20 percent of the nodes. distances, also improving the link budget. and home energy management systems
This is the case in the United Kingdom (UK) Thanks to all these features, several has been selected by Tokyo Electric Power
where the propagation of radio waves in alliances (such as ZigBee and Wi-SUN) Company for its wireless B route.
buildings with the 2.4GHz ZigBee Smart specify higher layer protocols, which are Market trends are moving to IP based
Energy Profile HAN standard will reach based on IEEE 802.15.4g. In particular the solutions. IP connectivity opens the door
approximately 70 percent of Great Britain’s ZigBee Alliance is defining a new standard to integrate those solution with other
premises (based on a research undertaken for neighborhood area networks, targeting technologies like PLC and development and
by Red M). Actually, the UK Department of a last-mile solution that connects smart hybrid systems are enabled. The combination
Energy and Climate Control (DECC) wants meters and distribution automation devices of these wireless solutions with narrow band
to expand the band to Sub-1GHz (863-876 for wide area network (WAN) gateways PLC technologies, for smart grid like G3-PLC
MHz and 915-921 MHz) in order to achieve such as RF collectors, data concentrators or PRIME, will offer an alternative to close the
95 percent. The Sub-1GHZ shows better and field devices. This standard will be gap of the last 5% of unconnected nodes and
propagation characteristics and will improve a full wireless communications protocol warrant full network coverage. MI
the communications performance on covering layers one through four of the ISO
these situations where distance between OSI communication stack; layers one and
the smart metering devices may be too two are based on the IEEE 802.15.4g and
great for 2.4GHz propagation, or walls, or layers three and four will be based on IEFT
other barriers that may affect 2.4GHz signal
propagation between the devices Figure 2. Wi-SUN stack layers from Wi-SUN Alliance Web Site
This is not a unique example and we find
similar situations around the world where ABOUT THE COMPANY
country specific regulatory rules for sub-1GHz Atmel Corporation is a worldwide leader in the design and manufacture of microcontrollers (MCUs), capacitive
bands are very different. The IEEE 802.15.4g touch solutions, advanced logic, mixed-signal, nonvolatile memory, and radio frequency (RF) components. We
has taken into consideration different have a complete portfolio of products to design smart meters, data concentrators, and gateways.
country requirements to develop a global
solution able to support the 2.4GHz and METERING INTERNATIONAL ISSUE – 4 | 2015
several sub-1GHz bands. The standardization
of this Sub-1GHz band is a very important
achievement particularly on a market with a
strong presence of proprietary solutions. This
standardization allows a way for a certification
process to assure interoperability between
different vendors.
On top of this band extension, the IEEE
802.15.4g includes three different modulation
schemes (FSK, OFDM, O-QPSK) with multiple
data rates allowing an optimized solution

36



SMART GRID

Data Concentrators:

Unfairly ignored parts of
modern smart grids

Introduction of certain tasks from the server to the Devices could be nested in a topology tree
concentrator can save computing power (Figure 1). This means, for example, that a
The data concentrator is an often- of the server and the amount of data water meter can communicate through the
overlooked element of smart grids. Often it is transferred between the concentrator and electricity meter.
seen as a gateway between a TCP-IP network server with minimal additional costs for
and a communication network of electricity the concentrator. Data reading and processing
meters. In fact, the concentrator performs a
number of other very important tasks, which However, in cases where the The concentrator should support a meter
have a significant impact on successful data communication channel is fast enough or with an arbitrary number of profile types
retrieval from meters and the usability of a one of the communication channels is very with arbitrary periods and arbitrary
wide range of functionalities. reliable e.g. 485 or LAN, and distribution registers. It should be possible to change
of computing power is not required, a data reading configuration for any meter
Concentrator or gateway? gateway can be used successfully. that supports it. If the meter does no
profiling, the concentrator should emulate
Meter networks often utilize PLC The unification of communication this behavior; so on the server side, meters
(power line communication) or radio interfaces and protocols normally do profiling, although the profiling
communication, so communication could period cannot be guaranteed.
be unreliable. Between the concentrator/ To create a meter network, there are Another important consideration is the
gateway and the server a GPRS/2G/3G/4G, a number of interfaces: PRIME, G3, processing of the read data. The option of
PLC or LAN connection is used. The first W-MBUS, RS485, GPRS, etc. which can use sending data to the server or storing it in
two links have relatively poor reliability and a wide range of protocols: DLMS, OSGP the concentrator is only basic functionality.
higher latency. etc. Moreover, devices from different The concentrator should offer analysis of
In a gateway, the packet loss probability manufacturers using the same interface data where only the results could be sent
is the sum of both network’s probability; and protocol are not always compatible. to the server. Based on the analysis, the
latency is the sum of both latencies. In the Data concentrators are most suited to concentrator may do some tasks itself, such
case of concentrators, packet loss probability the unification of these differences. as correction of TOU tables.
is equal to the larger probability. The impact Modern data concentrators should allow
of latency on the network could be greatly communication through all interfaces Support for multiple servers
eliminated by merging data into larger units. and protocols used in meter networks
This has been proven in a pilot project in and create a unified communications Conventional concentrators often
the Netherlands, where G3 was used for PLC interface to the server. Thus the rest of communicate with a single server only. But
communication and GPRS for connection the infrastructure situated behind the energy companies have a few completely
to the server, but instead of concentrators, concentrator is shielded from various different systems, which could be directly
gateways were used. Reading the profile implementations of meter networks. connected to the concentrator. For example
data from one meter to the server took on Adding support for new communication billing systems, management systems,
average 59s, which is many times slower interfaces or protocol specifications for a monitoring systems and so on. Further, the
than when using the concentrator. particular manufacturer’s devices should support of multiple servers could be useful
It is important to consider the distribution be easy for a modern data concentrator, in the case of a multi-utility meters support,
of computing power between devices regardless if the device is an electricity where information about electricity
and saving of data flow. The distribution meter, a different energy meter or a specific consumption goes to one company,
device on the smart grid. information about gas consumption to
Figure 1: other, etc.
Standard Of utmost importance, is server
topology of authentication and authorization of each
the smart transaction, determined by which devices
grid the transactions will be sent to.

Events

The system for reporting events from
each device should be uniform. Modern
concentrators should allow advanced
filtering of events according to their
parameters. The rules set ‘event send
priority’ for example via SMS, by default,
keep only in concentrator or a drop,
or perform any other action. Unifying
and filtering considerably saves the

38 METERING INTERNATIONAL ISSUE – 4 | 2015

SMART GRID

transmission channel and the computing Figure 2: Example of modern data and standardized protocol, mostly based
power required for event processing on concentrator internal structure. on web services. On the other hand there is
the server. There are modules for 485 and PLC a requirement to optimize the transmitted
communication with schedulers and data, not only with regard to the low speed
Commands and parameterization separate task in threads for maximum of GPRS, but also because of the possibility
utilization of CPU and communication to using PLC for at least part of the route.
Again, it is very important to have a unified channel. There is TCP-IP module for Because the protocols based on web
approach to the parameterization of all communication with billing and services are in XML form, it is not easy to
devices. The most relevant parameterization management application. There is also satisfy both requirements.
models are SNMP, which is used in TCP-IP a management module for diagnostics The solution may be to use a server-side
networks and is primarily intended for and configuration of DC. Data between application that converts an optimized
routers, gateways, etc. and therefore is very modules are shared by database. binary protocol to a web services based
well suited for the concentrator and COSEM Asynchronous events between protocol on the server side. This solution
model, which is used for energy meters. Part modules are sent by d-bus. preserves the simplicity of connecting
of the concentrator should be a database third-party applications to the concentrator
with information about support parameters ability to predict the amount of data in and gives maximum optimization of
in devices. This information should be the meter, the communication success transferred data. The big advantage is if
provided to third parties in machine- ratio at the intended time point, the the concentrator can offer communication
readable form. importance of data in the meter with modules for mobile Internet, Ethernet, Wi-Fi
Some parameters are related to one device, respect to subsequent processing etc. or other interfaces. External solutions are
but stored on another device. For example On the basis of these predictions, the always more expensive and may not be
the higher communication priority of concentrator can decide which data from 100% compatible.
a particular meter may be stored in the which meter to read. Network management
concentrator. Ideally, the user does not could be prioritized using the modified Management, diagnostics and
notice this and it appears as if it was set in LLQ scheduler, one of the most effective configuration
the terminal device, even when a device is schedulers for TCP-IP.
moved under another concentrator. Quality diagnostic software solves
The advantage could be if it is possible Security problematic situations in the network
to set a parameter value that is valid only and increases the data reading success
at a certain time interval, after which the Safety can be divided into authentication, ratio and reliability of the entire network.
parameter will return to the previous value. authorization and encryption. Concentrator Configuration software allows a behavior
Another advantage is the ability to set and server authentication and encryption change in the system to operate according
proper parameter values with respect to can be obtained using a standard SSL/TLS to specific customer requirements. This
the order in which requests originate and protocol, or using a VPN. Authorization software should be designed to be user-
not in the order in which they arrive at must be implemented manually with friendly, so that customers are able to use
the concentrator. Commands should have regard to the possibility of existence of it themselves without depending on the
the ability to set the timeout with respect multiple servers and with regard to local Supply Company. Likewise, it should focus
to the number of attempts or execution diagnosis and the wide range of privileges on security and user access rights.
time. Of course there should also be queue for techniques.
management commands. Authentication of service technicians can Conclusion
be through a user name and password
Prioritization and communication or a security token. Security on the meter The aim of this article is to highlight the fact
management network depends on the meter’s abilities. that a data concentrator is not a gateway
The concentrator should support most with simple functionality, but that it can
Most transmission channels in a smart grid standard cryptographic algorithms for have a major impact on throughput of
have a low throughput with a high error possible future support. communication, collection of relevant
rate, so a concentrator’s communication data, network management and security.
control is crucial and can significantly Communication with server For this reason, it is important to pay more
increase the amount of useful data attention to the choice of this device.
received and the reliability of the network Contradictory communication requirements The choice of data concentrator impacts on
management. An example might be the are often found between concentrator and the overall functionality of the smart grid as
server. One requirement is a convenient does the choice of electricity meter. MI

ABOUT THE AUTHOR
Lešek Franek is software architect of data concentrator and management
tools at Modemtec. He has been involved in smart grid for 5 years in pilot
projects in the Czech Republic as a developer of smart grid devices. His PhD
research was on the topic of a multi-wire power line model.

ABOUT THE COMPANY
Based in the Czech Republic, ModemTec is a leading R&D company within
the smart metering/smart grids sector. Cooperating with large utilities (CEZ,
PRE), ModemTec is a well-known producer of products based on reliable PLC
communication such as smart meters for residential purposes, power line
modems and data concentrators. The company also develops multi-utility
solutions and implements security standards.

www.modemtec.com

METERING INTERNATIONAL ISSUE – 4 | 2015 39

DIGITAL TRANSFORMATION

thThreee pillars
of digital transformation

Metering & Smart Energy International cross-channel coherence across media to compete against from a cost and
spoke with Perry Stoneman, Head of channels such as mobile, Internet and performance perspective; in others,
Sectors for Capgemini, about the drive social media, and provide customer- a way of diversifying and adopting a
to transform utilities and the three pillars service and self-service options to a utility technologically innovative culture.
of transformation. customer base.
The drive to digitally transform any But how open are utilities to this
business must be led by a business Operational process: transformation?
transformation. And while the digital
transformation will be about technology, Digitising and speeding up the work Across the various elements of the utility
at the heart of that transformation process by providing insights to the workers structure, support for the transformation
are people. Affecting all levels of an in the field through the provision of digital process varies, even if the understanding of
organization, digital transformation is tools such as tablets, real-time information the drivers is understood.
only valuable if it leads to improved etc, provides utilities with a real advantage For the most part, board members and
productivity and competitive advantage. over less agile competition. senior management are very aware of
According to Stoneman, the main focus the need for digital transformation, but
areas for any transformation would Business model: are not always sure of the best route to
encompass either one or all of the following follow. People in the middle management
pillars: The third level of transformation is around layers of the utility see the need, but
building and developing a new business they, of course, are the ones who will
Customer experience models. This recognises the need to need to physically drive and motivate the
Operational process compete or defend against new rivals, transformation and they are often not sure
Business model to the point of redefining how a how to proceed.
utility operates; even going so far as Obviously, other industry players, such
Customer experience: considering a ‘digitally designed, or built- as vendors, see and understand the
in-the-cloud’ model. transformation and many believe it is
By understanding customers through Stoneman says he is aware of utilities for akin to the telco transformation of
analytics based segmentation and socially which rewriting their current retail and 20 years ago.
informed knowledge, a utility has unique operations models and starting from For many utility executives, while the
insights into how each customer uses scratch, using cloud-based and digital concept of ‘three pillars of transformation’ is
power, water or gas. The benefits derived technologies is an option. In some cases, agreed in principal, many feel they can only
from this analysis would enable better it’s an opportunity to build a platform that afford to focus on one of the three pillars
will make it hard for another company at a time. However, Stoneman confirms:
“Not many have said ‘let’s take the redefine
everything model’.”
He continues: “40% of the people we talk to
say ‘let’s do customer experience’, 40% say,
‘let’s do network operations and efficiency’,
but only 20% are currently thinking of
redefining themselves.”
While this is a small number, it’s a start that
has some impressive results to back it up.
Dutch utility company Eneco are such
a transformation story. They have
undertaken the transition from being
a utility to an energy services company
with sustainability as the core of their
transformation story.

40 METERING INTERNATIONAL ISSUE – 4 | 2015

Solutions beyond metering

Elster delivers complete secure
Smart Grid and Energy Management
Solutions that drive energy efficiency,
operational improvements and cost
savings for utilities, commercial and in-
dustrial customers and consumers.
Elster uses its speed and agility to drive
interoperability and open standards
and strategically collaborates with
customers and partners.

www.elstersolutions.com

Rely on Connexo, an adaptive and open software platform
for utilities, to manage the core of your business.

Securely collect, process, store and leverage smart grid data. Easily expand from
data collection to data management and vice versa, incrementally extend with
any application as your business needs evolve.

Find out more on www.connexo.com

Elster Solutions GmbH

Steinern Str. 19-21, 55252 Mainz-Kastel, Germany
[email protected]

DIGITAL TRANSFORMATION

About Eneco comparison to more traditional business or only prevented erosion of revenue, but
utilities. In some cases, they are looking to in fact have opened their doors to new
In the foreword of Eneco’s most recent franchise their operations to other utilities energy services and customers.
financial results, Jeroen de Haas, – they don’t want to necessarily attack Again, Eneco – who by way of example
Chairman of the Board of Management, their industry, but they do want to grow have 120,000 homes with smart
Eneco Holding N.V. writes: “Eneco first their business by being an early adopter thermostats and water heating controls
predicted the revolution in 2006. From and innovator. – are branching out to all sorts of smart
fossil fuels to sustainable energy, from Cloud-based applications provide service energy products. “Their goal is not to just
centralised and large-scale generation providers a platform to add or remove deliver to the house or the roof, but to get
of energy to local production in energy services more easily, while also involved with delivering energy services to
collaboration with citizens and customers. allowing utilities to defend against potential the house,” Stoneman enthuses.
We are now in the middle of this revenue erosion. If such revenue erosion Naturally, anyone who is successful
revolution. We do not follow, we take the has already occurred, it may also provide in the business of delivering home
lead. The energy sector is becoming less the opportunity for a utility to add back to energy services, will have a myriad of
and less distinct as companies, citizens, its customer base through the provision of information available on appliances, energy
city districts, towns and villages take new services. consumption, consumer behaviour etc, and
matters into their own hands. And we Innovative services being offered by utilities will have the opportunity to monetise that
stimulate this process. Our role is to help include examples from PG&E in California, data, assuming that proper protections and
everybody who wishes to arrange their which invested $60 million into Solar City. controls are in place to manage consumer
own energy supply by providing advice, Back in 2010, one of the Californian solar privacy and data protection.
products and services.” success stories. “They are now looking at
Eneco is changing the way it works with how storage can be added onto the grid to What is preventing utilities from
customers, moving away from centralized make the grid even more cost effective to pursuing a new business model?
production of energy to one in which ‘our operate. If you put the right sized storage
wind farms will be distributed to users in some of the right locations, that grid Stoneman believes that the ability to
via a platform. Storage also makes energy will become more resilient, you’ll have less experiment through trial and error and
available when there is no wind. This outages and it will extend the life of certain learn as a result, is important, but says
means that we operate in the service of assets,” says Stoneman. he believes most of the innovation is
the platform and not in the service of our He cites the example of Tuscon Electric happening in the larger utilities because
own wind farms.’ in Arizona, who fought for the right to these utilities have the luxury of a more
The company believes that acting in its sell solar to their customers in order to eclectic Board make up; and an ownership
own interest will result in it ceasing to mitigate the potential loss of customers to structure that thrives on these new
be relevant. the new raft of solar businesses operating avenues. Their size allows the luxury of
As trends change in the energy sector in the area – and through this have not thinking about new avenues, but due to
and customers become more assertive their diverse management structure,
about energy use and production, energy
use and cost, ‘their reliance on traditional
energy companies is diminishing.
Examples of this include using crowd
funding to finance solar panels and
setting up wind energy cooperatives.’

Agility and the ability to compete Digital maturity model developed by MIT and Capgemini.
METERING INTERNATIONAL ISSUE – 4 | 2015
Where to begin is the question many
utilities would have when considering a
new business model. “We start to develop
a new business model with our customers
from the premise of ‘what is the kind of
service do you want to provide?’ and
working back from there Stoneman says.
“The cost to operate is about 50c on the $1.
If you can become that lean, you become
that much more competitive and agile –
you can adjust or bring new products to
market extremely quickly and be more
competitive and additionally – easily move
into new territories or geographies.”
Importantly, because developers of cloud
technology are not tied to bricks and
mortar, their ability to set up shop in other
territories is exponentially increased in

42

DIGITAL TRANSFORMATION

The scary part of the story is that utilities an industry, we still have a long way to go,”
are being cut out of their traditional Stoneman observes.
playgrounds and markets.” The digital maturity model still puts the
utility sector in the conservative quadrant.
they also have people inside their “Utilities have the opportunity to rethink ‘The truth is, utilities haven’t moved much
organisation who realise they cannot their business – maybe offer customers along the spectrum in the last four years,
ignore the changes. some storage, some solar, the ability to be even though there is a growing awareness
The scary part of the story is that utilities connected to the grid, but also feed back among utilities of the need to change
are being cut out of their traditional into the grid – for many people, that would customer engagement models.”
playgrounds and markets. be an appealing prospect,” he believes. For instance, while many utilities provide
In what Stoneman calls ‘Uber for electricity’ a mobile app, there is a question as to
he talks about the influx of non-traditional What’s customer engagement got how effective many of these actually are.
players. He adds that as storage becomes to do with it? However, Stoneman believes that even
more cost effective, it will start to make the though there may be room for improvement,
business models even more interesting for As utilities are trying to become thus the intention to provide better, more
observers, but also more stressful for utilities. modern, relevant and transformed, effective customer service is a genuine one.
engagement with their customers is
becoming ever more important – but “as Concluding thoughts

Stoneman believes that the transformation
is going to happen with, or without active
utility participation and planning.
“In the next few years, you will see some
early movers, but in 10 years from now
there won’t be a utility CEO who doesn’t
have a transformation plan on his agenda,”
he concludes. MI

DIGITAL TRANSFORMATION

Smart City
Wrocław

Smart Cities are no longer abstract, first phase of implementation of modern By Artur Bratkowski, Apator
futuristic ideas but are slowly entering the technologies in urban infrastructure of the
implementation phase. Contemporary urban city of Wrocław. individual media consumption data)
agglomerations are undergoing a new phase The smart city project features two main integration of renewable energy sources
of urbanisation, which is associated with objectives:
the rapid development of information and with the distribution grid
communication technologies. 1. Service objectives: 2. Technological objectives:
improved quality of services provided to introduction of interoperability at the
Vision in practice
utility consumers level of smart energy meters
The basis for smart cities is efficient billing of consumers based on actual introduction of an integrated read-out
data transmission infrastructure, vital
elements of which are smart systems consumption system for all media (electricity, water,
and measuring equipment. The catalyst improved efficiency of the distribution gas, heat)
of change is directive 2009/72/EC of the introduction of PLC technology for data
European Parliament and of the Council grid transfer from energy meters
of 13 July 2009, which require European enhanced safety of the distribution grid availability of an interface for accessing
cities implement smart metering systems, new services made available to end the consumer Home Area Network
which are the first stage of smart city
concept implementation. customers (user portal, analysis of Smart City Wrocław project scope
The use of new technologies in public
services and utility transmission The Smart City Wrocław project, which
infrastructure, along with their integration includes implementation of an AMI class
into a single ecosystem, will help improve smart metering system in the city, is
the quality of services provided to being carried out by TAURON Dystrybucja
residents of cities. An example of this SA. The contractor is a consortium of
type of implementation is the Smart companies, which brings together LG CNS
City Wrocław (SCW) project under the Co Ltd (consortium leader), Eltel Networks
‘Implementation of AMI smart metering Energetyka Spółka Akcyjna, ELTEL Networks
system in Tauron Dystrybucja SA 1st stage A/S and WorldIT Systems Sp. z o.o.
Smart City Wrocław’. The project is the Subcontractors in the project include
NES (supplier for OSGP meters and read-
44 out system), Apator (OSGP meters), S&T
(commissioning and maintenance of
read-out system) and Proximus (meter
replacement, logistics, call centre).
The project provides for the installation
of more than 300,000 AMI meters over
a period of two years. The project is due
to be completed in May 2017. This is

METERING INTERNATIONAL ISSUE – 4 | 2015

DIGITAL TRANSFORMATION

A good example is the consumption on an on-going basis, analyse
information campaign on the energy consumption for a selected period
implementation of the Smart and compare daily consumption with an
average value. Users may also set goals by
City Wrocław project.” specifying his/her own acceptable level of
energy consumption.
currently the largest AMI project under A good example is the information
implementation in this part of Europe campaign on the implementation of the Summary
which uses PLC technology and the OSGP Smart City Wrocław project. Consumers are
standard for communication. informed that the replacement of meters The Smart City Wrocław project is the first
will cost them nothing and will not result stage of implementation of the smart city
Communication in any changes to existing energy supply concept in urban infrastructure of the
agreements. Project details are available on city of Wrocław. The smart grid elements
An important aspect of smart city www.amiplus.pl and a dedicated hotline implemented at this stage will contribute
projects is efficient communication has been set up for this purpose. to improved safety of HAN and will enable
for better understanding by the end Moreover, TAURON provided the TAURON monitoring and management of power
users of the benefits of changes; eLicznik to the citizens of Wrocław demand. Customer billing based on actual
efficient communication also enables (for mobile devices, and via a website data as well as the possibility of data and
implementation of the project with full service), where a user can monitor energy messages transmission to HAN in the future
social acceptance. will enable educated management of
consumption of all utilities by consumers.
The project is a perfect basis for developing
the system with further smart solutions
such as elements of smart stations featuring
devices for monitoring and management of
transformer stations and street illumination
systems. Over the next few years, the
system may be expanded with additional
tools for acquisition of data on distribution
grids and for managing the devices in
consumers’ networks (Internet of Things). MI

DIGITAL TRANSFORMATION VALUE
CREATION
IN THE
DIGITAL
ENERGY
NETWORK

Inspire and shape a digital world Re-imagine business models to find new computing, cyber-security and a smarter
that reinvents power generation, revenue and profit sources. world focused on outcomes. Leading utilities
distribution and retail. are preparing to use these technologies to
Re-imagine business processes and use find new answers:
The consumption of electricity will, in the digital technology to optimize business Where are profitable business models
next decades, nearly double as the world outcomes by converging information
population approaches 10 billion people, the and operational technologies. based on new technologies and trends
middle class adopts new electronic devices like solar energy, smart home devices,
in emerging economies, urbanization Re-imagine the role and structure of the flexibility services and data science?
accelerates at an incredible pace and workforce to support future business by How to capitalize on the demand for
transportation goes electric. This sounds incorporating wearable technology, 3D reliable and sustainable power in a
like great news for the power generators, printers, and geospatial technologies. hyper-connected world?
distributors and retailers, but deregulation, Which trends and technologies from
decarbonization and decentralization are This ‘re-imagination’ of the utilities business adjacent industries are influencing
destroying the century-old hierarchy of requires a digital energy network that the utilities market (e.g. consumer
centralized power generation, transmission, overlays and complements the power supply electronics and smart home devices)?
distribution and retail. system. All participants – utilities, consumers
The consequences for the utilities and new non-utility players will use digital Leaders are emerging quickly
industry are dramatic. Proven business innovation to anticipate real-time demand from nowhere
models and business plans based on and supply, automatically control energy
enormous capital investments in plants generation and storage, operate self-healing The utilities industry boundaries are
and grids collapse. New market entrants grids and innovate customer experience. already blurred. Large players like
such as Google and Tesla disrupt the This continuously optimizes the business Google, Samsung, or Tesla and millions
value chain. Mass ‘prosumers’ collect outcomes for innovative and adaptive of private consumers engage in
solar energy on their roofs and store it participants in the digital energy network. sustainable and smart energy generation
in their basement or in electric vehicles Our vision is to help the world use energy and management. Start-ups promise
for later consumption. Communities and and natural resources responsibly for sustainable and reliable power supply at
companies go ‘off the grid’ with private today and tomorrow by providing reliable, reasonable costs. Key questions include:
wind parks or solar farms. sustainable and affordable energy for How to sustain and grow customer
Big change always comes with big risk, but all people. We will provide the digital
also offers opportunity for innovators. After foundation and the digital gateways that relationships with new digital services?
all, the digital economy needs affordable, integrates the digital core solutions of each Which market spaces are the
reliable and sustainable electric energy market participant to the digital energy
for smart appliances, clean and connected network, links to cloud-based customer most attractive for new disruptive
mobility, digital communication and engagement services, integrates business competitors?
distributed manufacturing. networks, taps into the extended workforce Who are potential partners in the digital
Currently the utilities industry is facing and bridges to advanced operational energy network?
the challenge of operating the existing systems that use new technologies
infrastructure cost effectively under the Early adopters are winning
changing paradigms. Leading utilities are Big picture: Digital economy
re-evaluating their physical assets and is real and it will continue to Research shows that companies who
customer relationships to: transform business embrace the digital world and execute on
46 their digital strategy are growing shareholder
The digital economy and stakeholder value faster than their
Five technology trends are shaping the peers. The nature of the digital energy
digital economy – hyper-connectivity network forces participants to synchronize
with consumers, supercomputing, cloud and collaborate to deliver stable, affordable,

METERING INTERNATIONAL ISSUE – 4 | 2015

DIGITAL TRANSFORMATION

clean and reliable electrical energy. Key combine all aspects along the energy value Re-imagine business processes
questions include: chain in real-time: demand and supply
What business segments allow balancing, power storage, grid stability, Changing business models and digital
consumer collaboration, etc. technology drive business process efficiency
market leadership and competitive and innovation that inspire new business
differentiation? New business models approaches and accelerate breakthrough
Which tasks are better allocated to a technology in power generation and
partner in the network? The incumbent utilities companies wholesale, storage and flexibility services,
How to develop and sustain the ability to and new players are re-imagining transmission and distribution.
adapt continuously to changing market business models, business processes
conditions? and job descriptions enabled by the Re-imagine work
transformation drivers:
What does this tell us? Consumers will see amazing new The fundamental transformation from a
power generation and distribution hierarchy
Keys for utilities to win in the digital business models of being an efficient, to a digital energy network profoundly
community: cooperative, collaborative consumer or changes what people do, how they learn,
Be a leader in re-inventing and digitizing even an active prosumer in a Renewables interact, engage and grow. Many tasks will
Energy market. get automated, but people will become an
the business Smart Renewable Power storage even greater asset in shaping the customer
Cooperate to achieve economies of scale concepts will jump in when the sun experience as their roles change.
Digitize the engagement with customers. doesn’t shine, the water doesn’t flow, or
Every business is a technology business the wind doesn’t blow. The digital energy Platform
today. network will pay for standby capacity.
After all, fire brigades aren’t paid per fire. Do you have the right platform?
The Future: The utilities industry Digital control plays a coordinating Leaders are investing in digital capabilities
transitions into a digital energy role in the digital energy network. that are congruent with their strategy.
network Information flows through the system at The digital energy network will provide
the same speed as the electrons and is all participants the right platform to drive
Transformation drivers used to safely operate the supply system efficiency, accelerate energy innovation and
The utilities industry value chain along and track all transactions for review, develop new business models.
generation, transmission, distribution and reconciliation and settlement. We ensure solutions align to desired
retail is transforming at breakneck speed, Cybersecurity is a serious threat. The outcomes. The SAP digital business
driven by: real-time digital energy network is a framework is based on the 5 key pillars of a
Decarbonization: Renewable energy will sensitive system and an attractive target digital strategy:
for cyber-criminals. Hardening this 1 Customer experience across all channels
replace fossil and nuclear fuels. system is a priority that creates business 2 Supplier collaboration across all spend
Deregulation: Market rules grant access opportunity.
categories (product, services, travel and
to new players and change the game Roadmap to run simple: Steps to entertainment)
for the incumbents, killing old business digitizing your business 3 Workforce engagement including
cases and breeding new business employee and contractors
opportunities. Re-imagine business models 4 Core business processes (finance, supply
Decentralization: Top down power Decentralization, deregulation, chain, asset & work management, meter
flow from conventional central power decarbonization and digitization destroy to cash…)
plants is turning into two-way power established business models without a clear 5 Internet of Things and Big Data to drive
flow within distributed networks of road ahead. We see four types of emerging real-time insights and new business
renewable energy plants. business models: model value creation.
Energy Efficiency: the perfection of Renewable generation at near-zero ROI drives this significant phase of the
using less energy for the same service transition to digital. It’s not about any
everywhere in the energy cycle by many marginal cost one of the five pillars, but rather how
new market entrants. Smart and efficient distribution they all interconnect to achieve business
Digitization: Digital information about Demand/supply balancing services outcomes. MI
production, producers, distribution Omni-channel retail to digital ‘prosumers’
and distributors, consumption and
consumers is measured in gigabytes per ABOUT THE AUTHOR:
microsecond. Henry Bailey is the global vice president of the Utilities Industry Business Unit for SAP,
Network: Internet of Things (IoT) a leading provider of business software solutions. He has more than 20 years’ tenure in
ubiquitous connectivity. the utility industry sector and is responsible for managing the industry business solution
experts within the global utilities business unit.
The digital energy network
ABOUT SAP:
The digital energy network is the digital As the market leader in enterprise application software, SAP is at the center of today’s
nerve system of the next generation energy business and technology revolution. Our innovations enable more than 4,200 utilities in
supply systems. It is the connection of 118 countries and 91 percent of utilities in the Forbes Global 2000 to work together more
independent but highly collaborative digital efficiently and use business insight more effectively.
business networks, which may be individual,
market, or industry-specific, industry 47
overarching (like SAP Ariba), or global (like
Facebook). The digital energy network will
METERING INTERNATIONAL ISSUE – 4 | 2015

INTERNET OF THINGS

GRID APPS:

Four ways distributed
intelligence is
transforming the smart
grid business case ByTimWolf,Itron.

The technology world recently reached communications network can deliver. In see tremendous potential value in several
a tipping point. In 2014, for the first time, fact investing a technology platform that core applications that significantly improve
consumers more often used ‘apps’ on their supports initially even just a small number the return on investment for smart metering
mobile and tablet devices than mobile of distributed applications related to grid technology. Here are four examples:
browsers or PCs to access the internet reliability, efficiency and safety will increase
and get things done. In other words, apps financial benefits to the utility by up to Real-time diversion detection
running at the edge of the network, utilizing 50% compared to a current generation
the intelligence and computing power of a smart metering network. While ancillary Theft of electricity has a material financial
lower-cost and unified mobile computing and consumer benefits unleashed by impact on utilities and their customers
platform, are dominating our increasingly distributed analytics have the potential to throughout the world. While worldwide
connected world. double that benefit stream. This definitely electricity theft is estimated to be in the
While this may not seem like much more changes the game. range of 8% of revenue, in some regions,
than an interesting technology and These benefits are made possible by enabling non-technical loss resulting from diversion
marketing statistic, there’s important high-speed data processing and analysis at represents 20 to 30% of revenue. That’s
insight to be gained here as we plan every level of the network, by making much a huge number, but it also represents a
and build the next iteration of the smart more efficient use of network bandwidth significant opportunity to improve financial
grid. Just as distributed applications and and capacity, and by enabling a diverse performance of the utility.
edge intelligence offer specific value to ecosystem of grid devices to communicate Even with current generation smart metering
consumers, these capabilities will play with each other and interoperate on a technology, detecting energy theft can still
a key role in the interconnected power localized level. Not all problems are best- be an inefficient and laborious exercise of
grid of tomorrow. The move to leverage solved at the edge. But the key to enabling analyzing historical data from disparate
distributed intelligence to improve the these capabilities is deploying intelligence systems and drawing inferences about where
reliability and efficiency of the grid is well and analytic capability in the right place. diversion may be taking place. By applying
underway as the Internet of Things (IoT) The applications of the application of distributed intelligence to the problem,
comes into sharper focus. distributed intelligence to smart grid use diversion detection is now based on real-
In fact, distributed intelligence opens cases creates optimized solutions to some time, continuous, and localized analysis
up many new possibilities in smart specific utility business problems and of changes in electricity current flows and
grid use cases by greatly extending the challenges that, until now, were neither voltage levels in the distribution network,
capabilities and business value a smart grid practical nor affordable to solve. We already rather than sifting through circumstantial
data delivered after the fact. This approach

48 METERING INTERNATIONAL ISSUE – 4 | 2015