Smart Programming in Africa: Life Beyond STS

Transcription

1 Smart Programming in Africa: Life Beyond STS Distributech 2015 South Africa Unrestricted

2 Agenda I. Introduction to a Real Life RSA Metro Meter Population II. But I thought STS was supposed to solve the bad debt problem? III. Big 6 Consultancy Viewpoints IV.Benefits of Smart Metering V. What are others doing? VI.So what does Smart Metering unlock / enable? VII.Where do we go from here? Page 2

3 RSA Metro s Meter Situation Facts: 13k LPU s or 2% Most Common Situation: Post Paid Meters, Mostly Smart Meters with a CNI Head End, integrated via flat file to a Billing System Total Elec Meters Breakdown of Total Page 3

4 RSA Metro s Meter Situation Facts: 479k SPU s or 60% Most Common Situation: Post Paid Meters, Some Smart Meters with a Head End, integrated via AMR/AMI to a Billing System Total Elec Meters Breakdown of Total Page 4

5 RSA Metro s Meter Situation Facts: 250k Prepaid Users or 31% Most Common Situation: STS Pre Paid Meters, No Comms, Reliance on Vending System to CIS Integration Total Elec Meters Breakdown of Total Page 5

6 RSA Metro s Meter Situation Facts: 58k Indigents or 7% Most Common Situation: STS Pre Paid Meters, No Comms, Reliance on Vending System to CIS Integration Total Elec Meters Breakdown of Total Page 6

7 But I thought STS was supposed to solve the bad debt problem? Original / Traditional STS was brought to the industry in 19XX; primarily by Eskom, Conlog and Landis & Gyr amongst others in an effort to achieve a number of things Reduce effects of delinquent payers on bad debt levels in Utilities throughout RSA Avoid need for Communications Infrastructure Allow anybody and everybody to be able to purchase electricity in a simple way to manage their spend (vouchers) STS programs and the development in South Africa of the technology rocketed South Africa to a global leaders position in residential pre-paid technology we need to reclaim this once again by going further into the other user categories The evidence is that STS is not fully delivering on this It has reduced the effects of delinquent payers but only in the bottom 20% of the revenue curve of utilities, arguably not making a huge impact on the bottomline of the utility It has avoided the need for Comms but now we are seeing that to gain other benefits we need Comms! It has allowed everybody to purchase electricity simply but the STS ecosytem especially around the 20 digit voucher has been compromised and there is a significant black market that undermines utilities finances. The high cost of the meter which has significant functionality is also counterproductive as the customer that has an STS meter never produces enough revenue to the utility to make it worthwhile Page 7

8 But I thought STS was supposed to solve the bad debt problem? Some frightening statistics from Eskom s submissions to NERSA Average Domestic User consumes??? 127Kwh/mnth Average Industrial User consumes??? 17,572,873kwh/mnth Put another way the 4,822 Gwh consumed by all Eskom s domestic users in a year is 43% of Koeberg s output (11,317 Gwh) MEGAFLEX users consume 66% of all electricity generated from the 13 coal-fired power stations (222,908Gwh) ouch! I thought Industrial s pay a load of money and cross subsidise the residential users? Unfortunately not, when you compare the revenue per customer with the average cost of production, Eskom makes a loss with sales to redistributors, industrials, mining and international customers. If you re-tarriff d everybody according to the average cost of production, residential users would actually get a decrease! OR Eskom would actually get R3bn more This doesn t help with Kusile alone going from 78bn to 120bn in cost but hey Page 8

9 Big 6 Consultancy View on Smart Meter Deployments Under European Union (EU) legislation, 80% of consumers will need smart meters installed by 2022 Japan is taking steps to deploy an expected 27 million new smart meters The US regulator is pushing energy companies to accelerate the rollout of smart meters; to save money for consumers and reduce the need for power plants The State Grid Corporation of China plans to install 300 million smart meters by 2015 (they made this statement in 2013) Page 9

10 What benefits are utility companies seeking? 1. Increased cash collection Utilities can improve cash collection through smart technology by: Implementing prepaid smart meters and collecting the cash before consumption Implementing a remote disconnect functionality in case of customer bad debt 2. Network optimization Collecting data on energy use enables better balancing of the network and a live view of grid activity, including technical failure. Granular, aggregated and analytical data generates information for better network planning and optimization to reduce losses. The fact is that most utilities in South Africa are not collecting what they should be, even with STS meters. The need for increased cash collection is motivating people to look at changing this situation whether they change STS meters or not. Especially for debtors levels of billions of Rands. This doesn t seem to be happening from my perspective; either from a technical planning point of view or a holistic loss management perspective. STS or Smart or Other Meters, this is where we have to be. Page 10

11 What benefits are utility companies seeking? 3. Reduced energy consumption When customers see their levels of energy use and costs on a home display, we see a change in consumption patterns. When utility companies are able to offer Time of Use (ToU) tariffs, customers can adapt to use energy when it is cheaper 4. Reduced non-technical losses Tamper controls built in to smart meters can alert utility companies to power theft. Data can be analyzed to detect unexpected consumption patterns, which can also indicate potential theft. This is also a proven fact. After the initial interest (4-5% independent surveys) and novelty have worn off most return to saving on average 2-3% over the entire population of customers. It s not enough to have tamper alerts on the meters, or data gathering in an MDM. We have to have defined processes and procedures always learning, always improving the methods to ANALYSE unexpected patterns and then take ACTION! Page 11

12 Why Smart-er Meters? (Big 6 Consultancy) Smart meters provide the ability to remotely monitor and transfer energy consumption and power quality information many times a day. They are a key component of an end-to-end digital, two-way intelligent communications infrastructure that will enable utilities to enhance electricity distribution, reduce peak consumption and boost efficiency through improved diagnostics. The end result: the ability to serve more customers with less energy supply. According to the Carbon Trust, deployment of smart meters will result in energy savings of 10-15% The availability of real time energy consumption information allows utilities to manage the distribution network more efficiently and reduce operating expenses. Savings are realized through eliminating field service calls for routine maintenance activities, improving forecasting and smoothing power consumption, improving customer service through profiling and segmentation, reducing energy theft, and simplifying micro generation monitoring/management. For end customers, smart metering provides energy savings, reduced carbon emissions and improved service reliability and customer service responsiveness. Page 12

13 Smart Energy GB CEO, Sacha Deshmukh "A smart meter replaces old fashioned meters and makes sure you're getting accurate information about what you're spending and it's the kind of technology that provides a platform for the future when we're going to have smart appliances in our home that need to work with a digital system. Each smart meter costs 200 (ZAR 3,800) and although there will be no upfront cost to have smart meters installed, customers will pay for them through their bills, as they do with their existing meters. Customers will save around 26 (ZAR 500 or roughly 3%) a year on their bills it s estimated. What s critical here is that consumer organisations are trying to say that because the business case doesn t work for them, they shouldn t pay for them, which is hard to argue against. It is now clear to most people in the industry that the benefits of smart meters to end residential customers does not break even. However, and it s a big however, I think it does when coupled with the added benefits that the utility gets on top of those of the customer. So the utility itself should be paying the lion s share of the meter?! Figures from the BBC Nov 2014, Page 13

14 Beyond the smart meter: from better billing to building the Internet of Things BC Hydro, in Canada, has installed 1.9 million smart meters and its transitioning its network to IPv6. Most of its customers have moved into automated billing, and more than 90% of them have access to their detailed energy profiles online. In 2014 the company integrated its outage management system with the new metering infrastructure, and saved more than 2,000 truck movements. BC Hydro is also using advanced meter data for voltage conservation and distribution automation to analyse power quality. The Edison Foundation outlines three areas that are driving innovation beyond meter-to-cash applications: integrating advanced metering infrastructure with outage management systems; integrating new distributed energy resources and electric vehicles; and enabling residential demand response and time-of-use programs. So we are seeing the benefits here that we mentioned earlier; 1) Automated Billing on Actuals, Consumer access to detailed energy profiles 2) Cost saving through reduction of truck rolls 3) Network optimisation through advanced meter data for voltage conservation and power quality monitoring 4) Demand Response, Load Limiting and ToU programs to save peak load Page 14

15 RWE Germany 100k Mulheim Deployment In 2008 RWE invested 30m EUR (ZAR 570m) into 100k smart meters in Mulheim. They put a din rail mounted Smart Meter and a separate comms module in (to also later do gas and heat). They did a study after the installations and found savings between 2.8% and 4.4% on average per household. Interesting here that there is no word about prepayment and the meter is certainly not an internationally recognisable one, being DIN rail mounted and having the meter separated from the comms module, almost a data concentrator for the home. The benefits provided by Smart Meters can even be maximised, for example, by combining the meters with home control systems such as RWE Smart Home, with which lighting and household appliances, among other things, can be automatically controlled. Page 15

16 IBM Smarter Energy Whitepaper Series The UK has an energy problem. First, electricity demand could outstrip supply by 2016, if not sooner. Plants now under construction will buy some time but large parts of Britain s ageing power infrastructure need an upgrade in order to meet long-term demand, and this could cost upwards of 200bn by 2020 alone. Smart Meters or Smart Endpoints represent the first step in a series, let s explore that next Between 14% and 60% the anticipated increase in domestic UK energy costs in the next decade, OFGEM, the UK Regulator Smart meters represent the first step on the path to a smarter energy grid, part of a fundamental change in the relationship between utilities and consumers. Instead of being disconnected from the day-to-day concerns of consumers, energy suppliers will become energy service companies. en_uk energy pov_smartmeter.pdf Page 16

17 Now what?! Let s get beyond the meter debate by looking at meter types that communicate somehow Doesn t matter if it s enhanced STS or retrofitted normal meters or smart but they must communicate They must allow flexible ToU rates and near realtime events They must enforce secure communication and especially secure communication of tokens / vouchers / money / balances whether the meter is thick (i.e. tariff and balance is on the meter, STS) or thin (the meter does nothing but measure) Now that we have covered what needs to happen on the meter, we get to the rest of the business case that is only unlocked / enabled by having a meter that communicates Page 17

18 BEFORE Customer Information System Work / Asset Management System Field Worker Management Existing Enterprise IT Distribution and Outage and Management Geographical Information System Network Planning Existing Distribution Specific IT Integration Layer Existing Enterprise IT Manual / Automated Meter Reading Systems M STS M M M Field Residential Commercial and Industrial Page 18

19 AFTER Customer Information System Work / Asset Management System Field Worker Management Existing Enterprise IT Distribution and Outage and Management Geographical Information System Network Planning Existing Distribution Specific IT Integration Layer Existing Enterprise IT Smart Meter Data Management Customer Data Portal Smart Pre - payment Demand Response Electric Vehicle Charging Controller Distributed Generation Controller Smart Grid Applications Head End Communications PV Panel M IHD M M M M M Field Controllable Devices Controllable Device Controllable Device Distributed Generation Residential Commercial and Industrial Page 19

20 A way forward Main Route Optional Steps Step 4 Goal Smart Pre-Payment Step 0 Step 1 Step 2 Step 5 Thanks for your time and attention No Smart Meters Meter-to- Cash Customer Awareness Time Based Rates Step 7 Step 6 Automated Demand Response Integration of DG Control with Demand Response Step 8 Smart Meter to Smart Grid Transition Complete Andy Turner Global Head of Business Development for Siemens Digital Grid Software Step 3 Integration of EV Charging Control With Demand Response andrew.turner@siemens.com Page 20 Distribution Integration