Engage. for a smarter grid. It`s time to connect at European Utility Week. A landmark smart metering contract for Iskraemeco in the Netherlands 01/15

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01/15 for a smarter grid It`s time to connect at European Utility Week Big, smart plans for SEC in Saudi Arabia The new AM150, a cost effective solution for every household A landmark smart metering contract for Iskraemeco in the Netherlands

Contents It`s time to connect at European Utility Week Table of Contents This year, industry experts from all over the world will gather in Austria`s capital, Vienna, from November 3rd to 5th. Visit the Iskraemeco booth, A.E17 in Hall A and get the latest insights on smart metering developments. Our team of experts will be available throughout the event to give you further details about the smart metering solution from Iskraemeco and advise you on your next steps in Smart Grid implementation. With a complimentary exhibition pass you can visit the exhibition free of charge or take part in the conference program at a preferential rate. European Utility Week is the annual landmark event bringing together all significant market forces and stakeholders under one roof. For more information about the event and its program, visit the EUW website. Spread the word and make sure you visit us in Vienna! A.E17 Market News Big, smart plans for SEC in Saudi Arabia... Page 4 Product Update The new AM150, a cost effective solution for every household... Page 6 New generation P2LPC data concentrator...page 7 Project Update A landmark smart metering contract for Iskraemeco in the Netherlands..................................Page 8 North Cyprus goes completely smart with Iskraemeco smart meters.... Page 10 3

Market News Market News Big, smart plans for SEC in Saudi Arabia One of the fastest growing economies in the Middle East, the Kingdom of Saudi Arabia, is faced with a growing energy demand. Accelerated economic and infrastructure growth call for a stable and reliable energy supply and management. The plan for large-scale smart metering implementation, supporting SEC`s goal for enhanced energy efficiency, has been set in motion. SEC (Saudi Electricity Company), the sole energy company in the Kingdom of Saudi Arabia, provides services to various governmental, industrial, agricultural, commercial and residential sectors. For SEC, the introduction of smart metering is essential for handling a booming energy demand in this fast-pace economy. Moreover, smart metering implementation plans are a sign of a thorough restructuring and liberalization of Saudi`s electricity sector. Smart grid installation in the country was initiated in 2010, by deploying around 50,000 smart meters within a smart pilot project. With the number of metering points continuously on the rise, especially in the residential sector, the country aims to install around 12 million smart meters across the Kingdom by 2025. 55,000 smart meters that Iskraemeco will start supplying to SEC at the end of 2015 are a clear signal that the country is following its set plans. The specifics of the countries` topology require the meters to be highly efficient in an environment, characterised by high temperatures and a high humidity level. With a growing number of home appliances (such as multiple air conditioning devices) in Saudi homes, current transformer connected meters are becoming a must-have. The MT880 meters, deployed within this development project, were specifically fitted to SEC`s requirements and will be rigorously tested by an independent testing facility before the roll-out begins. With the gradual installation of smart meters, the utility aims to improve power distribution by providing better energy conservation and management, improving meter reading accuracy, reporting tampering and theft, and providing accurate consumption data to consumers. SEC will also be able to identify real-time energy consumption patterns for all the users in its network and consequently get a clearer picture on the demand and supply of energy. Demand response is a solution that enables energy companies to plan accordingly for future power projects, considering the increasing power demand rate. 4 5

Product Update Product Update The new AM150, a cost effective solution for every household New generation P2LPC data concentrator Designed for residential and light commercial applications, the three phase AM150 features a comprehensive functionality set and offers energy companies an excellent price-performance ratio in its segment. The AM150 is a reliable and versatile metering device, ready for future use in AMI systems. Maximum security for valuable metering data Non-technical losses are a real threat to modern utilities` revenues. The AM150 has extensive anti-tampering functionalities that provide maximum security for metering data. Additionally, the meters` permanently sealed cover is designed to withhold even the most innovative meter tampering attempts, allowing utilities to perform effective billing. Tailored solution for optimal efficiency On-site meter configuration delivers the performance fitting specific requirements. The meter can be easily upgraded according to utility requirements via the meters` firmware, requiring no additional effort from the operational team on site. A myriad of different options gives energy companies the opportunity to choose and spend their budget only on required applications. Modern design that simplifies logistics The use of top-notch components and a lightweight, compact design offer simple installation at the metering point and are essential for cost-effective logistic services. Recyclable casing material and individual meter parts help maintain an environmentally friendly attitude even at the end of the meter s life-cycle. Reliable two-way data transmission is essential in a smart grid environment, since utilities require accurate, on-time metering data to perform effective billing. The P2LPC data concentrator is a vital component within the Iskraemeco smart metering solution. It enables two-way communication with the electricity smart meter over the power lines based on IEC 61334 standard (S-FSK modulation). Once installed, it instantly discovers and connects with multiple smart energy meters to perform autonomous data collection. New generation data concentrator features: Improved Hardware Platform: More powerful and faster platform, including larger memory capacity New Cellular Modem: Faster communica tion based on 3G UMTS mobile network Higher reliability: New Web Interface to monitor the P2LPC operation and the com munication quality parameters over the cellular, Ethernet and PLC networks Simplified maintenance: Dedicated Ether net port for local service Enhanced security: Main and terminal cover opening detectors 6 7

Project Update Project Update A landmark smart metering contract for Iskraemeco in the Netherlands The recently signed contract is based on the small-scale smart metering roll outs that started in 2012, within which Iskraemeco delivered more than half a million smart meters. Four contracting entities, Liander, Stedin, DELTA Netwerkbedrijf and Westland Infra manage 70 per cent of the Dutch electricity market. Iskraemeco will deploy up to 2, 5 million smart electricity meters within the five-year roll out plan. The so-called SMR5 project is also a great win for end consumers. Iskraemeco smart meters will help them become more aware of the amount and the cost of energy they use. Clear data on energy use will encourage consumers to reduce their usage and consequently save money. The biggest available smart metering contract this year includes development, testing, production and delivery of smart electricity meters to four Dutch utilities. Liander, Stedin, DELTA Netwerkbedrijf and Westland Infra manage a network consisting of more than 5 million electricity metering points. First smart meter deliveries are expected to start beginning of 2016. Within the project, the new smart meter from Iskraemeco, the cost-effective AM550 plays an instrumental role in the introduction of smart metering to the majority of households in the Netherlands. Minimizing total cost of ownership was one of the utilities` top priorities. This will be achieved by faster and easier installation that decreases operational costs, futureproof modular communication enabling an easy switch between communication technologies and the product`s 20 year technical life-time. The majority of Iskraemeco smart meters will communicate via utilities` private cellular CDMA network, the rest of the meters will use GSM/GPRS. This smart metering deployment is the first step towards creating a nationwide Smart Grid that will integrate all users (consumers and generators) into a network fostering sustainable, economic and secure energy supply. Iskraemeco will deploy a minimum of 1, 6 million smart meters to the four utilities until 2020, with a possible extension to 2, 5 million meters in the course of the project. Liander, Stedin, DELTA Netwerkbedrijf and Westland Infra manage a network consisting of more than 5 million electricity metering points. 8 9

Project Update Project Update North Cyprus goes completely smart with Iskraemeco smart meters North Cyprus is moments away from having its entire electricity infrastructure equipped with smart meters. KIB-TEK and Iskraemeco have been maintaining a successful smart metering cooperation since 2009. This smart metering transition provides consumers with more control over power usage, modernizes the grid and impacts the efficiency of electricity supply. project, Iskraemeco delivered the majority of smart meters and the meter management system. The newest version of Iskraemeco Head-end software, SEP2W enables efficient energy data processing and validation from the entire smart meter base. To this date, KIB-TEK was able to lower commercial losses to below 3 per cent. This has increased utilities` profit rate and enables investments in other areas, such as power generation. KIB-TEK chose smart meters with GSM/GPRS communication due to the high efficiency of wireless communication compared to other communication technologies. The utility is now able to remotely connect or disconnect an individual meter from the network and consequently bring the number of service disconnections and related field visits to a minimum. When the smart metering deployment is complete, nearly 120.000 Iskraemeco smart meters will form a part of the new smart network. With this roll out, North Cyprus is taking a huge leap towards achieving its goal to gradually replace the entire meter population consisting of 170.000 endpoints with smart technology. Gradual transition to smart metering began in 2009 when the first few thousand meters were deployed and installed, providing a quick return on investment through a significant decrease of losses. Within this four-phase 10 11

Iskraemeco, Energy Measurement and Management, 4000 Kranj, Savska loka 4, Slovenia, Telephone: ( +386 4) 206 40 00, http://www.iskremeco.com, e-mail: marketing@iskraemeco.com