Global Trends in Smart Metering



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IBM Global Energy & Utilities Global Trends in Smart Metering

Agenda 1. IBM s Smart Metering Position 2. Global Smart Metering Trends 3. Centralized Smart Metering Services 4. Case Study: Ontario 5. Case Study: Texas 2

IBM offerings and experience >> IBM experience The size, depth and breadth of IBM s contributions to smart meter projects confirms IBM as a smart meter leader IBM has supported smart meter programs representing: 80 million installed or planned electric meters globally, supported by IBM Over 70 percent of the installed meters in North America In excess of 80 utilities, globally 3

IBM offerings and experience >> IBM experience IBM smart metering engagements span the globe North America: American Electric Power Austin Energy BC Hydro BELCO CenterPoint Energy Con Edison Consumers Energy CPFL Energia Entergy First Energy Florida Power & Light Hydro One Hydro Ottawa IESO (Ontario) London Hydro NV Energy Oncor Ontario Energy Board Pacific Gas & Electric Pacific Northwest National Laboratory PECO Pepco Holdings Inc Progress Energy Smart Meter Texas Southern California Edison Toronto Hydro Europe: A2A - AEM Torino A2A - ASM Brescia Alliander EDF (France) EDF Energy (UK) EDP EnBW Endesa Enemalta Enel ESB Networks Göteborg Energi MVV Energie AG Nuon Oxxio RWE npower Scottish & Southern Energy 30 Italian distributors Australia: Country Energy Energy Australia Western Power 4

IBM Smart Metering Engagement Models WHAT SHOULD I DO? HELP ME DO IT MANAGE IT FOR ME RESEARCH Pilots and First-of-a-Kind Projects BUSINESS CONSULTI NG Smart Grid Planning Systems Integrator Application Management TECHNOLO GY CONSULTI NG Smart Grid Technology Planning Prime Services Vendor Hosting and Service Management SOFTWARE AND HARDWAR E Joint Solution Development Software and Hardware Solutions 5

Agenda 1. IBM s Smart Metering Position 2. Global Smart Metering Trends 3. Centralized Smart Metering Services 4. Case Study: Ontario 5. Case Study: Texas 6

Smart Metering Definition Customer Premise Communications Data Centre Customers & Other Stakeholders Devices HAN Meters LAN WAN Head-End MDMS ESB Enterprise Customer Contact Hub Customers Security Security Service Management 7

Legend Inclusion criteria: Fixed-network, advanced metering deployments of over 500,000 electric meters that are complete, ongoing, publicly declared or centrally mandated. Number of electric meters Predeployment Start of deployment Years Utility/Area End of deployment Source: IBM 8

First Generation Smart Metering Begins the US 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 One-way communications Two-way communications 9 Source: IBM

Enel Proves the 2 nd Generation 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Enel One-way communications Two-way communications Remote disconnect 10 Source: IBM

The 3 rd Generation in North America 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 AEP PG&E Ontario SCE One-way communications Two-way communications Remote disconnect Power quality info Billing from hourly reads Remote firmware upgrade 11 Source: IBM

The Next Generation? 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EDF Kansai Iberdrola UK One-way communications 12 Two-way communications Remote disconnect Power quality info Billing from hourly reads Remote firmware upgrade HAN enablement Greater standards base Source: IBM

Agenda 1. IBM s Smart Metering Position 2. Global Smart Metering Trends 3. Centralized Smart Metering Services 4. Case Study: Ontario 5. Case Study: Texas 13

Context of Centralized Smart Metering Services Multiple Organizations Responsible for Collecting Smart Metering Data Governance Organization Multiple Organizations Needing Smart Metering Data or Services Centralized Smart Metering Service Provider Legacy Central Services 14

Functional Model for Centralized Smart Metering Services Data Validation Billing Data Data Management Retail Choice Support Backhaul Network Operation Meter Provisioning & Upgrades Connect/ Disconnect Customer Data Access Retail Switching Device Meter Collector Backhaul Network Meter Data Collection Demand Management Supplier/Agent Data Access Retail Data Exchange Device Meter Collector Backhaul Network Device Provisioning Outage Response Distributor Data Access PREMISES NEIGHBOURHOOD REGIONAL DATA CENTRE PARTICIPANTS Retail Settlement Field Services Meter Operations Data and Event Data and Access Management Retail Choice Functions 15

Agenda 1. IBM s Smart Metering Position 2. Global Smart Metering Trends 3. Centralized Smart Metering Services 4. Case Study: Ontario 5. Case Study: Texas 16

Ontario Electricity Structure Number of Customers (000s) Distributors Ranked by Size 4.5 million electric customers Mandatory Smart Metering announced by provincial government in July 2004 90 municipally owned electricity distributors About 40 distributors under 10,000 customers 17

Ontario s electricity supply challenges - Past View Looming capacity shortages Aging nuclear plants Lack of generation investment during restructuring Need to secure 25,000 megawatts worth of generating capacity in the next 15 years $25 to $40 billion investment Immediate needs in the next few years Combined with Import capacity limited to 4,000MW A political decision to retire all coal plants 18

Ontario s MDM/R Electricity Distributions Companies (90) IESO Competitive Energy Retailers MDM/R EBT Hubs 19

Scope of Centralized Services in Ontario, Canada Legacy Central Services MDM/R Data Validation New Smart Metering Central Services Billing Data Data Management Retail Choice Support Backhaul Network Operation Meter Provisioning & Upgrades Connect/ Disconnect Customer Data Access Retail Switching Device Meter Collector Backhaul Network Meter Data Collection Demand Management Supplier/Agent Data Access Retail Data Exchange EBT Hubs Device Meter Collector Backhaul Network Device Provisioning Outage Response Distributor Data Access PREMISE NEIGHBOURHOOD REGIONAL DATA CENTRE PARTICIPANTS Retail Settlement 20

Ontario s Meter Data Management & Repository A central Smart Metering Entity for the province Assemble, validate and calculate TOU billing determinants Hourly interval data from 4.5 million meters 108 million meter intervals a day 85 billion records Service over 90 distributors, plus retailers and energy service providers Across multiple AMI technologies: Sensus, Elster, Trilliant, Tantalus to start Over a dozen CIS products 21

Ontario Smart Metering Timelines Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Ministerial Directive to Regulator to plan implementation July 04 First meters selected Sep 06 Central MDM/R contract signed Jan 07 First customers charged TOU rates May 09 Last meter installed 2010 22

Agenda 1. IBM s Smart Metering Position 2. Global Smart Metering Trends 3. Centralized Smart Metering Services 4. Case Study: Ontario 5. Case Study: Texas 23

Texas Quick Facts: 7.1 million electric customers Electric smart metering only 4 major distribution companies 24

Smart Meter Texas Electricity Distributions Companies (TDSPs) (4) Joint TDSPs Competitive Energy Retailers MDM/R ERCOT 25

Scope of Centralized Services in Texas, USA Legacy Central Services Data Validation Smart Meter Texas New Smart Metering Central Services Planned Additions Backhaul Network Operation Retail on-demand meter read Meter Provisioning & Upgrades Billing Data Connect/ Disconnect Data Management Customer Data Access Retail Choice Support Retail Switching Device Meter Collector Backhaul Network Meter Data Collection Demand Management Supplier/Agent Data Access Retail Data Exchange Device Meter Collector Backhaul Network Device Provisioning Outage Response Distributor Data Access Retail Settlement PREMISE NEIGHBOURHOOD REGIONAL DATA CENTRE Retail on-demand power status request PARTICIPANTS ERCOT 26

Comparative Smart Metering Project Timelines Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Ontario Ministerial Directive to Regulator to plan implementation July 04 First meters selected Sep 06 Central MDM/R contract signed Jan 07 First customers charged TOU rates May 09 Last meter installed 2010 Texas Smart Metering Rule Adopted 2007 Smart Meter Texas Portal contract signed April 2009 Smart Meter Texas Portal operational March 2010 Last meter installed 2013 27

Plans for the United Kingdom Competitive Supply Companies To be determined Competitive Supply Companies, & Distributors DCC Elexon, Electralink 28

Planned UK DCC Data Services and Options Legacy Central Services Data Validation New Smart Metering DCC Central Services DCC WAN Services Billing Data Data Management Retail Choice Support Backhaul Network Operation Meter Provisioning & Upgrades Connect/ Disconnect Customer Data Access Retail Switching Device Meter Collector Backhaul Network Meter Data Collection Demand Management Supplier/Agent Data Access Retail Data Exchange Device PREMISE Meter Collector Backhaul Network Device Provisioning Outage Response Distributor Data Access NEIGHBOURHOOD REGIONAL DATA CENTRE PARTICIPANTS Retail Settlement Field Services Meter Operations Data and Event Data and Access Management Retail Choice Functions 29

James Strapp Leader, IBM Global Center of Competence for Energy & Utilities 1-416-478-3187 james.strapp@ca.ibm.com 30