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Title of presentation Edison Makwarela Senior Consultant, Eskom, Gauteng, South Africa

Current Situation - The reserve margin is currently 8 10%, against an aspiration of 15% - Increased probability of power interruptions and load shedding

Demand Profile to be reduced 3000MW 40000 38000 36000 Total Energy required to be taken out of the demand profile in 2008 3000MW at 0.75 load factor 34000 32000 30000 Moderate Forecast Lower bound Upper bound 28000 26000 24000 3000 MW load shedding 20 TWh 22000 20000 07-Jan 21-Jan 04-Feb 18-Feb 03-Mar 17-Mar 31-Mar 14-Apr 28-Apr 12-May 26-May 09-Jun 23-Jun 07-Jul 21-Jul 04-Aug Eskom s system is tight and the requirements are to reduce demand by 10% to achieve 3 000MW load reduction. This will continue for the next 5 to 8 years. 18-Aug 01-Sep 15-Sep 29-Sep 13-Oct 27-Oct 10-Nov 24-Nov 08-Dec 22-Dec

Demand Reduction Options DEMAND Various Scenarios for growth and supply capacity GAP SUPPLY? Mitigation Plan DSM DMP If Demand + Reserve Margin > Supply (Demand includes capacity & energy)? Build Plan? Mitigation Plan RTS Medupi Ingula OCGT CCGT - Co-generation - Imports - Self generation - Standby generation - Independent Power Producers (IPPs) DEMAND REDUCTION OPTIONS Load shedding Rolling blackouts Prioritisation of new load Intensified Demand Side Management Power rationing Dramatically increase Notified Maximum Demand penalties 2 DPE Minister Cabinet African Lekgotla Utility National Week 2008, Electricity Cape Town, Emergency South Africa Programme, 25 January 2008

Energy efficiency Increased awareness and drive on demand side management programmes Solar water heating subsides Energy efficient lighting handout/exchange Residential geyser management Energy efficient motor programmes Partnering with consumers Encourage, assist and incentivise efficient use of electricity Targeted savings 3 000 MW 8 000 MW by 2025

Power Rationing The programme is designed to achieve the overall savings target of between10-15% over time. following targets: Industrial = 10% Commercial (general) = 15% Hotels, resorts, shopping malls & conference centres = 20% Large office buildings, government, municipal & electricity utility offices = 15% Agriculture = 5% Residential = 10% An incentive scheme is being established for the smaller consumers that exceed their savings targets Large consumers can trade in their unused portion of quota allocation. There will also be possible provision for larger consumers to take or pay their allocated portion. Various penalty measures are being explored.

Impact of Power Rationing Challenges Prepayment Meters Power rationing cannot be implemented with current prepayment meters Vending Systems will have to be enhanced to at least limit the amount of electricity a customer can buy per months. Credit Meters For credit meters, rationing will have to be done on the billing system If power rationing is implemented, accurate billing is a must Disadvantages Power Rationing DOES NOT restrict customers from using electricity during peak demand period if they can afford it and have not exceeded their allocation Way Forward Power Rationing will be much easier to implement if advanced meters or smart meters are used

DSM: Key to the National Recovery Plan DSM 3 Year Plan 2008/9 2009/10 2010/11 TOTAL PROGRAMMES MW MW MW MW RESIDENTIAL 562 698 850 2,110 RESIDENTIAL Efficient Lighting (CFLs) 484 50 100 634 Solar Water Heating 16 50 100 166 Shower Aerators 5 10 20 35 Load Reduction (smart meter & time-of-use tariff) 20 415 450 885 Geyser & Pipe Insulation 1 50 50 101 Household Cooking Conversion to Gas 36 123 130 289 COMMERCIAL 60 35 40 135 INDUSTRIAL 131 70 57 258 RE-DISTRIBUTION 47 30 20 97 TOTAL 800 833 967 2600 DSM target is 8 000MW by 2025

Impact of Smart Meters on the System Execute system constraint through emergency load reducing functionality Approx. 4000MW of total SA suburban consumption can be reduced by smart metering ability to reduce/limit customer s supply capacity e.g. from 60A to 20A via single wireless broadcast to smart meter. Customer has electricity for a few essential appliances (lights, TV, microwave, security), but will not be completely load shed. Emergency or scheduled load shift: Total SA residential market potential is approx. 3200MW 2161MW* of uncontrolled hot water peak demand load (currently not controlled by ripple control), plus 1,104MW of other non-essential appliance peak demand. *Based on residential demand contribution of 12,269MW in 2006

Requirements for Smart Meters Real-time, two-way communications - Automated meter readings Cater for various time-of-use tariffs and billing thereof Remoter load management of various appliances in the customers home when required). Load switching devices could be customer owned but fully compatible with meter. Remote connect and disconnect Load limiting ( Under frequency load limiting option as last resort Tamper, Outage detection, Fault detection & Restoration Revenue protection, Credit & Device Management Modular Communications module (future flexibility) and accommodates multiple communication mediums. Separate in house display unit. (wireless (RF) or PLC comms) Reasonable costs of the meter and operations to yield a sound business case. Provision of ancillary services, e.g. VOIP, Internet, IPTV, Water & gas

Smart Meter Functionality Prepayment or Credit meter Remote disconnect & reconnect Staggered come-back loads for load reduction Two-way Wireless Communication Dynamic customer messaging Outage & Fault Notification Power Quality (Voltage) Monitoring Load Limiting/Reduction (Limits supply capacity size) Time-of-Use ENABLED Remote Electricity/Water Meter Reading and load management Detection of Tampering and Load Shed Bypassing Administer Free Basic Services

Load Management & Limiting Load Management of Appliances Ownership of appliance management device Positioning of appliance management device (COC) Control of appliance management device Protocols between meter and device Load Limiting (Adjust Power limit between 80A -10A) If customer is not at home - consider impact of switching on/off appliances. Meters locks out & Switches off Dynamic control of appliances? Ownership Protocols between meter and device

Communication Technology Identified Comms Options Eskom Telecoms AMI not viable on existing network GSM low-speed dial-up service. Not viable for AMI GPRS/EDGE low to medium speed service. Suitable for AMI in all areas but VOIP/internet access area limited to EDGE areas 3G/HSDPA high speed service. Suitable for AMI and VOIP/internet access but coverage very limited RF (e.g. ZigBee) low to medium speed service. Suitable for AMI only. Relatively new mesh-based, to be researched for use in South Africa PLC low speed service. Suitable for AMI only for comms between concentrators, meters and CIU. BPL high speed service. Suitable for AMI and VOIP/internet access. Research project to be finalised to confirm suitability

Telecommunication Changes

Telecommunication Changes

Prepayment Metering Future Challenge: Most prepayment AMI Systems are not STS based Way Forward Use of split meters in Eskom Enhancement and standardisation of communication port for prepayment meters Use of one communication device to support multiple meters in the same enclosure Remote controlled disconnect & connect mechanism at feeder or transformer level for DSM & Load Shedding Integration with Online Vending Server & sending of STS tokens to meters from central locations Prepayment TOU as defined by STS2 specification Third party services like Voice-Over-IP (VOIP) or broadband internet can be introduced

Proposed Architecture NRS 049

Conclusion The national minimum standard should guide the smart meter initiatives in South Africa & will assist meter manufacturers to develop suitable meters. [ NRS049 Draft Spec ] International market drivers for smart meters include: North America compliance with regulatory directives, Europe improved energy efficiency, Australia improved market efficiency and customer service, and South Africa reduction of peak demand and revenue protection. The drivers determine minimum smart meter functionality required. Countries such as the UK, the EU countries, Australia and North America have all legislated the implementation of smart meters in response to specific market drivers. South Africa should do the same.