Energy, Utilities & Chemicals

the way we do it

Smart Metering: The holy grail of demandside energy management?

with integrated domestic and commercial units enabling individuals to manage their own consumption patterns. They were compelling back then but they are even more so now. Σ B • High volume data relay • Transmit via Fiber? Data Collector E • Prepare & send customer bills • Revenue Mgmt • remittance processing • late payment charges • collections • customer accounting Utility A • Hourly meter data (transmitted hourly/daily?) • Transmit options: • phone (cell. France.Smart metering is on the point of becoming very big news in Europe. In 2001. when the reality of Kyoto and the need to reduce carbon emissions and manage peak-load demand is very real. The Advanced Metering Infrastructure (AMI) Landscape C • Data Aggregation • Meter Data VEE (validation. The meters put information and control into the hands of the consumer.5 million tonnes a year. satellite) • RF • PLC • other? • Customer receives bill from utility • Customer has access to interval meter data • Via web/phone access to database? • daily? • one day in arrears? • Via display on household device? 2 . and save energy and reduce fuel bills in the process. the UK’s Department of Trade and Industry (DTI) Smart Metering Working Group estimated that even fairly basic smart metering technology was likely to reduce domestic energy consumption by between 5–10% and cut the country’s carbon dioxide emissions by around 2. In Europe the price per meter has dropped in the last 3 years from around £150 each to £30 for a basic unit. wire. Spain. D • Calculation of charges using customer/utility specific data: • tariffs • etc. Scandinavia. Enel is now installing around 27 million smart meters. error correction. It is a trend that has been anticipated for some time. In Italy. Germany and the UK. Is smart metering the holy grail of demandside energy management? The experience of leading utility companies suggests it could be. Pilot projects are also being developed by utilities in the Netherlands. Central Europe is also catching onto the potential demand-side savings that digital meters can bring and trials within the accession countries are expected within the next 12 months. edit) • Calculation of billing determinants: • consumption by Time-OfUse periods • loss adjustment • etc. These are impressive figures. One of the drivers for the global adoption of smart meters is that they are now cheaper than ever. if used strategically.

operators know to the second when something happens. and then it would take a team of detectives to determine where it really went in any given time period. demand response and eventually load control I Direct Load Control & Curtailment Program: I Features remote control of “convenience loads” (2-3 appliances) to reduce peak demand Customers are given incentive payments to sign-up for the program. Move-in readings can double this saving. and also report this information at regular intervals. Add the ability to disconnect a meter when the customer does not pay the bill and the total grows significantly. to use smart meters merely for data collection is to miss the point of this technology. instead of a bill coming weeks later. First it makes it possible for a customer to get a bill on demand.000MW in 60 seconds…and the company has avoided the new construction of approximately 10 power plants. The cost of the bill is also significantly less. the average cost to prepare a move-out bill is over $50. changes this. And Automated Meter Reading (AMR) may also be one of the keys to both reliability and quality of power supplies. For a utility with one million customers. So as the customer moves from one home to another. and when. With Kyoto. Further savings can be made by using smart meters to support power restoration because it enables the utility to automatically know where power is out and dispatch crews to the Case Study: US-based Investor owned utility Company Profile: I 86 Generating Units 69. the bill can be prepared while the customer is on the phone and final payment can be made. In fact. One route to achieving this could be to place an antenna on a vehicle and drive around once a month or once a quarter collecting readings. Smart metering is about far more than just gathering data on usage. real-time pricing. smart metering may be one of the keys to meeting carbon targets. Instead smart meters tell the utility that the power is out and the utility can call the customer first.000 miles of T&D lines 4 million customers (both residential and Commercial & Industrial) Peak Energy Use: 20GW Pioneer in Load control/AMI. this can result in an annual savings of approximately $2 million dollars in move-out billing alone. install the module and have appliances “on call” air conditioning/heating. It is possible to reverse the trend where the utility gets outage information by the customer calling to tell the utility the power is out. However. global warming and other environmental issues rising to the top of the agenda. it may be 30 days to 3 years before there is any idea of where the electricity went. It can measure where power went. you cannot make a business case anywhere in the world to install smart meters just to perform the traditional measurement function. 60 web inquiries a week. In just dealing with out-of-cycle visits to homes. running demand side management programs for over 15 years I I I I Demand-Side Programs: I Programs geared towards reducing overall energy consumption and utility peak demand AMI module implementation enabled time of use rates. the average utility can save over $10 million each year per million customers. But how can something as simple as a new meter provide so many benefits? The answer is that smart metering is more than just a new meter. 8085% closure rate through word-ofmouth only ability to shed 2-3. In the transmission grid they know in seconds. In studies of the US market. I I Central I I Today. when widely deployed. where smart metering is much more established than in Europe. radio frequency or cellular network can be used as a carrier to transfer data in real time both to the utility and to the consumer. With smart metering. It is the missing link in the understanding of how electricity is used. and it is more than just a communications tool. On a more sophisticated level a fixed network. Smart Metering 3 . Today in any generation facility. Smart metering. Smart metering can be seen as the main information gathering device for the operations of a utility. smart meters can be used to replace manual meter reading by enabling automatic data collection.the way we do it On a basic level. the cost is under $5. Another impact that AMR has on the typical utility is in the area of billing. But when it comes to the distribution grid. which are gaining more importance in many communities. water heaters & pool pumps cycled on and off for 15 minutes every half hour over the course of 3 hours per day (or shut off completely for 3-4 hours) Still extremely popular: 300 calls a month.

over the last 15 years. in most cases. This has the ability to dramatically drop the real outage statistics for utilities. The US is leading the way One of the best examples of a successful smart metering strategy is a large US based Investor-owned utility. And to date.000 of its 2. In addition the company has avoided the construction of several power plants that have saved an additional $3 billion dollars. utilities can look at significant savings. With AMR. the utility has only installed smart meters with 700. With AMR and the load control applications that it can support. and in fact spend more than half of the capital in the distribution grid to support the 100 to 200 hours a year in peak demand. it has seen savings amounting to more than $1 billion dollars. In situations where a single meter location is out. the meter outage is known in minutes from when it actually happened.5 million customers. the improvement is even more dramatic. In the distribution grid alone. For those utilities that have performance-based rates. by as much as 5%. the reality is better performance and a chance to collect bonuses for the improvement in reliability. While bonuses in the US can range from $3 million to as much as $40 million per million customers. Additionally AMR has enabled this utility to control peak load when it 4 . Current indications from the US are that utilities that have installed AMR can make restoration happen faster. The next area for improvement is engineering analysis. Most utilities design their systems to support an anticipated peak load. extra value is also gained through improved customer retention and satisfaction. not when the customer calls the utility.AMI and its Data FLows Touch All Major Process Areas within a Utility Geographic Information System Connectivity Validation Closing Verification Forecasting Demand Management Load Forecasting Simulation Engineering Power Quality Asset Loading Design Standards Call Center Remote Disconnect Restoration Verification Remote Issue Validation Outage Management Outage Notification IEEE Indices Regulatory Tariff Design Rate Case Support Critical & Complex Tariff Metering Meter Reading Current Diversion TOU Billing Scheduling Load Scheduling Curtailment Planning Outage Planning Vegetation Management Blink Target Trimming Trim Effect Verification Field Communication (Mobile Workforce) Service Verification Live Line Verification Collection Revenue Lift Automatic Shut-off Billing Prepay Real Time Pricing Weekly Billing Dispatch Order Completion Site/Line Status SCADA System Security Load Protection Selective Load Mgmt Asset Management Asset Load Profiling Infer Cap Bank Status Maintenance Planning Home Control Gateway New Business Areas Appliance Monitoring Load Analysis New Revenue Efficiency root cause quickly.

Thousands of customers. Hopefully. On a normal day the power may be priced at 15 cents per KWH during peak times. Tests during 2004 show that the program should achieve the regulators’ goals to reduce the need for new power plants and transmission lines and eliminate the need for rolling black outs. In California the regulators are looking at installing AMR meters to allow the creation of Critical Peak Pricing tariffs to help California tame its rolling blackouts. reduced their energy usage. In July 2005.000MW) Private power companies invited to fill gap via RFP process underway Government-driven conservation and load-shifting program ramping up AMI implementation plan will enable move to time of use (TOU) price scheme. such programs did contribute to avoid another blackout in California. This utility has done such a good job with its smart metering that most customers cannot tell when their load is being reduced. urban distributors complete by 2007 (40% of customers) Roll out for other distributors (small and/or rural) commencing 2008 I I Peak. in the southern US. when the power is too short and let customers decide how much power they want to buy. This program will allow the utilities to decide. since it can choose to reduce load when the price of peak power is too high on the market.the way we do it would most need peaking plants that burn hydro-carbon fuels—and as such it has reduced the amount of carbon it produces. With over 2. and a crisis was avoided.500MW) and replace nuclear (12. on a critical day that same power may cost as much as $1. These kind of savings come from using the full capability of the AMR technology. Finally the utility has the lowest cost to purchase outside power.000MW missing on the network as a consequence of some local power plants tripping brought a Californian Independent System Operator very close to a major crisis. on up to 15 days a year. and peak mgmt. the “stage II” alert issued by the California operator prompted several utilities to invoke demand-response programs to reduce load. programs: I I All customers >200KW commencing 2005 Large. including both large and small customers. With 15 years of experience in building and running the program the utility has over a 99% customer retention rate. mid-peak and off-peak daily pricing commencing 2006 I Future expansion to include critical peak (15 to 30 highest demand days) Meters to be funded by a customer fee as part of the regulated rates: I Plan calls for partial AMI deployment by 2007 and then full rollout by 2010 with following interim milestones: Estimated to add $4 CND to the monthly bill Estimated to cut the energy cost by more than that I Smart Metering 5 . more than six times the normal peak price. 12 million and 92 electric utilities Among the highest per capita consumers of energy in the world Province uses up to a peak of 25GW on very hot/cold days Government mandate to close coal (7. the company can reduce emissions by up to 750 tonnes of carbon at peak for every hour it uses load control (compared to emissions that would be generated if it had to burn coal instead of reducing the load). compact. The total cost of the program to the utility is approximately $72 per customer per year and approximately $100 million in equipment and installation costs. This has saved additional millions.000MW of load control. Extreme temperatures in the Southwest States coupled with 2. They also come from gaining experience with the technologies and determining how the customers will react to them best. Case Study: Ontario Province Cananda Ontario is Canada’s hot spot with a population of approx.

APPLICATIONS: I Turning the power grid into an intelligent services delivery network Creating platform to provide valueadded services for both distribution companies and retailers Customers select options/features and can extend the network to other home applications 17 million of new metering equipment up and running by end 2004. Enel is creating new tariffs that will encourage customers to shift demand out of peak times and help flatten the load curve. since they can check the status of power lines from connected meters quickly.Back in Europe.of. There are other benefits too I Improvement in safety for workers in the field. With the information on momentary outages in the meters. The power quality information that is available allows engineers to learn when the capacitor banks are not I I I U T I L I T Y • Asset/Load Control.Use Billing • Outage Detection/Restoration • Theft/Tamper Detection • Quality Monitoring • Change Max Power Threshold I I I I 6 . I Case Study: European Utility One of the largest publicly traded utility transforming into a multi-utility/service player. Curtailment • Remote Physical (Dis)Connect • Meter Reads/Time. They can quickly see where there is and is not power and ensure that all the power is back on when they finish work. then cellular GSM to base I I R E S I D E N C E • Energy Mgmt/Curtailment • Security & Monitoring • Remote Appliance Mgmt • Appliance Diagnostic & Repair • Lighting Management Real-time data exchange Cellphone Internet Powerline/ GSM Engineering analysis where the engineers can get excellent data on what is actually going on in the grid and where power is being consumed and let them focus the engineering spend on areas that really need improvement. there is an easy way to determine where there are trees rubbing on the lines and causing drop outs. 27 million total by end 2005 Pace of implementation: 700.000/month $2bn Euro deployment with a payback in savings of $400–500m/year $85 per connected meter Communication is via power-line to utility pole gateway.

Smart Metering 7 .the way we do it AMR Drives Benefits Settlement (2-4%) System Control (4-11%) Billing & Customer Care (2-7%) - Standards & Construction (15-20% Capex) ) Collections (15-25%) Field Work Management (3-7%) supply and emissions management for utility companies. Capgemini employs approximately 60. to do so AMR needs to be used at a strategic level by both utility companies and consumers—if we see this as simply a cheaper way to read meters. more sustainable results through seamless access to our network of world-leading technology partners and collaboration-focused methods and tools. I About Capgemini and the Collaborative Business Experience Capgemini. and to enable more effective and efficient control of power For more information contact: Doug Houseman +1 (313) 887-1464 doug. we may even be able to use an AMR meter to be the gateway into home control and security management.3 billion euros. so those who get paid weekly. has a unique way of working with its clients. deleted or expanded by any process or means without prior written permission from Capgemini. Technology and Outsourcing services. This enables the utility to tune the capacitor banks and reduce power used to manage reactive power. Asset Management (4-19%) Tariff & Regulatory (1-4%) Outage & Restoration (3-8%) Benefits AMR AMR Benefits Safety (2-5%) Load Forecasting (9-14%) Metering (2-4%) Vegetation Management (3-7%) Demand Management (2-22%) - Savings Percentages based on Interviews conducted by Capgemini with North American Utilities having deployed AMR pilot projects. faster.houseman@capgemini. In the future. Backed by over three decades of industry and service experience. smart metering enables better data to be gathered from the field and enables utilities to improve services. allowing better maintenance planning and asset management. in addition to AMR’s ability to put greater control for power use and cost into the hands of the consumer. More information about our services. And finally the system can be used to track the load on transformers and other field equipment. Through commitment to mutual success and the achievement of tangible value. reduce costs and reduce the need for peak-load capacity and thus emissions. called the Collaborative Business Customer billing cycles can be matched to customer pay days. The integrated smart meter could become a core information and control hub for the home and office. we help businesses implement growth strategies. can be billed weekly. In short. offices and research is available at www.000 people worldwide and reported 2004 global revenues of 6. leverage technology. © 2005 Capgemini. I The experiences of utility companies and their consumers demonstrate what can be achieved in Europe through utilizing smart metering technology. it is very difficult to build a business case for the investment. and thrive through the power of collaboration. Calculation based on the assumption that AMR is fully integrated and utilized performing as required. the Collaborative Business Experience is designed to help our clients achieve better.capgemini. one of the world’s foremost providers of Consulting. No part of this document may be modified. .www.

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