The Challenges to

Implementing an AMR
System in the Middle
East
Presented By:

Maha Chalouhi Chalhoub

NEEDS
Near East Engineering and Development Services
Date:

February 1, 2005
 February 1, 2005

Table of Content
Energy Status in the Middle East
AMR Enterprise Solution
AMR Challenges in the Area
AMR Potential

2
 Energy Status in the February 1, 2005

Middle East Countries

2003 Total Generation

Capacity in the ME :

154 GW

* Check Source of Information Slide 3

 Energy Status in the February 1, 2005

Middle East Countries

Average Net Electricity

Consumption Growth:

2.8% / year

* Source: Energy Information Administration 4

 Energy Status in the February 1, 2005

Middle East Countries

* Source: Energy Information Administration

5
 Energy Status in the February 1, 2005

Middle East Countries

Facts in the Middle East:

- Saudi Arabia has 25% of proven oil reserve, UAE

10%, Kuwait 8%.
- 2004 KSA oil exports revenues > 100 billion $
- 2001: ME produced 32% of crude oil world production
- The largest reserve of natural gas is in ME: 3 rd in
Qatar, 5th in UAE:
ME holds 35% of worlds estimated reserve in gas
- 2004 GDP Growth: UAE: 4%, Bahrain/Jordan: 4.6%,
Qatar: 4.7%, KSA: 6.1%.
- Dubai: the Model of the New 21st Century City:
Internet City, Childrens City, Festivity City, Knowledge Village
 Energy Status in the February 1, 2005

Middle East Countries

Maturity of Various Business Lines

Economic / Industrial Boom
Population Growth

Great Potential
Business Market Area

7
 Energy Status in the February 1, 2005

Middle East Countries

HOWEVER
- Electricity Prices differs from lowest prices (Qatar,
Saudi, UAE, Syria) to the highest prices in the
world (Lebanon, Jordan)
- Losses are stamped by non-technical losses like
electricity theft that may reach 24% of production
- Electricity Demand may exceed sometimes
electricity supply leading some ME countries to
import electricity from neighbors to avoid
black-out
- Many ME Power Sectors are State-Owned: No competition.
* Check Source of Information Slide
 Energy Status in the February 1, 2005

Middle East Countries

Quality of Service not matching Quality of Life

High Rate of Non-Technical Losses
Operation Deficiency

Great Potential for

Customer Services Improvement

9
 Energy Status in the February 1, 2005

Middle East Countries

Transformations in Middle East Power Sector:
- Qatar: 2000: Privatization: Asset of MEW QEWC
2001: Ras Laffan IWPP
- Bahrain: In 2004: First contract for IPP / Consideration
of Privatization of entire electricity sector
- UAE: In 1998: ADWED ADWEA / 2nd IPP in Gulf area
- Jordan: Deregulation distribution and generation
power network
-In 2002, grid linking project: Egypt, Jordan, Syria and
others

10
 Technologies Adopted February 1, 2005

in the Middle East Countries

National Control
LV AMR
Center
Pilot Project

National Control
BAHRAIN
Center Trends
Automation
Projects (EMS/DMS)

AMR Pilot
Projects/Contract
Signature

Serious Efforts in ME were put to manage the HV Level.

11
 Today Utility Objectives February 1, 2005

Generation Level

Black-outs
Continuous Supply

Transmission Level
Classic network
Responsive, Intelligent Network

Distribution Level
Historical information
Real-time Information
Consumer Level
Non-technical losses
Immediate Actions Required
Manual / lengthy collection Automated / Remote
12
 Today Utility Objectives February 1, 2005

Generation Level

Black-outs
Continuous Supply

Transmission Level
Classic network
Responsive, Intelligent Network

Distribution Level
Historical information
Real-time Information
Consumer Level
Fraud unidentified
Immediate Identification
Manual / lengthy collection Automated / Remote
13
 February 1, 2005

Automation Status in the ME

14
 Enterprise Utility System February 1, 2005

EMS DMS GIS

Secure Operation, Improved operation,
Quality of Supply, Quality of service, Network Mapping,
System Efficiency Productivity improvement Data Management,
Utility Business Activities

NEEDS Master PLAN

Enterprise Utility System

Automation:
MIS CIS WIS Automatic Meter Reading
Developed policy setting, Warehouse Control, LOAD Management
Enhanced energy tracking,
cost/benefit analysis and work data analysis, and Minimum Stock Monitoring, Distribution Automation
flow procedure customer relation Purchasing Control Substation Automation

15
 February 1, 2005

Digital Modeling of a Utility

Technical Flow
Technical and non-technical losses
Consumption
79 Water, and
Fuel Generation Transmission Distribution KWh
3 Phase Electricity

NM NM NM DM CM

Financial Flow

Monitoring control
& reliability of supply Flow measurements Billing & collection
& control settings
management systems

METERING THROUGHOUT THE

NETWORK IS THE CHALLENGE 16
 February 1, 2005

AMR Transforms the Utility

Generation Level

Black-outs i
Continuous Supply
i
Transmission Level
Classic network
i
i
Responsive, Intelligent Network

Distribution Level
Historical information
Real-time Information
i i
Fraud unidentified
Immediate Identification
i
Consumer Level
Manual / lengthy collection
Automated / Remote
i
17
 February 1, 2005

AMR Transforms the Utility

i
i
UTILITY BENEFIT:
Cost Minimization of
i
Customer Management
i
Course of Action

i i
i
i
18
 February 1, 2005

AMR Transforms the Utility

i
i

i
CUSTOMER BENEFIT:
i
Customized Tariffs
& Value Added Services

i i
i
i
19
 February 1, 2005

Transactions Efficiency
Bill $ Bill $ Bill $

Energy Bills Bills Bills

Distributed Collected Issued Consumed

Bills Collected Bills Issued

Energy Distributed Energy Consumed
Bills Collected
Bills Issued
Improving Enhancing
Increasing
Overall Reading
Collection
Efficiency Efficiency
Efficiency
20
 February 1, 2005

Supply Demand Balance

i
i

Financial Flow
Technical Flow

i
i

i i
i
i
21
 February 1, 2005
AMR: The Business Driven Approach

Automatic Meter Reading Technology

No Enterprise
System System
No Not Open
Integration
Energy / Resources
Load Management Load
Tracking Cost Management
Optimization

22
 AMR Implementation February 1, 2005

Bottleneck in ME Countries
Investments Risks
Fear of Unrecoverable Cost

Regulatory Uncertainties Solution Driven by Product

Uncertainty to Capture Value Absence of Awareness
IMPLEMENTATION
BOTTLENECKS

Lack of Enterprise
Perspective System Not Open
Lack of Standards
Immaturity of Digital Utility Concept
23
 February 1, 2005

AMR : How to Move Ahead?

More Understandings of Utilitys /
Customers Needs & Expectations
- Changing or Upgrading
More Meters
Awarenes - Meeting Dynamic Growth
s - Financing Strategies
Elaboration
More Expertise & Dedicated - Benefit/Cost
Consultancy Services Payback Analysis
- Decision Support
- Strategic Planning
Development
- Portfolio Creation
- Involvement of Regional Role
Dynamic Rate Structure
- Understanding Implementation
Constraints
- Building Internal Capabilities
- Use of Advanced Technologies
24
 February 1, 2005

Turnkey AMR System Project

Feasibility Study Technical

Vendors Specification
Pre-Qualification Request for Proposal
Preparation

Bid Evaluation
Contract Negotiation
System Development
and Testing

Meters Installation
25
 February 1, 2005

AMR Potential

AMR
8-25% 4-6%
LOSSES LOSSES
Well Structured
Current Networks
Network

Because only
1% LOSSES in 1GW S
Minimum
2.5 Million
Current Networks

26
 February 1, 2005

AMR Potential

27
 February 1, 2005

AMR Potential

28
 February 1, 2005

Source of Information

Dubai Electricity and Water Authority (DEWA)

Abu Dhabi Electricity and Water Authority
(ADWEA)
Energy Information Administration
The World Bank
The United Nations Stats
The Saudi Arabia Information Resource
Emiri Diwan - Qatar
 THANK YOU

For More Reference:

Paper Transforming the Utility Business Environment / Metering International / Issue4
Contact Address: info@needs.com.lb