Israel Electric Corp.

Transcription

1 Israel Electric Corp. Business update as of 06/30/2017 September 2017

2 Israel - a Modern Growing Economy Key Figures Area 22,072 km 2 Population 8.6 million GDP (2016) (1) USD 281 billion GDP per Capita (2016) (1) USD 32,560 Avg. GDP Growth ( ) 3.5% Unemployment (January 2017) 4.8 % Foreign Currency LT Debt Ratings A1 / A+ / A+ Israel Public Debt to GDP (3) (% of GDP) Aa3 / AA- 3 A1 / A+ A2 / 2A A3 / A- 1 Baa1 / BBB+ 0 (YoY Inflation %) 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% Nov 2007 S&P upgrade Israel to A Israel Rating History (2) Apr 2008 Moody s upgrade Israel to A1 Feb 2008 Fitch upgrade Israel to A % 3.9% Moody's S&P Fitch Inflation Environment 2.7% 2.2% 1.8% Average inflation in the last decade 1.6% 1.8% Sep 2011 S&P upgrade Israel to A+ (0.2%) Nov 2016 Fitch upgrade Israel to A+ 1% 3% Government Inflation Target (1%) (0.2%) Source: The Central Bureau of Statistics, Bank of Israel GDP converted using yearly average USD/ILS exchange rate of Credit rating refers to long-term foreign currency debt only. 3. As published in The Israel Economy: Recent Trends and Outlook Report by the Ministry of Finance. 2

3 The Israeli Electricity Sector Main Regulators The Electricity Authority Government Companies Authority (GCA) Ministry of National Infrastructures, Energy and Water Resources Ministry of Finance Ministry of Interior Ministry of Environmental Protection Fuel Suppliers Natural Gas Currently the Tamar Reservoir. More reservoirs have been already discovered Liquid Natural Gas - Imported from international suppliers Coal - Imported from international suppliers Generation, Transmission and Distribution Generation Transmission and Distribution Customers 99.85% Government owned Expected to reach 74% of total generating capacity by the end of By the end of % IPPs Expected to reach 26% of total generating capacity by the end of By the end of % (23% as of December 31, 2016) Nearly 100% by IEC IEC reached 2.7 million customers (as of June 30, 2017) Source: IEC s Financial Statements. 3

4 Israel Generation Capacity and Peak Demand (MW) Generation Capacity and Peak Demand 18,000 17,351 17,594 16, , ,000 13,047 13, , , ,956 2,980 3,060 12,905 12,623 12,000 11,368 11,823 11, ,530 11,110 11,890 11,640 11,335 10,000 10,070 11,297 10,200 10,280 11,649 11,664 12,769 12,759 13,248 13,483 13,617 13,617 13,617 8, Installed Generating Capacity Gas Fired IPPs Renewable Energy IPPs National Peak Demand Source: IEC s Annual Financial Statements 4

5 Demand for Electricity (MW) 14,000 12,000 10,000 8,000 6,000 Historical National Peak Demand Trends The demand for electricity in Israel is growing at a fast and steady pace Demand is driven by both population growth and the increase in electricity use per household The demand forecast, which serves for long-term planning of the generation system, assumes an average annual increase of 2.8% in peak demand in the years 2015 to ,000 Multiplied by 3.3 in 26 years 2, Source: IEC s Financial Statements. 5

6 Tariff Comparison to OECD Countries ( cents equivalent) Average Price per KWh (1) Bulgaria Lithuania Hungary Romania Estonia Turkey Denmark Croatia Finland Poland Latvia France Slovenia Norway Czech Republic Greece Netherlands Israel (June 2017) Portugal Austria Slovakia Sweden Cyprus Germany Italy United Kingdom Spain Belgium Ireland The electricity rate in Israel is lower than most of OECD peers Source: Eurostat, Electricity prices for domestic consumers bi-annual data, as of 06/08/2017. Israel rate is based on the last Tariff update (12/19/16) and converted EUR/NIS exchange rate of 3.98 as of 06/08/2017. Average national price in Euro per kwh without taxes for medium size household consumers (consumption band DC with annual consumption between 2,500 and 5,000 kwh). 6

7 Slovenia 2014 Malta 2014 Rumania 2014 Croatia 2014 Latvia 2014 Ireland 2014 Lithuania 2014 Poland 2014 Czech 2014 Greece 2014 Hungary 2014 Estonia 2014 Norway 2014 Italy 2014 Israel 2014 Sweden 2014 Britain 2014 Portugal 2014 Finland 2014 Austria 2014 France 2014 Spain 2014 Netherlands 2014 Switzerland 2014 Germany 2014 Denemark 2014 Luxembourg 2014 Internal SAIDI (system average interruption duration index) Interruptions Planned Outage 7

8 Smart Grid and Smart Metering 14

9 World Smart Metering Deployment Map 2020

10 USA Smart Metering Deployment Map

11 European Smart Metering Deployment Map 80% by 2020 Go/no-go map

12 Observation of the sector responsible to meters procurement activity in selected countries (*) State/countr y Italy Sweden Finland Spain Austria Netherland United Kingdom Denmark Portugal Meters market/ supervise d Supervised Supervised Supervised Supervised Supervised Supervised Liberalized competitive Supervised Supervised Responsibili ty over installation The distribution utilities Responsibil ity over data manageme nt Central hub Central hub Funding method Tariff + funding the Tariff + funding the Tariff Tariff +renting the meters Tariff Tariff Distribution utilities Tariff Tariff + funding the (*) ref: European Regulators Group for Electricity and Gas, European Commission. Distribution System operator

13 IECo Smart Metering Architecture 20 מנייה חכמה - פרויקט פיילוט תעריפי

14 Smart Metering Management Meters Data Collection Data Concentrator Load Profile Data Storage Load Profile Billing Events Log Data Storage Meters Configuration Update Clock - DST TOU Holidays Firmware Load Limit Control Disconnect / Reconnect Power / Current Limitation

15 Selected Solution Integrator Ericsson

16 Selected Solution Integrator Ericsson ZIV PLC meters Circutor PLC data concentrator Kaifa cellular meters Kaifa single phase PLC meter

17 6

18 The Smart Metering Roadmap Legend: Existing smart metering Metering at novel cities & Neighborhoods 10,000 Metering at novel cities & Neighborhoods 25, 000 Metering at novel cities & Neighborhoods 40,000 Metering at novel cities & Neighborhoods 40,000 Pilots and novel projects Computer systems 20,000 meters: (13,000 Customers of existing remote metering points) Customers: Binyamina city Metering systems >100 A Private manufacturers (special agreements) Tariff Pilot (Meniv) 32, 000 Direct TOU meters 13, 000 Entering into normal operation of novel computer systems: ITF,MDM, MOC, NOC, D.NET, SAP ISU.CRM Upgrade of 45,000 metering systems (primary + secondary meters + modem) 25

19 Israel present and future of smart metering NEAR REAL TIME DEMAND RESPON SE LOAD PROFI LE VEE DC Installation and maintenance operation consumer BILLING Consumers/ prosumers SMU Electric System Management Unit EV to grid PV to grid+ E STORAGE DC Field communication testing Electric grid Spec writing, bidder evaluation, purchase and acceptance tests Laboratory tests METERS

20 IEC'S The Smart Grid Roadmap CBA submitted to regulator Deployment: 5 years, 2.64M meters Life-cycle: 15 years ADMS Expanding to new Neighborhoods and 168,000 to the meters business market: 200K Installing full meter deployment

21 Cyber Security for Smart Metering Project Automatic Metering Infrastructure may be attractive objective for different type cyber adversaries: Ransom attacker Hostile country Competitor IECo AMI cyber security strategy is to prevent the follows cyber-attack results: The total electricity outage Financing losses as result of meter tariff manipulation Privacy information leakage Damage to company reputation Main cyber security measures used in AMI project: Sensitive information cryptography Data traffic content checking Data traffic encryption Fire Wall based network segmentation Software and hardware hardening Security Operation Center based cyber security monitoring processes 28

22 IECo Next Main Challenges Electrical transportation integration - EV, Light Train, Heavy Train Electrification Renewable Energy Integration PV, Wind Distributed Generation Integration Micro-Genaration (mainly NG powered), Microgrids Energy Storage Integration Pump Storage, Large Scale Electrical Batteries, V2G Cyber Resilience 18

23 Yitzhak Balmas Israel Electric Corporation Deputy CEO & Senior Vice President, Customer Group Thank you Questions?