Enabling Smart grids for the future Frits Bruggink Senior Vice President and General Manager Echelon Corporation USA
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1 Enabling Smart grids for the future Frits Bruggink Senior Vice President and General Manager Echelon Corporation USA
2 Metering Is At a Generational Turning Point From electro-mechanical to digital From isolated to networked From basic measurement to rich base functionality From limited to flexible tariff plans From single application to a flexible network platform From fixed function to remote upgradeability
3 Our Industry Blurs AMR, AMI and Smart Metering There has not been a clear and consistent use of the terminology within the industry AMI and smart metering are, in fact, not limited More than just two-way communications More than just kwh monthly and interval metering data More than just supporting meter reading applications Should not utilize electro-mechanical meters Required to enable smart grid capabilities
4 Some Industry Definitions of AMI An advanced metering infrastructure is a comprehensive, integrated collection of devices, networks, computer systems, protocols and organizational processes dedicated to distributing highly accurate information about customer electricity usage throughout the power utility and back to the customers themselves. Such an infrastructure is considered advanced because it not only gathers customer data automatically but does so securely, reliably, and in a timely fashion while adhering to published, open standards and permitting simple, automated upgrading and expansion. A well-deployed advanced metering infrastructure enables a variety of utility applications to be performed more accurately and efficiently including time-differentiated tariffs, demand response, outage detection, theft detection, network optimization, and market operations. Advanced metering infrastructure (AMI) supports increased functionality in revenue meters, two-way communications to take advantage of that functionality, and new system applications that utilize information from advanced meters. AMI has the potential for dramatic improvements in utility operations, reliability, and customer service. Much more than just automated meter reading, AMI serves as the primary informationgathering system for utility operations.
5 What AMI and Smart Metering Really Are AMI provides true two-way meter communications Scheduled communications On-demand and real-time communications Secure and encrypted communications AMI and smart metering also provide Customized interval meter data and peak demand readings Forward and reverse measurements with programmable calculations Dynamic rate capabilities (TOU, RTP, CPP) Power quality and reliability data Voltage and current readings, power factor, and frequency Real-time control and demand response functionality Supports energy conservation programs Outage and theft detection Prepayment services Integrated software-controlled disconnect switch Remote programmability and firmware upgrades Ability to add new functionality AMI sets the stage for local area (in-home) communications
6 Next-Generation Smart Metering Has Already Taken Hold in Parts of Europe
7 Some Leading Executives Opinions on AMI and Smart Metering Enel will save 500 million euros in operational costs a year, which will repay the investment in four years, Vincenzo Cannatelli, Enel's head of distribution and markets during the tender process, a generation change in technology took place Göran Lundgren, CEO of Vattenfall distribution Duke likes to refer to these new technology advances as the Utility of the Future. Jim Rogers, Chairmand and CEO of Duke Energy
8 The Telegestore Project Largest advanced metering project in the world Over 27M meters networked with Echelon s technology in initial deployment 2.5M to 6.5M Echelon-powered meters in new 2006 agreement Over 350K Echelon data concentrators 2.1 billion total investment; 500 million savings per year Delivering better service at lower cost 6 million fewer field visits each year Able to respond to 98% of customer requests within 24 hours Created ability to tailor offering to consumers with downloadable tariff plans 7 plans with over 1.3 million customers Fraud reduction, network planning and load balance
9 Enel s Telegestore Project: Main Benefits For customers: Invoices on real consumption Remote contract management Tailored tariffs Savings in billing For the electric power system Peak shaving Energy efficiency and CO2 reduction Reduction of commercial and technical losses For Enel Leader in innovation Customer satisfaction Operating cost savings
10 For Success, Design Center Must Change From the Smart Meter to the Smart Grid Next-generation utility systems are networked systems that contain meters, not just metering systems Meters are the most common connected device today, but not the only connected device in the future The network is the core component of a successful advanced metering deployment and on-going smart grid expansion Security and scalability need to be networkgrade and designed in from the ground up Expandability and flexibility are essential to future proof the system
11 Vattenfall Group BG Vattenfall Nordic (Sweden, Finland, Denmark) BG Vattenfall Europe (Germany) BG Vattenfall Poland Europe s fourth largest generator of electricity and the largest generator of heat Vision: To be a leading European energy company Operations in Sweden, Finland, Denmark, Germany and Poland Electricity generation, transmission, distribution, sales and trading Heat generation, distribution and sales More than 32,000 employees Turn-over 13,697 MEUR (2005) Vattenfall AB is wholly owned by the Swedish State
12 Market Development vs. Investment Functionality Cost AMR 1 st Deployment AMR+ 2 nd Deployment AMI 3 rd Deployment (Using NES)
13 Advanced Metering Not Only for Billing Data Remote upgrading Vattenfall 3rd system can be upgraded remotely Power Outages Vattenfall 3rd system can report all power outages > 3 minutes Power Quality Vattenfall 3rd system can report: Under and over voltage, Overcurrent Frequency, Phase loss Power Control Vattenfall 3rd system can: Remotely disconnect customers as well as load control customer equipment and water heaters Tamper detection Vattenfall 3 rd system can detect: Terminal Cover Removal, Magnetic Tamper, Reverse Energy, Phase Inversion, Current Flow with No Voltage
14 What can AMI and Smart Meters do? Smart Meters create a paradigm shift and drive a change in generation planning and peak shaving strategies Utilizing AMI and Residential Smart Meters Creates a real time market for energy Reduces peak demand Protects the system/generators from capacity shortfalls Eliminates theft and fraud Helps optimize T&D and generation resources Opens access to all smart meter data Makes smart meters pay for themselves Everything you need to do today as well as in the future but only if your meters, network and processing are truly smart enough and obsolescent resistant!
15 AMI and Smart Metering Bring Utilities to a New Level Business Process Changes delivering ROI Smart Grid Opportunity Cost of Investment Investment Cost Manual meter reading Monthly kwh reads Automatic Meter Reading (AMR) One-way or two-way Monthly kwh reads Interval data Basic theft detection Outage/Restoration Detection Advanced Metering Infrastructure (AMI) On-demand reads Programmable load intervals Bi-directional and net metering TOU, RTP, CPP pricing options Demand response Gas & Water metering Smart Meters Solid-state platform Integrated communications Integrated disconnect switch > Remotely disconnect > Remotely connect Power quality data > Voltage readings > Current readings > Power Factor > Frequency > Detailed power outage data Advanced theft detection Remote programmable Remotely upgradeable Internal expansion port > Future functionality Energy Management Services > Residential, Commercial Home Area Network gateway > PLC (i.e. LONWORKS ) > RF (i.e. Bluetooth, Zigbee) Web-based applications > Demand Response > Prepayment > Load Control > Revenue Protection > Web Move in/out Distribution > Load profiling / engineering > Phase balancing > Transformer optimization > Energy forecasting > Outage detection and GIS > Restoration automation > Work Force Management > Automated Field Dispatch > Asset Management
16 Advanced Functionality Without Extra Cost Every meter is an advanced meter providing a future proof platform Power quality Multi-tariff Data logging Power limiting Direct load control Integrated disconnect in every meter Expensive if retrofitted to existing meter designs Cost-effective if designed into meter as an integral component
17 Summary Next-generation systems are the future of metering and the utility industry Creates a paradigm shift in the industry Creates a new tool for generation planning Only enabled by using truly smart meters Requires a network-centric approach to reliability, security, and scalability Next-generation systems deliver substantial benefits to utilities and consumers Dramatically more beneficial than just AMR with two-way communications Next-generation systems enable in-home and smart grid applications Next-generation systems provide the infrastructure for meeting today s requirements and the platform for delivering future applications
18 Q&A / Discussion AMI
19 Thank You!
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