Automated Meter Management roll-outEnel’s experience

Fabio BorgheseInternational Business Development Network TechnologiesNetwork TechnologiesInfrastructure and Network Division

Rome – March, 5th 2010

2

Introduction

Italian Telegestore successful experience

Extend the benefits to other Utilities

Agenda

3Source: McKinsey Power Distribution Benchmarking Initiative 2009

1st Q UK

Player A

Player B

Player D

Enel

Player N

Player O

Best Performer europeo per eccellenza operativa e qualità del servizio

Enel Benchmark

€/customer

CAPEX 2007

€/customer

Milioni di clienti km rete (x 1.000)44,0

64,5

93,0

112,8

47,2

68,0

86,5

Ø 74

OPEX 2007

45,6

76,2

50,7

41,1

110,6

139,9

Ø 77

87% Clienti Italia su rete Enel

4

Telegestore is fully operational on > 32 Mln CustomersLeading TechnologyExcellence in operation

Benefits are targeting Enel and the Italian Electricity System

Italian Authority AEEG has published the resolution 292/06: all Italian electricity customers will be equipped with AMMS (Automatic Meter Management System) by 2011

Enel Automated Meter Management System:the TelegestoreSummary

5

Remote activities and readings(mln)

142

187

2004 2005 2006

13

96

0.93.5

5.7

2007

912

260

2008

Remote activities

Readings

Automatic Meter ManagementItalian pioneering experience and leadership

Digital meters installed, controlled and read in December 2008: 32 mln

New Generation based on Italian unique experience

with state of the art functionalities

13 million Customers in Spain

6

AMM roll out Drivers

Improving the efficiency of customer relationship processes

Innovating the customer relationship

Laying the foundation of Smart Grids

7

AMR/AMI experiences in Europe Regulation road map

All Italian electricity customers shall be equipped with smart meters by 2011, due to resolution 292/06 issued by Italian Authority AEEG

Enel completed in 2006 the installation of 32Mln meters at its customer premises.

All Spanish electricity customers shall be equipped with smart meters by 2018, due to Royal Decree 1110 issued by Spanish Government in 2008.

Enel has developed a new generation of its smart meter to be installed to the 13Mln customers of Endesa, the main Spanish energy utility and a company of Enel Group

EDF has announced the start of replacement of its 35 electromechanical meters with new smart meter

3rd energy package

80% European electricity customers shall be equipped with smart meters within 2020.

3rd energy package

80% European electricity customers shall be equipped with smart meters within 2020.

Swedish energy utilities have install smart meters to 100% electricity customers

Norway Authority sent out regulation to install smart meters within 2015

The regulation would all 3,3Mln customers equipped with smart meters within 2015

Authority requires to install at least 80% smart meters of the total 3,2Mln by 2014

8

Introduction

Italian Telegestore successful experience

Extend the benefits to other Utilities

Agenda

9

Telegestore deployment plan

Completed Measures ManagementRemote Management of Commercial and Technical Work OrderMeasures Pre-billing Sub-System implementation

1999 200119991999 20012001 200220022002 200320032003 200420042004 200520052005 2006…20062006……

Remote Management of Commercial Work OrderRemote Management of Technical Work OrderPDA application for commercial and technical Work OrderRemote Meter Reading

Periodic (bi-monthly) Meter Reading and advanced Billing Tariff schemasRemote Management of fraudulent Customers

Evolution to Meter Data Management System, monthly Remote Reading Consumption ProfilesStart deployment of New Generation Meters and LVC with ST PLC chipset.

Advanced Management of Distribution NetworkDemand and Energy ProcurementMulti meteringBidirectional Meter for Micro Generation ManagementIntegration with WFM System for Real-time Work Orders Assignment and OptimizationMeter & LVC Problem Manager Sub-SystemMass installation completed

…2008……20082008

Resi

den

tial

an

d S

mall

Bu

sin

ess

Cu

sto

mers

Commercial and Technical Agreements with Meters Manufacturers (Actaris, Iskraemeco, ABB Elster and Siemens Landis), to support AMR System development

Trial start with Actaris MetersFirst release of Measures Management Module: acquisition, validation, storage, …

Med

ium

an

d L

arg

eB

usi

ness

Cu

sto

mers

Start InstallationPlan of Multiphase Digital MetersLV concentrators CommissioningMassive installation (700.000/month)

Kick-off (1999)Laboratory Prototype (2000-2001)Industrial pre-series (2000-2001)Strategic Agreements Stipulation with EchelonTrial start with new MetersStart Installation plan of single phase digital meters and Low Voltage concentrator

>30 Millions meters replaced and put in operation in 5 years without any

related benchmark project worldwide

>30 Millions meters replaced and put in operation in 5 years without any

related benchmark project worldwide

……to be continuedto be continued……

10

Telegestore ProjectMain figures

> 3.500 third-party installers

500 Enel.si agencies

120 ICT Project technicians

8.500 Palmtops

127 Enel Distribuzione Zones

One High Availability

System

11

Telegestore Technical Infrastructure

12

Assignment ↓ andFeedbacks ↑

Connect:Direct / Tibco

MobileMobile

GME

CBT / CE

SIAG/AMM/BLSIAG/AMM/BL

Data storageData

storage

Backup SIAG

Backup SIAGDLNSDLNS

PDA/Tablet

PPNSPPNS

Batch

DBlink

BatchOnline

Backup

Online

Online

Online

Online

Online

Online

Online

Batch

AttuatoreBatch

BatchBatch

SGMSGM

Network Management Systems Commercial Systems

Field force and Control Room (http://tgs.enel)

Analysisservice and

Reporting

Dashboards

SMILE

Telegestore in Enel’s existing systemsSMILE (Sistema MIsure Lavori Enel)

…to a fully integrated system

Public Communication

Network

Intranet

PLC 2,5 Kbps

MV/LVSubstation

Commercial System (CRM)Centralised Remote Management System

Interface Communication Software

ConcentratorConcentrator

Meters

Data Communication

Centre

Control Centres

Total: 30 Millions

Total: 350,000

From a front end system…

13

Equipment family

Poly-phase indirect (with CT)

Mod. GET4S/GISS

Poly-phase direct (without CT)

Mod. GET1/GET3A/GIST

Single phase

Mod. GEM/GISM

LV Data Concentrator

GSM/GPRS module

14

Installation in Italy*

32.540.000Meter remotely managed

Concentrators installed in MV/LV substations 368.000

* up to 31 december 2009

15

Telegestore: a proven solutionRemote management readings and operations

Load profile 46.000.000

Total 209.700.000

Montly-bimontly 204.700.000

Spot readings 5.000.000

Activations 845.000

Contract management 15.263.000

Contract termination 759.000

Bad payers management 2.958.000

Total 19.825.000

Final ‘09

READINGSREADINGS

600.000/day

50.000/day

PEAKS of 300.000

OPERATIONSOPERATIONS

Successful remote readings 99.9%*

Successful remote operations 98%*

*Yearly Data

16

Telegestore performancesSuccess rate

Daily Reachability 99,9 %

(meter reached in 24 h – attempts each 35min)

Reachability index 98,5 %

(well done attempts/total attempts in 1 year)

PLC communication

Work order remote execution

LV Concentrator

PLC

Meters

PERFORMANCE ACTUALPERFORMANCE PREVIOUS MONTH

DD_PILDF_LOM

DG_TRI

DH_ERM

DI_TOU

DM_LAMDO_CMP

DP_PUB

DQ_CAL

DR_SIC

DS_SARPublic

Communication

Network

Intranet

PLC 2,5 Kbps

MV/LVSubstatio

n

Commercial System (CRM)Centralised Remote Management

SystemInterface Communication Software

Concentr

ator

Concentr

ator

Meters

Data Communication Centre

Control Centres

Total: 30 Millions

Total: 350,000

average success rate in 2009 98%

17

A guaranteed solution Dedicated test plant

conformity with International Standard (mandatory)

minimum lifetime of HW components

communication performances

quality control

new developments

• 4 secondary cabin(630, 400, 250 e 100 kVA)

• 16 feeder(6 metropolitan, 4 urban, 4 semi urban, and 2 rural)

• 64 derivations

• 150 derivation boxes

• 40 km total cabled line (2 km max length for a single line)

• 600 mt line on air

• 600.000 connections in low tension

• 4 secondary cabin(630, 400, 250 e 100 kVA)

• 16 feeder(6 metropolitan, 4 urban, 4 semi urban, and 2 rural)

• 64 derivations

• 150 derivation boxes

• 40 km total cabled line (2 km max length for a single line)

• 600 mt line on air

• 600.000 connections in low tension

FiguresFigures

Enel invested more than 20 ML € to realize a dedicated test plant to carry out tightening tests on Telegestore’scomponents to verify:

• 1 AMM simulator (automatic meter management system)

• 4 concentrator

• 700 meters (600 mono-phase and 100 poly-phase)

• 2.500 household appliances and industrial electronic devices

• constructed with Enel materials

• Allowing the definition and the test of the network management techniques and procedures

• 1 AMM simulator (automatic meter management system)

• 4 concentrator

• 700 meters (600 mono-phase and 100 poly-phase)

• 2.500 household appliances and industrial electronic devices

• constructed with Enel materials

• Allowing the definition and the test of the network management techniques and procedures

18

Investment and savings areas

Failed Accesses

SavingAreas

500 M€€/Y

Purchasing and Logistics

Field OperationsCustomer Service

Revenue Protection

Readings

Replacement Activation Deactivation

Installation and Recovery

Interventions on Failures

Bad Payers Invoicing

Customer Service

Collection

Self Consumption

Warehouses Internal Transportation

Purchasing Revision

R&DCOSTS

PRODUCTION AND INSTALLATION OF

ELECTRONIC METERS

PRODUCTION AND INSTALLATION OF CONCENTRATORS

IT SYSTEM DEVELOPMENT

TOTAL INVESTMENTS 2,100 M€

Thefts and Failures

Checks on Meters

19

INVOICES ON REAL CONSUMPTION

REMOTE CONTRACT MANAGEMENT

TAILORED TARIFFS

SAVINGS IN BILLING

PRE PAYMENT

EASIER FREE MARKET DEVELOPMENT AND MANAGEMENT

INVOICES ON REAL CONSUMPTION

REMOTE CONTRACT MANAGEMENT

TAILORED TARIFFS

SAVINGS IN BILLING

PRE PAYMENT

EASIER FREE MARKET DEVELOPMENT AND MANAGEMENT

FOR CUSTOMERS and other electrical system

operators

FOR CUSTOMERS and other electrical system

operatorsFOR ENELFOR ENELFOR THE ELECTRIC

POWER SYSTEMFOR THE ELECTRIC

POWER SYSTEM

PEAK SHAVING

ENERGY EFFICIENCY AND CO2 REDUCTION

REDUCTION OF COMMERCIAL AND TECHNICAL LOSSES

PEAK SHAVING

ENERGY EFFICIENCY AND CO2 REDUCTION

REDUCTION OF COMMERCIAL AND TECHNICAL LOSSES

CUSTOMER SATISFACTION

EXCELLENCE IN COMMERCIAL AND TECHNICAL QUALITY

OPERATING COST SAVINGS

LEADERSHIP IN INNOVATION

CUSTOMER SATISFACTION

EXCELLENCE IN COMMERCIAL AND TECHNICAL QUALITY

OPERATING COST SAVINGS

LEADERSHIP IN INNOVATION

Benefits

20

Lessons learnt Shared benefits

Tailored tariffs

Switching(ml)

+15%

Y2007 Y2008

1,3 1,5

Energy Balance

Efficient and competitive

market

Success rate of meter verification

from from 5%5% to to 60%60%

~ 150 retailers

21

E-mobility infrastructure description

Adoption of innovative technologies, in compliance with standards

Solution ready to support smart grid functionalities (load management e storage)

Innovative and cost effective solution enabling advanced services for charge management and billing

To develop an infrastructure which overcomes economic and functional barriers, enabling large scale penetration of electric mobility

Other SupplierOther

Suppliers

22

Bidirectional communication channel with the Telegestore infrastructure

Indoor load management and automation

Energy@Home project with Telecom Italia, Indesit and Electrolux to define a common and standard indoor communication platform

Agreement to be signed with Google to integrate Telegestore data into Powermeter solution

Expected costs: 15-20 € by device to be remunerated according to AEEG resolution

Large scale implementation of enabling solutions for the energy customer consciousness and energy efficiency

Smart Info

Central DB

Smart GridSmart Info

23

Introduction

Italian Telegestore successful experience

Extend the benefits to other Utilities

Agenda

24

Smart metering deployment…….an extraordinary revolution!

Not only new products… …but new ways to do it!

Efficiency

Cost

effectiv

enessPro

cess

Optimiz

atio

n

Service

quality

25

Deploy an AMM Solution for residential customersWhat are the main Utilities challenges ?

Face with a new regulatory scenario

Increase cost efficiency

Improve customer satisfaction

Promote energy efficiency

trend towards Smart Grids deployment

Pursue continuous progress on processes’

optimization

Innovate management systems

Assure high standard of service quality

Enhance customer fidelity

Deploy a cost effective and reliable AMM System

Promote technological progress

26

Investment benchmark Why Enel is the best partner for an AMM deployment?

27

Enel Meter CertificationState of the art

IMQ

Telegestore is Certified in all addressed Countries

28

Standard de facto Standard de facto Standard de facto

Custom-tailored system

~ 3.500.000 Meters

Solution fitting utilities’ needs

>95% of Italian points of measurement are equipped with Enel

meter.

Wide and small Italian utilities have adopted the Enel solution

(from 3.500 to 1Ml meters).

Different service models were set up with the support of

technology suppliers and other service companies in order to

enable the easiest ad widest adoption of the AMM technology to

the different size and local utilities.

Italian utilities have chosen Enel solutionItalian utilities have chosen Enel solutionItalian utilities have chosen Enel solution

29

Other Worldwide System Users acquiredFrom 2006

• Pilot Test (Russia)

• 645,000 meters

• 188,000 meters(The Netherlands)

• MoU SEC (Saudi Arabia)

• 250,000 meters

• Pilot Test (India)

• Pilot Test (Romania)

• Pilot Test (Ivory Coast)

• 13 millions meters

●Pilot Test (Hong Kong)

●Feasibility StudyShanghai Power (China)

30

Enel approach for a new AMM generation What is Enel doing …

Enel has designed a new AMM generation system, based on the evolution of the Telegestore.

Enel has designed a new AMM generation system, based on the evolution of the Telegestore.

The new solution will include the last technology evolution in terms of components and functionalities, maintaining the robustness and reliability of

the Telegestore

The new solution will include the last technology evolution in terms of components and functionalities, maintaining the robustness and reliability of

the Telegestore

Enel is actually developing the new field components and the AMM system modules to be deployed in Spain from 2010 with the committment to

produce more than 13ML meters within 2016

Enel is actually developing the new field components and the AMM system modules to be deployed in Spain from 2010 with the committment to

produce more than 13ML meters within 2016

31

“Cervantes” Smart Metering System: MeterCost-efficient and rich in functionality

New generation of robust and New generation of robust and reliable PLC communicationsreliable PLC communications

Optimized relation of features Optimized relation of features versus costsversus costs

Prepared for deployment of all Prepared for deployment of all advanced smart metering and Smart advanced smart metering and Smart Grids functionalitiesGrids functionalities

32

Communication protocol openingEnel strategy

Enel communication protocol (MORE) is:

EU mandate (M/441) assigned to CEN EU mandate (M/441) assigned to CEN -- CENELEC CENELEC –– ETSIETSI

Development of an open architecture for utility meters involving

communication protocols enabling interoperability

proven reliability of the Enel proprietary protocol thanks to 35 Mln meters in operation

upcoming deployment on over 13 Mln meters in Spain

implementation of all the advanced AMM functionalities ready for Smart Grids infrastructure.

Best European experience towards

standardization process

Best European experience towards

standardizationstandardization process

Leveraging onLeveraging on

managed by a neutral and no-profit association;

Accessible, assuring its availability;

enabling evolution certified.

33

Enel AMM Solution key factorsIn brief

It is a new generation AMM system that includes the last technology evolution in terms of components and functionalities

Guaranteed robustness and reliability of the Telegestore

Production & maintenance for the entire system lifetime with theguarantee to use the “state of the art” electronic components

Modular solution. Guarantee of evolution maintenance due to new requirements established by Authorities and/or technological evolution

of energy distribution market (i.e. Smart Grid)

Provided by an Utility with unique know how and direct experiences on business processes reengineering and problem management

Open solution. Equipped with an open reliable and proven PLC communication protocol.