PowerPoint Presentation

Creating a new energy platform for the UK8th December 2016DCC Public

Britains Smart Metering Implementation Programme DCC Public1properties30m2m28mdomesticsmall non-domestic

53msmart meters to be installed across GB

2 fuelsgas and electricityin line with EU carbon reduction targets

end 2020by

3-4m1st generation smart meters installed

DCC estimates between 3-4 million smart meters are now installed at a rate of 150-200k per month

Last installs 12 months after R1.3 (April 2017)

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DCC PublicThe role of the Data Communications Company2

Smart Metering connection methodsDCC Public3

400MHzLRR

LRR

C+M

LRR

LRR

LRR 900/2100 MHz 2G/3G, GSM

C

C

C+M

C+M

CRF Mesh RF Mesh Buddy Mode 9m homes (75/ km2)19m homes (150-200/ km2)

Long-Range Radio communications (LRR), which will be used by Arqiva in Scotland and the North of England. The LRR system uses infrastructure and technology similar to that already used for other important national communications networks, such as those for emergency services and keeping lifeboat stations connected. Communication towers communicate directly with Comms HubsRemote areas reached using Buddy Mode which enables messages to be transmitted via another communications hubThere is provision within CSPs link budget to get radio signal from external to internal (to account for thick walls / foil backed insulation)3

Maximising coverage in the northDCC Public4

Communications Hub probability of coverage is 95% across entire cell

99.5% coverageof North Regionpremises

Add coverage overlap for 78% Communications Hubs and probability of coverage is 98.7%+

Add buddy mode for Communications Hubs within 100m of each other and probability of coverage is 99.95%+

A complex undertaking DCC Public5

SMIP

RegulationAdministration & GovernanceCore IT and telecoms deliveryDevice ManufacturersNetwork OperatorsEnergy SuppliersConsumer EngagementPolicy & base technical standard (GBCS)

The Benefits CaseDCC Public6Energy securityDemand management abilityContributes to the transition to a low-carbon economy

An end to estimated billingBetter support for microgeneration / exported energy billingSavings from better access to energy tariff price informationFacilitates the introduction of reliable next-day switchingEnables new smart consumer products and servicesOutage detection and managementGranular consumption informationNetwork capacity savingsfor consumers

for networks

for Great BritainLess site visits requiredAccurate billing, resultingin less enquiriesBetter service for customers with pre-paymentSupplier switching savingsReduced energy theftfor suppliers

6.2bnoverall net benefits over the next 20 years

An unlikely source of inspiration7

The Guardian Sir Peter BlakeThe Arrival of Smart Meters

The Arrival of Smart Meters at the White Cloth Gallery in Leeds, by Sir Peter Blake (who co-designed the sleeve of the Beatles Sgt Peppers Lonely Hearts Club Band)

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Manchester Evening NewsCarol Ann Duffy Meters

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The Inspiration Room / Smart Energy GBThe Royal Philharmonic Orchestra Requiem for Meters

Geoffrey Moore: Crossing the ChasmDCC Public10Diffusion of Innovation

The diffusion of innovation is not always smoothDCC Public11

Gartner Inc

Innovation adoption rate is increasingDCC Public12

Horace Dediu / @asymco

Innovations diffuse in the same way, over differing periods rollout is scheduled to have occurred by 2020, but the Industry is already gearing up for whats next30 years for electricity and 25 years for telephones to reach 10% adoption but less than five years for tablet devices to achieve the 10% rateIt took an additional 39 years for telephones to reach 40% penetration and another 15 before they became ubiquitous. Smart phones, on the other hand, accomplished a 40% penetration rate in just 10 years,

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Blending of Digital and Physical DCC Confidential13Gartner estimate:6.4 billion connected devices in use worldwide in 201630.8 billion connected devices by 2020Manchester is the UKs Internet of Things demonstrator city:Air quality monitoringConnected bus stopsBike sharing Community wellnessSmart Grid: Customer Led Network Revolution (Northern Powergrid / British Gas / Siemens)Short feedback cycles to be able to test demand flexibility hypotheses at scale, using smart meters and other connected devicesDistribution Management System ( Electricity North West / Schneider Electric)Three year project to help the distribution network identify problems, heal outages, and smooth demand

Smart air-quality monitoring Lamp posts and street cabinets will monitor air quality at different heights and locations, with data made available to the public.With IoT-enabled bikes and e-cargo bikes to make last-mile deliveries along the bus and bike only Manchester corridor.CityVerve will convert flag and pole bus stops into safe places with location-based services, sensors/beacons, mobile apps and intelligent digital signage.a network of sensors positioned in parks, along commuter and school routes will track the progress of individuals and teams competing against each other for physical activity and fun.Smart Grid: (Northern Powergrid, British Gas, and Siemens testing the impact of Solar PV, EV, & Smart Appliances on network - Wealso studiedsmart meter data from thousands ofdomestic customers, collecting valuable data on current and emerging customer load and generation profiles and used this to make recommendations to update industry network planning standards

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Challenges to be overcome DCC Confidential14We like the shiny things, but its the unglamorous enablers that make systems and services work:Security & PrivacyResilienceAccessibility Standards and interoperability

Accessibility (usability and availability)Standards and interoperability are the next fundamental challenge for the wider energy market if were to see widespread adoption

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Direction of travel in the energy marketDCC Public15Increasing flexibility & liquidityIncreased consumer engagementDe-regulation, and government policy Third Party Intermediaries and switching servicesEnergy de-centralisation

- The cost of PV is decreasing fast, as is the rate of adoption, outpacing policies based on facilities with decades-long lifespan value is now more important than contracts as it becomes ever easier to switchFlipper doesnt take commission it charges a subscription of 25 but only if you achieve savings of more than 50The energy industry since de-regulation in 1998 a gradual loss of control De-centralisation of energy production and supplyAn increasing role in for Third Party Intermediaries (Uswitch / Moneysupermarket etc) and providers of automated switching services (Flipper / Voltz)Energy companies are being forced to focus on value as government policy emphasises the need for increased liquidity in the marketplace

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Towards a smarter energy marketDCC Public16

Emerging Smart Energy Platforms UK Smart Meter platformAmazon Web Services IoT platformInfrastructure as an enabler of new servicesBroadband infrastructure enabled streaming and personal cloud services and brought about the demise of incumbentsOpen and extensible winsClosed networks atrophyAPIs and tools fuel growth

The market is developing rapidly we need to skate to where the puck is going to be, not where it has been

Smart energy platforms adoption is easier if it can be easily absorbed, and if there is a clear job to be doneInfrastructure as an enabler of new services (Netflix, personal cloud applications, streaming services), and a threat to incumbents (Blockbuster, Nokia)

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Thank YouAnthony LewisProgramme Director DCC Switching Programme