emea smartgrid oracle

8/3/2019 Emea Smartgrid Oracle

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SOFTWARE. HARDWARE. COMPLETE

The EMEA Smart Grid Rollout




Contents

3 Forward

4 An overview o the fndings

5 Utilities yet to utilise the ull capabilities

o Smart Meters

7 Utilities not reaping the ull benefts delivered

by the Smart Grid

9 IT systems unable to support Smart Grid

technology

10 Electric vehicles not a priority or utilities

11 Conclusion




Foreward

With the Smart Grid being heralded across Europe as a key

weapon in meeting the EU’s 20-20-20 targets to reduce the

regions environmental impact by 2020, how prepared are

utilities in reaping the benets that the Grid brings?

While all countries in the region understand the potential o

Smart Grid technology and the implementation o Smart

Meters, due to the recent uptake in individual markets,

countries and energy providers across the European Union

(EU) have very dierent challenges to overcome in order to

make this a reality.

To examine where utilities are in implementing Smart Grid

inrastructures, Oracle Utilities undertook research into the

progress made towards a ull roll-out and whether the

benets o these intelligent networks are being realised. The

research, which surveyed 50 senior executives rom

electricity utilities across Europe, Middle East and Arica

(EMEA) ound that they still have a long way to go to

implement a ully integrated Smart Grid inrastructure

despite the substantial progress made in many countries.

In the report we explore the ndings in detail, as well as look

into how the Smart Grid will benet both utilities and their

customers through smarter and more ecient energy use

and billing, among others. We also examine what changes

need to be made to current IT systems in order to give the

fexibility needed to scale to the ull potential delivered by

Smart Grids and Smart Meters in the long term.

The research assesses actors such as the prevalence o

Smart Meters, and the advances in meeting operational and

inrastructural requirements to give you the complete picture

o where EMEA is in adopting a Smart Grid inrastructure,

while also allowing or comparisons between countries in theregion.

3




An Overview o the Findings

The Oracle

perspecTive:

Smart Grids have the

capability to improve

power distribution

eciency and reliability,

in addition to reducing the

need or expanded gridsby providing correctly sized

transormers and other

distribution equipment.

But or utilities to make

the most o these benets

they need to make some

undamental changes to

their inrastructure.

It’s positive to see that

utilities are taking active

steps towards planning

and implementing their

Smart Grid roadmap.

Despite the vast range

o new possibilitiesthe majority o utilities

are not leveraging the

process innovations and

intelligence available to

them through the Smart

Grid inrastructure.

Harnessing this

inormation has the

power to maximise

improvements being made

to their business and

their ability to enhance

eciencies such as

providing new customer

oerings, improving eld

operations and supporting

renewable generation.

The utility industry is only

at the very beginning o

uncovering the disruptive

evolution available today.

4

The research highlights that while utilities

across EMEA have made progress towards

the adoption o Smart Grids and Smart

Metering, there is still a long way to go to

harness all the benets available to them

and their customers.

While many realise the necessity or Smart

Grid and Smart Meter technology, many

are either not exploring or simply unable

to take advantage o the ull benets and

capabilities o the technology available to

them.

The research also ound that many utilities

have adopted or plan to adopt Smart

Meters but they are likely to be unable to

gather and utilise the intelligence created

by the technology because their IT systems

are unable to cope with the amount o

inormation Smart Meters produce.

Ky fndng nud:

The majority o utilities have already•

deployed, have begun or plan to begin a

phased programme or the adoption o

Smart Meters. 56% o utilities expect to

have Smart Meters rolled out within ve

years

Over hal o utilities are concerned that•

their current IT applications will not be

able to scale to their needsNearly hal o respondents (45%) expect•

to achieve return on investment (ROI)

rom Smart Meters in ve years, whereas

nearly a quarter don’t know when this

will be achieved

•

When asked what Smart Meter eatures•

utilities will use, 74% o respondents

said they will be using Smart Meters

to remotely turn power on or o to a

customer (connect/disconnect)

18% o utilities do not have in place•

a communications plan to educatecustomers about the dierent aspects o

Smart Meters. However, 62% o utilities

are inorming customers about why

Smart Meters are being installed

35% o utilities already have in place•

new systems able to store the additional

data rom Smart Metering and extract

intelligence rom it, and 36% expect to

have these installed within ve years

(15% in one year, 12% in three years and

9% in ve years).

However, 12% have not yet begun to•

assess the systems they will require toextract intelligence rom Smart Metering

data and a urther 12% have no plans to

put this in place

67% already have ully unded projects in•

place to implement Smart Meter projects

to make the most o the technology

53% o respondents have started•

planning and are evolving their IT

systems to optimise operational

eciency o eld operations (including

maintenance management, eld orces

management)

Despite the rise in electric vehicle•

(EV) adoption, utilities have made little

preparation or this. In act, 47% o

utilities have not planned to use Smart

Grids or EV adoption and 80% o utilities

do not consider EVs to be a priority or

them at this time




5

Utilities Yet to Utilise the Full Capabilities o Smart Meters

The research revealed that utilities across the region have

made positive steps towards the implementation o Smart

Meter programmes, with 38% having either completed

or begun a phased programme to install Smart Meters in

households. Additionally, over hal o utilities have plans to

implement Smart Meter programmes in their countries over

the next ve years (52%).

However, the study discovered that utilities are not exploring

some o the key capabilities delivered by Smart Meter

deployments, as a large percentage do not plan to make use

o the ollowing:

Detect and communicate the unauthorised use o•

electricity not highlighted (62%)

The ability to remotely turn power on or o to a customer•

(52%)

Detect and communicate a service outage (52%)•

Support pre-payment applications such as remotely•

changing the meter’s billing plan rom credit to prepay,

as well as rom fat-rate to multi-tari, remotely crediting

(40%)

Use Smart Meters to read usage inormation rom a meter•

on demand (26%)

Change the maximum amount o electricity that a•

customer can demand at any time (34%)

Similarly, utilities are not communicating the ull benets

delivered by Smart Meters to their customer base by not

having in place communications programme to inorm

customers about the service benets delivered by the

technology (60%), the impact this will have on their billing

(50%), why Smart Meters are being installed (56%), and the

security and privacy implications involved (62% and 78%

respectively).

0

10

20

30

40

50

60

70

80

R e a d u s a g e i n o r m a t i o n r o m

a m e t e r o n d e m a n d

L o a d l i m i t a t i o n

S u p p o r t p r e - p a y

a p p l i c a t i o n s

T h e a b i l i t y o r e m o t e l y t u r n

p o w e r o n o r o t o a c u s t o m e r

D e t e c t a n d c o m m u n i c a t e a

s e r v i c e o u t a g e

D e t e c t a n d c o m m u n i c a t e

t h e u n a u s t h o r i s e d u s e o

e l e c t r i c i t y

A t p i l o t s t a g e , n o t y e t

d e t e r m i n e d

Which Smart Meter eatures do you plan to, or

already utilise?

0

5

10

15

20

25

O u r d e p l o y m e n t i s c o m p l e t e

W e h a v e b e g u n a c o m p l e t e

a n d p h a s e d p r o g r a m m e

W e w i l l b e g i n a c o m p l e t e a n d

p h a s e d p r o g r a m m e i n t h e

n e x t t h r e e y e a r s

W e a r e c u r r e n t l y a s s e s s i n g t h e

r e s u l t s o p i l o t b e o r e w e m a k e

p l a n s o r u l l d e p l o y m e n t

W e h a v e n o t y e t c o m p l e t e d a

p i l o t s t u d y b u t h a v e p l a n s i n

p l a c e t o d o

W e c u r r e n t l y h a v e n o f r m

p l a n s

How advanced is your deployment o Smart Meters?

P e r c e n t a g e s





6

The Oracle perspecTive:

It is encouraging to see that more than a third

have already taken positive steps to making

the benets o the Smart Grid a reality. While

two thirds are yet to take that step, most

are carrying out pilots to ensure that a ull

roll-out is easible. Utilities tend to take an

engineering point o view to undamental

change to the way they operate. A prime

example is both the implementation o Smart

Meters, utilities like to undergo pilots in order

to ully understand how a roll-out should take

place and how to extract maximum benets

rom it.

There are many challenges associated

with Smart Meters, the main one or retail

utilities being who bears the cost o the

network. Because utilities are unbundled,

the network operator is responsible or the

majority o the cost related to Smart Grid

networks and without the same benets

achieved by retail utilities, there isn’t the

incentive to implement it. There needs to

be a shit rom the regulator in the cost

responsibility to ensure that investment in

the network matches the outcomes or the

operators and utilities alike or adoption to

become more widespread. The UK is an

example o where regulators have got it

right – the retailer bears the cost o Smart

Meters and in turn are the ones that benet

rom them.

In addition, the pressure by governments

and customers to implement Smart

Meters is not the same in all countries. For

example, in France there are only a ewregions where there is the need to manage

aspects like peak loads, fexible rating and

oer pre-pay options. Most regions have

good payors, an excess o energy and

network capacity along with Carbon Dioxide

ree energy so the benets o Smart

Meters are not the same as they are in the

Middle East where demand ar outweighs

capacity.

Other challenges that are holding back

the implementation o Smart Meters

are the need to provide prudent grid

security, the ability to manage massive

data volumes and transactions, and the

adherence to regulatory standards allwhile staying competitive. The benets o

Smart Meters to customers also need to

be communicated so they are prepared or

the changes that will take place, like more

complex billing structures. Benets like

ewer power outages, aster repairs and

lower costs, ar outweigh these changes

but without explanation and the chance to

ask questions many will look elsewhere or

their energy supply.

Utilities Yet to Utilise the Full Capabilities o Smart Meters

W h y S m a r t M e t e r s a r e b e i n g

i n s t a l l e d

N o n e o t h e a b o v e

D o n ’ t k n o w

0

10

20

30

40

50

T h e i m p a c t o h e i r b i l l i n g

T h e e n v i r o n m e n t a l b e n e f t s

T h e c u s t o m e r s e r v i c e

b e n e f t s

T h e s e c u r i t y i m p l i c a t i o n s

T h e p r i v a c y i m p l i c a t i o l n s

Do you have a comms programme to educate customers

on Smart Meter aspects?





7

Utilities not reaping the ull benets delivered by the Smart Grid

In order to combat the increased levels o data created by Smart

Metering, the majority o utilities are planning to put in place new

sotware and hardware systems capable o storing and extracting

intelligence rom data within the next ve years (72%). O these

utilities, 70% have or plan to put in place a sta programme

assigned to coordinate and introduce the Smart Grid across all areas

o the business (54%).

Although a large percentage o utilities plan on taking these steps,

14% o respondents have not yet begun to assess the systems that

will be required to tackle this and a urther 14% have no plans to put

in place new systems to extract the intelligence rom Smart Meters.

The study also ound that 26% o utilities don’t know when ROI will

be achieved rom their Smart Meters programmes, and a urther

14% don’t expect to see any ROI delivered.

The reason or this can be attributed to utilities not reaping the ull

benets delivered by Smart Grid and Smart Meter programmes.

When asked what components o the technology will be key to

them achieving ROI over the next ve years, respondents replied:

0

5

10

15

20

25

30

0

5

10

15

20

25

30

Developing demand response and energy eciencyprogrammes (including real-time pricing options)

66%

Streamline metering operations (assets and data) 38%

Optimising operational eciency o eld operations

(including maintenance management, eld orces

management)

34%

Improving service reliability 30%

Optimising existing customer centric business processes

(collection, start stop service, including governance and

compliance, multi-channel sel servicing)

28%

Support an increasing level o renewable generation 28%

Support dierentiation o oerings and commercialisation

o new services (energy supply centric or not)

26%

Delaying network inrastructure investments 24%

Support beyond the meter services related to home

automation and home services

12%

Support microgeneration adoption 6%

Support Electric Vehicle adoption 2%

Developing demand response and energy eciency

programmes (including real-time pricing options)



When do you think you will achieve ROI rom the project?

When will you have in place the systems able to store and analyse

the data rom Smart Metering?

W e e x p e c t t o s e e R O I w i t h i n

1 y e a r

W e h a v e a l r e a d y p u t i n p l a c e

n e w s y s t e m s

W e e x p e c t t o s e e R O I i n 3

y e a r s

W i t h i n 1 y e a r

W e e x p e c t t o s e e R O I i n 5

y e a r s

W i t h i n 3 y e a r s

W e d o n ’ t k n o w

W i t h i n 5 y e a r s

M o r e t h a n 5 y e a r s

W e d o n ’ t e x p e c t t o s e e a n y

R O I

W e h a v e n o t y e t b e g u n t o

a s s e s s s y s t e m r e q u i r e m e n t s

W e e x p e c t t h e c o s t s t o b e

c o v e r e d b y t a r i i n c r e a s e s o r

d e d i c a t e d f n a n c i n g

W e h a v e n o p l a n s t o p u t i n

p l a c e n e w s y s t e m s

A v e r a g e ( i n y e a r s )




8


While many utilities are taking steps toward a Smart

Grid uture, it is important to recognise all the benets

that can be achieved through the intelligent network.

Utilities need to assess these benets and ascertain

which they should invest most in based on their country

and what matters most to their customer base.

Not all o the capabilities listed in the previous page can

be realised at once, and in some cases are not even

realistic in certain countries, thereore utilities need to

spend time assessing all o the possibilities and begin

by implementing systems and processes that willdeliver the most benet to their business and to their

customers.

For example, Smart Metering enables the deerral o

new electricity plants, so a country with limited space

will benet greatly rom the implementation. It will

also help utilities avoid building new transmission and

distribution inrastructures by reducing peak-demands

and the related capacity constraints. This reduces

not only the huge inrastructure costs but also such

negative environmental eects o energy use as

greenhouse gas emissions and landscape-damaging

transmission. For countries where renewable energy

already plays a large part in distribution, this capability

may not be as much o a priority as improving service

reliability.Harnessing the inormation rom Smart Meters has

the power to maximise improvements being made to a

utility’s business and its ability to enhance eciencies

such as providing accurate customer billing, improving

eld operations and supporting renewable generation.

For example, accurate billing in the UK is an issue

because o the system set up in the country. By

providing bills that refect and explain to customers the

complex pricing models will encourage them to shit

optional electricity use to o-peak hours thereore,

controlling demand and capacity on the network.

Utilities not reaping the ull benets delivered by the Smart Grid




9

IT Systems Unable to Support Smart Grid Intelligence

The study reveals that utilities are not taking

the necessary steps to plan or transormation

and prepare their IT systems to extract

intelligence rom and support all areas o

the Smart Grid. Utilities have not yet begun

planning in the areas o microgeneration

adoption (50%), electric vehicle adoption

(56%), support in the dierentiation o

oerings and commercialisation o new

services (56%) and beyond the meter

services related to home automation and

home services (58%).

Conversely, some progress in planning has

been made to improving service reliability

(90%), optimising operational eciency o

eld operations (84%), developing demand

response and energy eciency programmes

(70%), supporting increased levels o

renewable energy (66%), adjusting network

inrastructure investment (62%), optimising

existing customer centric business processes

(60%) and streamlining metering operations

(58%).

Despite this, utilities are concerned their IT

systems may not be able handle the demands

o the Smart Grid. The most critically or

signicantly challenging activities or utilities are:

Ensuring their IT will support agile•

transormation along 5-10 years as new

requirements arise (68%)

Transorming and adapting the business and•

the way operations are run (56%)

Perormance and scalability concerns•

related to existing IT applications not being

able to scale to their needs (56%)

In addition, the study ound that only 14% o

utilities have ully integrated their Meter Data

Management systems with energy sourcing

management, 18% with orecasting services

and energy supply contract pricing and rate

design, 42% with customer care and billing,

50% with sel service applications, 36% with

asset management and 32% with network

management.

0

5

10

15

20

25

30

35

40


When implementing support or Smarter

Gridshow challenging will scaling existing IT

applications be?

N o c h a l l e n g e s

a c e d

P a r t i a l l y c h a l l e

n g i n g

S i g n i f c a n t l y c h a l l e

n g i n g

C r i t i c a l l y c h a l l e

n g i n g

0

10

20

30

40

50

60

70

80


When implementing support or Smarter Grids and

smarter metering, how challenging will perormance

and scalability be?

E n s u r i n g m y I T w i l l s u p p o r t a g i l e

t r a n s o r m a t i o n a l o n g 5 - 1 0 y e a r s a s

n e w r e q u i r e m e n t s a r i s e

T r a n s o r m i n g a n d a d a p t i n g

t h e b u s i n e s s a n d t h e w a y

o p e r a t i o n s a r e r u n

P e r o r m a n c e a n d s c a l a b i l t i y :

m y e x i s t i n g I T a p p l i c a t i o n s

m a y n o t s c a l e t o o u r n e e d s

I n t e g r a t i o n o d i e r e n t

a p p l i c a t i o n s i n t o m o r e

c o m p l e x s c e n a r i o s

E n s u r i n g g o v e r n a n c e , c o m p l i a n c e a n d

s e c u r i t y s o n o r i s k i s b e i n g c r e a t e d b y

t h e n e w t e c h n o l o g y


The Smart Grid is undamentally

revolutionising the delivery o electricity

rom suppliers to consumers, and will

enable utilities to detect and remedy

problems aster than ever beore, as

well as allowing consumers to be active

participants in this new bi-directional

Energy Supply Chain. It is thereore critical

that utilities plan or the uture now by

architecting and implementing an open

and agile IT inrastructure that is able to

cope with the imminent food o data that

both present and next-generation SmartGrid components generate.

Smart Grid integration brings with it an

exponential growth in the amount o

data that must be gathered, veried,

stored and transormed in near real-time

or intelligent decisions to be made.

Unortunately, the majority o utilities are

just not prepared or the mass adoption o

Smart Meters and Smart Grid technology,

and are unable to cope with the amount

o data that comes with it.

A rip and replace approach is not

necessarily required when it comes to

their IT systems but a comprehensive

review o their inrastructure is needed toisolate their current environment as much

as possible. This will allow or pre-ltering

o Smart Meter inormation so that only

relevant and condensed inormation

needs to get passed the existing

environment.

Utilities also need to decide what their

end goal is with Smart Metering beore

they look at making changes to or

replacing their existing inrastructure. The

rst step or all utilities is or the Smart

Meter inormation to be accessible to the

core corporation in an enterprise wide

Meter Data Management (MDM) system.

As this integrates a lot o hardwaretechnologies, utilities need to consider a

Smart Grid gateway to go on top o the

physical hardware in order to isolate it

rom the business processes. These are

architectural structures that will help them

to be open, intuitive and at the same time,

give them an inrastructure to design

processes that are not dependent on the

physical hardware.




10

Electric Vehicles Not a Priority or Utilities

The survey also questioned executives about the preparations

they have made or the increased adoption o EVs. 84% o

respondents stated that this is not priority or then right now,

o which 58% are seeing how adoption levels o EVs increase

beore any plans are made.

Utilities which are making some preparation or this are

doing so by working with industry transport bodies (38%),

investigating charging models (30%) and working with central

and local government (24%). Yet, only 12% are actoring EVs

into their plans or transition to the Smart Grid.

0

10

20

30

40

50

60

0

10

20

30

40

50

60

How advanced is your organisation in planning or Electric

Vehicle adoption?

How much o a priority is preparing or the adoption o

electric vehicles?



W e h a v e n o t s t a r t e d p l a n n i n g

i n t h i s a r e a

W e s e e t h i s a s a k e y p r i o r i t y

a s a u t u r e r e v e n u e s t r e a m

W e h a v e s t a r t e d p l a n n i n g a r e

a r e e v

o l v i n g I t s y s t e m s t o

s u p p o r t i t

N o t a p r i o r i t y - w a i t i n g t o

i n c r e a s e i n E V a d o p t i o n

W e h a v e s t a r t e d p l a n n i n g a n d

a r e c o n s i d

e r i n g I T s y s t e m s t o

s u p p o r t i t

T h i s i s n o t a p r i o r i t y i n t h e

n e x t 3 y e a r s


EVs represent a completely new value chain to Utilities

with signicant opportunities. The utility retailer can reach a

whole new client segment, increase the stickiness with their

customers and at the same time, oer a new set o bundled

liestyle products to dierentiate themselves.

The network company on the other hand, has new networkequipment to help balance the network, pooling EVs to larger

virtual storage and optimising the use o renewable energy.

This can only be achieved with the necessary inrastructure,

the right inormation and the correct process platorm in place

to support a whole set o new customer, billing, energy and

analytical processes. EVs introduce a new set o challenges

when it comes to billing, and utilities need to be prepared

to break down costs by aspects like parking times, charging

models and reuelling station location.

The Smart Grid is a undamental enabler but it is the

responsibility o the utility to start now with planning and

implementing the required IT inrastructure to prepare or the

widespread adoption o EVs in the coming years.

With many major car manuacturers introducing EVs or

consumer transportation and analysts predicting that EVs will

take over 5-8% o automobile sales by 2020 and 15-20% by

2030, this is an area that utilities can’t aord to not explore.




11

Conclusion

In our introduction to this report we said we wanted to

understand where EMEA utilities were in planning or the

implementation o Smart Grids and Smart Meters and it is

encouraging to see the progress that has already be made.

More than a third are already well on their way to reaping

the benets o the technology, with many more undertaking

pilots. In saying that, utilities need to understand that there

is still a long way to go in order to reap the ull potential o

the Grid.

Given the intelligence provided by Smart Meters and Smart

Grids, it is not simply a case o implementing meters and

synching these up to IT systems and processes to capture

the data. Smart Meters, by their nature, provide ar more

intelligence than current systems and as such, the data

needed to be stored and consequently analysed is huge.

In order or utilities to make the most o Smart Meters and

deliver ROI, they need to put in place a transition plan by

rst stating what exactly they want to achieve. There are

many eatures available through the use o Smart Meters

but not all are relevant to all countries and regions. Utilities

need to examine their marketplace and take a staged

approach to adoption based on the most immediate needs,

and what will deliver most benets and ROI in the short

term.

For example, in some regions EVs are at the oreront o

the minds o Governments and car manuacturers, who

are pushing or mass adoption. In others, there is very little

awareness or advancement in an EV network and thereore,

this may not be an immediate priority or utilities.

A undamental part o any Smart Meter adoption is having

the required IT system in place to store the data produced,

and more importantly draw the intelligence rom it. It is

this analysis and intelligence that can enable utilities, and

ultimately customers, to make better decisions when

it comes to energy consumption. Through the ability

to provide more detailed billing to customers, they can

understand when certain activities can be moved to o-

peak times or even cut out completely, cutting costs and

reducing carbon emissions.

Smart Grids and Smart Meters will play a large part o any

utilities uture and it is imperative that they continue withthe progress already made to ensure they are ready to

take advantage o all the opportunities that the technology

brings.

Methodology

In October 2010, Vanson Bourne surveyed 50 senior utility

executives in Western and Eastern Europe and the Middle

East. The research surveyed ve utilities in the UK, Germany

and Spain, our in France and Italy, three in The Netherlands,

Belgium, Denmark, Sweden, Poland, Czech Republic and

Middle East and Arica, and two in Ireland and Greece.




12

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written permission.

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