Assignment
A leading energy company operating in Serbia ("the client") addressed Deepview with the intension of implementing activities of the EU 2020 Energy Strategy leading to the achievement of the so-called "20-20-20 Energy Targets", which include:
- 20% reduction in energy intensity of the economy,
- 20% reduction in CO2 and CO2 emissions,
- 20% increase in the share of energy from renewable sources in final consumption.
In order to meet the energy efficiency goal, the client decided to implement the AMI (Advanced Metering Infrastructure) and Intelligent Meters (Smart Meters) into the distribution network. The project fits into the wider concept of Smart Grids, which monitor and evaluate energy flows in real time and adapt to changes in the demand and supply of electricity.
AMI and smart electricity meters enable automated power meter management, real-time consumption meter readings, remote meter readouts, dis/connect subscriber, and other advanced features that will eventually allow us to offer new tariffs to end customers.
In order to secure project financing, the client commissioned a feasibility study on the implementation of AMI and Intelligent Energy Meters in 2010, which allowed EBRD and EIB to grant a loan of EUR 80 million.
Due to the dramatic technological developments in the field of smart metering and the time lags in the preparation of the project, the client decided to update the technical and functional specification prior to launching the tender for delivery of the project in order to be in line with the best practice in the field and the current technology offer.
The client therefore addressed Deepview with a request to elaborate and update the feasibility study, the related technical documentation, and at the same time elaborated the economic assessment (BC) of the project.
Solution
Deepview, in its update of the feasibility study and technical documentation, found that the originally proposed solution for AMI and smart meters implementation was out of date and did not take into account the technological developments that took place over the three years since the loan was approved.
Deepview identified which technologies were best suited to the client using a team of international experts covering both local knowledge and its specifics and know-how in the field of smart meter implementation in Europe.
Expertise in the design of smart meters and related infrastructure, the design of a suitable way to ensure communication, taking into account the current threats in PLC technology and, last but not least, the expertise in cyber security and project management has been of prime importance.
Deepview formulated technological recommendations on the basis of current developments in smart meter technologies, current trends, and experience from current and ongoing projects in the following areas:
- AMI (AMM / MDM) - including a comparison of the centralized and decentralized solution and the identification of the technical and organizational impacts associated with unbundling;
- Intelligent electricity meters - including recommendations on minimum functional and technical requirements for household and electricity meters for large commercial and industrial customers;
- Concentrators - including a comparison of traditional access with a "gateway/router" solution;
- Communication technologies - including a comparison of the advantages and disadvantages of implementing PLC technologies according to various international standards (FSK, OFDM - IEEE1901.2, G3 PLC, PRIME) and the behavior in different frequency bands (CELENEC A, FCC);
- Security - including a description of the requirements for the AMI security architecture as such, providing end-to-end security and the benefits of IPv6 implementation;
- Integration - including requirements for CIM based ESB and integration with billing, DMS, CIS and other systems.
This knowledge has been used by Deepview to update the functional and technical specifications of the solution and the detailed economic assessment model (BC) of the project, in which different types of solutions were compared in terms of costs and returns.
Outcome
The know-how of the international expert team has enabled Deepview to identify the latest trends in smart metering and to update the feasibility, technical, and functional specification to implement an AMI solution tailored to the specific conditions in which the client operates.
The updated feasibility study and technical documentation was accepted by the client, internally approved and subsequently used to prepare the tender dossier for the selection of appropriate solution supplier.
The feasibility study included following outputs:
- AMI System architecture;
- Updated AMI functional and technical specification;
- Implementation strategy - including purchasing strategy and project plan;
- Proposal of the organizational structure of the project and a description of the impacts on the organizational structure of the client and internal processes;
- Analysis of the legislative requirements and conformity assessment of the "Unbundling" project;
- Risk analysis;
- Detailed economic assessment of the project;
Revenue sources created due to project implementation were identified and quantified, with the most significant being:
- Reducing the technical and non-technical losses of the distribution network, which accounted for almost 16% of total production in 2013;
- Reducing the cost of manual on-site meter reading;
- Reducing the volume of unpaid receivables from customers;
- Reducing the cost of disconnecting and reconnecting subscribers;
- Simplifying the identification and acceleration of response when illegal subscriptions or attempts to manipulate electricity meters occurred.
