Planning for smart cities

Planning for smart ci?es – A supplier’s view ATSE NSW Symposium 2015 Adrian Clark © Landis+Gyr | 20 May 2015 | PUBLIC The Na?onal Electricity Objec?ve  To promote efficient investment in, and efficient opera2on and use of, electricity services for the long term interests of consumers of electricity with respect to – price, quality, safety, reliability, and security of supply of electricity; and the reliability, safety and security of the na2onal electricity system Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 2 What do consumers value? • 
Engagement -  OpportuniAes to take control of their energy supply and demand Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 3 What do consumers value? •  Flexible and responsive energy supply •  Buying services (not electricity but what electricity can do for them) that could provide for lower costs, flexible charges, opportuniAes to save money and even opportuniAes to make money. •  Examples, baSery leasing, EV services, etc. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 4 What do consumers value? •  Safe and reliable energy •  Service when it is required = Reliability •  Compliance to energy regulaAon and standards = Safe •  Community safety & societal well-­‐being Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 5 Human Smart Community Vision 2015 Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 6 Examples: Innova?on towards a smart community July ‘14: Toshiba develops most efficient organic thin film solar cell Mar ’14: Toshiba develops 7kW contactless EV charger Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC Sep ‘14: Toshiba achieves highest quantum encryp?on for security Jan ‘15: Toshiba develops cloud system for IoT devices to instantaneous remote control to over 1 million Oct ’14: Toshiba Glass Feb ‘15: Toshiba Supports ‘Project Ara’ with 13M camera modules 7 Future Technology Enablers – Ba[ery Storage Toshiba has pioneered the development of baSery technology with the SCiB and conAnues to innovate in the baSery market. The key feature of the SCiB is the fast charging capabiliAes, the ability to maintain a high charging capacity a`er thousands of discharge cycles whilst offering the safest baSery on the market. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 8 Future Technology Enablers – Ba[ery Storage (cont.) Toshiba have developed so`ware to assist uAliAes manage the real Ame impacts of operaAng in a market experiencing high penetraAon of distributed generaAon. Toshiba is establishing capabiliAes as a trusted system integrator for renewable projects and has developed hardware (such as inverters and baSeries) to support renewable integraAon. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 9 Key Point: Enhancing the grid rather than displacing the grid Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 10 Future Technology Enablers – Transporta?on Toshiba is a major component supplier and innovator in smart transport soluAons. Toshiba’s baSery technology is ideally suited to major automoAve applicaAons. As an example Toshiba has developed an advanced bus charging soluAon. This is in addiAon to partnerships and hybrid EV/
EV technology development for the tradiAonal car market. For example, the SCiB was used by both Mitsubishi and Honda in their current electric vehicles. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 11 Future Technology Enablers – HEMS, BEMS & FEMS Both Toshiba and Landis+Gyr have focused our efforts to deliver HEMS soluAons. Landis+Gyr brings a long history in delivering load control soluAons, which compliments Toshiba’s advances in lifestyle products. With the IoT becoming a key focus for both companies the HEMS roadmap is evolving from appliances, to renewables integraAon, along with load management soluAons. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 12 Future Technology Enablers – Analy?cs and ‘Big Data’ Examples of our analy?cs applica?ons for u?li?es: Asset Management Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC Reliability Planning Renewables Integra?on Revenue Protec?on 13 Smart Community : Demonstra?on Projects  The Toshiba Group is par?cipa?ng in  36 Smart Community & Smart Grid Demonstra?on Projects around the world • 
Lyon (France) Smart Community DemonstraAon Project • 
Bristol (UK) EU Smart Home Project • 
Gongoing (China) Smart City DemonstraAon Project • 
Yokohama (Japan) Smart City Project • 
Putrajaya (Malaysia) Green City project • 
Haryana (India) Industrial Area CogeneraAon Project • 
& more … Source : hSp://www.toshiba-­‐smartcommunity.com/en/blog/
smartcommunity_project Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 14 Big issue 1: Difference in benefits across the value chain Opportunity for Major Retailers: •  The current retailer model in the NEM favours a “gentailer” model •  Possible “smart” has the potenAal to introduce a new business model to retailing energy Retailer Benefits: •  Benefits are specific to customer segments and individual product offering •  Ability to exploit localised distributed generaAon proposiAon •  Specific customer benefits such as pre-­‐
payment, informaAon portals, uAlity aggregaAon Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC Opportunity for Distribu?on businesses: •  LV network becoming increasingly important, with predicAons in declining network growth in the future •  The smart grid poses a complete transformaAon to the past processes of planning and operaAng the grid •  A new business model is emerging for energy services Shared Benefits: •  Peak load management – either can call criAcal peak (wholesale pricing, physical demand) •  Metering today is currently delivered by MSP which is the responsibility of the Distributor •  There are benefits of automaAng the delivery of MSP services to both market parAcipants. Distributor MV/LV Benefits: •  Requires broad based deployment to gain benefits (approx. 20% minimum before benefits arise) •  Outage mgt benefits •  Asset mgt benefits •  Specific customer load mgt benefits 15 How the benefits of a smart metering plahorm flow across the industry Benefit Area Distributor Generator/Retailer Energy demand reduc=on Energy demand shi> X X Reduc=on in carbon emissions Micro-­‐genera=on
X X Meter reading X Customer service overheads X Remote switching and disconnect Debt management Other X X X X X The> Losses (Distribu=on) X X Notes; 1.  L+G list of benefits based on DECC and UK ENA benefits acAviAes 2008-­‐2012. 2.  Customer benefits are indirectly or directly related to all benefit areas. 3.  Only the primary beneficiary is shown for simplicity. Many benefit areas flow across the value chain. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 16 How the benefits of a smart metering plahorm flow across the industry Benefit Area Distributor Generator/Retailer Genera=on capacity investment Other X Compe==on X Longer term network management and demand-­‐side load shi>ing X Reduc=on in cost to serve X Improvement in Quality of Supply and Compliance X Efficient network investment X Addi=onal Demand/genera=on and new connec=ons support X Iden=fica=on of network issues and forecas=ng of reinforcement need X X Notes; 1.  L+G list of benefits based on DECC and UK ENA benefits acAviAes 2008-­‐2012. 2.  Customer benefits are indirectly or directly related to all benefit areas. 3.  Only the primary beneficiary is shown for simplicity. Many benefit areas flow across the value chain. Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 17 Big issue 2: How do we future proof and who funds the “opportunity cost”? Today Immediate Future Longer Term Meter Billing/
Tariff Load Control (mainly Hot Water) PV Metering Meter Billing/
Tariff Load Control (Hot Water, A/C, Pools) Renewables IntegraAon LV Mgt (e.g. outage, PQ, neutral integrity) Meter Billing/
Tariff Load Control (Hot Water, A/C, Pools) Renewables IntegraAon LV Mgt (e.g. outage, PQ, neutral integrity) Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC Key message: all these future disrupAve changes impact the business model of both a major retailer (e.g. gentailer) and the distributor (e.g. revenues from supply)… so both will want to have control as the meter is criAcal to future value and their business model. But how do we fund the “opportunity cost”? Energy Services (off grid, baSeries) EV support 18 Big issue 3: Technology and pricing go hand in hand “The cost benefit assessment found that there was a clear business case for the introduc2on of dynamic tariffs (cri2cal peak pricing) in Australia… Without dynamic tariffs customers will be presented with a strong financial incen2ve to install larger distributed genera2on (par2cularly solar PV) systems… If inclining block tariffs are maintained in Australia it will be unlikely that distributed storage will be deployed by consumers due to a lack of financial incen2ves. The introduc2on of dynamic tariffs would see this trend reversed from 2018 when the wider adop2on of distributed storage devices begins to be financially viable.” Source: 2013, Australian Government’s Smart Grid, Smart City Final Report Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC 19 Thank you for your a[en?on Adrian Clark Chief ExecuAve Officer ANZ [email protected] Phone +61 2 9690 7471 Landis+Gyr www.landisgyr.com Adrian Clark | © Landis+Gyr | 20 May 2015 | PUBLIC