Smart Grid & Smart metering

• Publication date: July 2010

Whilst there may be a lot of buzz right now surrounding smart grids, most of it will be over the deployment of smart meters and the advanced metering infrastructure between now and 2015. This report looks beyond the hype, assessing the current status, drivers and barriers, value chain, and business cases of the grid. Key questions • What is a realistic roadmap for smart grid deployment? • What is the main driving for...

Whilst there may be a lot of buzz right now surrounding smart grids, most of it will be over the deployment of smart meters and the advanced metering infrastructure between now and 2015. This report looks beyond the hype, assessing the current status, drivers and barriers, value chain, and business cases of the grid.

Key questions

• What is a realistic roadmap for smart grid deployment?
• What is the main driving force behind the smart grid; national regulation and policies?
• Does a creditable business model exist for the smart grid? What other barriers are there?
• Who are the leading players along the value chain (advanced metering infrastructure, connectivity, applications and software, smart meters, smart home)?
• Who will be the winners in this smart grid phenomenon?
• What ROI could be expected from the deployment of smart meters, and from upgrading smart meters to a smart grid?
• What is the market outlook up to 2015 (smart meter shipments and revenue, and revenue generated from wireless connectivity for smart grids)?

> Market outlook: AMI (Advanced Metering Infrastructure),
Connectivity, Applications & Software, Demand response, Data management,
Energy storage, Clean energies, Smart meters, Smart home
> Countries analysed: USA, Australia, China, South Korea, Japan,
The European Union, France, Germany, Italy, Spain, Sweden,
The United Kingdom

Energy Technology Industry in Australia

Contents

1. Executive Summary .. 8
1.1. With smart meter deployment just starting in most countries, the smart grid is still
far away 9
1.2. A complex value chain with many players .. 10
1.3. The smart meter market is expected to grow, as a first step towards realising a
smart grid 11
2. Methodology 12
2.1. Approach . 12
2.2. Definition of a smart grid . 13
3. Key Technologies ... 15
3.1. AMI and Smart meters 16
3.1.1. Advanced meter infrastructure (AMI) .. 16
3.1.2. Smart meters .. 16
3.2. Management of energy ... 17
3.2.1. Energy management .. 17
3.2.2. Energy storage ... 18
3.2.3. Demand response systems 19
3.2.4. Advanced transmission and (automated) distribution systems ... 19
3.3. Cleaner energies . 20
3.3.1. Renewable energy .. 20
3.3.2. Electric vehicles (EV) .. 23
3.4. Communication technologies .. 25
3.4.1. Wireless . 25
3.4.2. Power line communications (PLC) .. 29
3.4.3. RF mesh 29
3.5. Smarter homes ... 30
3.5.1. Home automation ... 30
3.5.2. Controllers and sensors .. 30
4. Current regulations and deployment status 32
4.1. North America . 33
4.1.1. USA ... 33
4.2. Asia-Pacific . 38
4.2.1. Australia . 38
4.2.2. China . 39
4.2.3. South Korea ... 39
4.2.4. Japan . 41
4.3. Europe 42
4.3.1. The European Union ... 42
4.3.2. France 43
4.3.3. Germany 44
4.3.4. Italy 45
4.3.5. Spain .. 46
4.3.6. Sweden .. 46
4.3.7. United Kingdom .. 47
5. Value chain .. 48
5.1. AMI – Advanced Metering Infrastructure 48
5.2. Connectivity 49
5.3. Applications and Software .. 49
5.3.1. Demand response ... 50
5.3.2. Data management .. 51
5.3.3. Energy storage ... 51
5.3.4. Clean energies ... 51
5.4. Smart meters .. 52
5.5. Smart home 53
6. Players and profiles 54
6.1. AMI – Advanced Metering Infrastructure 55
6.1.1. Overview 55
6.1.2. Silver Spring Networks 55
6.1.3. Cisco .. 57
6.2. Connectivity 58
6.2.1. Overview 58
6.2.2. AT&T .. 59
6.2.3. Telenor ... 60
6.3. Applications and Software .. 62
6.3.1. Overview 62
6.3.2. Comverge ... 62
6.3.3. GridPoint 63
6.4. Smart meters .. 64
6.4.1. Overview 64
6.4.2. Itron 65
6.4.3. Landis+Gyr . 66
6.5. Smart home 67
6.5.1. Overview 67
6.5.2. Control4 . 67
6.5.3. Google ... 69
6.6. Associations 72
6.6.1. Gridwise Alliance 72
7. Analysis and Outlook . 73
7.1. Business cases ... 73
7.1.1. Business case for smart meters .. 73
7.1.2. Business case for smart grids . 74
7.1.3. Pricing models 75
7.2. The telco strategies . 82
7.2.1. US telcos forming strategic partnerships 82
7.2.2. An advanced telco strategy: the Telenor Cinclus case study . 83
7.2.3. Beyond connectivity: the home energy display segment 85
7.3. Drivers and Barriers 86
7.3.1. Drivers ... 86
7.3.2. Barriers .. 88
7.4. Forecasts 90
7.4.1. Worldwide smart meter deployment ... 90
7.4.2. Worldwide smart meter hardware revenue . 91
7.4.3. The mobile connectivity opportunity 92

Tables

Table 1: Summary of main national policies, regulation and targets for smart grids and meters ... 9
Table 2: Comparison of the features of the leading cellular M2M solutions . 26
Table 3: Summary of current national policies, regulation and targets for smart grids and meters, and main
activities of major utilities ... 32
Table 4: Utility-scale smart meter deployments in the US ... 35
Table 5: Examples of alarm and warning services ... 61
Table 6: Description, advantages and disadvantages of the pricing models ... 75
Table 7: Summary of IOU-administered residential customer dynamic pricing pilots and programmes
by State . 79

Figures

Figure 1: Major players within the smart grid value chain . 10
Figure 2: Wireless connectivity revenue forecast worldwide, 2010 – 2015 ... 11
Figure 3: From the traditional electricity grid to the smart grid .. 14
Figure 4: Smart grid building blocks .. 15
Figure 5: Smart meter device illustration ... 17
Figure 6: Comparison of grid energy flow with and without storage .. 18
Figure 7: Technical value chain . 20
Figure 8: Photovoltaic Solar Radiation .. 21
Figure 9: Wind turbines farm 22
Figure 10: Installed wind power capacity (GW) .. 22
Figure 11: EV sales forecasts, in the US, 2010-2015 . 23
Figure 12: Charging station at McDonald’s . 24
Figure 13: Overview of a Personal Area Network ecosystem . 27
Figure 14: Main technologies in use according to bandwidth and reach . 28
Figure 15: Results of a survey about the relative importance of communication technologies ... 29
Figure 16: Smart grid home controller . 31
Figure 17: Utility-scale smart meter deployments in the US ... 34
Figure 18: South Korea’s roadmap to a national smart grid 40
Figure 19: Data transmission image of TEPCO’s smart meter programme 41
Figure 20: Smart meter rollout schedule for ERDF . 43
Figure 21: RWE’s smart meter 44
Figure 22: Examples of time-of-use price plans from Enel .. 45
Figure 23: Swedish law requiring monthly meter billing and settlement .. 46
Figure 24: Value chain for the smart grid 48
Figure 25: Demand response programming options on a Web interface 50
Figure 26: Data management products from eMeter .. 51
Figure 27: Examples of clean energies and other applications connected to the smart home ... 52
Figure 28: Example of a smart meter: Tokyo Electric Power Company .. 52
Figure 29: Example of in-home energy display device 53
Figure 30: Major players within the smart grid value chain . 54
Figure 31: Silver Spring Smart Energy Platform . 56
Figure 32: SmartSynch product description 60
Figure 33: Description of the technical chain .. 61
Figure 34: Comverge’s Apollo Demand Response Management System Software ... 63
Figure 35: GridPoint’s consumer portal solution . 64
Figure 36: Itron operational overview .. 65
Figure 37: The Control4 Energy Management Platform .. 68
Figure 38: Google PowerMeter’s goals ... 69
Figure 39: PowerMeter functioning principle ... 70
Figure 40: List of Google partnerships 71
Figure 41: The smart grid business case analysis .. 74
Figure 42: An example of TOU: EDF Energy’s Eco20:20 Plan ... 76
Figure 43: An example of CPP; PG&E’s SmartRate Summer Pricing Plan 77
Figure 44: An example of PTR; SDG&E’s Summer Saver Plan .. 77
Figure 45: Summary of IOU-administered residential customer dynamic pricing pilots and programmes
by State . 79
Figure 46: US mobile operators’ partnership strategies .. 83
Figure 47: Telenor Cinclus managed service approach: the Fortum example 84
Figure 48: Telenor Cinclus smart meter delivery description .. 84
Figure 49: Share of smartphones in mobile shipments, 2010-2014 forecast .. 85
Figure 50: Global energy consumption, 2006 to 2030 87
Figure 51: Smart meter deployment forecast worldwide, 2010 – 2015 ... 90
Figure 52: Smart meter hardware revenue forecast worldwide, 2010 – 2015 . 92
Figure 53: Connectivity technologies used in smart meter pilot programmes . 93
Figure 54: Wireless connectivity revenue forecast worldwide, 2010 – 2015 ... 94