Smart Technology for Utility CompaniesThe industrys next big opportunityEnergy, Utilities and Chemicals | the way we do it2For energy suppliers, smart technology is a way to increase efciency, improve customer relationships and comply with environmental legislation, while also reducing the need for future infrastructure investment. The UK is now set to embark on a nationwide rollout of smart meters, with the intention of replacing the electricity and gas meters in every home by 2020. This programme represents one of the greatest challenges, and one of the best opportunities, that the UK energy industry has ever faced.Water companies, too, are fast realising the relevance of smart technology to their businesses. Automated Meter Infastructure (AMI) can help companies improve performance in many dimensions, including efciency, environmental protection and customer service. Capgemini is a leading presence in the smart technology market worldwide, having completed numerous smart metering programmes. We have worked with many of the largest utilities on these programmes, including Hydro One, ENEL, EDF and San Diego Gas and Electric. Weve managed the physical deployment of over a million meters, and are currently involved in the deployment of a further 13m. We also have several smart grid programmes in progress. In addition to utilities, we work with regulators and government departments on smart metering.Smart metering: why and how?Smart metering benets consumers, energy suppliers and the environment. For the consumer, its about having better information. Once you see how much it costs to boil a kettle of water, it suddenly gets easier to measure out only the mugful that you need. And when you realise exactly how much that extra freezer in the garage is costing you, you may decide you dont need it after all. Smart metering allows you to reduce not only cost but also your carbon footprint, something consumers are increasingly aware of. For energy retailers, these benets to the consumer mean improved customer relationships and retention, better offers, and more efcient operations. Smart metering also allows energy companies to modernise grids and their management, and decrease the need for future power plants and infrastructure. While saving consumers and organisations money, smart metering helps the environment by reducing energy consumption and greenhouse gas emissions. We believe that your smart metering programme should look beyond the meter-to-cash process to generate value for all participants in the market (including generators, system operators, transmission and distribution service providers, retailers, energy service companies, consumers, regulators, and legislators). For you as a utility, smart metering is a way to increase output and gain competitive advantage.Our approach is above all a collaborative one, because a vital part of smart metering is to orchestrate the many stakeholders involved. Thats why were a founder member of the Smart Energy Alliance, whose goal is to support the next generation of distribution systems by bringing the worlds of IT, communications and energy systems closer together than ever before. Our Accelerated Smart energy: the two key conceptsThe two key concepts in smart energy are the smart meter itself for consumers and energy retailers and, for electricity distribution and generation companies, the smart grid.Smart metering is a two-way communications infrastructure for dynamically sharing pricing information, supporting demand response and establishing time-of-use billing. This last feature can help consumers to make smarter (and cheaper) use of energy, for example by encouraging them to program their washing machines to run at night when electricity costs less, and in doing so reduce peak generation demand. Operational benefts include distribution system optimisation and enhanced outage management. Smart grid is an electricity transmission and distribution network incorporating two-way communications, advanced sensors, and distributed computers. It can anticipate, and instantly respond to, problems in order to avoid or mitigate power outages and power quality issues and support greater use of distributed generation.Around the world, the introduction of smart technology is transforming the way that consumers interact with utility companies. This technology allows consumers to take control of their energy consumption, save money and help to protect the environment. 3 Smart Technology for Utility CompaniesEnergy, Utilities and Chemicals | the way we see itSolutions Environment provides an ideal environment for collaboration between multiple stakeholders to gain agreement on the complex issues these programmes create; it has been a great success with Hydro One, NEMMCO and many other clients.Smart grid: whats involved?Implementing a smart grid requires integrating two complex and distinct networks: rstly the physical power grid infrastructure, and secondly digital communications and controls. To deliver value, an optimised power grid must improve event visibility, manage power ow in real time, and make full use of distributed energy resources throughout the service area. The smart grid provides new levels of information to drive improved situational awareness, timely decision-making, and effective actions by the people responsible for operating the grid.The communication technologies underlying smart grid are enabled by an open, standards-based platform built on a combination of public carrier networks, wireless mesh, WiMax, WiFi, and BPL (Broadband over Power Line) networks. Use of multiple technology vendors is desirable to address varied operational and cost considerations.Although the utility industry has embraced the goal of a smart grid, gaps exist between the vision and reality of physical infrastructure, technology, nances, and keeping electricity owing smoothly 24 x 7. Capgeminis roadmaps and resources enable a smooth evolution from traditional generation, one-way transmission and distribution to distributed generation with two-way communication and consumer demand integrated with utility delivery. We provide blueprints for the smart grid not just pilots, but practical working solutions.Capgeminis smart technology capabilitiesWe can offer you a full range of smart technology services encompassing business transformation consulting, technology and managed business services. A typical end-to-end programme structure for multi-million meter mass deployment includes the following high-level elements:Deploying smart meters to residential and small commercial customers Building the enabling communications infrastructure Developing and testing time-of-use billing, and integrating it into existing business processes and systemsWe manage, and in many cases execute, all of the necessary technological work including design, meter and network installation and integration of new and existing systems. Equally importantly, we have the experience to reduce your risk and help you transform your business to realise all the benets of smart metering.Some of our smart technology success stories Hydro One, CanadaWe have been supporting Hydro Ones demand response smart metering programme for over a million electric customers. Key activities included enabling demand response tariffs and automating meter reading. Capgemini and Hydro One have developed a smart metering technology roadmap to add advanced functionality enabling new retail services, home automation and smart grid capabilities. The programme required integration of SmartSynch with legacy systems and Lodestar MDMS. Future architecture includes development of an event manager solution to manage multiple smart metering network solutions and intelligent distribution grid communication devices. San Diego Gas & Electricity (SDG&E), U.S.Capgemini is working with SDG&E to deploy 1.4m gas and electricity smart meters. We have put in a programme management ofce handling overall day-to-day management of the programme, as well as tracking schedule, budget, and benets realisation. Other responsibilities include business integration, solution architecture, customer experience, operational services and deployment management, and organisational change management. Automated Meter Infrastructure (AMI) for the water industryAMI is the logical move forward from Automated Meter Reading (AMR). It is a key mechanism for understanding and infuencing customer usage and water effciency as the industry strives for the 130l/day target. It can help companies manage demand, rationalise assets, spot production losses and meet carbon targets. Correctly used, AMI also offers a way to improve service to customers and meet their changing expectations.AMI is much more than just meter-to-cash. To succeed, companies need to create a robust, comprehensive business case. An AMI programme should take place in the context of a vision of long-term change that will ultimately lead to an intelligent network and business. Companies going down this route must build end-to-end partnerships with other players, including their own customers. Similar undertakings in the electricity and oil industries show that fundamental changes to the business itself, including its organisational structure, are likely to be needed. In terms of technology, integration of systems and data may be necessary, and some applications may need to be migrated to different platforms.ContactsFor further information on Capgeminis Smart Metering capabilities, contact: 2009 Capgemini. No part of this document may be modifed, deleted or expanded by any process or means without prior written permission from Capgeminiwww.uk.capgemini.com/industries/utilities/smart-meteringCapgemini, one of the worlds foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies.Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business Experience.The Group relies on its global delivery model called Rightshore, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients.Present in more than 30 countries, Capgemini reported 2008 global revenues of EUR 8.7 billion and employs over 90,000 people worldwide. More information is available at www.uk.capgemini.comAbout CapgeminiGord ReynoldsPractice LeaderSmart Energy Servicesgord.reynolds@capgemini.com+1 416.732.2200