SmartGrids_WhitePaper

8/13/2019 SmartGrids_WhitePaper

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1 Smart Grids drive integration of utilities and ICT infrastructures

Smart Grids drive integrationof utilities and ICT infrastructures


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1. Introduction 3

1.1. Executive summary 3 1.2. Why Nokia Siemens Networks? 4

2. Market view 5 2.1. Market trends 5

2.2. Facts and figures 5

2.3. Regulatory and legislative environment 5

2.4. Environmental aspects 6

2.5. Summary 6

3. ICT in utility networks 7 3.1. Communications backbone 7

3.1.1. Providing carrier grade reliability 7

3.1.2. Evolving to packet technology 8 3.2. Key applications 9

3.3. Control and management systems 10

3.3.1. Data collection and forwarding 11

4. Leveraging Telco capabilities and assets 12 4.1. Breaking down the silos in utility network management systems 12

4.1.1. Open EMS Suite modeling capabilities 13

4.1.2. Application functionality 13

4.1.3. Third party application development capabilities 13

4.2. Charging solutions help maximize revenue opportunities from Smart Metering 14

4.2.1. An effective solution for Smart Metering 15

4.3. Analyze and anticipate customer behavior in real-time 16

4.4. eMobility: proven technology helps address ICT requirements 17 4.5. Managed services improve efficiency and reduce risks for utilities 17

5. Conclusions 18

Smart Grids drive integrationof utilities and ICT infrastructures


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1.1. Executive summary

This paper addresses some of the major Informationand Communication Technology (ICT) challenges

that energy utilities face in adopting Smart Grids.

These challenges go beyond the traditional

requirements to provide highly robust and resilient

communications systems with failsafe redundancy

mechanisms.

As energy utility networks evolve from centralized to

distributed architectures, bidirectional

communications become critical to efficient

operations. Effective bidirectional communications

can help to provide energy generation on demand, as

well as reduce peak loads through intelligent energyconsumption in enterprises and households. Smart

Grids are also driving the integration of utility and ICT

networks. And as these two different infrastructures

converge there are opportunities for energy utilities to

leverage proven experience and assets from the

Telco world.

For instance, Smart Metering applications will create

a trickle of information that very quickly turns into a

data flood. But merely collecting and storing these

increased data volumes is not enough for energy

utilities. They need to be able to process the received

information in near real time - and act on the results.Many of the worlds most successful Telco operators

rely on Nokia Siemens Networks solutions to analyze

and anticipate customer behavior. Utilities can use

the same proven technology to differentiate their

offerings through innovations in service creation and

customer service for example, by creating smart

tariffs. And our next generation network

management systems can also help utilities to bridge

the organizational silos that have been built up as

legacy networks have evolved slowly over time.

1. Introduction

eMobility (transportation based on plug-in electric

vehicles) is another area where Telco capabilities can

provide added value to utilities. Vehicle charging will

happen at different locations and using multiple

service providers - but offering a convenient customer

experience is essential. In order to provide payment

and customer services consolidated through a single

provider, identification, authorization, and roaming

functionalities are needed. These functionalities are

well established in mobile communications and Nokia

Siemens Networks is a market leader in this area.

Our networks handle huge volumes of data andconnect over 1.5 billion customers around the world.

Smart Grids, Smart Metering, and eMobility all have

the potential to disrupt existing value chains and bring

new competitive forces to the utilities market. Now,

more than ever, energy utilities need trusted partners

who can help them to transform their operations and

adapt to new business models.


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2.1. Market trendsEconomic recession brings both challenges and

opportunities. And energy is a commodity unlike any

other: it will always be needed, irrespective of the

general state of the economy.

From the demand side the key focus is on improvingenergy-efficiency both consumers and companies

are looking for ways to control their energy usage and

expenditure. From the supply side utilities aim to

optimize energy generation and delivery, and their

own operations. This will be necessary to retain

customers, remain competitive and to meet

shareholder expectations.

Smart Metering is perhaps the most high profile trend

at the moment. However, soon the focus will turn to

service and element management - and how they

can help utilities to produce and deliver electricity

more efficiently. In other words: operating true SmartGrids.

In the longer term eMobility (transportation based on

plug-in electric vehicles) will bring further change.

While the technologies, infrastructures and business

models that are needed are currently immature it

nevertheless has the potential to significantly disrupt

existing value chains in the energy market.

2.2. Facts and figuresResearch reports5estimate that the installed base for

smart electrical meters will grow to 180-200 million by

2014 at a CAGR of 20%. Communication Service

Provider connectivity revenue from Smart Meters is

expected to grow to $5 Bn in 20146. But continuously

falling meter and connectivity prices combined with

funding from governmental stimulus plans are

expected to accelerate Smart Metering deployments.

Governments have allocated significant parts of theireconomic stimulus packages to Smart Grids and as

a consequence utilities have started to spend serious

money. For instance, the Obama administration has

called for the installation of 40 million smart utility

meters as part of its economic stimulus package. In

total $8.1n will be spent by the government and

utilities on Smart Grids7. China is expected to follow

suit with another stimulus package, which aims to

double their output of alternative energy by 2020.

2.3. Regulatory and legislative environment

Because of its crucial impact on society, energy isnever far away from the tables of legislators.

Traditionally this takes the form of ensuring energy

availability, but protecting the environment is an

increasing concern. For example, the EU 20-20-20

directive seeks to lower carbon emissions by 20%

from their 1990 levels - by 2020. Additionally the EU

seeks to increase the share of renewables in energy

use to 20% over the same time period.

The regulatory and legislative environment brings an

aspect of uncertainty to all energy utilities. Indeed as

one industry executive recently remarked: what is a

recommendation today, becomes a requirementtomorrow.

5-6)ABI Research, 2009

7) Matt Rogers, senior adviser to the secretary at DOE quoted in Smart Grid Today, October 2009

2. Market view


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2.4. Environmental aspects

Electricity production is faced with ever-intensifyingecological pressures. Reducing carbon footprints and

making sure energy production is as environmentally

conscious as possible is a key priority.

In this respect, Smart Grids are neither a surprising

nor a new idea. It is well known that systems

transmitting and distributing electricity are

exceedingly wasteful (and vulnerable). Huge

amounts of power are lost to technical problems or

theft: up to 10% in the US and Europe; more than

50% in some big cities in developing countries8.

eMobility is another major technological shift with thepotential for large-scale positive environmental

impact. Electric-powered vehicles may also receive

governmental support and incentives (legislative and

financial) to speed up the required investments in

technology and related infrastructures. This will open

up new opportunities for energy utilities to capitalize

on.

2.5. Summary

Change in the energy market is being driven by anumber of compelling external forces including

government stimulus packages, increased legislation

and rising environmental concerns. Reducing waste

and moving to more efficient generation, transmission

and distribution systems is a necessity for energy

utilities. The following sections will explain the role of

communications technology in existing networks,

some of the limitations of these legacy networks and

how ICT can help utilities as they make the

transformation to Smart Grids.

8)Wiser wires article in the Economist, October 2009


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While telecommunication is notthe core, revenue-generatingbusiness for energy utilities,highly reliable communicationsare essential to supportmission-critical activities.

ICT plays a critical role in responding to operational

problems and ensuring that energy generation and

distribution remain at the required levels.

Communications solutions must take into account thestringent safety, reliability and security requirements

placed on energy utilities. Utilities normally require

their own (dedicated) networks because public

networks are either non-existent or unable to deliver

the required bandwidth, network availability, service

quality or security.

The unique operating environments of energy utilities

also place their own demands on how solutions are

built, and the communications systems that are

needed. The walled, electrified, shielded and even

hazardous environments of energy generation and

distribution all have implications for communicationsprojects.

3.1. Communications backbone

Efficient operations necessitate an efficientcommunications system that connects the plants,

facilities and substations. When considering which

technologies to deploy in the communications

backbone, utilities are faced with a number of viable

choices. Naturally, a number of factors will influence

the final decision, including capital expenditure,

operational costs and the existing infrastructure that

may already be in place.

3.1.1. Providing carrier grade reliability

Nokia Siemens Networks has a wide range of end-to-

end connectivity solutions that provide true, carrier

grade reliability and are suited to the needs of utilities.For example, our Narrowband/ Multiservice products

have been developed specifically to meet such

requirements and have been serving utilities for over

20 years9. Teleprotection features help to rapidly

isolate faults in the energy network and prevent

outages and blackouts. These products can cope

with the harshest operating environments and the

most extreme temperature ranges, yet still deliver

network availability of 99.999% and provide very fast

fault recovery (sub-50 milliseconds).

While copper and increasingly fiber are the mainstays

of the communications backbone, microwave radioalso has a role to play. Microwave Radio can be a

popular choice because of flexibility, reliability, and

fast rollout and where other transmission media are

not available because of challenging topography it

becomes the only choice! Nokia Siemens Networks

microwave radio supports a wide range of capacities,

with 99.999% uptime and a variety of protection

features. It is also based on future proof platforms

that are ready to support full packet transmission.

9) Our public references include Tenaga Nasional Berhad (TNB) who provide nearly 40% of Malaysias power generation. Nokia SiemensNetworks products were first deployed in 1989 and there are currently over 6000 nodes installed in TNBs communications network.

3. ICT in utility networks


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Alternatively, Carrier Ethernet technologycan provide a very effective solution bycombining the performance and flexibilityof Ethernet - with the reliability of TDM.Our Carrier Ethernet switches deliver

end-to-end traffic assurance and serviceavailability through guaranteed hardquality of service.

3.1.2. Evolving to packet technology

Because of the growing data demands of SmartMetering and Smart Grids, utilities are increasingly

moving to packet based technologies to provide the

most efficient networks. Where legacy SDH networks

are in place Next Generation SDH10offers a safe,

non-disruptive way to exploit the existing

infrastructure. Our Next Generation SDH has proven

inter-working with IP environments and supports a

wide range of Time Division Multiplexing (TDM),

Ethernet, and transparent interfaces. These allow

different traffic types to be carried seamlessly,

benefiting from the agreed Quality of Service (QoS)

and ensuring the reliable delivery of voice and data.

Due to its inherently synchronous nature NextGeneration SDH is also an ideal solution to support

timing-critical applications.

10)Next Generation SDH (Synchronous Digital Hierarchy) is a development of SDH. Benefits include more efficient and less wastefultransmission of data through the use of Virtual Concatenation allowing for a more arbitrary assembly of lower order multiplexing containers.

Nokia Siemens Networks is also a world leader in

optical transport and our solutions can help utilities to

substantially reduce the total cost of ownership while

at the same time increasing scalability and capacity.

To cope with the highest bandwidth requirements in

the core transmission network Dense WavelengthDivision Multiplexing (DWDM) technology provides

the best solution. DWDM enables the transmission of

multiple wavelengths over 1 fiber, each one carrying

2.5G, 10G, 40G and in the near future 100G. While

these bandwidths may seem somewhat excessive

today, they do provide a future-proofed solution when

planning for the demands of the next generation of

utility networks.


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3.2. Key applicationsManaging energy generation and distribution relies

on a number of key applications. The applicationsused are mission-critical in nature due to their close

connection and/or interlinking with operational

technology.

The applications run on a highly reliable and

redundant backbone that handles both theapplications and the data related to security,

protection, SCADA11, telemetry and control. The

backbone is used simultaneously to provide

operational voice capabilities and even physical

security applications from CCTV to intrusion

detection. In addition, latency-sensitive TDM

networks and high-capacity Ethernet networks

support voice and data transmission between

locations.

Applications must also be able to support the wider

company infrastructure for instance, integration with

business information and other operational and ITsystems.

11) Supervisory Control and Data Acquisition - a computer system monitoring and controlling an operational process.

Fig 1: Key ICT applications in utility networks

Broadband services

CCTV Video surveillance

Communication networksand solutions metering

SCADA for grid supervision and control

Network administration

TDM network management

TeleprotectionRedundant fibre optic/microwave backbone

Public address system

Emergency phone

Surveillance camera

Bandwidth for leasing purposes (e.g. TV, data)Substation

End-user Industry

Telephone communications


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3.3. Control and management systemsElectricity grids are for the most part controlled by a

variety of legacy systems that are purpose-built for a

specific task or function. While in themselves these

systems work extremely well, providing unified and

efficient management of them is a challenging task:

Incompatibility different systems cannot

share data with each other

Non-automation operational processes

are cumbersome, because manual steps

are required to exchange information

between various teams or departments

Separation the network models are built

separately for each application

Lack of reusability it is difficult to give

access to the data residing in the systems

to third parties that may require data for

their own planning or reporting purposes

Cost factor maintenance of bespoke

systems is increasingly expensive

These systems have been developed for existing grid

architectures with specific emphasis on current

fluctuation management, energy generation and

demand balancing. An example of the existing

architecture is shown below:

Fig 2: Example of a legacy control and management architecture

External Systems (ERP, CRM, Work order mgmt etc.)

Data Communication Network(point-to-point, narrow bandwith)

SCADA and other local control systems

OPERATIONS CENTER:Used for specific tasks only

LOCAL MANAGEMENT:Day-to-day managementheavily dependent on this

Applicationsdeveloped for asingle task

Interactionbetween systemstailor-made

Process modelingand developmentdifficult

Local interactionwith the network

Pre-plannedscenarios

Proprietarysystems formanagement andcontrol

AssetMgmt

FaultMgmt

PerformanceMgmt

Simulation Control


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3.3.1. Data collection and forwarding

The current mechanisms for collecting data and

passing it to the management system (e.g. SCADA)

are based on purpose-built point-to-point

communications. In order to provide additional data in

near real time bandwidth must be increased and new

sources of data need to be made available. New

sensors and probes will also be needed to collect thedata.

Unfortunately, on its own this is not enough! The data

needs to be made available to the various control and

management systems that may need it. Formatting

and forwarding the data is also required. This is

because each application or system has its own way

of modeling the network and therefore no consistent

way of representing the data exists.

Furthermore, interaction between the control and

management applications is cumbersome due to the

fact that they have not been designed for this

purpose. Thus multiple manual processes are

needed to transfer data from one system to another

or to perform data analysis in another system.

Consequently, the overall network operation can be

both error-prone and inefficient.

As Smart Grids are deployed, more dynamic

management of the grid becomes necessary and the

bottlenecks and inefficiencies caused by these

systems will become unacceptable for energy utilities.

The diagram below provides a simple illustration of

the layered architectures that can be used in future

control and management systems:

Fig 3: Layered architecture for use in future control and management systems

External Systems (ERP, CRM, Work order mgmt etc.)

Enterprise Integration Bus

Authorized Network Modeling Layer

Data Communication Network(IP-based, broadband)

SCADA and other local control systems

OPERATIONS CENTER:Used to manage thenetwork as a whole

LOCAL MANAGEMENT:Needed only forspecific tasks

Applications sharedata and models

Flexible use casesand processes

Third partydevelopment andstandardcomponents used

Close to real-timeupdates ofnetwork status

Dynamic networkoptimizedend-to-end

Standards-basedcontrol andmanagementinterfaces

AssetMgmt

FaultMgmt

PerformanceMgmt

Simulation Control


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Developer tools Customer-developedEMS applications

Open EMS Suiteapplications

Softwaredevelopment kits

FM Platform:- FM engine- Monitoring

tools

PM platform:- PM engine- Reporting

tools

Application platform

GUI framework (web, Java-rich

client)

Application Platform Services- Topology (MDF)- Licensing

- Security- Adaptation management

MediationFramework

O&M Agent

- XML- SNMP

- OSS/J- NE3S/SOAP

O&M Interfaceelements

Customer-developedinterfaces

4.1. Breaking down the silos in utilitynetwork management systems

As discussed in the previous section, the

communications networks of many energy utilities

have evolved slowly over time to meet the needs

from the industry for well-proven and resilient ICT

infrastructures. Unfortunately in many cases this has

left a legacy of fragmented technologies and systems

in use which is often reflected in organizational silos

and sub-optimal processes.

In order to cope with the additional challenges posed

by Smart Grids, energy utilities need an integrated

ICT infrastructure that supports different applications,

and avoids duplicated investments.

Nokia Siemens Networks has created a next

generation management system platform called

4. Leveraging Telcocapabilities and assets

Open Element Management Suite (OES) for use in

the telecom market. OES has been specifically

developed to accommodate multiple technologies in

network management something that would also

benefit utilities.

OES incorporates powerful network modeling

capabilities that can accommodate the different

vendors and technologies that will be needed when

deploying Smart Grids. These have been developed

to provide management functionality for millions of

individual managed objects (MOs) both physical

and logical, and to allow the collection of data from

these MOs. The key difference to existing

management system architectures is that the model

resides in a system dedicated for the purpose, rather

than being built into each separate system or

application.

Fig 4: OES building blocks


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4.1.1. Open EMS Suite modeling capabilities

OES contains an advanced technology called Instant

Adaptation Architecture (IAA). IAA allows easy and

modifiable adaptation of various types of equipment,

and it also notifies the applications of changes in the

network.

IAA provides the users of OES systems with thefollowing advantages:

4.1.3. Third party application development

capabilities

OES has been designed to fit into an ICT

environment that requires efficient informationsharing. It includes multiple interfaces to make the

data available to other applications and systems.

Most importantly, application development can be

performed quickly and simply.

For example, Irish company ServusNet has

developed a management solution based on OES

that delivers reduced operational costs and improved

efficiencies for wind farm operators12.

OES enables the effective integration of third party

applications into the same run-time environment13,

thus ensuring that the applications can share the

same data on the network topology (element naming,

connectivity, capabilities and restrictions). This leads

to efficient design of operational processes e.g.

related to fault-finding and corrective actions as well

as network optimization and simulation. Because

third parties can develop applications within the OES

framework energy utilities can freely select the

application that best suits their purpose rather than

being dependent on a single supplier.

Functionality typically residing outside of the OES

system includes the following systems:

12)For more information please visit: http://www.servusnet.com/home/index.php

13)Nokia Siemens Networks provides a Software Development Kit, newsletter and developer forum to help software developers createapplications on top of OES as well as facilitating adaptations to multi-vendor network elements

Quick integration of new network

elements directly or via existing

SCADA systems

New types of elements can be

introduced using simple metadata

(no coding needed)

Efficient tools to model network

elements and create metadata

Minimum interruption at runtime

when deploying new adaptations

IAA is also tightly linked to the adaptation capabilities

(i.e. data feeds into the system). Multiple protocols

are available to connect the system to different

SCADA systems or the network infrastructure itself.

Most importantly these adaptations are separate

software modules which means that they can be

updated and modified independently of the OES

platform itself, or the applications that have been

developed on top of OES.

4.1.2. Application functionality

In addition to the platform capabilities of OES, it also

contains the following application capabilities:

Event and fault management

and correlation

Performance data collection,

storage and analysis

Graphical User Interface (GUI)

development tools

Trouble ticketing systems

- e.g. Remedy ARS

Graphical Information

Systems (GIS) - e.g. ESRI

Workforce management

and automation systems

- e.g. Microsoft

Financial and Enterprise

Resource Planning (ERP)

systems - e.g. SAP

Enterprise identity

management systems -

e.g. IBM Tivoli

Interfaces and integration capabilities exist for all of

these. To help break down the barriers between silos

and lower the Total Cost of Ownership during the

operational lifetime of the control and management

system we have implemented open and

standardized interfaces to outside functionalities.


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4.2. Charging solutions help maximizerevenue opportunities from Smart MeteringThe ability to make meter readings in near real time

opens up opportunities related to so-called smart

tariffs. A good example is where the price of the utility

depends on seasonal or daily changes in utility

consumption. Meter data collection and consumption

analysis will shift from yearly overview to daily, hourlyor even more frequent insight and detailed invoicing

will be possible every month. If the energy utility

decides to increase (or decrease) the price of the

utility, the new tariff can be introduced almost

immediately without sending the workforce into the

field to read and reset the meters.

Smart Metering is a stepping stone towards smart

grids, and will bring more transparency to consumers

and help utilities to reach the energy efficiency targets

set by governments. The other drivers for energy

utilities are operational efficiency, reduced theft/loss,

demand management, customer service, and

changes in the competitive landscape.

Energy utilities with legacy ICT systems face a

challenge to handle the much larger amounts of

metering data. Smart meters with bidirectional

communication need to be installed and an ICT

infrastructure capable of coping with the resulting

data flood is required.

The collection of charging data needs to happen in

near real time14. Although the amount of data per

charging record is small, due to the large number of

customers and increasing frequency of the data

uploads the total amount of data handled will become

very large, very soon. Nokia Siemens Networks

charge@once product family has been developed to

deal with very large amounts of data in near real

time15. This capability ensures that adequate

scalability and performance in meter data

management solutions is available from the start,thus avoiding potential bottlenecks which could slow

down the deployment of alternative tariff structures

and the growth of revenues.

Charge@once provides all the necessary

functionality to collect meter data from the smart

metering infrastructure and deliver it to the existing

billing system of the energy company. It is very

important to note that the existing billing system can

continue to provide its current functions - and

therefore risks from customer and data migration can

be avoided.

14) In some countries it may be necessary to provide pre-paid electricity to ensure accurate billing of electricity, if conventional banking facilitiesare not available.

15)The strict requirements of the telecom industry (especially for pre-paid environments) have been met with charge@once which lends itselfwell to the energy sector.


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Supports flexible energy trafficcontrolled by energy provider

Interface to energy provider invoicing/financial system

Energy billing supporting postpaid, prepaid, hybrid

Consumber data & energy comsumption history

Meter data collection & storage

Energy service rating

& bonus programs

Energy charging layer

charge@once unified

charge@once mediate

Offermanager

Integrationlayer to energy

Billing

Centralizeddata bases

Charging &rating engine

Data collectionfrom meters

4.2.1. An effective solution for Smart Metering

To fully exploit the opportunities presented to utilities by Smart Metering Nokia Siemens Networks proposes an

effective two-layer solution, which is shown below:

At the Enterprise layer, the tasks are standard across

industries and energy utilities may choose to use their

own Customer Relationship Management (CRM),

ERP and billing systems. However, charge@once

business can also provide customer care, reporting,

invoicing, payment collection, and accounts

receivable for relevant energy services. In addition,

Service Oriented Architecture (SOA) over Enterprise

Service Bus (ESB) is used. This allows easy

interworking, and for changes to be made without

significant impact to the other enterprise systems.

create alternative billing methods for consumers

utilize alternative charging options to manage energy consumption

create incentives for consumers to generate energy themselves reduce time-to-revenue for their own renewable energy investments

Process templates are pre-integrated with charge@

once unified which means that payment methods are

efficient and accurate.

At the Energy Charging layer, charge@once mediate

manages the collection and storage of metering data,

while charge@once unified provides the core

charging solution (see below). Specific functionality

for energy utilities is delivered through charge@once

customization capabilities.

Amongst other benefits, the Nokia Siemens Networks charging solution allows the energy utilities to:

Fig 5: Two layer architecture of the solution

Fig 6: Charge@once delivers specificfunctionality for utilities

Unified andcustomer centric

Enterprise layer


Enterprise layer

charge@once business


Integration

layerCustomer care

Customer selfcare

Order management

Reports

Invoicing

Account receivables

Collections

Integration logic

CRM ERPinvoicing Billing

Billing

Unifiedcharging

Mediation

Centralizeddata bases

Charging &rating

Mediation

charge@once unified

charge@once mediate

Productlifecycle

management


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4.3. Analyze and anticipate customerbehavior in real-timeThe evolution to Smart Grid technology also provides

an opportunity for energy utilities to analyze and

anticipate customer behavior in real-time. In mobile

communications, Telco operators are facing

increasing price competition and commoditization

pressures. Many are responding by using customerinsights to drive innovation in service creation and to

differentiate through customer service16. In mobile

communications customers are referred to as

subscribers but nevertheless there are many

similarities to the challenges now facing the energy

utility industry. And more and more frequently

communications solutions are being deployed in

scenarios where the subscriber is not a person, such

as with machine-to-machine applications.

In addition, Nokia Siemens Networks supports the

creation of new applications by partners17and the

openness of the system itself permits easy integration

of utility-specific applications. One-NDS and Nokia

Siemens Networks applications are hosted on open,

commercial off-the-shelf (COTS) computer hardware,

and the applications run on open, standard Solaris or

Linux IT platforms. Consequently, utilities may find

that the capital cost of introducing this new

architecture is much less than that of maintaining

legacy silos systems. Administrative costs are also

lower because all subscriber data is held in one

place, eliminating problems associated with the

synchronization of service data across many

systems, and speeding up time to market.

One-NDS and all Nokia Siemens Networks-supplied

applications have been proven to scale from 100,000

to over 250 million subscribers, letting utility

applications start small and scale up according to

needs. Data can be held across 1 to 256

geographically separate sites, thus providing the high

resilience that energy utilities need from network

disruption.

Nokia Siemens Networks Subscriber Intelligence

Framework is a complementary solution that

shadows One-NDS and allows one or more

concurrent applications to access One-NDS and

historical data warehouses. Information can be

processed in sub-second near real time without

degrading the One-NDS performance. Data such as

identities, locations, devices, preferences and

network usage status can all be stored in a single

repository and because it can be accessed in real

time it provides a powerful analytical tool for utilities toexploit.

Besides the profiling of customer utility usage

patterns, which allows for the creation of smart-tariffs

as described above, the behavior of the utility devices

themselves can also be seen, analyzed and acted

on. For example, a change of state for a fixed sensor

if it is detached from the network due to loss of power

or coverage, or if pairing between the device and a

SIM card or unit is broken.

16)As an example, see Nokia Siemens Networks report The drive to enrich customer experience: http://www.nokiasiemensnetworks.com/sites/default/files/Enriched_Customer_Experience.pdf

17)SDM Partner Program provides a professional framework including Software Development Kits, reference documents and training thatallows developers to build on the success of our market leading Subscriber Data Management solutions.

Nokia Siemens Networks is the

worlds leading provider ofSubscriber Data Managementsolutions, with around 1 billionsubscribers in 48 countries. Ourproven solutions are based on theOne-NDS unified data repository,and include other elements suchas the Subscriber IntelligenceFramework.

Nokia Siemens Networks One-NDS is an open,

customer-centric directory containing all subscriber

and service data in one logical entity for existing and

future domains and applications. Nokia Siemens

Networks applications provide the standard building

blocks for mobile, fixed and converged networks

including Home Location Register (HLR), Home

Subscriber Server (HSS), Authentication,

Authorization and Accounting (AAA), Equipment

Identity Register (EIR), Mobile Number Portability

(MNP) and Bootstrapping Server (BSF). Many of

these can be used by utilities. Open interfaces enabledata to be linked to business applications such as

reporting, analytics and dashboards, giving the ability

to fully leverage knowledge about customers.


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4.4. eMobility: proven technology helpsaddress ICT requirementsElectric Mobility (or eMobility) based on plug-in

electric vehicles is expected to have a

transformational effect on several aspects of the

modern economy: automobile manufacturing,

electricity generation & distribution, primary energy

consumption and transportation infrastructure. It alsohas the potential to disrupt existing value chains and

introduce innovative services and business models.

While the excitement around eMobility is quite

evident from various announcements around the

world, large scale deployment and successful market

development depend on overcoming many

challenges in the energy, automotive and ICT

sectors. Load station infrastructure is required to offer

access to adequate charging in different areas, to

support longer driving distances. Offering a

convenient customer experience is essential for

example, vehicle charging from multiple locations and

service providers but with payment and customer

service consolidated by a single provider. To provide

user friendly and secure charging mechanisms

identification, authorization, and roaming

functionalities are needed.

These functionalities are well known in mobile

communications, meaning that the ICT infrastructure

needs of eMobility can be addressed through proven

technology. And as mentioned in the previous

sections, Nokia Siemens Networks is a world leader

in these areas18.

4.5. Managed services improve efficiencyand reduce risks for utilitiesManaged services provide a tool to improve efficiency

and operational performance as energy utilities face

up to the challenges of changing consumer demand,

ever-changing regulatory frameworks and an

uncertain economic climate. They also allow utilities

to free up their own resources (both human andcapital), allowing them to focus more closely on their

core business.

Nokia Siemens Networks provides a range of

managed solutions to operate communications

networks and optimize end-to-end performance,

service platforms and communications terminals.

With extensive experience of successful managed

services projects we can help design and implement

the best business models for utilities - based on agile

and efficient processes.

Managed services can deliver faster time to market

and reduce the risk of introducing new technologies

and end-user services. Operational efficiency

improves through guaranteed service quality, the use

of global best practices and a single point of contact

for network operations. As a business strategy,

adopting managed services depends on choosing the

right partner. Nokia Siemens Networks is a trusted

partner for major companies around the world and in

addition has a very strong track record of managing

multi-vendor technology networks. Our portfolio

includes:

Outsourcing: Reduced risk and sharper

business focus

Build Operate Transfer: End-to-end

introduction of new technology

Operations Start Up: Start-up support and

competence transfer

Managed Service Operations and

Assurance: combines assured end-user

quality of experience and efficient service

operations

18)For example, 20% market share in mobile prepaid charging and over 1 billion subscribers using our Subscriber Data Management solutions


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External forces such as government stimulus packages, and rising environmental

concerns are accelerating the adoption of more efficient power generation,transmission and distribution systems

As Smart Grid technologies are deployed they are driving the integration of

traditional utility networks with modern ICT infrastructures

As utility and ICT infrastructures converge, knowledge and experience from the

Telco world can be applied to the challenges that energy utilities face

These challenges include operational silos caused by fragmented legacy control

systems, and handling vast amounts of data from smart metering applications

Nokia Siemens Networks OES platform can help utilities to break down the

barriers between silos by providing open and standardized interfaces, andeffective network management across multiple technologies

And our charge@once solution can help utilities to process near real time data

from smart meters and deliver the most effective tariffs to customers

Nokia Siemens Networks is also the clear number 1 in Subscriber Data

Management with around 1 Billion customers served

Energy utilities can also use our well proven products to gain insights about their

customers

By analyzing customer behavior patterns utilities can differentiate through

innovative service offerings and improved customer experience

In summary, Nokia Siemens Networks has experience providing reliable, complex

and secure end-to-end solutions - in a sustainable manner

We believe that these strengths can be a major asset for energy utilities as they

adopt Smart Grids.

5. Conclusions


19/19

Copyright 2009 Nokia Siemens Networks.All rights reserved.

Nokia Siemens Networks Corporation

P.O. Box 1

FI-02022 NOKIA SIEMENS NETWORKS

Finland

Visiting address:Karaportti 3, ESPOO, Finland

Switchboard +358 71 400 4000 (Finland)Switchboard +49 89 5159 01 (Germany)

Nokia is a registered trademark ofNokia Corporation, Siemens is aregistered trademark of Siemens AG.The wave logo is a trademark ofNokia Siemens Networks Oy.Other company and product namesmentioned in this document maybe trademarks of their respective

owners, and they are mentioned foridentication purposes only.

Nokia Siemens Networks 11/2009

Activeark Ltd.

http://www.nokiasiemensnetworks.com

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