Tieto Utilities
Muligheter innenfor
framtidens avanserte
© 2010 Tieto Corporation
målerinfrastruktur
Knut E. Gustavsen
Tieto Utilities Norway
[email protected]
„El Dorado for Service Providers“*
source: Der Spiegel
€ 25 Bln
€ 53 Bln
expected global spending
for IT in Energy in 2020.
The annual growth rate will
be 14-21%*
of savings can be unlocked by
implementing a 100% smart
meter coverage in the EU
source: McKinsey
source: The Brattle Group
1.000.000+
>30 Mio
>60%
is the been
have
amount
rolled
of meters
out in Europe
that Tieto
so far.
has
taken
Nearly
fromallroll-out
meterstoin
operation have have involved a
operation.
Tieto assignment.
of consumers in the US
and UK are willing to pay
for a home monitoring
service
10
times
increase in supplier
switches
source: Intamac
source: CRE French Regulator
246 Mio
electricity smart meters installed
and operated in the EU by 2022
source: Berg Insight
7%
average increase in
energy efficiency for
end consumers in
Finland enabled by
AMI alone
source: european commission
2
© 2010 Tieto Corporation
Market Development
Meter implementation diagram by Ovum, November 2009
3
© 2010 Tieto Corporation
Some Tieto facts…
• Tieto contributed to the roll-out of more
than 1.000.000 smart meters.
• Every 3rd electricity customer in Norway,
Sweden and Finland get their bill via
Tieto applications.
• Tieto is the #1 player in Customer
Information System in Nordic countries.
© 2010 Tieto Corporation
Everyone wants to get paid!
Introduction of mobility and an increased number
of actors in will require new and complex service
provisioning, revenue management and payment
solutions.
Implications
on Energy Utilities
The market will
evolve much faster
Empowered customers
Intensified interactions through
new interfaces and channels.
than before which requires a
more agile and flexible support
from IT- architecture and
platforms to enable changes.
Beat them or join them!
© 2010 Tieto Corporation
Real-time systems
Utilities will need to change
their Batch-based systems
to as Telecom did.
Independent 3rd party service
providers will enter the market.
-1930
2010
2020
2030+
Traditional
AMI
Demand Response
Smart grid
“One way delivery”
“Bi-directional communication“
“Efficient markets”
“Smart Bi-directional delivery”
• Manual meter readings
• Manual processes
• Overcapacity in grid / generation
Energy Market
2015
•
•
•
•
• Reducing operational costs
• Automated processes
• Billing on actual consumption
Elastic pricing
Reducing peaks
Reducing CO2 in generation
Resizing distribution capacity
•
•
•
•
•
Automation / Self-healing
De-centralizing storage
Distributed generation
Mobility / Electronic cars
New payment solutions
Traditional services /
Estimated billing
Traditional System
Automation
Real-time Billing
Complex Solutions
Knowledge / Control
of consumption
Legislation is mandating
and technology is enabling
Utility company
Price signals
Lower consumption /
New pricing products
Climate package 20/20/20 by 2020 is the main driverCustomer
Price Signal
Price Signal
Energy Storage
Smart meters
Traditional meters
Price Signal
Distributed generation /
E-mobility
Energy Storage
Smart meters
Traditional meters
Micro generation
Real-time changing consumption patterns
6
© 2010 Tieto Corporation
Electronic cars
Mediation Solution for Utilities
Telecom
“ Real-time data management enables future
complex
Utility
Telecom
Services
Services
”
”
Telecom
Utility Services
Mediation Solution
Processing
Services
Demand
Calls Response
/ Data
CDR
UDR
E-Mobility
Roaming
Roaming
Traditional service
Charging / Billing
Pre-Payment
CDR
UDR
Real-time data management
Mobile
Electric
service
car
© 2010 Tieto Corporation
CDR
UDR
•
•
•
•
•
Collection and validation
Filtering out billing-relevant
Aggregation of data
Change format of data
Dispatch data
Fraud Detection
Traffic
Grid Monitoring
Monitoring
Analyzing
Mobilegeneration
IP
Distributed
services
Capacity
Need of X
of million
millionsUDR
CDRtransactions
transactions/ minute?
/ minute
CDR, Usage
UDR,
Call Detail
Detail
Record
Record
Revenue
ComplexAssurance
Trading
What are the new services that the
Energy Utility are supposed to deliver?
“Smart home”
Charging stations
for electrical vehicles
Feed in energy
products and tariffs
Complex Energy
products
The question
is rather
“How can Energy Utilities Composite
enable energy
theseproducts
and
other services
securing a peace
of heat
theand/or
cake?”
of electricity,
gas
Time-of-use tariffs
Pre payment
Broadband
Load control
Online reporting
© 2010 Tieto Corporation
Home security
New service & financial value chain
Close to real time service interface
including instant data feeds could be
connected to aggregators services,
social media and mobile apps.
Serv. A
Serv. B
Serv. …
Aggregators
€
Retail
€
Contract
Distribution
Data
Meter
€
Data
Invoice
Energy
Contract
Customer
Mediation
Real time charging
Mediation
Real time charging
9
© 2010 Tieto Corporation
2010-07-19
Towards real time charging
& monthly invoicing
AMI M2C value chain
Invoice
Meter
Head
end
EDM
CIS
Customer
Every
night/week/month
Every
month
Demand response & SmartGrid M2C value chain
Billing &
invoicing
Every
month/quarter
Aggregator
Serv. A
Serv. B
Volatile
price
list
Charging
Serv. …
Mediation
Invoice
Customer
CIS
Meter
Charged
EDM
10
Every
hour/15min
© 2010 Tieto Corporation
Every
month
Invoicing
Every
month/quarter
Real time
processes
The future is here… now
• In January 2012 Vattenfall Finland
will measure 100% of their
370 000 meters by the hour.
• Consumers will be able to monitor
consumption via web-based online
reporting services.
© 2010 Tieto Corporation
Smart City
Stockholm Royal Seaport
Smart City elements
 Office buildings have a huge potential to save or to produce
energy when planning a new or renovating a building
 Government/municipal buildings are always cutting in the budget
for building management. The old janitor role is gone and the
new service companies do not have incentives to save money for
a building
© 2010 Tieto Corporation
 Residential homes (our private homes) also have a huge
potential to reduce our energy consumption. But price incentives
has not been there, until this winter when the electricity price
became very high.
 Street lighting is also consuming a lot of energy that can be
preserved better
 Industry in general has a large potential for both saving and
producing energy, and will be an important player in a micro grid
Smart metering is just the 1st step to…
© 2009 Tieto Corporation
Smart grids
Smart metering
Lowers operational costs by process automation
• The Advanced Metering Infrastructure has
now been established in Sweden and at
selected other Utilities in the Nordics
(like Vattenfall in Finland).
• A number of customer services processes have been fully or partly
automated which has led to initial savings in operational costs – often
more than 20%. Potential is of course much bigger than that.
• Customer requests like Move outs, Move ins and Supplier switches
are today fully automated in some Utilities if the customers are
served via the web.
• Often also field force operations have been much better integrated to
customer service thanks to investments done in IT infrastructure
during the Roll Outs which also have a positive effect on operational
costs, quality of service and lead time of field force work orders.
15
© 2010 Tieto Corporation
2010-01-18
EU regulation pushes Smart grids
•
In December 2008 EU decided on the “Green package” – 20/20/20 by 2020. It
means that the EU member states shall by 2020
•
Reduce green house gases by 20%
•
Increase renewable energy to 20% of energy mix
•
Increase energy efficiency with 20%
•
In June 2009 the 3rd Gas & electricity directive was ratified that is demanding all
member states to have 80% smart meters by 2020. Definition of the smart meter
is ongoing on EU level but we can expect that it shall be able to read meters by
the hour to enable demand response.
•
There exist a task force in EU that analyzes some aspects of smart grids and
expected development in the area. Many expects a 4th directive that will enforce
implementation of Smart grids in order to secure increased development of
renewable generation and charging facilities for electricity cars.
16
© 2010 Tieto Corporation
2010-01-18
Next generation
energy system
• Increased in-feed of renewable generation
into different levels of the grid
• Installation and utilization of decentral
storage units in the distribution grid
• Steering and optimization of consumption
via price signals (demand response)
• Mobile delivery points and roaming driven
by charging facilities for electric cars
“Intelligent grid initiatives are shifting focus
from delivery infrastructures to consumers.”
Gartner, 2009
• It will mean a need of new payment
solutions that requires real time rating &
charging as well as household that can
generate energy.
17
© 2009 Tieto Corporation
• It will also mean new possibilities
and touch points to customers in
every day life
© 2009 Tieto Corporation
Control and
understanding
© 2009 Tieto Corporation
Being able to act
© 2010 Tieto Corporation
Knut E. Gustavsen
Tieto Utilities Norway
[email protected]
What about
the cloud?
© 2010 Tieto Corporation
Characteristics of the Cloud
1. Multi tenancy
2. Scalable on demand in
almost real time
3. Pay as you use
4. Share delivery technology
5. Consume as Self-service
6. Delivered as a Service
In-house
Price model
Licenses
Usage
Agility
Weeks/months
Hrs/days
Financial
CAPEX+OPEX
OPEX
IT Mgmt
Own expense
Included
Location
On-premise
Off-premise
Service cost reduction of 19-66%
© 2010 Tieto Corporation
Based on costs of staff, client software,
filtering, archiving, storage, server software,
server hardware and operating system
Cloud
In-house, 100%
Minimum, 81%
[Forrester 2009]
Best-case, 34%
Different Cloud Service Models
Where Tieto can add value
Digitalised
Process
Process
Customer
responsibility
Application
Application
Platform
Platform
Infrastructure
IaaS
PaaS
SaaS
DPaaS
Infrastructure
as a Service
Platform
as a Service
Software
as a Service
Process
as a Service
Will be global commodities
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© 2009 Tieto Corporation
Supplier
responsibility
Tieto’s value proposition
Enable cost efficient operation and next
generation services for Energy utilities by
digitalizing the M2C value chain
Optimizing and automating the
M2C business processes
Empowering end-customers and
employees through digital services
by
Turning our knowledge and passion into sustainable results
enabling our customers to face the new Digital reality
© 2010 Tieto Corporation