Smart metering & grids: Enel’s experience and achievements

Dominique Fache,

Chairman of Board, Enel OGK-5

November 15, 2012

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Presence in: 40 countries

Connection Points: 61 mln

Listed on: Milano SE (1,5 mln Shareholders)

EBITDA: 17.7 bln €

Enel: an International energy operator Italian Core. European Base. Global Strategy

< 500 MW < 1.000 MW < 2.000 MW < 10.000 MW > 10.000 MW

Representative offices, financial holdings,

operative branches, commercial

companies

1st utility in Italy, one of the largest in Europe by installed capacity. Present throughout the entire electricity and natural gas value chain

Installed capacity: 97, 988 MW

Annual output: 291.2 TWh

Energy distributed: 434.1 TWh

UP-Stream Gas: 984 MMboe* Reserves

680 MMboe* Resources

Employees: 75,010 (< 50% in Italy)

NG Prospective

Resources

NG Reserves *MMboe: Million Barrels of Oil Equivalent

year-end 2011

Uso: pubblico

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Enel Networks positioning Areas of presence in Distribution Businesses as of 2011 year-end

COLUMBIA

• Second operator in distribution (24%)

• 2,4mln conn. points

ARGENTINA

• Second operator in distribution (16%)

• 2,3 mln conn. points

CHILE

• First operator in distribution (32%)

• 1,6 mln conn. points

PERU

• Second operator in distribution (23%)

• 1,1 mln conn. points

SPAIN

• First operator in distribution (35%)

• 13 mln conn. points

ITALY

• First operator in distribution (85%)

• 31,6 mln active conn. points

ROMANIA

• Second operator in distribution (30%)

• 2,6 mln conn. points

BRAZIL

• 5,6 mln conn. points

A global energy player with a leading position in strategic markets

•1,81 mln km lines

•434.1 TWh Energy Distributed

•61 mln connection points

Uso: pubblico

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Over 32 mln in Italy 13 mln new generation

meters in Spain 340 Mln/ year remote readings 98% success rate

Remote control in: 100% HV/MV substations

(2.100) <25% MV/LV substations

(109.000) Advanced Neutral Grounding

System Automatic fault clearing procedures on 65% of MV Lines

Satellite mapping of network assets

Database of network events (power outages, faults)

Optimization of network investments based on risk analysis

Network maintenance optimization

Enel Network Management and Innovation Enel’s experience as DSO world reference

5.200 Enel teams connected via GPRS with GPS localization

ENEL cartographic apps on board

Mobile apps for all Field Operations

State-of-the-art technologies and process optimization deliver value to our partners and stakeholders

Automatic Meter

Management

Work Force Management

Asset Management

Network Automation

Process

reengineering

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5

Enel Operational Excellence: the Italian case A 10 year path towards becoming the European benchmark

Opex reduction: - 40 % Quality of service: +65 %

• Quality of Services

• Cost reduction

• Customer Satisfaction

2010 2011

QoS (minutes)

• Efficiency in Maintenance

• Optimization of Financial

Resource Allocation

(42 min, 48 €/Customer)

6 Enel roll-out was a massive project requiring a strong and

dedicated organization

Telegestore ® Project Team: 250 resources

More than 3500 third-party installers

120 ICT Project technicians

Over 32 Mln LV Meters in 5 years

358.000 LV concentrators (LV-C)

127 Regional operation units

8.000 palm-PC Used during massive replacement of meters

85 % of Electricity Distribution market in Italy

Devices

Resources

Scope of Project

Smart Metering Deployment Key Elements of Italian AMM Project

Uso: pubblico

Remote activities & Readings (mln)

Enel Automatic Meter Solutions Italian pioneering and leadership for successful implementations

2001-today: Italy- over 32 mln Smart Meters installed and managed

2011-2015: Spain -13 mln Smart Meters deployment

Key Achievement:

• 14 years ahead of EU targets

• 39+ MLN smart meters in

operation; 50+ MLN by 2015

• The largest AMM roll-out

worldwide

• Flexible, reliable, field proven,

robust, secure

• Support to free Markets

• Smart Grids functionalities

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9

2011 2004

13

142

187

2005 2006

96

3.5

5.7

2007

12

260

2008

19

270

2009 2010

15

336

0.9

9

403

9

PLC communication

LV lines

MV/LV substation

Public GPRS/GSM infrastructure

Head-end System

Enel Automatic Meter Management Cervantes Architecture

Control Center

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Main system features serving the DSO DSO and Electric Power Systems

New tools for effective distribution operations

management

•Remote meter reading

•Remote work order management

•Remote Load Profile reading and load limiting

•Bad payers management

•Tailored tariffs and TOU tariffs

•Support of free market development – trader

switching in real time and effective billing

•LV quality monitoring and service quality data

collecting for network management

•Energy Balancing

•Fraud detection tools (both onsite and from

remote)

•Modular: allows to chose only the functionalities

needed

•Scalable: adaptable to any size

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Load profile 46 M

Monthly based 403 M

2,9 M

Contract management 3,6 M

Bad payers management 2,8 M

Total 9,3 M

Final ‘11

READINGS

Peack up to 10M/day

Peak up to of 300.000 /day

OPERATIONS

Successful remote operations 95,1%*

*Yearly Data

Remote readings and operations

Telegestore Figures

Over 32 M Electronic Meters remotely managed

Concentrators installed in MV/LV substations

372 K

Installations of Low Voltage connections

Successful remote readings 99%*

Switching

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Impact on Business Yearly savings and quality of service

Field Operations and Logistics:

• Average annual failure rate leading to meter substitution reduced to 0,3% (70% reduction)

• Reduction of on-site interventions thanks to 99,7% success rate of remote operations and parameter modifications.

• Manual activation and deactivation reduced by 99%

• On-field readings reduced by 99%

• Logistic costs reduced by 80% due to standardization of models (only three)

Energy Losses:

• Energy balance for ~25% of LV transformers is performed through a meter, positioned in areas as needed and sending antitamper signals for a focused and accurate fraud contrast.

Credit Control and Management:

• Remote deactivation of bad payers prohibits customers from continuing illicit consumption and increasing their own debt

• Monthly readings improve correctness of energy balance and optimize cash flows

Strong operating benefits delivering yearly savings of ~15 € per p.o.d. and only 2€ yearly opex per p.o.d.

Low savings

High savings

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> 32 M meters

(Italy)

Enel Technology is the worldwide benchmark

Pilot Test

(Russia)

0,2 M meters

(The Netherlands)

0.25 M meters

(Malta)

Pilot Test

(Romania)

13 M meters

(Spain)

Pilot Test

(Hong Kong)

4M meters

(Italian DSOs)

References

0.8 M meters

(Spain)

Pilot Test

(Brasil)

175 k meters

(Montenegro)

Over 32,000,000 (ENEL)

+ 3,500,000 (Others)

= Standard de facto in Italy

Utility Customers

AEM Milano 950,000

AEM Torino 580,250

Trentino Servizi 575,000

ASM Brescia 294,250

Hera Modena 250,000

AGSM Verona 173,177

Acegas Trieste 140,510

Enia Parma 124,830

Deval 120,000

AIM Vicenza 75,020

AEM Cremona 47,015

Others 218,053

TOTAL 3,548,105

Telegestore®: Promotion & Sales in Italy

Other Italian DSOs System Users from 2006

Smart Grids in the World Worlwide initiatives for Smart Grids deployment

Main Initiatives:

ISGAN,

launched by Major Economies Forum to keep high level government attention for technologies capable of cost effectively reducing GHGases. Italy co-leads with South Korea and the USA.

GRIDWISE Alliance

international forum aiming for a sustainable energy future through

Smart Grids

EDSO for Smart Grids

international non-profit association of DSOs committed to the

development of Smart Grids in Europe

Green-eMotion

international consortium of DSOs and research center developing an

analytical method to evaluate the impact of a large scale introduction of

EV and PHEV on the grid

Address

large-scale Integrated Project co-founded by the European Commission

aiming at enabling the Active Demand in the Grids

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http://www.thefuturewillfollow.com/en/

Electric Vehicle charge system

Central and distributed resources integration

Central and distributed Intelligence

Peaks shaving

End-user real time information and

participation

Multi-directional ‘flows’ management

Storage and Plug & Play

technologies

Smart equipment and power electronics

LED Public Lighting

Interact intelligently with all connected parties in order to efficiently deliver sustainable, economic and secure

electricity supply

Enel Smart Grids Vision Building a smart Energy future

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Low Voltage Electronic Meters

CERM1

CERT1

CERS1

Single phase meter equipped with 80A latching relay

Polyphase meter equipped with 80A latching relay

Polyphase meter for semidirect connection (current transformers).

Used for power higher than 30 kW, up to 400 kW.

Type Description Certifications

MID

GOST

MID GOST ongoing

MID GOST ongoing

CERM GOST Certifications

CERM1

CERT1 & CERS1

(ongoing)

Consultancy Services Sharing our know-how in network technologies

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Asset Management

Public & Artistic Lighting

& Remote Control

EV Recharging infrastructure

Smart Metering &

AMM

Network Operations

Enel is now putting its vested experience in network asset management to use by offering consultancy services to other DSOs interested in optimizing revenues while reducing operation costs.

Enel is also engaged in many best practice sharing initiatives aimed towards affilliate DSOs in Romania Spain, and Latin America. This has given Enel the opportunity to comprehend other network practices and contexts and transfer expertise.

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Executive Summary

Enel is a global player and the European benchmark for efficiency, view and technologies

Enel is committed to efficiently delivering a sustainable,

economical and secure electricity supply

Early deployment of Smart Meters has given Enel a competitive advantage in Smart Grids - there can be no smart grid without smart metering

Enel is leading the way towards Smart Grids pioneering and

implementing innovative solutions Enel leads international standardization bodies for Smart Grids

Growth, innovation, global leadership