Smart Meters to Smart Grid Peter Larsson Chiang Mai, September 2011

Echelon Energy Control Network: Introducing Echelon Market Maker Global Innovator Field Proven Passionate Customers 20 years 97 patents 100M smart devices >1,000 customers First Energy Control Network HQ Silicon Valley “Plant-to-Plug” solutions Commercial, Utilities Echelon Energy Control Network: delivering the open, intelligent, distributed control necessary to realize the $50B+ Smart Grid future 2

A Fundamental Shift Is Underway YESTERDAY: Single source, local Steady-state Captive consumer Ubiquitous, cheap Single business model TODAY: Distributed energy sources, global Erratic demand Consumer choice and participation Key GDP component, price pressure New business models

The Answer: Push Control to the Edge Energy Control Network 4 “Push Control to the Edge” Process High Data Volumes, Share Relevant Information Eliminate Failure: Sense and Respond, Drive 100% Reliability Local, Real-Time, Autonomous Decisions Make it Easy to Add Applications, Over Time

Why An Energy Control Network? NET-NET: Lower cost structure, drive revenue, improve customer experience Smart, Fast Local Decisions Distributed intelligence Zero latency Automated: no human intervention Relevant Information Prevent data deluge: share results Open/interoperable: across every device and network Bullet-Proof Reliability No single point of failure: 100% survivable Harsh environments Infinite Applications Start anywhere Backward/forward compatible Add more apps, over time Plant-to-Plug solutions 5 Higher-level messages; four pillars of differentiation 10111001100011000111001 Orchestrated, managed across multiple networks and devices

Echelon Energy Control System Three-Tier Architecture 100% Reliable 100% Survivable 0 Latency All Powered by Echelon Energy Control Software

Energy Control Products for Utility Markets System Management & Operating System Software ECoS System Software; Element Manager, Diagnostic, and Provisioning Tools; System Middleware Connectivity & Control Devices Data Concentrators, Edge Control Network Platform Add Power Line transceiver IC on the bottom tier Smart Transceivers & Devices Smart Meters, NES Embedded Modules for Smart Devices 7

It’s All Coming Together Linz Strom AG Customer Example • High ROI Feature-rich Safe choice Reliable and scalable Open standards Scalable ecosystem It’s All Coming Together Linz Strom AG Customer Example Residential Demand Response Smart Metering Linz Strom AG Data Center Smart Neighborhoods Smart Street Lighting Smart Cities & Streetlights 8

Benefits to Utilities CEO Customer Service CFO Operations Increase use of renewable capacity Embrace and profit from the emergence of smart devices and distributed generation Cut energy delivery costs 20% by eliminating “peaker plants” Deliver a superior customer experience by giving customers choice and participation Real-time observability Give consumers choice and control Manage across multiple networks and devices Bullet-proof reliability: 100% available, no single point of failure Works with existing investments Reduce fraud and tampering 10-20% Reduce field headcount with automation and self-healing Achieve return on investment in 4 years Cut deployment time in half Share data across every device and network: open and interoperable Start anywhere and future proof: add subsystems and applications over time

Example of Smart Meter Architecture Element Manager Networked Energy Services

Smart Meters Meters Detailed electrical measurements Active and reactive energy Import and export metering Flexible time of use metering Extended information & alarms Multi-channel data recorder Power quality data and alarms Tamper and theft detection Connectivity to other meters and devices Built-in disconnect On/off Load limiting/service upgrade to any level Prepay Remote firmware download support Let’s introduce the NES meters, the 1021 is a single-phase meter, the 1023 is poly-phase, and the 2023 is an external current transformer variant of the 1023 that allows use in high-amperage metering situations. As you go through the coming slides, remember that some features do not make sense in the CT meter (e.g., disconnect switch) and thus do not apply– otherwise, it is substantially the same meter as the poly-phase 1023. The NES meters were designed to be a best-in-breed standalone meter, with rich functionality including time of use pricing, power quality and load profiling, while simultaneously having built-in communications to access that full data offering, as well as provide remote control of the (main and auxiliary) load. They are also a networking hub, allowing the remote interface of pulse and M-Bus auxiliary meters over the same NES infrastructure. These last features are made optional in order to provide the best possible pricing for utilities that do not have a need for load control, pulse, M-Bus or any combination thereof.

The On-going Value of an Integrated Switch Disconnect Remote disconnect For customer change For rental homes For non-payment Internal trip for maximum power Control peak loads and defer investments in additional generating capacity Offer “Lifeline Disconnect” capability Remotely change service offering Prepay support

The On-going Value of Power Quality Measurement Per customer quality of service (QOS) information Under and over voltage Over-current Maximum and minimum frequency Phase loss Detailed outage and restoration reporting Total number Duration and time Configurable outage threshold Meet current and future regulatory standards Save cost through preventative maintenance & transformer optimization Opportunity to differentiate service plans based on QOS The amount of time that power must be out to constitute an outage that should be stored (e.g., 3 minutes) is configurable

Data Concentrators Automates and manages the low voltage network Detects meter additions, removals, and tampers Establishes reliable mesh communications Provides flexible, WAN-independent modem interface Supports time-shifting of communications to optimize cost The data concentrator autonomously manages the meters and enables remote access to the data they collect. There is one data concentrator for every low voltage transformer. On one side, it “talks” to the meters over power line, on the other side, it “talks” to the System Software over TCP/IP. The device is designed to work like a “black box” after initial setup and require no direct maintenance or supervision. Given the environments the concentrators are usually installed in, much consideration has been given to the hardware design, particularly EMC performance. There are over 300K units of this same hardware platform successfully installed and operating. On the power line side: You can think of the meters acting like nodes on a local area network over the power line. The concentrator acts as the master network manager, setting up logical addresses for the meters it will supervise, determining the best paths to reach that meter, and managing authentication and time synchronization. There are two versions of concentrators available, one for high meter-to-transformer density areas which manages up to 1024 meters, and one for low density which manages just 5 meters and is significantly less expensive as a result. As we alluded to before, the power line is a noisy environment and simplistic methods of communication will not succeed consistently. To ensure reliable connections on-demand, the concentrator constantly checks connectivity of each managed meter and sets up alternate paths. These paths take advantage of repeaters, a functionality built into every NES meter, such that if a concentrator cannot directly communicate to a meter because of distance or noise, then it will use another meter that can hear both the target meter AND the concentrator to proxy the message along. These repeater chains can be up to 8 hops in length. Finally, the concentrator is tasked with monitoring the health of the local grid and the component meters, determining if there are power outages, collecting status events from the meters such as tamper alarms, as well as examining the communication phase of a single phase meter to ensure it has not changed since the initial communication (an indication of tampering activity). The concentrator on average talks to each meter every 15 minutes to collect status and check connectivity. On the wide area network side, the data concentrator acts as the interface between the enterprise software systems (making calls into the NES System Software, which we will discuss in depth in just a few slides), and the metering hardware. Its most identifiable task is of course, concentrating data from all the meters it supervises into one centralized location. In this way you avoid having to have point-to-point wide area network connections to each meter. On top of the standard operation of aggregating information such as billing data, the concentrator also allows direct connection from the System Software to any given meter– remember, NES is bi-directional. This enables on-demand functionality such as pulling the current consumption from a meter when a customer calls or disconnecting a meter remotely. Bi-directionality is not just limited to the meter communication– the concentrator is likewise capable of initiating and receiving connections. In the general case, the System Software connects to it periodically to collect data or obtain access to a particular meter, but if the concentrator notices alarms during its periodic surveys of the meters, it can report them immediately on its own. We will talk about the logistics of connecting the concentrator to a WAN in a later slide, but it is appropriate here to briefly discuss the WAN technologies supported. The concentrator has a standard DB-9 serial port that is intended for connection to any Hayes AT modem. This allows the concentrator to connect to practically any Wide Area Network type, examples being GSM, GPRS, landline, always-on, etc. Another major advantage is that as these devices have 18 year lifetimes, it is highly likely that the preferred WAN technology for a given project will change– so the serial port lends itself to a quick technology changeover whenever necessary (if they question that the serial port will be outdated in 18 years, remind them that there is an unbelievable large legacy of these and cheap serial to X converters will always be available).

Duke Energy, USA Duke is one of the largest electric power companies in the United States, supplying and delivering energy to approximately 4 million U.S. customers. Duke has approximately 35,000 megawatts of electric generating capacity. Duke’s commercial and international businesses own and operate diverse power generation assets in North America and Latin America. Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.

Benefits of using NES Power Line 100% GIS Accuracy GIS data wrong Constant indexing of transformer and meter GPS coordinates Transformer Efficiency Optimize load and phase balance Predictive Fault Detection The PLC signal amplitude indicates weakness and fault

Duke Energy – Utility of the Future

Check Metering Energy Theft Transformer meter to managed meter comparison Revenue protection benefits   Average monthly bill $80 Average annual bill $960 Estimated level of line tapping by customers 0.50% Percentage stopped by Echelon's Networked Energy Services 90% Avoided Annual Lost Income from line tapping $4,752,000 Avoided Lost Income from line tapping capitalized over project life (20 years) $56,788,218

Case study Vattenfall Group in brief Europe’s fourth largest generator of electricity and the largest generator of heat BG Vattenfall Nordic (Sweden, Finland, Denmark) BG Vattenfall Poland BG Vattenfall Europe (Germany) Operations in Sweden, Finland, Denmark, Germany and Poland Vision: To be a leading European energy company Electricity generation, transmission, distribution, sales and trading Heat generation, distribution and sales More than 32,000 employees Turn-over 13,697 MEUR Vattenfall AB is wholly owned by the Swedish State

Market development - investment Functionality Cost AMR 1 AMR 2 AMR 3

Flexible and open Architecture Utility Software Utility Server Web services Web events Energy Modules NES System Software IP/WAN GPRS, CDMA, GSM, PSTN, Broadband Energy Manager Data Concentrator C-band PLC ZigBee Meter DHA Power Line Interface A-band PLC Power Line/ ZigBee Pulse Inputs M-Bus, MEP 27

Beyond the Meter Renewable Integration In Home Displays UCM PHEV In Home Displays: Blue Line Innovations / Energy Inc. (smarthome.com) Home Automation: < 20 amps, replace light switch / outlet with device that can be controlled via internet / cell phone. X10 – PLC ; Inspeon PLC & RF combination Remote Control… energy saver / dim lights / turn lights on/off , etc. Grid Point: > 20 amp loads Transparency of what different loads cost in the house Allows you to control devices in the house Provides battery back up 10KW Manages Renewables (PV panel & wind generation) by storing energy in the battery for use later Renewables: PV, thermal solar for water heating, wind IBM scientist have been able to generate 70 watts / sq. centimeter solar cell using CPV (concentrator photovoltaics) technology in the lab. Smart Meter Home Automation Whole House Energy Manager Smart Thermostats Mobile Support

EDGE CONTROL NODE

Bringing Smart Apps to the Smart Grid Multiple applications One common platform Open to all All devices All networks All developers Intelligent distributed control

The Smart Grid goes Beyond The Smart Meter Energy management devices Grid efficiency devices Distribution automation systems Gas, water, heat meters Solar inverters EV chargers …

Transformer/Cabinet Monitoring Oil temperature Flood Door Circuit breakers Digital input 3rd party ControlPoint-based devices C-Band PLC devices Serial devices Expansion card

In Conclusion Why A shift is occurring, creating new demands from “plant-to-plug” Creating a need to push control to the edge The answer: Energy Control Network Smart, fast local decisions Bullet-proof reliability Orchestration and management Why Relevant information Infinite applications 33

Peter Larsson +65 97 28 50 50 plarsson@echelon.com Thank you Peter Larsson +65 97 28 50 50 plarsson@echelon.com