© 2008 Eskom. All rights reserved. UPDEA – Durban March 2009 Brian Mokgele SMART METERING

© 2008 Eskom. All rights reserved. 1 Overview  Recap on current situation  Options available to alleviate energy crises  Using smart meters to alleviate energy crises  Prepayment road map  Remarks & conclusion

© 2008 Eskom. All rights reserved. 2 Current Situation - The reserve margin is currently 8–10%, against an aspiration of 15% - Increased probability of power interruptions and load shedding

© 2008 Eskom. All rights reserved. 3 Demand Profile to be reduced 3000MW Total Energy required to be taken out of the demand profile in 2008 – 3000MW at 0.75 load factor  Eskom’s system is tight and the requirements are to reduce demand by 10% to achieve 3 000MW load reduction.  This will continue for the next 5 to 8 years.

© 2008 Eskom. All rights reserved. 4 Demand Reduction Options 2 DPE Minister – Cabinet Lekgotla National Electricity Emergency Programme, 25 January 2008 > Supply (Demand includes capacity & energy) If Demand + Reserve Margin> Supply (Demand includes capacity & energy)

© 2008 Eskom. All rights reserved. 5 Energy efficiency Increased awareness and drive on DSM programmes – Solar water heating subsides – Energy efficient lighting handout/exchange – Residential geyser management – Energy efficient motor programmes Partnering with consumers – Encourage, assist and incentivise efficient use of electricity Targeted savings – MW – MW by 2025

© 2008 Eskom. All rights reserved. 6 What About Smart Meters?

© 2008 Eskom. All rights reserved. 7 Requirements for Smart Meters  Real-time, two-way communications - Automated meter readings  Remoter load management of various appliances in the customers’ home when required).  Remote connect and disconnect  Load limiting (limit output power)  Under frequency load limiting option as last resort  Tamper, Outage detection, Fault detection & Restoration  Revenue protection, Credit & Device Management  Modular Communications module (future flexibility) and accommodates multiple communication mediums.  Separate in house display unit. (wireless (RF) or PLC communication)  Reasonable costs of the meter and operations to yield a sound business case.  Provision of ancillary services, e.g. VOIP, Internet, IPTV, Water & gas

© 2008 Eskom. All rights reserved. 8 Proposed Architecture NRS 049

© 2008 Eskom. All rights reserved. 9 Communication Technology Identified Communicatios Options:  Eskom Telecoms – AMI not viable on existing network  GSM – low-speed dial-up service. Not viable for AMI  GPRS/EDGE – low to medium speed service. Suitable for AMI in all areas but VOIP/internet access area limited to EDGE areas  3G/HSDPA – high speed service. Suitable for AMI and VOIP/internet access but coverage very limited  RF (e.g. ZigBee) – low to medium speed service. Suitable for AMI only. Relatively new mesh-based, to be researched for use in South Africa  PLC – low speed service. Suitable for AMI only for comms between concentrators, meters and CIU.  BPL – high speed service. Suitable for AMI and VOIP/internet access. Research project to be finalised to confirm suitability

© 2008 Eskom. All rights reserved. 10 Impact of Smart Meters on the System *Based on residential demand contribution of 12,269MW in 2006  Execute system constraint through emergency load reducing functionality  Approx. 4000MW of total SA suburban consumption can be reduced by smart metering ability to reduce/limit customer’s supply capacity e.g. from 60A to 20A via single wireless broadcast to smart meter.  Customer has electricity for a few essential appliances (lights, TV, microwave, security), but will not be completely load shed.  Emergency or scheduled load shift:  Total SA residential market potential is approx. 3200MW – 2161MW* of uncontrolled hot water peak demand load (currently not controlled by ripple control), plus 1,104MW of other non-essential appliance peak demand.

© 2008 Eskom. All rights reserved. 11 Prepayment Metering Future Challenge: Most prepayment AMI Systems are not STS based Way Forward Use of split meters in Eskom Enhancement and standardisation of communication port for prepayment meters Use of one communication device to support multiple meters in the same enclosure Remote controlled disconnect & connect mechanism at feeder or transformer level for DSM & Load Shedding Integration with Online Vending Server & sending of STS tokens to meters from central locations Prepayment TOU as defined by STS2 specification Third party services like Voice-Over-IP (VOIP) or broadband internet can be introduced

© 2008 Eskom. All rights reserved. 12 Remarks The national minimum standard should guide the smart meter initiatives in South Africa & will assist meter manufacturers to develop suitable meters. [ NRS049 Draft Spec ] International market drivers for smart meters include: North America – compliance with regulatory directives, Europe – improved energy efficiency, Australia – improved market efficiency and customer service, and South Africa – reduction of peak demand and revenue protection. The drivers determine minimum smart meter functionality required. Countries such as the UK, the EU countries, Australia and North America have all legislated the implementation of smart meters in response to specific market drivers. South Africa should do the same.

© 2008 Eskom. All rights reserved. 13 Conclusion Smart Metering: A solution to alleviate the country’s growing energy crises? Smart Metering together with other DSM interventions will alleviate the country’s growing energy crises. Smart Meters will get us there quicker, but a combination of all interventions is sustainable long term option – involves change in consumers behavior

© 2008 Eskom. All rights reserved. 14 The End