1. The Evolving World of Power Delivery Business
Striking a balance between Sweating-the-Assets vs New Infrastructure Build
Koustuv Ghoshal
Siemens Business Services

2. State of the Energy Delivery industry globally today
Historically investment on T&D infrastructure has been approximately a third of Generation investment
Still a regulated business – and thus lack of “burning platforms”
Guaranteed rate of return has created an entitlement approach
Risk-takers are not rewarded!
Regulatory, environmental and political forces do not allow for rapid infrastructure deployment
Operational factors such as Reliability has typically not been monetized:
Thereby delaying deployment of smart-technologies
Too many standards in the industry:
Deters investment by suppliers

3. How is the situation changing globally?
This industry behaves on “trigger points”:
The North East blackout of 2004
Europe blackout of 2004
Insatiable growth has stretched the grid capacity to the maximum
Impact of government regulations on power delivery industry:
US Energy Bill of 2004
India’s Electricity Act 2003
Going back to basics on the focus upon availability of cheap and reliable power:
Regulators putting increasing focus on service quality and reliability
Yet… the infrastructure doesn't exist to support the new needs
Mandates around penetration of renewable sources of energy
System and “commercial” losses are at a point of severe financial impact
Particularly in developing countries where “theft of power” is considered part of the welfare system

4. How does the industry respond to the challenges?
“Sweat the Assets” vs “Build new today”:
Operate the network close to its limits
Involve the customer in the energy management process:
The silent evolution of the Energy Conservation mind-set
Evolving framework of the Meter-to-Cash value chain:
Making the customer respond to real-time price signals
For the supplier community – think globally but act locally:
Incentives to affordable technologies
Impact of technology and knowledge-based systems on power delivery decision-making process:
The concept of sensor-based smart electricity grid:
De-centralize grid intelligence!
Reward Risk takers

5. The Smart Home Concept