Business transformation based on ICT: Smart Grid

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Business transformation

based on ICT: Smart Grid

Óscar Álvarez Álvarez

Master of Science Thesis

Stockholm, Sweden 2014

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Business transformation based on ICT

Smart Grid

Student:

Óscar Álvarez Álvarez

Supervisor:

Amirhossein Ghanbari

Examiner:

Jan Markendahl

Wireless@kth

School of Communication and Information Technology

KTH - Kungliga Tekniska Högskolan

Stockholm, Sweden

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Abstract

During the recent years several technologies and services based in Internet of Things (IoT) and Machine-to-Machine communications (M2M) have appeared in many different sectors; where IoT can be defined as the idea that any device that can be benefited by being connected will be connected and M2M communications is defined as the kind of communication between devices with minimal human interaction. IoT and M2M solutions can be applied in many sectors, like healthcare, transport, logistics, media or utilities. In every sector the motivations to implement this new services is different, as each sector has different final objectives and different actors and business models. When new technologies (like Smart Grid) appear two types of challenges can be defined: technical and business challenges, therefore innovation has to be applied in both of them. Too often innovation is focus on the technologic evolution and underestimated on the business field, however it is a key aspect for new technologies and services to reach commercial success.

From the technological point of view the state of research on Smart Grid applications and services is quite advanced, while authors consider that innovation in the business part is one of the biggest challenges for Smart Grid technologies to reach success. The goal of this project is to understand the Smart Grid environment and context in different countries and propose business models suitable for the Smart Grid environment.

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Acknowledgements

I would like to dedicate the work I have done in this master thesis to my family, specially to my parents Nieves and Jose who have provided me a good education that allowed me to access university studies. Even though they did not have the opportunity to study they have always highlight the importance of having a good education and encourage me to continue with my studies. In addition to that, they have transmitted to me the importance of values like effort, hard work, constance and respect for the others. During my life I had an example of this values every day and a reference to follow on them. I would never be able to return all they have done for me and that is why I am so grateful to be your son. I like to think that wherever my father is, he would be proud of my success in studies and that he would have enjoyed a lot watching my evolution.

One of the most important persons in my life is my beloved girlfriend Sandra that have been a very important support during my year in Sweden, wihout her lovely support in every situation I have faced I would not be able to succeed in my studies in Sweden. I would also like to thank her for all her effort during the year in terms of travelling and time dedicated to our relationship.

During my year in Sweden I have met many people but only a few of them will always have a place in my heart. My fellow Gerardo Aguirre, my partner from the beggining until the end of the year, a great friend to have fun with and also great colleague to learn from, I am really thankfull for sharing this great year with him. My friend Celia Carvajal one of the best persons I have ever met, always ready to make you smile and think positive. My chinese friend Russell She Yuanya, the experience of meeting and sharing experiences with him have enriched my world vision and made me learn more than he can imagine. My young catalan friend Ferran Bertomeu one of the nicest guys I have met and a great friend to share train travels. Every time I will remeber Sweden it will be all about you and the moments we had together.

Last but not least, I would like to thank you all the staff from Wireless@kth, working in this department have been great experience that I will always remember. I am specially gratefull to two persons in the department, Jan Markendahl who gave me the opportunity to work in this project and my supervisor Amirhossein Ghanbari who have been my guide during this process, I have really enjoyed working with him and I am looking forward to work together in the future. In addition to that, I would like to express my gratitude to Anders Byrlund and Mikael Anneroth from Ericsson for all their support during this months.

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List of Figures

1.1 Value chain utilities before Smart Grid . . . 3

1.2 Value chain utilities after Smart Grid . . . 4

2.1 Smart Grid building blocks . . . 10

3.1 Smart Grid ecosystem roles and activities . . . 15

3.2 Ericsson roles and activities in a Smart Grid ecosystem . . . 21

3.3 Global IT Solutions Player roles and activities in a Smart Grid ecosystem 23 3.4 Telecom Manufacturers roles and activities in a Smart Grid ecosystem . . 25

3.5 MNO roles and activities in a Smart Grid ecosystem . . . 27

3.6 Niche Point Solution Player roles and activities in a Smart Grid ecosystem 28 5.1 Collaborative Business model canvas for Consumer Enablement block . . 42

5.2 Non-Collaborative Business model canvas for Consumer Enablement block 43 5.3 Collaborative Business model canvas for Advanced Distributed Opera-tions block . . . 46

5.4 Non-Collaborative Business model canvas for Adavanced Distributed Op-erations block . . . 47

5.5 Collaborative Business model canvas for Adavanced Transmission Oper-ations block . . . 50

5.6 Non-Collaborative Business model canvas for Adavanced Transmission Operations block . . . 51

5.7 Collaborative Business model canvas for Adavanced Asset Management block . . . 54

5.8 Non-Collaborative Business model canvas for Adavanced Asset Manage-ment block . . . 55

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List of Tables

2.1 Changes from today’s grid to Smart Grid . . . 9

2.2 Comparison between Utilities of today and changes in utility in the future 12 4.1 Technology development country analysis table . . . 31

4.2 Public initiatives country analysis table . . . 32

4.3 Regulator policies country analysis table . . . 33

4.4 Business development/economic situation country analysis table . . . 35

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Abbreviations

AAM Advanced Asset Management ADO Advanced Distributed Operations AMI Advanced Metering Infrastructure ATO Advanced Transmission Operations B2B Business To Business

B2B2C Business To Business To Customer CE Consumer Enablement

CRM Customer Relation Management DA Distribution Automation

DMS Distribution Management Systems DR Demand Response

DSO Distribution System Operations

ETM Enhanced Telecommunications Management GDP Gross Domestic Product

GIS Geographical Information Systems HHI Herfindahl Hirschman Index HV High Voltage

ICT Machine To Machine IoT Interner of Things LTE Long Term Evolution LV Low Voltage

MDMS Meter Data Management Systems MMP Metering Management Platform MNO Mobile Network Operator M2M Machine to Machine

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Abbreviations 8

MV Medium Voltage M&C Monitor & Control

NOC Network Operations Center OMS Outage Management Systems RTO Regional Transmission Operating SA Substation Automation

SGC Smart Grid Communications SGCC State Grid Corporation China SGMM Smart Grid Maturity Model

SCADA Supervisory Control And Data Acquisition SM Smart Mmeter

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Chapter 1

Introduction

This master thesis is proposed in the context of a collaboration project between Ericsson, KTH (Royal Institute of Technology) and HHS (Stockholm School of Economics). The aim of this project is to evaluate the Business Transformation based on IoT and M2M applications and services in the industries of Utilities, Media, Transport and Healthcare. The topic discussed in this master thesis will be Business Transformation based on ICT in the Utilities sector and what new business opportunities appear for new actors like, for instance, Ericsson.

The role of Ericsson is being the stakeholder of the project but the goal will not be only restricted to Ericsson services or interests but trying to understand the global Smart Grid business scene. This global analysis will be useful both for Ericsson and for the research community in order to understand the possible business models in a Smart Grid environment. In this context analysis of Ericsson services and competitors will be perform, but always trying to describe the global picture.

1.1 Background

During the recent years several technologies and services based in Internet of Things (IoT) and Machine-to-Machine communications (M2M) have appeared in many different sectors; where IoT can be defined as the idea that any device that can be benefited by being connected will be connected and M2M communications is defined as the kind of communication between devices with minimal human interaction. According to the Ericsson report Ericsson vision everything that can benefit from a connection will be connected and there will be over 50 Billion M2M connections by 2020. [1]

IoT and M2M solutions can be applied in many sectors, like healthcare, transport, logistics, media or utilities. In every sector the motivations to implement this new services is different, as each sector has different final objectives and different actors and business models.

When talking about utilities in this context, over the last years Smart Grids has been discussed and developed. Smart Grid is the concept of having connection over the

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Chapter 1. Introduction 2

complete electric Grid in order to be able to monitor, manage and control its state. Electric Grid is all the service connections, transformers, transmission infrastructure, substations, generation plants, and everything required to manage the generation and distribution of electrical power. [2] The Smart Grid can be defined as an electric system that uses information, two-way, cyber-secure communication technologies, and compu-tational intelligence in an integrated fashion across the entire spectrum of the energy system from the generation to the end points of consumption of the electricity. [3] When new technologies (like Smart Grid) appear two types of challenges can be defined: technical and business challenges, therefore innovation has to be applied in both of them. Too often innovation is focus on the technologic evolution and underestimated on the business field, however it is a key aspect for new technologies and services to reach commercial success.

From the technological point of view the state of research on Smart Grid applications and services is quite advanced, while authors consider that innovation in the business part is one of the biggest challenges for Smart Grid technologies to reach success. The goal of this project is to understand the Smart Grid environment, analyze the Smart Grid ecosystem, define the roles in the Smart Grid ecosystem, analyze the different Smart Grid situation in different countries and proposal of business models suitable for the Smart Grid ecosystem in different countries.

1.2 Related work

Business challenges of IoT and M2M technologies have been addressed, analyzing them in the context of E-Home Care, Smart Access Control, Smart Cities and Homes. Using case studies from real projects like the Stockholm Royal Seaport, where the need of innovation on the business side is stated as a major need for the success of these technologies. [4] Regarding innovation on Smart Grid services, some research has been done about the integration of web-services in Smart Homes, where Smart Grid is a key enabler. These services are closely related to Smart Grid as the home will no longer be an extension of a utility or energy service provider, but serve as an autonomous building block in a smart grid and determine autonomously how and to whom it will accept from and deliver energy services on the smart grid. The implantation of these services support implicitly the gap of business models for Smart Grid. [5]

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Figure 1.1: Value chain utilities before Smart Grid

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The new value-model of the utilities industry has been stated and described. In the tra-ditional electricity value chain, energy and information flow in one direction, and all but the largest of customers play a passive role. The introduction of smart grid technologies will add complexity to the network, moving power and information in multiple direc-tions and enabling a host of new participants and business models. Distributed energy resources such as customer-owned renewable generation, plug-in electric vehicles, and energy storage will extend the value chain to include assets operated closer to the end user. End users themselves, who will be capable of providing a combination of demand response, power, or energy storage to the system, will also be an integral part of the new value chain. Once these changes in the value-model are identified the need of new business models that suit the new situation appears naturally. The value-model using Smart Grid is characterized by: enabling continous and reciprocal relationship between customers and utilities, inclusion of adding-value services using ICT technologies and new opportunities for third-party service providers. Value chain before and after Smart Grid is described in figures 1.1 and 1.2.

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Figure 1.2: Value chain utilities after Smart Grid

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In this context of change some research has been done studying the behavior of customer in this context and how companies should adapt to the new needs and the business opportunities that come with them. Studies have shown customers willing to participate in the new value-model. The fact that other industries like media or entertainment had follow the same path before utilities, supports the idea that major changes will happen in the sector in the next years. [7]

Supporting this hypotheses some studies analyze the reasons why utilities should em-brace a customer-centric business model concluding that utility companies need to start adapting and changing its strategies in order to adapt to the new situation in order to achieve customer engagement and maintain its business revenues. [8]

Regarding the involvement of IT companies in this research for new business models, KT the largest Korean telecom describe its research on energy management technologies and home energy management and also provides useful information about the KT Smart Grid business models. Different business models are introduced considering different partners and possible added-value services. [9]

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1.3 Problem formulation and Research questions

Nowadays the biggest challenge when discussing the roll-out of Smart Grids is what will be new business model for the industry, as it seems clear that new actors will enter and create a new situation. A robust business model is needed in order to enable the development and deployment of Smart Grids technologies and services.

In this new situation utility companies should be able to adapt faster and establish new alliances and collaborations with new actors that do not used to be involved in the sector. This means that a new business opportunity appears for companies that can play an important role in the new situation.

In this new situation some new activities should be done by, either existing actors or new actors.

Some of the activities that are not included in the previous model are:

• Communication Network is needed. Building one? Renting one? New actor can enter the business?

• Communication Network management. Done by energetic company or by a new actor?

• Smart devices. Who is installing and managing the communications of these de-vices?

Here is where companies like Ericsson can have a business opportunity to sell its services and products.

According to the research done in the related work section, there is a clear gap in the development of business models suitable for Smart Grids, having the support of Ericsson the goal of this thesis is to understand the Smart Grid eco-system and propose different Business Models suitable to use in different countries for new actors in the sector. This gap has been detected both in academia and from an ICT perspective. The only research done to this gap is ”Smart Grid Solutions, Services, and Business Models Focused on Telco” [9] where some hints on possible business models are introduced, however it is not enough and more and deeper research is needed.

Research questions:

• What roles can Ericsson with its Smart Grid services play in this situation? • What are the strategies of Ericssons competitors?

• What alliances can be recommendable to create in this new environment?

• Utility is usually a regulated sector, situation will be different in different countries: – What differences can be identified in different countries?

– What is the situation in different countries when talking about Smart Grid deployment?

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1.4 Contribution

In order to achieve the goals of the project the following tasks will be performed:

1. Smart Grid concept and its implications. What is really Smart Grid and how it will change the utilities business and its roles and actors involved.

2. Smart Grid ecosystem. What are the roles in this new eco-system and what kind of companies can play these roles.

3. Analysis of competitors and which roles can they play in the Smart Grid eco-system. Analyze if their interests overlap with Ericssons or if it is possible to create alliances or partnerships.

4. Analyze case studies in different countries and identify and analyze the different factors that affect and condition Smart Grid ecosystem.

The main contribution of this master thesis will be:

• Analysis of the Smart Grid ecosystem by defining its roles and activities, mapping of this roles into Ericsson and it competitors.

• Analysis of the Smart Grid situation in different countries: Australia, Brazil, China, Italy and Sweden. Analysis done in four differetn aspects: Technology development, Public initiatives to support Smart Grid, Regulator policies and Economic situation/Business perspective of the country. Providing a framework for the analysis of Smart Grid development.

• Proposal of different Smart Grid business models depending on the situation and environment. Based on the four Smart Grid building blocks and the roles and activities that will be defined in the Smart Grid ecosystem.

This contributions cover the gap defined previously by providing a business perspective into the Smart Grid field, defining activities, roles, relationships between actors and business models.

1.5 Methodology

In order to achieve the goals of the thesis the method will be focused on trying to understand Smart Grid eco-system, understand what companies can be new actors and understand what services they can offer, analyze the situation in different countries and finally make a proposal of business models.

Understanding Smart Grid eco-system. In this phase literature study will be done with the aim of understanding what are exactly considered Smart Grid technologies and services. By achieving this understanding we will be able to define the new roles in this eco-system and its implications.

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Understand companies and its services. In this phase research on companies services will be done. The way to go in this section will be firstly research Ericsson services and secondly the Ericssons competitors services.

Country case studies. In this phase five different countries will be analyzed: Australia, China, Brazil, Italy and Sweden. By doing this case studies analysis we will understand how Smart Grid context can be very different in different countries and how this situation can influence in many ways Smart Grid development. The country case studies will be done by researching in five different aspects:

• Technology development.

• Public initiatives to support Smart Grid. • Regulator policies.

• Economic situation/business perspective of the country.

These aspects will be assessed by using tables, by doing it this way the intention of the author is to help the reader to easily see the differences between the different countries making it easy to understand and compare between them.

The method to obtain the data has been online research of reports from officlal institu-tions like national energy office and reports from international instituinstitu-tions like Interna-tional Energy Agency. In some cases first hand information from Ericsson employees and other companies working in the field has been used, for instance to obtain the percentage of Smart meters installed.

The method to analyze the data has been by comparing the different values and infor-mation in different countries. By doing this comparison, one can understand the global picture in different countries and identify drivers or barries for Smart Grid development. Proposal of business models. Smart Grid business models for different countries and different situations if needed. The tool that will be used to propose business models is Business Model Canvas, it is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm’s value proposition, infrastructure, customers, and finances. The selection of this tool is to define easily and clearly a business model.

Smart Grid is quite extensive topic and therefore is very difficult to approach the busi-ness modelling task from only one perspective. Many different activities and tasks are included and because of that the author has chosen divide the business modelling in the four Smart Grid building blocks: Consumer Enablement, Advanced Distributed Opera-tions, Advanced Transmission Operations and Advanced Asset Management. [10] This way we can narrow down the problem and be more precise in the description of business models. The second factor to be considered is that collaboration is a key factor in the Smart Grid ecosystem and in order to consider that we will propose two business models per building block: a collaborative and a non-collaborative business model.

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Chapter 2

Smart Grid

In this section a complete vision on Smart Grid will be introduced, including definition, milestones, main drivers and challenges related to the Smart Grid deployment. The aim of this chapter is to introduce the reader to the concept of Smart Grid and its repercussions on the electricity sector.

2.1 Definition

Smart Grid is commonly defined as an electric system that uses information, two-way, cyber-secure communication technologies, and computational intelligence in an inte-grated fashion across the entire spectrum of the energy system from the generation to the end points of consumption of the electricity. [3]

2.2 Smart Grid building blocks

Smart Grid milestones is defined by the U.S Department of Energy as ”the building blocks of the Smart Grid” [10]. The complete implementation of these milestones will result on a fully functional Smart Grid. In order to achieve these milestones deployment and integration of various technologies and applicattions is needed. The goal of defining these milestones is to implement the complete concept of Smart Grid, but depending on the specific country situation the order can change and some building blocks will be more important than others. In order to better understand Smart Grid building blocks main changes in Smart Grid can be observed in table 2.1.

• Consumer Enablement. Smart Grid will put the customer in the central position of electricity supply services. This empowerment will allow the customers to have new services and information like: advanced metering infrastructure, distributed energy resources, demand response price program and in-home displays and consume control systems.

• Advanced Distributed Operations. Implement operations with the aim of support two-way power flow and micro-grid operation. This can be done by using sensors

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Chapter 2. Smart Grid 9 Today’s grid Principal

Characteris-tic

Smart Grid Consumers are uninformed

and do not participate with the power system

Enables customer partici-pation

Full price information available, choose from many plans, prices, and options to buy and sell Dominated by central

gen-eration, very limited dis-tributed generation and storage

Accomodates all generation and storage options

Many ”plug and play” dis-tributed energy resources complement central gener-ation

Limited wholesale mar-kets, not well integrated

Enables new markets Mature, well-integrated wholesale markets, growth of new electricity markets Focus on outages rather

than power quality

Meets Power Quality re-quirements

Power Quality a priority with a variety of qual-ity and price options ac-coridng to needs

Limited grid intelligence is integrated with asset man-agement processes

Optimize assets & operates efficiently

Deep integration of grid in-telligence with asset man-agement applications Focus on protection of

as-sets following fault

Self heals Prevents disruptions, min-imizes impact, and restores rapidly

Vunerable to terrorists and natural disasters

Resist attack Deters, detect, mitigates, and restores rapidly and ef-ficiently

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Table 2.1: Changes from today’s grid to Smart Grid

or control devices, advanced outage management, distribution and automation systems with the final goal of improve reliability and enable self-healing.

• Advanced Transmission Operations. Implement transmission systems with the aim of provide a better understanding of present and future operating risks. Advanced transmission operations include Consumer Enablement and Advanced Distributed Operations. Substation automation, integrated wide area measurement applica-tions, power electronics, advanced system monitoring and protection schemes are examples of activities that should be included in this operations.

• Advanced Asset Management. Asset management allows the utilities to reduce operations, maintenance and capital costs by optimizing the usage of its assets in a day-to-day basis. This can be done by using all the information obtained by the implementation of the different Smart Grid technologies and applications. Once the systems are deployed the asset usage can be analyzed in a continuous improvement basis, helping in the development and growth of a more efficient power grid.

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Chapter 2. Smart Grid 10

Figure 2.1: Smart Grid building blocks

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2.3 Smart Grid drivers

There are several drivers for the development of the Smart Grid concept [11]:

• Aging Infrastructures. In many countries large parts of the existing infrastructure dates from the beginning of the 20th century and is reaching the end of its useful life. Equipment is under extreme stress during peak demand.

• Integrating intermittent energy sources. Intermittent energy sources such as wind and solar will put additional strains on existing grids. Their intermittence must be counter-balanced with more intelligence in the Grid, base load power generation (hydro, nuclear) and storage.

• Lower Energy prices. Regulators are pushing for more competition to lower en-ergy prices. Utilities need to add information and communication techniques to maintain profitability and retain the ability to invest in infrastructure.

• Security of supply and increase in energy needs. Efficient and reliable transmission and distribution of electricity is fundamental to maintain functioning economies and societies. Electricity demand is steadily increasing.

• Sustainability. Public interest groups are putting pressure on politicians to reduce CO2 emissions through the adoption of alternative energy sources and put in place regulations to increase energy efficiency.

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2.4 Challenges of Smart Grid development

Smart Grid development is a challenge not only in the technical side but also, and maybe more important, in the business side.

Regarding the technical challenges, technology is not 100 % ready for its deployment but it will require only some adaptation from other technologies and services (like LTE or Zigbee) and the development of Smart Grid specific standards that will allow communi-cations and collaboration between grids in different regions/countries. Nowadays there are already some countries and cross-countries institutions that are working in the defi-nition of a common Smart Grid standards, like Australia and the European Union.[12] [13]

When talking about communications technology challenges, companies like Ericsson or Cisco already have an important background when developing solutions on this kind of technology and a deep knowledge in the field. LTE, for example, can be a very suitable communication technology for integrated communications through the grid and other technologies like Zigbee can be suitable for communications within the home environ-ment enabling home applications connected to smart meters. From this point of view, technology is already there and the technological challenge is to improve the already existing technologies and adapt them even more to Smart Grid applications.

Other technical challenges are achieving a high power system loading, increased distance between generation and consumption, dealing with fluctuation in renewable energy, ad-dressing new consumption models (Electric Vehicle and Smart Home), dealing with decentralized generation, increase in energy trading and transparent pricing and con-sumption for the customer. This challenges lay in the definition of Smart Grid itself and should be addressed in the designing phase depending on the goals and drivers in every country.

Challenges regarding the definition of business models have been addressed as a major barrier for the development of Smart Grids. In the new Smart Grid situation Utility companies should embrace a different way of providing services where new actors will be needed in order to achieve the new technical and customer requirements.

Utilities sector have been typically a slow-changing sector where new actors and tech-nologies are slowly accepted by the classical actors. This happened because of two different reasons, highly regulated market mainly controlled by public-monopolist com-panies and with a focus in providing a standard service to all the customers. However nowadays this situation is changing due to the liberalization of the utilities market and the new role of customer in the sector.

Smart Grid technology is at the same time an enabler and a consequence of this changes. Competition and customer-centric offerings are the main changes that are happening in the industry during the last years.

Competition is the key characteristic of energy markets during the last decades as several liberalization reforms have been applied by governments. Depending on political deci-sions some countries are more advanced than others in this liberalization processes, but as a general statement countries are walking towards a completely or partially liberalized energy market. In further chapters liberalization in every country will be assess.

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The role of the electricity customers is in the middle of a process where this role is changing from receiving a standard offering to decide what kind of service wants to pay for. This is a radical change in the industry and forces the companies to focus on customer demands and requirements. The focus of electricity services should be now renewable energy, tailored pricing or time-dependent tariffs. At the same time utilities should embrace transparency policies that will position them closer to the customer and in a better position to sell its services. In table 2.2 changes in the utility sector becuase of Smart grid are described.

Dimension Utility of today Utility in the future Product offerings Standard offerings Niche of one customization Revenue model Average cost-based

com-modity

Service-driven revenues Product life cycle Many years Severeal months

Market environment Closed regulatory eco-system

Dynamic environment regular appearances and merging of partners and competitors

Market growth Increase of CapEx base Grow customer base Customer satisfaction Regulatory defined

formu-las and steady targets

Customer-defined moving metrics

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Table 2.2: Comparison between Utilities of today and changes in utility in the future

In addition to this technical and business challenges the deployment of Smart Grid tech-nologies has as a key factor the usage or building of a communications network in the complete power grid. This means that a totally new activity needs to be involved and adopted in the electricity environment. To face this challenge there are basically two options: utility companies building/acquiring and managing its own network or new partners entering the business. Utility companies usually do not have the knowledge needed to develop the communications technologies required, therefore there is an op-portunity for new actors to enter the business. The entering of new actors in the business will transform the business model in the sector changing the existing roles and introduc-ing new ones. For example, Ericsson is one of the companies that want to enter in the sector as a new actor based on its previous experience and knowledge in communication technologies. [15]

Because of these three main reasons business models in the utility sector will change and with this master thesis the author try to analyze this new environment and propose possible business models on it.

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Chapter 3

Smart Grid Ecosystem

3.1 Roles and activities in a Smart Grid Ecosystem

In this subsection roles and activities in the Smart Grid ecosystem will be mapped, trying to cover all activities and services related. By defining this roles and activities framework we will be able to identify which roles and activities companies can play and what kind of partnerships can be settled between them.

The definition of the Smart Grid ecosystem is based on the description of a certain roles and activities that should be played in order to achieve Smart Grid vision defined by IEEE in Smart Grid: The Electric Energy System of the Future, [3] in this paper Smart Grid building blocks are described. Smart Grid buildings blocks are:

• Consumer Enablement

• Advanced Distributed Operations • Advanced Transmission Operations. • Advanced Asset Management.

These Milestones have been already introduced and describe in more detail in the last chapter. Based on them we have defined the main roles and activitiesor activities in a Smart Grid Ecosystem, which are described in the next lines.

Connectivity provider. Is defined as the actor that provides the network through the communication is done. Smart Grid communications are classified within two differ-ent categories: Grid connectivity and Smart Metering connectivity. Grid connectivity includes all communications in the power grid, covering from the production plants to the substation. Smart Metering connectivity is about communications between Smart Meters and operation centers. Because of this differentiation two roles and activities can be defined inside the Connectivity provider one. This differentiation has been done because, after some research, the author has found that usually companies have dif-ferent commercial offerings for Grid connectivity and for Smart Metering connectivity. Therefore the role of connectivity provider can be done by one or by two different actors.

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Chapter 3. Smart Grid Ecosystem 14

Substation automation. Is defined as the set of activities related to the installation and maintenance of the instrumentation and control devices which allow substation automation. Installation and management of Remote terminal units, meters and sensors, Digital fault recorder or protective relays are included in this activity.

Monitor and Control. Is defined as the set of activities related to the monitoring and control from the production to the distribution of the energy. The typical applications related to M&C are distribution automation, distributed generation and remote mon-itoring. By monitoring and control utilities company can obtain information from the complete power grid and perform action on it remotely depending on the concrete needs and situation.

Manage and gather data. Is defined as the set of activities performed in order to obtain meaningful insights from the Smart Grid, providing useful information for power grid management, customer relationship and strategic decisions related. One typical example of this kind of activity would be the analysis of consumer behaviour in different times or in different areas, that would be useful in order to improve the commercial offering or the grid design. Another typical example would be analysing data from the production side in order to be able to align the commercial offering with the production paths.

Home services provider. Home services are defined as any kind of services or appli-cations aiming to provide in-home services related to Smart Grid. The most common in-home services are related to home automation using data from utilities and from smart metering. An example of this kind of providers would be intelligent devices that can be programed to choose when the energy is cheaper for the customer.

CRM and Billing. The last two roles and activities are CRM (Customer Relation Management) and billing. These two roles and activities are localized between the utilities provider and the customer, and can be played by the utilities company itself or by a third party specialized in the task. CRM and Billing activities are included in order to provide a global vision on the ecosystem. Even though Smart Grid development will have infuence on this activities, they are not considered as main activities on the Smart Grid ecosystem.

In figure 3.1 Smart Grid Ecosystem roles and activities are shown.

3.2 Ericsson services and its suitable roles and activities

in a Smart Grid Ecosystem

In this section Ericsson services and its suitable roles and activities in the Smart Grid ecosystem will be introduced. The roles and activities will be defined based on the framework introduced in the previous section.

This section is structured in two different subsections: Ericsson services and Ericsson roles and activities in a Smart Grid ecosystem.

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Figure 3.1: Smart Grid ecosystem roles and activities

3.2.1 Ericsson services

In this subsection Ericsson services and products offering on Smart Grid will be de-scribed. The aim is to introduce to the reader Ericsson services and products and gain a deeper knowledge in what type of services new actors/companies can offer to the classical utility companies.

Ericsson offering is divided basically in two different parts: Smart Grid Communications (SGC) and Smart Metering Connectivity. In the following sections these offerings will be explained in detail.

3.2.1.1 Smart Grid communications

Smart Grid Communications is defined by Ericsson as telecom infrastructure or services consulting opportunities also covering grid operational communications requirements. This definition includes:

• Design and build and operate telecom infrastructures where operational traffic has an impact on design, configuration or operation of these infrastructures.

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• Design and build and operate communications operations centers that support grid operational use cases (such as outage management, service restoration etc...). • Infrastructure security opportunities on telecom infrastructures.

Smart metering platform and services are not included in SGC services and products, however they have to be considered to a correct deployment of SGC. To summarize is important to understand that not all utilities communications are SGC.

3.2.1.2 SGC offering

Within SGC Ericsson offering there are different products and services that can be provided. The main services and products offered are the following:

• Enhanced Telecommunications Management. • SGC Network Design and Build.

• SGC Operations Center. • SGC Managed Operations.

Enhanced Telecommunications Management. ETM aims to provide a holistic view to create integrated smart grid communications and optimize the management of this communications. ETM drives a strategic change in SGC ensuring future readiness, considering all aspects of communications services, improving service, ensuring quality and reliability and enabling improved cost management.

The main goals of ETM are:

• Usage of telecommunications as a strategic enabler.

• Long term value creation through integrated planning and demand management. • Integrated telecom operations with greater visibility over monitoring and

manage-ment of processes and grid operations.

• Exploit synergies from centralization and optimization of support processes.

The activities include in ETM service are:

• Defining communications strategy. • Design and build communications. • Operate communications.

• Cost allocation / price management. • Unit support processes.

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• Handle demand/user management.

ETM framework is completely align with SGMM (Smart Grid Maturity Model), a man-agement tool defined by worldwide utilities to help utilities in the planning of Smart Grid deployment. [16] ETM is totally suitable for SGMM technology domain specifications. To summarize, ETM provides a complete strategy of Smart Grid communications, using telecom knowledge from Ericsson and transforming this knowledge into a strategy and methods completely focus on SG needs and requirements.

SGC Network Design and Build. SGC Network Design and Build aims to build new and future proof existing telecommunications networks to enable Smart Grid trans-formations.

The main goals of SGC Network Design and Build are:

• Help manage and optimize existing heterogeneous networks covering specific Smart Grid communications requirements

• Operate new generation communication solutions with homogenized process and procedures, optimized cost and improved and controllable quality of service • Avoid huge investment and achieve maximum flexibility and innovation in the

Communication layer

Depending on the customer and its needs the company can offer different types of services within 3 different types of projects, DSO Metering Deployment, DSO Grid Operations Evolution and TSO Grid Operations Evolution.

DSO Metering Deployment services:

• Assess and select technology for smart meter projects • Design network

• Deploy and integrate network (Smart Meters and concentrators) • Improve network performance

• Integrate grid operations data

DSO Grid Operations Evolution services:

• Assess and select technology for HV/MV substation internal network and SCADA • Connect first MV and LV devices for Distribution Automation / micro grid projects • Condition monitoring / asset management

• End-to-End IP solutions for all grid devices

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TSO Grid Operations Evolution:

• Assess and select technology for HV substation internal network and SCADA • Connect a few sensors with dedicated high-speed links

• Condition monitoring / asset management • End-to-End IP solutions for all requirements

To summarize, SGC Network Design and Build provides an end-to-end design, build and optimization of SG communication networks by using LTE technology which provides: low latency, reliability, QoS and high throughput.

SGC Operations. SGC Operations aims to provide end-to-end management of multi-vendor, multi-technology, communication networks and smart devices.

The core functions of SGC Operations are the following: • Inventory.

• Configuration Management. • Data Integrity.

• Operational Transformation Engagement. • Integrated Operations Management. • Fault and Incident Management. • Smart Device Management. • Performance Management.

Ericsson has developed in-house solutions and products to perform SGC Operations focusing on Grid Operation, Communication Network Operation and Remote Manage-ment perspective.

All these services are included and in the context of Ericsson solution network architec-ture, consisting in four different layers as shown in the picture.

SGC Managed Operations. SGC Managed Operations aims to provide complete managed operation of customer owned communication network while optimizing the costs.

The service include in SGC MO are the following:

• Consulting and Engineering. Definition of yearly investment plans, engineering and design for communication network, Technical project specification for com-munication network development and Cybersecurity.

• Multi-vendor Support. Multi-technology maintenance, installation and integration of equipment into network, support contract management.

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• Communication Network Operation. Network monitoring, operation and mainte-nance (24x7x365).

• Field Operations and Maintenance.

• NOC Systems operation. Operation and maintenance for the whole system, servers, communication network electronics and related monitoring and electricity network control services.

• Smart Grid Communications Network Management Software. Smart Grid com-munication network inventory, commissioning, discovery and network and event management.

• Technical assistance for optimizing hardware, software and related procedures for Communication Network and NOC.

To summarize, SGC MO provides holistic support to communication network operations including aspects like strategic investment plans and support in the field and expert technical assistance.

3.2.1.3 Smart Metering services

Smart Metering services are defined by Ericsson as the ones that provide demand man-agement, revenue manman-agement, consumer devices, network maintenance and value added services providing a holistic support to every aspect of smart metering.

In the context of this definition of Smart Metering services Ericsson offers a Metering Management Platform (MMP), an integrated platform to provide support for revenue collection processes and also to the operation (service assurance). MMP consist of two different service layers: Meter reading services and Communications.

The main features that MMP offers are:

• Flexible Integration. Easy integration through extensive integration buses expos-ing all necessary services.

• Scalable Deployment. Highly scalable system solution with high availability. • Multiprotocol. Support of multiple Device Management protocols.

• Horizontal Platform. Support multiple utilities, multiple technologies, multiple operators and multiple protocols.

• Modular. Divided in modules. It could be easy integrated with other systems. Besides the MMP modules could be replaced by third parties solutions.

• Southbound interface. Support large amount of meters, several manufacturers and devices types.

MMP consist of four different functional modules: • Meter reading services level.

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– Meter devices management. This module offers the remote management of the meters. The existing relationships with meter manufacturers provides a wide devices coverage and many smart meters support.

– Reading Management. The solution provides management for meter reading services, controlling the information sent to the device and the received by the platform. The information about the reading service is not processed in the platform, it is sent to Utilities systems and then processed in the Master Data Management or other Utility system.

• Communications level.

– Communications Devices Management. Provide the management for com-munication devices located in the field, the modems installed in the different end devices like data concentrators and smart meters. This solution provide a large compatibility with communication devices

– Communications Management. This module provides a single, operator-independent, umbrella M2M management platform for utilities. In one side it connects to existing utility IT systems and in the other side to meters.

3.2.2 Ericsson roles and activities in a Smart Grid Ecosystem

In this subsection we will try to match the products and services Ericsson is providing with the roles and activities in a Smart Grid ecosystem.

Once we know in detail what Smart Grid related services Ericsson is providing we can identify them in the Smart Grid roles and activities defined in subsection 3,1.

The Ericsson products and services explained previously can be classified in the following roles and activities:

Connectivity provider:

• Enhanced Telecommunications management • SGC Network Design & Build

• SGC Operations Center • SGC Managed Operations

• SM. Communication devices management. • SM. Communications management

Ericsson can play the complete role of connectivity provider from its initial phases of design and build the network until the complete management of the communications and covering all communications involved: Smart Grid Communications and Smart Metering.

Ericsson can do some tasks within the role of Managing and gathering data. These tasks are related to the handling of the information obtained from the Smart Meters and its delivery to the decision maker employees. The Ericsson product related to these tasks

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is SM Reading management, where Ericsson provides management for meter reading services, controlling the information sent to the device and the received by the platform. Ericsson has a future business line providing services related with the roles and activities of Monitor & Control and substation automation. These roles and activities are included in the figure but is important to keep in mind that are more future lines than current offerings.

In figure 3.2 Ericsson suitable Smart Grid Ecosystem roles and activities are shown.

Figure 3.2: Ericsson roles and activities in a Smart Grid ecosystem

3.3 Competitors and its roles and activities in a Smart

grid Ecosystem

In this section the competitors in the Smart Grid ecosystem will be analyzed and framed into the Smart Grid roles and activities defined in section 3,1.

In order to analyze and frame the competitors roles and activities we need to classify them in groups. The classification used is the following:

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• Niche Point Solution Players • Mobile Network Operators

• Telecom Equipment Manufacturers

3.3.1 Global IT Service Players

The definition of Global IT Service Players considers multinational management con-sulting companies that offer technology concon-sulting services and outsourcing. In this definition companies like Accenture, IBM, Capgemini or Atos are included.

Usually this type of company offers full IT services offering related to Smart Metering services. The most important strengths are their recognition as stablished players in Utility sector and their brand and customer relationship that are already stablished.

3.3.1.1 Services provided by Global IT Service Players

In this subsection the main offering of Global IT Service Players is introduced. Is important to highlight that the service offering introduced here is not static and 100% uniform for all Global IT Service Players. Each of them have specific offering and different commercial startegies, the aim of this section is to introduced their offering from a general perspective and map these services in the roles and activities described in section 3.1

When talking about the services that can be offered by Global IT Service Players we can divide them in different types [17] [18] [19] [20] [21]:

• Transmission and Distribution asset management

Includes asset investment planning and management, performance management, mainteinance strategies or modeling and information performance.

• Smart Metering services

Includes Smart Meter data management, demand response, efficiency and com-mercial optimization, Smart Meter data management and revenue assurance. • Grid Operations

Includes optimize grid operations, improve reliability, increase customer satisfac-tion and enhance process and workforce efficiency. By adopting and promoting a customer-centric view of a utilitys operations. Design and operational parame-ters for transmission. Optimization of power delivery services in order to assure revenues. Work with continous improvement by identifying process and technol-ogy improvement opportunities. Implementation of incident investigation services, security control and grid analytics.

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3.3.1.2 roles and activities of Global IT Service Players

Once the services provided by Global IT Service Players have been introduced, now the roles and activities that these type of companies can play will be defined.

Monitor and Control role can be played by Global IT Service Players by doing tasks related to Transmission and Distribution asset management services (performance man-agement and maintenance strategies), both in Production and Distribution phases. Managing and Gathering Data role can also be played by Global IT Service Players doing tasks related to Transmission and Distribution services (asset investment planning) and Smart Metering services (commercial optimization and revenue assurance).

In figure 3.3 Global IT Service Players suitable Smart Grid Ecosystem roles and activities are shown.

Figure 3.3: Global IT Solutions Player roles and activities in a Smart Grid ecosystem

3.3.2 Telecom Equipment Manufacturers

Telecom equipment manufacturer refers to manufacturers of equipment and devices used in the telecommunications industry. [22]

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Their customer base includes organizations, phone/data/cable providers and TV/ra-dio broadcasters. Telecommunications equipment and devices include phones, modems, routers, gateways, answering machines, phone switching systems and data bridges. To understand the size of the business is important to point out that 50 of the largest Telecom Equipment Manufacturers organizations generate about 75 percent of total industry revenue with two-thirds from wireless communications equipment (TV/radio) and one-third from line-based communication.

Companies like Huawei, Alcatel-Lucent or Cisco are included in this competitors classi-fication.

3.3.2.1 Services provided by Telecom Equipment Manufacturers

In this subsection the main offering of Telecom Equipment Manufacturers is introduced. The aim of this section is to introduced their offering from a general perspective and map these services in the roles and activities described in section 3.1

When talking about the services that can be offered by Telecom Equipment Manufac-turers we can divide them in different types [23] [24] [25]:

• Design & Build Communication network

Working in collaboration with the utilities companies with the ultimate goal to integrate the electrical grid with a digital communications network, planning and designing reliable, highly secure network architectures.

• Grid Security

Integrated security solutions addressing physical and cyber security threats. Se-curity solutions provide services with the following characteristics: monitoring the network while mitigating threats, helping secure utility operational facilities and providing critical infrastructure-grade security to grid systems, data, and assets • Network and Data management

Services related to the network and data management. Providing operational support systems to manage the grid and communications dependencies, and to automate processes. Network management solution providing converged commu-nications infrastructure management for utilities, enabling end-to-end monitoring and control of the network communications as well as enterprise-class visibility that scales to mana.

• Field Area Networks

Field Area Network is a two-tier communication network for the electric tion grid supporting use cases such as advanced metering infrastructure , distribu-tion automadistribu-tion, distributed generadistribu-tion, and workforce automadistribu-tion.

3.3.2.2 roles and activities of Telecom Equipment Manufacturers

Once the services provided by Telecom Equipment Manufacturers have been introduced, now the roles and activities that these type of companies can play will be defined.

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Connectivity provider role is the main position that Telecom Equipment Manufacturers can play, as they are able to provide all connectivity within the Smart Grid functions. Managing and Gathering Data role can also be played by Telecom Equipment Manufac-turers, however service offering regarding managing and gathering Data does not have a holistic approach and it should be planned together with the utilities companies sharing the role.

In figure 3.4 Telecom Equipment Manufacturers suitable Smart Grid Ecosystem roles and activities are shown.

Figure 3.4: Telecom Manufacturers roles and activities in a Smart Grid ecosystem

It is important to point out that the service offerings will vary between different com-panies. Some of them (Cisco) have a broader offering while others a more specific one (Alcatel-Lucent), with this role mapping the objective of the author is more to under-stand the global situation than to dig in the differences between the companies.

3.3.3 Mobile Network Operator

A mobile network operator or MNO, also known as a wireless service provider, wireless carrier, cellular company, or mobile network carrier, is defined as a provider of wireless

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communications services that owns or controls all the elements necessary to sell and deliver services to an end user including radio spectrum allocation, wireless network infrastructure, back haul infrastructure, billing, customer care, provisioning computer systems and marketing and repair organizations. [26] A key aspect to be a MNO is that a company should own or control radio spectrum licensed assigned by a regulatory or governmental institution.

Companies like T-Mobile, Telia Sonera, America Movil, Telefonica, Tele2, Vodafone or Orange are included in this group.

3.3.3.1 Services provided by Mobile Network Operator

When talking about the Smart Grid services that MNOs provide, one need to be aware that the main asset they own is a complete communications network infraestructure. Therefore offering services linked directly to its network and its usage is the logic step for an MNO.

As mentioned in previous sections, two types of communications can be offered in a Smart Grid ecosystem: Smart Grid communications and Smart Metering communica-tions. Smart Grid communications MNO offering provides complete end-to-end commu-nications by using GPRS or LTE existing networks. Regarding Smart Metering the most common offering is providing AMI (Advanced Meter Infrastructure) that are basically are systems that measure, collect, and analyze electricity usage, and communicate with metering devices, either on request or on a schedule.

3.3.3.2 roles and activities of Mobile Network Operator

Once the services provided by Mobile Network Operator have been introduced, now the roles and activities that these type of companies can play will be defined.

The main role MNO can play is the role of Connectivity Provider, both for Grid and Meter connectivity.

Most of the MNO have focused their strategy on providing connectivity, a reasonable decision as it is their field of expertise building and managing communication networks. However few MNO have decided to extend their service offerings and play more roles and activities in this new Smart Grid ecosystem. Telefnica is an example of this approach by aiming to provide a holistic service offering, not only focus on the communications side. This approach has not been considered in this thesis as we understand that this is not the general approach within the MNO’s and we are more interested in see how actors can collaborate than in one main actors playing all the roles and activities in the ecosystem. [27] [28] [29] [30] [31]

In figure 3.5 MNO suitable Smart Grid Ecosystem roles and activities are shown.

3.3.4 Niche Point Solution Players

Niche Point Solution Player is defined as any company providing a specific Smart Grid services. For instance, a company providing specific home service or a company providing

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Figure 3.5: MNO roles and activities in a Smart Grid ecosystem

specific service/application for smart metering are included in this definition. It is reasonable to think that in a new ecosystem, innovation and new actors entering will play an important role and this idea connects with the Niche Point Solution player concept.

Examples of specific offerings are:

• Software for Smart Metering offering • Specific offering on Smart Home

• Specific offering on Monitor & Control systems • Specific offering on Data Management

• Specific services related with communications (either grid or smart metering com-munications)

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Figure 3.6: Niche Point Solution Player roles and activities in a Smart Grid ecosystem

3.3.4.1 Services provided and roles and activities played by Niche Point Solution Players

According to its own definition Niche Point Solution Players can offer a wide range of specific services covering, completely or partially any of the tasks in the Smart Grid ecosystem. Therefore any of the proposed roles and activities can be played by Niche Point Solution Players.

The fact that Niche Point Solution Players could play potentially any role is at the same time and advantage and a disadvantage for its competitors. They can be potential partners and potential competitors at the same time, this is an interesting implication that will be useful when defining business models for Smart Grids.

In figure 3.6 Niche Point Solution Players suitable Smart Grid Ecosystem roles and activities are shown.

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Chapter 4

Techno-economic country analysis

It is well-known that utilities is a strategic sector that very often is highly regulated by public authorities. Therefore when trying to understand Smart Grid ecosystem is important to keep in mind that situations in the utilities sector will be very different in different countries. In this chapter we will try to identify these different situations in five countries: Australia, Brazil, China, Italy and Sweden. This choice has been done based on the ultimate goal of having a general picture on the status of Smart Grid development and business oportunities in different continents and countries.

In order to do that four aspects will be evaluated:

• Technology development • Public initiatives

• Regulator policies

• Economic situation/Business perspective of the country

In each of these four aspects relevant information will be gather in a table and analyzed in detail.

4.1 Technology development

In this table two things are considered: percentage of Smart Meters installed and number of significant pilot projects performed in the country.

Pilot projects considered in this table are classified based on the framework from the European Comission [32]

The classification is the following:

• Pilot projects on Smart Meters. Includes projects which specifically address smart meter implementation.

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Chapter 4. Techno economic country analysis 30

• Pilot projects on Integrated Systems. Focuses on the integration of different Smart Grid technologies and applications.

• Pilot projects on Home Application. Includes projects which address new appli-cations at home or directly involve consumers.

• Transmission and Distribution Automation. Refer to projects dealing with au-tomation upgrades of the electricity grid, at the transmission and distribution level.

• Pilot projects on Others. Refer to projects that are not specially focus on Smart Grid but include the test of one or more capabilities related with Smart Grid technologies or services. Examples of this kind of projects are Smart city, renewable energy or electric vehicle projects

This framework was defined initially by Virginia Tech Clearing House and EUUS council, the JRC (Joint Research Center- European Comission) is collaborating with the US Department of Energy on common assessment methodologies of Smart Grids.

In this table there are only considered Smart Grid relevant projects from ”Smart Grid 2013 Global Impact Report”. [33]

The following table is used to gather this information and show it in in order to be easily understandable.

The goal of gathering this data is to understand how mature is the Smart Grid situation in this five countries, this will be useful in order to know what business models (related to the four smart grid building blocks defined in section 2 can be more or less suitable for each country. The result of the Technology development study is shown in table 4.1. Australia. Smart Meters are fully deployed in Victoria state in Australia. [34] The pilot projects performed show the maturity in the field of Smart Metering and the interest in projects related with Renewable Energy, focusing on solar generation.

Brazil. Smart Meters are in its first deployment stages and by the end of 2014 is expected to reach only 7,5% penetration [35] and is expected to reach the 75,3% in 2030. This shows the limited deployment of Smart Grid technologies in the country and the great potential and work that needs to be done in the future in Brazil. The pilot projects performed support the statement that Brazil is in its early stages of Smart Grid development and presents important business opportunities in the field.

China. Smart meters are now being deployed massively in China by SGCC (State Grid Cooperation of China) and the current percentage of Smart Meters deployed is 27% (Internal information from Siemens). The pilot projects performed show special activity and leadership on Transmission and Distribution Automation, this due to the challenges China is facing when it comes to its Power Grid usage. Chinas Power Grid is having problems on grow at the same level as the industry is growing and therefore improving Transmission and Distribution efficiency and control is a clear goal for Chinas Power Grid.

Italy. The country is one of the world leaders in Smart Meters deployment and playing a major role in the Smart Grid development in Europe. The reason why Italy is playing such an important role is the strategic plans led by the public institutions and ENEl

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Chapter 4. Techno economic country analysis 31 Technology

development Australia Brazil China Italy Sweden Smart meters installed 23% 7,5% (2014 pre-diction) 27% 90% 100% N of pilot projects 11 11 11 7 5 Pilot projects on Smart Meters 2 6 3 2 0 Pilot projects on Integrated Systems 2 6 2 3 4 Pilot projects on Home Application 1 0 0 0 0 Pilot projects on Transmission and Distribution Automation 0 0 4 1 0 Pilot projects in Others 7 0 2 1 1

Table 4.1: Technology development country analysis table

(Ente Nazionale per l’Energa eLettrica). Pilot projects show how Italy has been focus on Smart Metering and also its role in European projects like for example, ADRESS project. [36]

Sweden. The country is one of the early-adopters of Smart Grid technologies and is working to continuing to be a reference in the field. Sweden has a well-developed energy market and customer concerned about environment and the usage of renewable energies. Smart Meters in Sweden are already deployed and there is a plan for a 2nd generation of Smart Meters. The pilot projects done show how the country is focusing in testing Integrated systems and not only isolated parts of the Smart Grid. [37]

4.2 Public initiatives

In this table two aspects are show: the presence or not of a Smart Grid Public program and the main motivation for each country to the adoption of Smart Grid technologies. The goal of analyzing the public initiatives is to understand what are the motivations and drivers for Smart Grid in every country, that will be different and have implications when defining business strategies. The result of the Public initiatives study is shown in table 4.2.

Australia. Australia has been active in Smart Grids since 2004 in the context of energy reforms related with renewable energy and energy efficiency.[38] [39] The federal govern-ment has been responsible of coordinating a framework under which Smart Grid policy will be done and State Institutions are the responsible of the Smart Meter rollout and

Business transformation based on ICT: Smart Grid

Business transformation

based on ICT: Smart Grid

Óscar Álvarez Álvarez

Master of Science Thesis

Stockholm, Sweden 2014

Business transformation based on ICT

Smart Grid

Wireless@kth

School of Communication and Information Technology

KTH - Kungliga Tekniska Högskolan

Stockholm, Sweden

Abstract

Acknowledgements

Contents

List of Figures

List of Tables

Abbreviations

Chapter 1

Introduction

1.1

Background

1.2

Related work

1.3

Problem formulation and Research questions

1.4

Contribution

1.5

Methodology

Chapter 2

Smart Grid

2.1

Definition

2.2

Smart Grid building blocks

2.3

Smart Grid drivers

2.4

Challenges of Smart Grid development

Chapter 3

Smart Grid Ecosystem

3.1

Roles and activities in a Smart Grid Ecosystem

3.2

Ericsson services and its suitable roles and activities

in a Smart Grid Ecosystem

3.3

Competitors and its roles and activities in a Smart

grid Ecosystem

Chapter 4

Techno-economic country analysis

4.1

Technology development

4.2

Public initiatives