How Smart metering pilot project lost illusions and

How Smart metering pilot project lost illusions and ideas or nothing is just BLACK and WHITE! 18. 4. 2012 Špindlerův Mlýn composed and performed by members of the project

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

Reasons for massive roll out in Czech republic § 2009/72/EC directive § development in field of energy metering § expected introduction of smart grids § specific (different) position of Czech republic § cca 5 millions of customers § RIPPLE CONTROL, under which is managed approx 1/3 of retail points of consumption (represents approx ½ of energy supplied in low tariff, retail) § yearly billing of retail customers § continuously / remote red are all customers connected to extra high voltage, high voltage and some connected to low voltage (over 63 amps) § deployment of smart metering is a big challenge for CEZ, for our customers and also for our suppliers > that is why we run a pilot project prior to decision about massive roll-out Therefore we escaped from basic scenario ( 80% till 2020 )

Reasons for massive roll out in Italy § What we thought about their reasons § 30% of losses § black-out § limited DMS § cash flow not fully controlled time for Illario

AMM Drivers in Italy or “Why to become smart” Ilario Tito & Laura Panella Europe and Americas Business Development Infrastructure and Network Division Spindleruv Mlyn, 18 th April 2012

Uso: Outline q Enel Group Smart Metering Experience q Main Drivers of Enel Cost / Benefit Analysis q Unpredicted Benefits 6 pubblico

Uso: pubblico Enel Network Management and Innovation Heading towards efficiency, the Enel experience as DSO world reference • Satellite mapping of • > 2. 000 HV/MV substations remotely controlled (100%) • > 100. 000 MV/LV substations remotely controlled (more than 25%) • Improved Neutral Grounding System • Automatic fault clearing procedures on 65% of MV Lines • 37 mln meters in Italy • 13 mln new generation meters being deployed in Spain • 340 Mln/ year remote readings • 15 mln/ year remote operations • 97, 4% operations correctly performed (2010) Smart Grid/ Network Automation Asset Management network assets • Database of network events (power outage notification, fault detection) • Optimization of network investments based on a risk analysis • Optimization of network maintenance Process reengineering Automatic Meter Solutions Work Force Management • 5. 200 Enel teams connected via GPRS with GPS localization • ENEL cartographic on board • Mobile applications for all Field Operations State-of-the-art technologies and process optimization to deliver value to our stakeholders and partners 6

Uso: pubblico Enel Operational Excellence: the Italian case A 10 year path towards becoming the European benchmark Opex (€/customer) • Network remote control and automation • Automated Metering Management • Automated Work Force Management • Asset Management • Process reengineering 2011 (42 min, 48 €/Customer) Quality of service (minutes interruption/year Opex reduction: - 40 % Quality of service: +68 % 4

Uso: Outline q Enel Group Smart Metering Experience q Main Drivers of Enel Cost / Benefit Analysis q Unpredicted Benefits 9 pubblico

Smart Metering Deployment Uso: pubblico Value creation Key success factors Massive roll out • all Enel’s LV customers in parallel/ uniform lots in order to anticipate savings Speed of implementation • 20% yearly substitution International procurement • global OEM manufacturing + Enel onsite teams for production planning&control to ensure high volumes of production / high quality International standards • open technologies and solutions Crossover technologies • Mesh for SM + mobile communication for concentrators Customer engagement • Strong communication effort Continuous innovation • implementation of the most up to date solutions

Uso: pubblico Smart Meter Project Cost Benefit Analysis Project’s key indicators • Number of Meters installed 33 Mln units » Monophase 90% » Poliphase 10% 100% advanced new-generation meters • Roll-out 5 Years • Cumulated CAPEX* • Yearly Running Costs ** • Yearly Savings ** 2, 1 Bln € 67, 3 Mln € 450 Mln € • Meter Average Life PBP * ** 15 years Capex for 31 Mln meters by 2006; Concentrator/ meter @ 1/80 at the end of roll-out period 11

Uso: pubblico Costs - Investment Breakdown per point of delivery 73% Smart Meters and Data Concentrators 20% Installation 7% System Technology (field + system) approx. 80% of S. Metering CAPEX 12

Uso: Smart Meter Project Cost Benefit Analysis Costs and Investment Estimate Drivers Smart meter Concentrator/ TLC • Capex assume: single phasepolyphase Smart Meter + installation; • Opex include: metering, account admin. , invoicing, personnel for metering superv. * • Investment costs assume: concentrator + installation. • Operation costs include data transfer of data through PLC, communication to the concentrator pubblico Average non-discounted data PM/HW/ SW Total costs • Capex include: AMM customizing, interfaces with legacy, servers + Project Management costs; • Variable costs include hardware+software maintenance Investment (€/SM) ~ 68 Yearly operation costs (€/SM) ~ 2, 2 *Operation costs due to remote reading failure and meter failure taken into account as reduction of savings 13

Uso: Impact on Business Yearly savings and quality of service pubblico Low savings High savings Field Operations and Logistics: • Manual Meter replacement due to failure reduced by 70% with respect to dynamic meters • Contract parameter modification reduced by 95%*, Quality parameter Deadline greatly improved, reaching 99, 7% by end of deployment • • • Manual activation and deactivation reduced by 99% On-field readings reduced by 99% Logistic costs reduced by 80% due to standardization of models (only three) Energy Losses: • Energy balance for each transformer and antitamper signals allow for a more accurate fraud contrast, increasing success rate by up to 70% Credit Control and Management: • Remote deactivation of bad payers prohibits customers from continuing illicit consumption and increasing their own debt • Monthly readings improve correctness of energy balance and optimize cash flows *Only modification for single-poly phase switching and system failure (less than 2%) Strong operating benefit delivering Savings approx. 15 € per point of delivery and 2€ yearly opex per p. o. d. 14

Included in model pubblico Not included in model Uso: Smart Meter Project Cost Benefit Analysis Yearly savings (end-of-installation) Decrease of Operation costs* Purchasing & Logistics • Meter reading • Remote connection/ • Lowerpurchasing disconnection • Avoided Drivers • • Estimated yearly Savings (€/SM/year) meter replacement (no meter change for contractual changes, lower meter failure) Lower switching costs Avoided dispatch to false failure Lower metering maintenance + recalibration costs Lower fraud verification costs ~10 * cost, warehousing cost, meter overhauling logistic. . Lower Energy Losses • Revenue Protection/ lower commercial losses: lower losses for tampering/ fraud, thefts and reading errors • Lower meter energy consumption (technical losses) Customer Service, Billing • Newtariffs/better • • ~2 ~2 Do not include smart grid benefit (i. e. : faster outage identification, lower network losses, because it may require network technology upgrade) pricing methodology Improved customer profiling and load administration Receivables optimization More precise billing and lower customer service -related costs Lowerback-office activities for errors/ litigations ~1 15

Uso: pubblico Smart Meter Project Cost Benefit Analysis NPV of a Central Europe 2 Mln customers utility 21% 100% 40% 53% 26% 10% 3% 17% 14% 36% 14% Savings Logistic/ Energy Cust. Savings Meter/ Install. HW/ Total from purchas. Losses Service concentr. costs SW/ PM capex operations gains & costs Billing NPV Total NPV opex @100% of @80% of savings IRR 16% IRR 11% … enough to become Smart? 16

Uso: Outline q Enel Group Smart Metering Experience q Main Drivers of Enel Cost / Benefit Analysis q Unpredicted Benefits 17 pubblico

Uso: Effective Billing & Trader Switching pubblico Heading towards greater operational efficiency Automated Billing Readings Free Market Billing 7 mil. clients handled System capacity of >1 mil customers/day Regulated Market Billing 95% of bills dispatched within the first 8 days of each month Strong improvement of credit indicators Billing is not estimated, making invoices reliable and true to authentic levels of consumption Readings 25 mil. clients handled Trader Switching § ~270 k Monthly operations § 99, 9 % Carried out in the first week of following month Regulatory framework allows customers to freely chose retailer, while real time Trader switching allows for a greater perception of benefits. In an increasingly open market, the number of operations is bound to grow. Becoming Smart is vital to stay in business 18

Uso: ilario. tito@enel. com laura. panella@enel. com International Business Development Infrastructures and Networks Division Enel Distribuzione Spa Via Ombrone, 2 00198 ROMA THANK YOU FOR YOUR ATTENTION 19 pubblico

Reasons for massive roll out in Sweden § What we thought about their reasons § market liberalization § monthly readings § easier switching § easier life for field workforce – remote readings and management time for Baard

Sweden, 100% Rolled-out by 2009 • Regulation stipulated: Every household should be invoiced based on actual consumption, every Month, instead of a predicted consumption. • The above meant that 5, 4 Million meters (Less than 64 Amps) where to be replaced by “smart meters” that remotely could be read for meter values once a Month. • The responsible part of exchanging the meters where the Grid company (Cost/Benefit analysis positive as a result of charging the consumer over a period of years) • Approx. 175 Grid companies changed their meters during a 6 year period

Swedish conditions for Smart Meters • Three major Utilities represented more than 52% of all meters • Different ways of managing roll-outs • Vattenfall; Did two projects with approx. 500 K meters in each • Fortum; Did one large project with all meters (the supplier ran into financial difficulties and went bankrupt during the latter part of the project) • E. ON; Spread the total amount of meters in 7 different projects with various amount of meters in each • Several “small utilities” cooperated in purchasing groups to get volumes • Several “municipality owned” grid companies did it them selves • Difficulties in national

Swedish effect • All Swedish meters are “smart” from September 2009 • Consumption of energy has risen with 25% in the last 10 years • At the same time the yearly average price of a k. Wh has gone up with 229% • Smart Metering has increased the easiness of switching • Smart Metering has improved the knowledge of consumers and have increased the awareness • Smart Meters have, however, not created efficiency as expected

Maingate role in the Swedish market? • I have myself been a project director of two major roll-out projects in Sweden (Total of 500 K meters) • Maingate have been involved in more than 50 Projects where 54% of the total amount of meters are involved • Maingate is currently working with more than 300 Utilities to plan roll outs, execute roll outs, after market approach and in the demand side management side of Smart Meters and Smart Grid technology

Key learning points • Smart metering roll out is a logistic project! • Planning is key to success! • Leave it to experts, but stay in control • Source and purchase not only components but functions/services • Make your solution future proof • Make sure that supplier contracts are back to back (when feasible) • Choose your partners, not out of price but of experience • Be prepared for surprises, there will be at least one every week!

ČR with HDO SMART METERING SMART GRID Enhanced grid management Higher quality and broaden offer of services More information for customers Active customer’s participation, savings Starting position for countries where are not implemented „load controll“ and/or „demand side management“ systems What makes Czech republic different ? Ripple control

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

Pre-project tasks in a wood age time of paper boxes § ČEZ Distribuce distribution grid in ČR § § 3, 5 mil. retail customer metering points 55 000 DTS (distribution transformer station 35 k. V/400 V) § § 33 000 MPs in 3 main different areas 800 DTS with some different device setup and technologies § AMM project MP and DTS – 3 x transformer station 110/35 k. V areas § Pre-project tasks § § § Location selection Area size definition Topology analyzes MP lists Sub-areas def. Data source mgmt. Zdroj obrázku: www. gpsvizualizer. com

Pre-project tasks in a wood age time of paper boxes § DTS technology condition check § DTS split to groups by level of necessary DTS modification for AMM § Design and drawings for necessary changes on DTS § Electro installations companies got design set for each DTS (DTS check docs, maps, lists) § Selected MP condition check § MP technical condition check § Ripple control wiring check (HDO, clocks) § MP group ripple control setups § Specification of each DTS AMM box § Complex DTS switch ON/OFF plan

Pre-project tasks in an ancient time of paper boxes

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

The role of Schrack Technik Ltd in AMM project Cast: Mgr. Martin SVOBODA

Schrack - producer of DTS cases

Schrack – producer of DTS cases

Plán Integrovaného Odpojování PIO (Integrated Plan of switching Off) genesis of the file size initialy 1, 5 MB, finally 15, 5 MB

Production of cases size selected automaticaly

Production of cases list of equipment in the case, so called „black list“ (just because of color)

Production of cases time line (production, assembly, deployment) - planned time for assembly was 5 weeks - production itself took 2 days - some of the cases were produced within 3 days !!

Production of cases goal was to produce unified cases

Production of cases options of cases – 46 variations - 494 pcs of AMM case MAXIPOL - 50 pcs of BPL repeater in MINIPOL case - 26 pcs of E GPRS cases MINIPOL

. . . again cases. . .

. . . another cases. . .

Documentation

Scheme of AIL 0 equipped case

Surprise – a case

Unlimited support of Schrack

Modifications of infrastructure for Smart Grids „Wake up from dreams to tough reality“ 18. 4. 2012 Špindlerův Mlýn Milan Kloubec, AZ Elektrostav

Overall information Within the WPP AMM project the AMM technology was installed in almost 1000 distribution substations Furthermore was installed: • over 100 couplers of the PLC MV technology; • tens of repeaters of the BPL technology; • and many others. 3 -membered team → installation of AMM technology into one substation/day Installation of the AMM technology includes: • creation of interface in substation • installation and start up of the AMM technology Necessary power outage for installation → limitation of consumers Power outage is necessary to plan at least 2 months in advance!! Precise coordination → alpha and omega of AMM technology installations…

Coordination: what is connected with installation of AMM technology? „Decalogue of AMM“ Coordination of several outages and teams during one day: 1. Logistics of power outages… 2. Preparation for the day „D“ (material, possible complications etc. ) 3. Verification of the right phase rotation before power outage 4. Acceptance of worksite by AZ Elektrostav before installation 5. Drawing of circuit diagram in Microstation in field 6. Creation of detailed photo documentation before and after installation 7. Functionality verification of the installed technology with the control 8. Acceptance of worksite by ČEZ Distribuční služby after installation 9. Issuance of works inspector‘s report 10. Preparation and signing of completion certificates and complete documentation with ČEZ Měření and ČEZ Distribuce

Electrical distributor with a Smart Grids Module Dimensions of Smart Grids Module [mm]: • 750 x 500 • 750 x 750 • 1000 x 500 • 1000 x 750 Out of 800 modules only 7 modules were greater than 1000 x 750 → less than 1%

Distribution substation with a Smart Grids Module Dimensions of Smart Grids Module [mm]: • 750 x 500 • 750 x 750 • 1000 x 500 • 1000 x 750 In the picture is AMM technology for double distribution substation

Lack of space in double distribution substation

Distribution substation with a Smart Grids Module: KO_1174 became best measured distribution substation in Central Europe: Smart Meter PLC MV Quality Meter E-GPRS MEG 2 sets of convertors Inside temp. sensor Outside temp. sensor

Distribution substation with a Smart Grids Module: advantages All-concrete compact substations are a phenomenon of these days: • minimum visual interference External boxes: • on the edge of the Construction Law • complications with other laws

Repeaters installation of the BPL technology High-speed transmission→ high frequency → shorter range Smart Region Vrchlabí: • task to install about 30 repeaters in a plastic box • indicated as routine installations → each box „ 4 screws and a cord“ • drawn ambicious plan „ 2 -membered team will install in 3 days“ i. e. 10 boxes a day… Repeaters installation Ad hoc: 1. do we have project documentation ? ? ? 2. is settlement of property rights carried out ? ? ? 3. is power outage for installation planned? ? ? • I will rather stop asking…

Repeaters installation of the BPL technology 1) Installation of box with repeater 2) Repeater installation on the door (outside) 3) Repeater installation inside the stand 4) Repeater installation on the cover 5) Repeater installation on the door (inside) Installations carried out without outages!! i. e. without consumer limitations

Installation of smart meters at the CEZ Headquarters „Able to measure – able to economize“: • Installation of the AMM technology for power circuits of each individual floor • Measured data transmission and its display in foyer → on-line consumption monitoring

Black-out simulation at the CEZ Headquarters: outcomes CEZ News: CEZ Headquarters in Prague became best measured office building in Central Europe…

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

What we have shown you in previous years Yo u wi ll n Meter ot see !

Statistics are boring, but it has something (sometimes) More then 31 600 AMM meters (12 500 1 p; 19 100 3 p) More then 800 DTS installation § 3 and 2 half areas with AMM meters installations § (Pardubice, Jeřmanice, Vrchlabí, Hradec Králové a Chrudim) § 51 cities and 125 city districts with AMM technologies § 72 kg archived printed documents about DTS installation (inspection reports, diagrams) § 38 GB archived electronics documents from DTS (photos, protocols, logs) § 3 man days just for scanning and archiving documents above § 32 version of project plan from 2009 to 2010 and additional 17 versions to summer 2011

Usage statistics of our LABoratory for AMM project by companies Company ČME HP ADD Ness Landis+Gyr Schrack ZPA ICOM Corinex Powel Transtech Goerlitz Modem. Tec Enel Teco ČEZ ICT Applied meters ČEZ, a. s. Kvados Tectra ČVUT inova centrum Elektroprivreda Serbia ZERA T-Systems Endeza Circutor Microelectronica EMH Amount 2714: 06 1052: 25 895: 15 830: 08 491: 30 485: 45 474: 10 202: 00 145: 25 130: 00 67: 25 55: 15 48: 30 21: 00 13: 30 13: 20 12: 00 8: 30 8: 00 7: 20 6: 00 3: 00 2: 30 2: 20 2: 00 1: 00 63

Usage statistics of our LAB for AMM project by companies Live LAB operation from 22. 9. 2010 § 253 operation days and 7695 hours, ie. 30 men-hours per one operation day § 117 persons in LAB § and our LAB record holders Name Společnost 26 firem Time spent Šmída Oldřich ČME 1022: 54 Dostálek Martin ČME 616: 30 Horáček David Hájek Karel Bayerle Petr Ness ČME HP 373: 38 363: 59 343: 35 Poubová Marta Ness 303: 00 Novák Tomáš ADD 257: 15 Salbot Michal Schrack 231: 15 ADD 225: 30 Kapala Adam HP 216: 00 Moraru Andrei ADD 211: 00 HP 205: 30 Skříčil Jan Vašák Petr 64

As we have become famous beyond the borders (project + Czech) OR Foreign visitors in the Lab 82 visitors from 26 companies from 13 states Country City Company Bosna a Hercegovina Banja Luka Mikroelektronika Italy Canada Moldova Germany Norway Austria Slovakia Serbia Spain Sweden USA, California Milano, Rome Vancouver Kišiněv Frankfurt n. M. Königswinter Wittenburg Trondheim Vídeň Bratislava Prešov Bělehrad Barcelona Madrid Ostersund Palo Alto Enel Corinex ADD T-Systems ZERA EMH Powel Goerlitz Schrack Applied meters EPS Circutor Endeza Powel HP 65

Planed vs. installed ratio of AMM meters 7000 6549 6125 6385 6000 5658 6039 5658 5000 4448 3632 3370 3000 3161 2000 2791 1620 1302 1140 1052 1000 178 0 Skutečně instalováno v měsíci 157 0 103 0 February 12 January 12 December 11 November 11 October 11 September 11 August 11 July 11 June 11 May 11 0 15 April 12 4000 March 12 4273 Plánovaný HMG instalací IEM 66

Project schedules versions (monthly) Project schedule versions was established 49! just in 1, 5 year. Because project was hit by: § § economic recession in 2009, cutting production and lack of components in 2011 Tsunami 2011 in Japan and chip production interruption § § Detected component defects and SW bugs Good managers improvements ideas and cost cutting requests 67

GOOD TIME FOR BRAZILIAN COFFEE or cafe ? No, it is a break

Geological layers of Giant (Krkonose) mountians

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

Readout structure

Histogram DTS readouts

DTS – installation and clean up § § § Case installation on DTS (5 technology) optional devices included § Wiring check, base functional check § Data connectivity check DTS two level monitoring § Site. Scope monitor DCU/Router and SIM card § Readout monitoring DTS summary meter § DTS trouble solving based by supplied MP volume In field DTS check in case of DTS system troubles § Device check and wiring § -> HW replacement § -> Device re-setup § GPRS signal strength measurement § -> Basic antenna replacement with higher gain version § PLC transmission power check

Communication effectivity § § § Data center readout job § Readout data set definition § Communication spec. setup, timeouts tuning § Readout priority based by different data sets, repetition tuning DCU setup § Tasks queue management § Timeouts tuning § Crosstalk's special DCU setup in high level crosstalk's areas PLC tuning § Low voltage networks grouping § By density of MP, by type of topology -> Spread flatten network with high MP density -> long straight lines with low MP density § Tuning of PLC routing § Overhead on PLC communication level – optimalization

Field clean up § Diagnostic § Measurement of PLC signal level by each phase (all DTS are 3 p) § LV nodes identification with high level crosstalks § GIS support for field place identification and LV grid topology § Technology specific analyzing tools § DCU <-> meter sniffers § Signal, SNR, etc. PLC analyzers § § Functional device infield check Field tasks § LV phase signal § Device replacement (meters, PLC modules, etc. ) § Repeaters § GPRS meters § Filters against noise in PLC Cenelec A band

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

A co to zkusit rychleji, milý Bobe? Communication technology IS bottleneck, especially for SG solution Smart metering BANDWIDTH & RELIABILITY § Overnight reading of register (daily consumption) § Overnight reading of load profile PLC 1 -4 kbps noise sensitive § Collisions zones – many DTSs in the same area (crosstalks) § Limited numbers of MPs behind DTS § On-line readings and data processing § On-line execution of commands BPL 5 -40 Mbps much more noise sensitive Smart grid 77

Agenda BPL in SMARTGRID and AMI = Working Reality of one communication platform Basic parameters and features BPL AMI Architecture in CEZ Field Test Results Risks and future possibilities www. corinex. com 78

G. Hn Markets Focus Purpose Promote G. hn Technology and Ensure Interoperability of Products Based on the G. hn Spec Board of Directors Contributions Certification & Interoperability Smart Grid Utilities Home Grid is the commercial companion group for G. hn Worldwide industry representation Corinex is Chair of the AMI Working Group for this impressive new standard with mandate to: 1. Develop Clean Tech product standards for devices with G. hn technology. These standards will be used to access Clean Tech properties of the technology; 2. Lab testing and certification process to verify those properties; 3. Establish methods of calculation of the carbon offsets for devices having Clean Tech properties © 2009 All Rights Reserved Promoters Contributors UNH 7 9 79

Features: Full Corinex BPL Architecture Benefits Corinex BPL Solution Supports All Needs of AMI and Smart. Grid Applications ■ ■ ■ ■ Simple meter interoperability Integrated ripple control system – broadcasting in all cluster within a minute Proven communication performance (AMI, Smart. Grid, EV) The industry lowest cost/performance ratio compared to all communication technologies Unmatched performance (up to 40 Mbps) and reliability Self adapt and auto-healing mechanism Interoperable solution for multi-meter vendor support Real-time event reporting and meter profile reading Leadership in open standard (G. hn) solution Security encryption support Advanced data integrity and validation (in meter and HES) Real-time demand load management (within seconds) Remote firmware upgrade (open for future needs) 80 www. corinex. com

Meter Interoperability Corinex Technology is Meter Agnostic and has four components. Solution Components Net Perform L&G meter Grid Apps ZPA meter Smart Grid Connect Grid Intel Net Admin Mikroelektronik a meter www. corinex. com Corinex Metering software in Smart Communication Module Corinex Wide Band PLC Gateway 81

Integrated Ripple Control System Corinex- BPL specific features ■ ■ ■ The module has a broadcast address The module is able to accept a broadcast (e. g. a telegram for everybody- only right ones react) Reaction for telegram if address part is OK is: change of tariff/output, change of virtual output change of limiter, change of disconnector, etc. Similar actions as above enabled in TOU Above actions are enabled by unicast and single address command A possibility to operate so called “virtual relay- e. g. home automation” (nice to have) 82

BPL Network Architecture in CEZ deployment The BPL network on low voltage is connected to the CEZ 3 G WAN for backhaul to central servers Collection Engine 234 Meters In TU_0848 DB Access Router WAN Corinex + Landis BPL Meter in MDU Buildings Transformer Station Via 3 G Router Corinex + Landis BPL Meter in Residential Houses Transformer Station Via 3 G Router Corinex AMI LV Network In TU_0848 Reading Conditions: • Time Out 20 s per read • Max 5 Retry per Read CEZ has measured the performance of meter reading to ensure it meets/exceeds the requirements for their smart grid applications www. corinex. com 83

Broadband Implementation available for MDM The deployment in Vrchlabí was chosen to trial the broadband technology for smart grid applications Example -Trafo TU 848 AMM Topology CEZ is piloting new broadband over powerline technology to the meter, which achieved high bandwidth and reliability for smart grid applications www. corinex. com 84 84

Pardubice Deployment Pardubice 2012 PA_0619 Deployment without Repeaters – Q 1 2012 Average meter reading success rate of 99. 705% without repeaters Deployment Approach in 3 steps: PA_0637 PA_0087 § 1108 single phase meters § 112 three phase meters § 1220 total meters 1. Planning and Hardware Installation - Completed by CEZ without assistance from Corinex. 2. Network Optimization - Accomplished by Corinex in less than 2 days: • Only 1. 6% meters not reporting • Consider this step closed and will return after the CEZ 60% test 3. Clean up and 100% connectivity – Connected the remaining 1 -2% in February BPL has superior connectivity and performance to any other PLC 85 deployments www. corinex. com 85

Deployment without repeaters Pardubice Substations Red_Substation 3 Corinex Gateways at the Substation ● 0 Repeater Gateways in the field ● 352 meters ● The most remote meter: 390 m ● Yellow_Substation 3 Corinex Gateways at the Substation ● 0 Repeater Gateways in the field ● 451 meters ● The most remote meter: 470 m ● Blue_Substation 3 Corinex Gateways at the Substation ● 0 Repeater Gateways in the field ● 348 meters ● The most remote meter: 310 m ● Approx. 500 m All 1151 meters have connectivity with the NOC!

BPL to the meter: known and unknown PROVEN ■ BPL technology has an unparalleled reading performance in areas where tested ■ Easy to deploy ■ Cost comparable with narrow band solution in absolute terms, and hundreds times lower in price per Mb ■ Technology is supported by strongest silicon vendors (TI, Marvell, Intel). ■ In various market segments: EV, Smart. Grid, to the meter. OPEN ■ It is a new technology. One needs to better understand what it cannot do. ■ Solution can be further enhanced, benefiting from the speed and reliability of the technology – it is not fully exploited yet. ■ To lower the risk it would be beneficial to expand number of meter vendors adopting the technology (currently five in Europe) ■ To be able to scale up to 1 million meters + it would be good to have a concentrator – it is on the roadmap and will be introduced in September 2012. It will enable solution for up to 30 mil meters. ■ Vulnerable to the limited knowledge about its actual cost and performance 88 www. corinex. com

Thank You Corinex Communications Corp. #1200 – 570 Granville Street Vancouver BC, Canada V 6 C 3 P 1 Tel: 604 - 692 - 0520 Fax: 604 - 694 - 0061 E-mail: saleslead@corinex. com www. corinex. com Corinex Communications a. s. Ambrova 6821 01 Bratislava 37 Slovak Republic, Europe Tel. : +421 - 2 - 59 - 212 - 000 Fax: +421 - 2 - 59 - 212 - 222 E-mail: allglobal@corinex. com Corinex Communications Corp. B-2910, Jiahe Huaqiang Building, 3006 Shennan RD, Futian District, Shenzhen, China Postal Code: 518031 Tel: +86 -755 -8367 7675 89

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

Customers complain about prices, but are not interested in Smart technology is not necessary for initial survey of our payments. All you need are your bills. Smart meter shows consumption progress over time. You need additional technology to gain detailed info about structure of your consumption Hot water Natural gas Electricity Natural gas PRAHA VRCHLABÍ Cold water District heating Cold water Hot water

What we can offer and what is customer able to utilise ? Customer’s engagement (behavior of an average flat / house) flat fee 5 € / month Electric owen 120 k. Wh / yr 0, 14 € / k. Wh off peak 0, 25 € / k. Wh peak 0, 80 Microwave owen 50 k. Wh Freezer 300 k. Wh Dishwasher 250 k. Wh Washing machine 120 k. Wh 70 k. Wh Ironing Lights 0, 70 0, 60 Real consumption Type diagram 0, 50 0, 40 250 k. Wh 0, 30 TV, audio 500 k. Wh 0, 20 PC 400 k. Wh 0, 10 0, 00 Σ ~ 2. 000 k. Wh Σ ~ 10. 000 Kč = 400 € per year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

What „random“ customers say ? § 22% of customers already monitor their consumption. 83% from them use manually red data to calculate real consumption, rest to have rough idea about expected yearly consumption. § 38% declares interest in detail consumption data through smart meter (if it is for free). Only 5% from them would check their consumption more often than monthly. 38% changes to 14% if detailed data are offered as a paid service (avg. willingness to pay is approx 1, 50 EUR) § 70% prefers flat pre-payments and yearly bill /clearing). Only 24% would prefer payment based on real consumption. § 36% of respondents guess they would be able to save approx 12% of the bill just because of available detailed data about their consumption § When two-tariff offered, 46% respondents would adopt and move some consumption form peak to off-peak hours, but requires 16% incentives

What customers with AMM tarif say different ? § Customers have adopted AMM tariff because of prospective § savings (89%) or § to be able to on-line monitor their consumption (74%). § 23% of those who accepted guess they will save 16% of their bills. § Customer’s willingness to decrease their living comfort is very limited – see next slide § Final saving was minor – customers were able to move only 1, 5% of their consumption for peak to off-peak 60% wanted to monitor their consumption on web portal,

Co What customers say ? re ictu p is a rr So y is h T

Smart office building Average consumption of one floor in CEZ headquarters (working day [k. W] ) § There are 6 floors, there approx 100 – 150 employees on each § We do read „office consumption“ – lights, PCs, cafe machines, freezers, . . . ) § We will read heating and aircon consumption as well § There have been a competition in March (energy savings against January)

Competition (bets) AVG 19, 87% Median 17, 50%

Smart office – real potential of savings § An „office consumption“ represents less then 8% of overall building consumption § 10% savings in „office consumption“ represents yearly financial savings approx 200. 000 Kč § Each floor’s ability to save electricity strictly depends on layout and available daylight § Higher potential is expected in heating and air condition

”Without a human perspective on M 2 M technology we will never experience the full potential of M 2 M. ” “When the infrastructure is in place there are no boundaries of how it can be utilized. Both at home and at work. ” “We now talk about M 2 H, machines servicing human and not at least machines servicing society in large. ” Baard Eilertsen, CEO at Maingate

What do these have in common?

Obsolete apps replaced by digital one´s and then turned into services

And the electrical meter have gone from products to Value added services online

E. ON give its customers 100 KOLL Through innovative technology the customers of the energy company E. ON are able to control their energy consumption via smart phones. It is only when you are both aware and have access to real knowledge about your energy consumption that you can make active decisions and lower both your cost and impact on the environment, says Anders Olsson, Deputy CEO at E. ON.

Bright future from financial perpsective: Business case is negative under current conditions OPTIONS OF IMPLEMENTATION FLAT 5 yrs of preparation FUNCTIONALITY n yrs of implementation INVESTMENT UNIFICATION 2009/72/ES SELECTION BASE CASE UPGRADE - + - + - + - + + 5 6. 8. 3. 5. 7. 2. 4. -52, 8 6. 1. + 7 + 10 RIZIKO NEKOMPATIBILITY POSSIBLE UPGRADE WRIT OFF OLD TECHNOLOGY CAPACITY INTENSIVE - BENEFITs SCENARIOS FO IMPLEMENTATION 12 yrs of operation REDUCED CURENTLY THE BEST CASE 6.

Bright future from financial perpsective: Why the case is negative § § High investment into AMM technology High investment into ICT support Change of customers behavior is limited High risks (e. g. communication) § Whole costs will be transfered on the customer in tariff

Bright future from financial perpsective: We need to change conditions

Black & white content Intro 1 Reasons for massive roll-out: 2 • in Czech Republic • in sunny Italy • in cold Sweden Project preparation – „one man show“ (in clogs) 3 What have we installed, what pain have we enjoyed 4 How much, how many. . . ? 5 Of course, complications ! 6 What medicaments are available ? 7 How bright future can we expect ? 8 Conclusions 9

Our recomendation – do not roll out AMM now § § § smart metergin technology is curently too expensive many of functions required by EU is supported by ripple control current market conditions do not stipulate for savings customers are not interested in savings customers do not want to change

How many companies were (is) involved ?

How many people were (is) involved ? Petr Bayerle, Eva Beková, Otto Berger, Pavel Berka, Jiří Bittman, Tomáš Bláha, Aleš Boubelík, Dalibor Bradáč, Tomáš Burdan, Erika Caithamlová, Michal Cerina, Lubor Čáslavka, Kamil Čermák, Vladimíra Černá, Matouš Červenka, Jiří Čírtek, Martin Dostálek, Enno Dreier, Jiří Surý, Jiří Dvořák, Luděk Fajgara, Václav Fencl, František Fiala, Miloš Fojt, Jan Hájek, Karel Hájek, Jan Hájek, Jaroslav Hanyš, Josef Havel, Jan Hejčl, Tomáš Hejl, Jaroslav Hendrych, Leoš Holanec, Jiří Holub, Ivan Holub, David Horáček, František Horváth, Lukáš Hořký, Jan Hovorka, Vladimír Hrabě, Gabriela Pátková, Stanislav Hutňan, Rostislav Charvát, Jaroslav Chlumský, Igor Chrapčiak, Luboš Jelínek, Jaroslav Jirman, František Kácl, Jan Kanta, Adam Kapala, Petr Karel, Petr Kašpárek, Milan Kloubec, Roman Kloubec, Peter Kollarčík, Jitka Kortánová, Karel Kotrba, Petr Kozák, Jiří Krajčovič, Zdeněk, Krčmář, Tomáš Krejča, Václav Krejčí, Marek Kubenka, Michal Kučera, Jiří Kudrnáč, Milan Kuchařík, Radomír Labuť, Radek Lamich, Petr Lisý, Jiří Luňáček, Jana Luňáčková, Pavel Mahdal, Ferdinand Maneth, Jiří Masorsič, František Mátl, Martina Matoušková, Jiří Mentlík, Petr Mervart, Martin Michek, Bohuslav Mikeska, Aleš Mikula, Miroslav Mohelsky, Roman Musil, Hana Něničková, Milan Neubert, Tomáš Nevídal, Lubomír Novák, Jindřich Oupický, Libor Palivec, Martin Pavlas, Petr Pokorný, Michael Polák, Marta Poubová, Milan Prokop, Radko Purm, Kamil Rajs, Roman Rezek, Pavlína Rezková, Fredrik Rossen, Michal Salbot, Filip Secký, Radim Sedláček, Petr Schneeberger, Jiří Schoř, Jan Skříčil, Jiří Smékal, Karel Sobotka, Jakub Souček, Josef Stavárek, Jiří Stich, Martin Svoboda, Robert Szabo, Kamil Šebesta, Jindřich Šenbauer, Pert Šigut, Oldřich Šmída, Martin Špalek, Milan Špatenka, Jiří Štefan, Petr Štulc, Pavel Švajner, Lukáš Tančouz. Aleš Tomáš, Petr Tuček, Miloš Tůma, Karel Urválek, Vladimír Vajnar, Přemysl Vániš, Jan Vanžura , Petr Vašák , Aleš Vážný , Richard Vidlička, Petr Vikler, Tomáš Viták, Michaela Vlastníková, Miloš Vodička. František Voldán, Bohuslava Volná, Ludmila Vrbová, Martin Wiener, Marek Zacios, Petr Zachoval, Pavel Zamouřil, Petr Zápařka, Jiří Zázvorka, Milan Železný And František Muller and Ondřej Mamula

One more memory from the ŠPINDL 2011 conference What the project gave us and what it took away ? § Took away: § illusions and ideas § a lot of quiet nights § summer holiday and 2 skiing seasons § Gave: § § § § real experience new knowledge better testing procedures 2 x heart attacks new brothers in arms annual beach volleyball tournaments 3 babies

Thanks for you attention František, Ondřej, Illario, Baard, Radek, Martin, Milan, Vlado, Raduz and many others