© 2016 TM Forum | 1

Building smart cities for smart citizens

Driving Innovation &Measuring Economic Value of

Smart City InvestmentsDr. Sumit D Chowdhury,

CEO Gaia Smart Cities

© 2016 TM Forum | 2

Why are Smart Cities Required?

Urban Migration

Digital Divide

Competition forTalent

EnvironmentalDegradation

Limited Resources

Climate ChangeImpacts

Aging Infrastructure

© 2016 TM Forum | 3

Highest Priority: Quality of Life

The multidimensionalnature of the Quality ofLife incorporates basicneeds:

water, food, shelter,health, jobs (economy),safety and security,education, culture,environment, social equity,technology and innovation

Reflects on howcitizens orinhabitants of a cityperceive their ownsense of well-being.

© 2016 TM Forum | 4

Secure, accident freeand disciplined- all roadintersections covered

by traffic lights/cameras

Green and eco-friendly‘factory in a garden’with over 50% green

cover

Zerodischarge/emissions

and near 100%recycling

Reduced carbon footprints by use of SolarPower for lighting and

heating

Flood and naturalcalamity proof

Township

Covered pedestrianwalkways and cycling

tracks

Quality and reasonableschooling facilities for

all

100% Wi Fi enabled

Benefits: End-State-Goals

© 2016 TM Forum | 5

Systems Thinking and Smart Cities

Cities are Complex Systems Innovations can have a multiplying effect Benefits/effects span beyond the obvious

Systems ThinkingLinear Thinking

© 2016 TM Forum | 6

Case: Delhi Air pollutionToo many vehicles

Burning garbage Polluting Power plants

Lack of green coverConstruction Dust

© 2016 TM Forum | 7

Case: Delhi Air pollutionToo many vehicles

Odd-Even Scheme

Burning garbage

Lack of green coverConstruction Dust

Swabbing streets

Polluting Power plants

Stop burning garbageChange dumping site

© 2016 TM Forum | 8

CAUSE

CAUSE

CAUSE CAUSE

CAUSE

EFFECT

EFFECT

EFFECT

EFFECT

ONE KEYINDICATOR

CAUSE

CAUSE

EFFECTCAUSE

EFFECTCAUSE

Systems Diagramming

© 2016 TM Forum | 9

Case: Delhi Air pollution

Too many vehicles Pollution

Reduce vehicles Reduction in Pollution

© 2016 TM Forum | 10

IncreaseProfitability

CAUSE

CAUSE CAUSE

Increaseridership

Reduction inCongestion

Reduction inDiseases

ReachHome faster

Lesser needfor hospitals

Reduction inPollution

CAUSE

Better PublicTransport

Better Qualityof Life

Increse inPollutionspending

Use SharedCars

Reduction inVehicles

Pollution Systems Diagramming

© 2016 TM Forum | 11

Interdependencies Between Services

SmartWater

SmartTransportationGovt.

ServicesPublic Safety

(CCTV, Surveillance)

SmartEnergyHealthcare

Traffic Congestion IncreasesEmergency Response Time

Public Safety IncreasesAdoption of Public Transport

Structured servicesincreases use ofPublic Transport

Relaxed CommutingImproves Health(reduces healthcareexpenses)

PT reducesenergy useReduces energybill

Public Safety reducesCrime.

Reduces L&O relatedexpenses

RelaxedCommutingImproves Healthreduces healthcareexpenses

Less energy consumptionresults in reduced water use

Improved waterincreases health

ReducesHealthcare costs

Improvedwater supplyimprovespublic safety

Govtresponsivenessincreases publicsafety

Increased PT reducesemissions. Improvesgreen house emissions

Adapted from Wipro, Smart Cities

© 2016 TM Forum | 12

Sensor Networks for Private & Public Vehicles

InternetOperations

Center

Gai

a G

rid

DataCenter

Mobile App Website Dashboard

PUC Platform

Public & CommercialVehicles

Private Vehicles

RFIDSensor Network

RFI

D T

echn

olog

y

Tag

Antenna

Reader

GPS

+ R

FID

Tech

nolo

gy

Device

Tower

Ultra Narrow BandSensor Network

GPS

Non

-GPS

TRAFFIC EVENT BUS

© 2016 TM Forum | 13 13

Plenty of Stakeholders

© 2016 TM Forum | 14

Systems Thinking Approach

© 2016 TM Forum | 15

Repeatable Ideas Across Cities

What it feels like tofind a good leveragepoint

“Maybe we should write that spot down”

© 2016 TM Forum | 16

Smart City Key Success Factors

StrategyStrategy

• Vision• Leadership

Business Case

CultureCulture• Innovation• Citizens Engagement

ProcessProcess• Governance• Partnerships

• Architecture• Adoption

• Use• Access

TechnologyTechnology

DataData

Tech

nolo

gy

Non

-Tec

hnol

ogy

© 2016 TM Forum | 17

Innovation & Technology Cycle and Risks

© 2016 TM Forum | 18

Perception of high risk when investing in innovativesolutions and energy efficiency measures; Large volumes of investment required; Long-term delays before reaching

maturity/profitability; Limited capacity for public funding: high public

deficits in municipalities and incapacity to raisefunding from capital markets.

Finance Challenges

© 2016 TM Forum | 19

Example: Innovation in SmartGrid technologies for a MajorUtility

© 2016 TM Forum | 20

Yesterday’s Grid

Generation

Transmission

Substation

Distribution

End Users

© 2016 TM Forum | 21

Tomorrow’s Smart GridA Complex Mix of Resources

Two-WayPower Flow

Advanced Sensors

Advanced Components

© 2016 TM Forum | 22

Benefits Classification Themes

The Demand Response ThemePeak energy usage periods, reduce thecosts and bills, avoiding new powerplants, balance (regulation) generationand load due to variable/intermittentresources

Integration of Distributed EnergyResources Theme

Solar, wind, energy storage, EVs,microgrids

Modernization ApplicationInfrastructure Theme

Architecture, Communications network,IT/OT systems, standards, Private vs.Public, Cyber Security

The Customer Needs Theme(Regulator Theme)

Accurate, timely and low bills, reliable power,data privacy

The Smart Metering ThemeMeter reading, revenue assurance, powerquality, customer enablement

The Meter Data for Reliability andOperations Theme

Outage management, grid and equipmentmonitoring, improving power quality

The Grid Modernization ThemeDistributed energy resources, EV chargers,Distribution Automation, Volt-VAR Management,Conservation Voltage Reduction (CVR),Automated Switching (Fault Location IsolationService Restoration “FLISR”)

© 2016 TM Forum | 23

Benefit #1: Minimizing peak power generation needs increasesprofits, reduces O&M costs, and defers capital expenditures.

Business Driver: Utilities use peak generation to satisfy daily peakdemand needs approximately 100-200 hours per year.

Opportunity: Reduction of peak power generation and associatedfuel and O&M costs.

Reduce spot market peak power purchases Avoid peak power purchases due to forced outages

or maintenance on utility generation units. Defer new plant construction Capex costs.

© 2016 TM Forum | 24

Demand Response Management

Help reduce/delay the need for new capacity

24

© 2016 TM Forum | 25

Benefit #2: Minimizing Non-Technical Losses involves automaticbenefits from installation of new AMI meters & new process benefits.

Eletro-mechanical meters are known to lose accuracy over time and readers areknown to take payments from customers to report inaccurate readings

Old Inaccurate meters

Incorrect registration for low loads due to meter calibration

Inactive meters customer illegally using electricity

Incorrect meter constants into meter of billing system

Incorrect bills due to incorrect tariffs

Physical meter tampering

© 2016 TM Forum | 26

Modernization - Non-Technical Losses – Key Insights

Exelon: 2012 Business case

3.5 million meters

10 year business case of $2.7 billion

$1.35 billion from NTL lossimprovements

Sacramento Municipal Utilities District (SMUD)

600,000 customers

$7.7 million dollars

10 Year business case benefits:

$114.98 million in total 10 year benefits

$75.56 million in Operational benefit

$28 million in NTL benefits

– $10.84 million in other benefit

© 2016 TM Forum | 27

Benefit #3: Minimizing special meter reading coststhrough the Smart Metering program will enable cost

reductions.

Business Driver: Special (off-cycle) meter readings occur on a sub-set ofthe meters every month for various reasons and cost theutility ~R$28 per trip.

Opportunity: Eliminate up to 99% of special read trips annually Eliminate vehicle capital and O&M costs Eliminate crew accidents and associated costs. Eliminate vehicle insurance costs. Eliminate Green House Gas emissions.

© 2016 TM Forum | 28

Benefit #4: Minimizing service connect and disconnect coststhrough the Smart Metering program will enable cost reductions.

Benefit #5: Minimizing manual meter reading will reduce costsin many areas and create social value.

Benefit #6: Minimizing power outage revenue losses & fines through theSmart Metering program will benefit utilities & their customers.

Benefit #7: Minimizing AMI deployment time to 3 years increasesbenefits by over 70% compared to a protracted 10 year roll-out.

© 2016 TM Forum | 29

Industries, Companies and Homes with Multiple Smart Meters,

Meter Data Acquisition / Meter Data ManagementSecure Open Data

PlatformMaster Data

Management SystemInfrastructure BusinessSupport Systems (BSS)C

omm

on In

form

atio

nIn

fras

truc

ture

CommonNetwork

Common DataPlatform

INTERNETSecure VPN

Public Utility Companies

Transportation Gas Water Power Waste Management

MultipleNetworkTopologi

es

Beyond Electricity: Smart Metering Service

© 2016 TM Forum | 30

INSIGHT : Industrial Automation Platform

Meter Data Acquisition / Meter Data Management

Secure Open DataPlatform

Master DataManagement System

Infrastructure BusinessSupport Systems (BSS)C

omm

on In

form

atio

nIn

fras

truc

ture

CommonNetwork

Common DataPlatform

INTERNET

Secure VPN

MultipleNetworkTopolog

ies

Reporting Engine Trend Analysis Energy Modelling Bill Analysis Emissions ReportingCost AllocationPower Quality Analysis

ApplicationsInformation & Insight

Data Modelling Processing

Forecasts

© 2016 TM Forum | 31

Benefits of Integrated ICT

Availability of information, at the right time, to the right personAvailability of information, at the right time, to the right person

Increased efficiency with information sharing, reducing costsIncreased efficiency with information sharing, reducing costs

Better utilization of city assets due to availability of informationBetter utilization of city assets due to availability of information

Connectedness leads to common integration with e-Governance ERPConnectedness leads to common integration with e-Governance ERP

Citizens integrated to city operations for their own goodCitizens integrated to city operations for their own good

Overall increase in Quality of life leading to a true smart cityOverall increase in Quality of life leading to a true smart city

© 2016 TM Forum | 32

Building smart cities for smart citizens

@SumitChowdhurywww.Gaia.in

Dr. Sumit D Chowdhury,CEO Gaia Smart Cities