Introduction to Echelon and the Networked Energy Services (NES) Advanced

Metering InfrastructureBob Warden

VP Corporate Accounts

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Company Overview

A networking infrastructure company– Pioneering machine-to-machine (M2M) and

embedded Internet technologies– Providing standards-based hardware

and software products

A “green tech” company in a “green” era– Enabling energy efficiencies throughout its

product lines

Two main product lines– LONWORKS® Infrastructure– Networked Energy Services (NES)

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Echelon Is A Pioneer and World Leader in Advanced Metering Nearly two decades of experience in device networking

Supplier of networking infrastructure to world’s largest AMI deployment– 27+ million meters using Echelon’s products & technology

Over 1 million advanced meters — all based on IEC & ANSI standards — being deployed today

Selection Criteria and Guiding Principles

1. Networking infrastructure project, not just AMI or AMR

2. Standards-based hardware and software products

3. Operational and business decisions should not be constrained by infrastructure choices

4. Guiding principles include:– Ability to choose products and services from best in class companies

– Communication network can carry information from any device

– Standard connections with minimal integration efforts

– Ability to remotely upgrade and adapt devices

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Next-Generation Systems Enable New Utility Business Processes

Manual meter reading

•Monthly kWh reads

Automatic Meter Reading (AMR)

•One-way or two-way•Monthly kWh reads•Interval data•Basic theft detection•Outage/Restoration Detection

Advanced MeteringInfrastructure (AMI)

•On-demand reads•Programmable load intervals•Bi-directional and net metering•TOU, RTP, CPP pricing options•Demand response•Gas & water metering

Smart Meters

•Solid-state platform•Integrated communications•Integrated disconnect switch > Remotely disconnect > Remotely connect•Power quality data > Voltage readings > Current readings > Power Factor > Frequency > Detailed power outage data•Advanced theft detection•Remote programmable•Remotely upgradeable•Internal expansion port > Future functionality

Smart Grid

•Energy Management Services > Residential, Commercial•Home Area Network gateway > PLC (i.e. LONWORKS®) > RF (i.e. Bluetooth)•Web-based applications > Demand Response > Prepayment > Load Control > Revenue Protection > Web Move in/out•Distribution > Load profiling / engineering > Phase balancing > Transformer optimization > Energy forecasting > Outage detection and GIS > Restoration automation > Work Force Management > Automated Field Dispatch > Asset Management

Investment Cost

Opportunity Cost of Investment

Business Process Changes delivering ROI

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NES Architecture & Components

Net

wor

ked

Ener

gy

Serv

ices

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NES MetersMarket-leading advanced functionality

Detailed electrical measurements– Active and reactive energy– Import and export metering– Flexible time of use metering

Extended information & alarms– Multi-channel data recorder– Power quality data and alarms– Tamper and theft detection– Connectivity to other meters and devices

200A disconnect under glass– On/off– Load limiting/service upgrade to any level– Prepay

“Virtual IP” card in every meter– Share a single physical IP connection– Communicate to in-home devices

Remote firmware download support Designed for >20 year life with <0.3% annual failure

rate Traditional, compact form-factor

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NES network operating system – Enables choice of off-the-shelf

applications– Supports quick development of

custom applications and integrations

Scalable to millions of devices Redundant architecture Backward-compatible Standards-based

NES System SoftwareWeb services interface based network operating system

Utility Software

Web services Web events

IP WAN

NES System Software

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Fundamental Design Principles

Leverage the power of networks

Use best-of-breed standards

Network-grade, end-to-end security is essential

“Never visit the meter again”

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Fundamental Design PrinciplesLeverage the power of networks

Data networks share expensive resources to reduce cost per connected point– Networked printers, networked servers, shared broadband

connection, … Advanced metering networks should too

– Spread cost of “expensive” components (e.g., modems, backhaul connection) across many meters and devices

The NES system is not a “PLC” system

The NES system is not an “RF” system

The NES system is a networked system– Leverages the strengths of each to lower deployment cost, lower

operating costs, and lower life-cycle costs

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Fundamental Design PrinciplesUse best-of-breed standards

Each element of the system uses standards optimized & proven for that application domainMeters built on proven metering standards

ANSI C12.18, ANSI C12.19Networks built on proven networking standards

ANSI 709, TCP/IP IT interfaces built on proven enterprise standards

XML/SOAP (Web services)

Leads to highest quality & security Drives down cost of network connectivity, IT integration

– The largest contributors to total cost of ownership for an advanced metering system

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Fundamental Design PrinciplesNetwork-grade, end-to-end security is essential

Everything is secured– No manufacturing “back doors” around security– Devices are always in a secured state– All communication in secured end-to-end

Security begins in the factory Security is multi-layer Keys are random

– For example, knowing the unique key of one meter gives you no information for finding the unique key for another meter

Unique keys never have to be distributed to field employees

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Fundamental Design Principles“Never visit the meter again”

High level of “base” functionality built into every meter Enable/configure functionality remotely instead of replacing

products– Built-in, firmware controlled disconnect in every meter– Hourly metering and multi tariff in every meter– Prepay support in every meter– Power quality in every meter– Multi-channel data logger/load profiling in every meter– …

Remote upgrade rather than replacing products– All components support remote firmware upgrade

Long-lived, reliable products– Designed for >20 year life with <0.3% annual failure rate

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Next-Generation Systems Have Already Taken Hold in Europe — Powered By Echelon Technology

“…during the tender process, a generation change in technology took place…”— Göran Lundgren, CEO of Vattenfall distribution, from Ny Teknik magazine

Smart meters, Mr Conti believes, will give Enel an edge “for the next 20 or 30 years”. — Fulvio Conti, CEO Enel, from The Economist magazine

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© Vattenfall AB

AMRELVA 3 System Features

In addition to AMRAll meters have:

• Remote disconnect– Move in – Move out– Summer houses– Future pre-pay

• Load control relay• Power outage recording and reporting

including phase loss• Power Quality

– Voltage , current, frequency monitoring• Hourly load profile

About 12 meters/concentratorOver 300,000 meters read every nightAdding over 5000 meters per week

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Market Strategy

Deliver a complete system infrastructure– Highly reliable– Low cost– Broad functionality– Globally applicable

Establish it as a multi-vendor standard– Open to any company; equal terms for all– Open interfaces to allow innovation and customization

at both ends of the system – meters and applications software– Guaranteed standard and interoperable network infrastructure

Create a “future-proof” platform for utilities

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The Only Advanced Metering System Available Today From Multiple Sources

Common advanced metering infrastructure

Differentiated solutions

Interoperable applications

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NES is a Platform for Smart Grid

NES Smart Meter

with IP

Open Web Services API Network Operating System

PLC A Band for Utility

Distribution Automation Networks

MeterExpansion

Port

TCPIP WANor LAN

NES Smart Meters

LONMARK® i/f+ RF

NES System ServersDatabase

Data CollectionConfiguration

Security Home Automation Networks

Building Automation Networks

IP HAN Gateway

Open HAN RF

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Summary

Next-generation systems are the future of metering and the utility industry

– Only enabled by using truly smart meters– Require a network-centric approach to reliability, security, and scalability

Next-generation systems deliver substantial benefits to utilities and consumers

– Dramatically more beneficial than just AMR with two-way communications Next-generation systems enable in-home applications

Next-generation systems provide the infrastructure for meeting today’s requirements and the platform for delivering future applications