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Khaled Fouad Homssy Chief Executive Officer El Sewedy Electrometer Group Egypt

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Khaled Fouad Homssy Chief Executive Officer El Sewedy Electrometer Group Egypt

Challenges facing the Electricity Sector [1]

Significant changes in energy systems

From centralized, unidirectional grid … … to distributed energy and bidirectional energy balancing

Renewable Energy Plant ( Solar )

Renewable Energy Plant ( Wind )

Storage Solution

Electrical Vehicles

Private Solar

The following pictogram represents the challenges facing Utility companies all over the world:

Revenue Collection

How can utilities achieve the balance needed?

Proposed Solutions : Prepayment Solution Advanced Payment Solution Smart Grid Solution

Prepayment Solution

Achieve the balance between Managing Consumption and Revenue Collection

Various payment schemes through Smart cards, RFID and STS technology

Flexibility to choose between installing the meters Indoors or Outdoors

Advanced Payment Solution

Remote Communication Reduced investment and operation costs Supporting various wired as well as wireless communication

topologies and protocols including but not limited to GSM/GPRS, PLC, RF and CDMA platforms

Smart Grid Solution

Real-time Monitoring & Control Analyses of the technical as well as non-technical losses Reporting data in any format (database or graphical representations) Assists utilities pinpoint their points of weaknesses in their

distribution networks and plan for enhancements and future expansions

Server

Utility has control and real-time information Utility can manage demand and shape load

Utility Load Management System

Utility has control and real-time information Utility can manage demand and shape load

Consumer Portal (Desktop & Apps)

Meter Data Management System

Data Analytics Data Forecasting End Consumer Energy Engagement

User Customizable Interface

Data Sync Engine

Scalability (Cloud Based Solution)

Complete Grid Analytics (Electricity/Water/Gas)

Integration with Metering Solutions

Consumer to Customer/ Advanced Billing/

Web & Mobile Apps

Key MDM Features

Country Profile: Lebanon [5]

The electricity supply system is dominated by the state-owned Utility Electricité du Liban (EDL). Its installed generation capacity only meets 85% of the electricity

needs Electric interconnections and imports from Syria cover about

10% of the demand The remaining 5% is being generated by the individual

enterprises and commercial facilities

Country Profile: Lebanon

Capital Beirut

Population

2008 estimate: 4,224,000 [3] (126th)

GDP (PPP) 2011 estimate

Total $61.444 billion [4] (83rd) Per capita $15,522 [4] (57th)

The Perfect Storm: Problems facing the Utility Company in Lebanon [5]

Prior to the 2006 war, Lebanon’s electricity sector was in a state of

disrepair. The damage to the infrastructure induced by the conflict, which amounted to $114 million, exacerbated its condition

The generation capability itself is characterized by inefficiencies in the power plants and by a lack of available capacity due to aging and unreliable assets The transmission systems suffer high technical losses (15%) The distribution systems suffer from high non-technical losses

(23%) High levels of unbilled electricity consumption and a low collection

of electricity bills (80%) On top of its ineffective organizational structure, the Utility is facing a

serious human resources issue with a decrease in its manpower while the number of customers is increasing

CRM

Operation • Billing • Revenue

Collection • Losses

Reduction • Call Centers

Installation • Meter Reading • Event

Management; Automatic & Remote (disconnection, reconnection, reconfiguration)

• Load Management (Supply-Demand Management)

• Meter Data & Reporting

Supply • System Integration

• System Installation

• Smart Metering Installation (AMI)

Engineering • System including (Smart Meters AMI & Head End Software)

• Meter Data Management (MDM)

• Site Survey • Project Analysis • Feasibility Study • Smart Metering

Solution Design

Lebanon Project Information [7]

• Distribution Service Provider Project – Lebanon Territory covered

3000 Km²

Number of Customers Served 470000

Number of Inhabitants 2000000

Number of Employees Utilized in the Project More than 700

Operated Network 6000 Km of MV Overhead Network 12000 Km of LV Overhead Network 700 Km of MV Underground Network 500 Km of LV Underground Network 6000 MV/LV Substations

Expected Network Investments 200 M $US until mid-2016

Service Required as part of Scope Service is not required as part of Scope

CRM

Operation

Installation

Supply

Engineering

Key Project Stakeholders

Collaborative Responsibilities Profile Party

• Provision of AMI Meters and Solution

• Support on Assets Management, including Planning and Design, Construction of new facilities, Network Operations and Maintenance

• Support in program management, meter reading, bill collection, customer care and non-technical losses

• IT system provision (SAP for Utilities)

•One of the top ten global players in the metering industry •More than 1.5 million meters produced per year •About 19 million electricity meters running in the Middle East, Africa, Asia and the Americas

•French electricity distributor, with subsidiaries across Europe (35,000 employees, 1.3 million km network) •Experience with Lebanese environment dating back to early 20th century

•Major global management and consulting firm with worldwide broad experience in utilities business

•Engineering and consulting company providing Enterprise IT Solutions in Africa, Middle East and South Asia •Delivering tangible benefits to clients in the Utilities, Logistics and Cloud services

Consortium Represented by BUS [6]

Scope of Services Performed [6]

PLANNING & DESIGN

OPERATIONS & MAINTENANCE

CONSTRUCTION & AMI

METER READING & BILL COLLECTION

CUSTOMER SERVICES

NON-TECHNICAL LOSSES REDUCTION

Scope of Services Performed [6]

Planning & Design: Revising existing MV and LV networks to

identify network bottlenecks and advise of necessary re-enforcement schemes

Working on Network re-configuration and schemes for power flow optimization

Making a thorough mapping of the network Designing of Substations, Overhead lines and

Underground cables Designing of distribution network protection

schemes Planning new connections to customers

Scope of Services Performed [6]

Operations & Maintenance: Repairing and maintaining the MV and LV

distribution network that suffers from faults due to old or inappropriate equipment, weather, or human intervention

Enhancing the electrical network’s used equipment to reduce technical losses and to ensure sustainability and high level of security (Preventive Maintenance)

Ensuring that the interruption of electricity supply to the customer is as brief as possible

Improving response time to customer-related operational and emergency requests

Training continuously the staff about electricity operations and safety instructions

Scope of Services Performed [6]

Construction & AMI: Building new, modern electricity distribution grid

components, which will allow the connection of new customers to the grid, replace or reinforce previous components and assure a more stable and less interrupted electricity supply to each customer

Replacing old components with new ones in order to achieve an improvement in supply

Rolling-out Advanced Metering Infrastructure (Smart Metering) based on Power Line Communication (PLC) technology that will allow: Remote operation of MV and LV meters including reading, connection and disconnection

Matching consumption with generation Making diagnosis of power quality problems

Scope of Services Performed [6]

Meter Reading & Bill Collection: Carrying out regular readings of customers’

electricity consumptions and sharing that information with the responsible authorities in order to ensure that customers’ electricity bills accurately reflect their consumption

Making regular verifications on the quality of readings and overall performance of meter readers and bill collectors

Visiting the customers in order to ensure that bills are paid regularly and on time

Making regular assessments of the overall performance of meter readers and bill collectors

Scope of Services Performed [6]

Customer Services: Handling customers’ requests and complaints

through our best of breed 24/7 Call Center Making sure the customer’s request is being

answered within the defined period of execution Keeping the client posted in case of delay or

problems Analyzing and studying the customers’

satisfaction and working continuously on enhancing the proposed services

Ensuring that customers are treated with full care and respect

Scope of Services Performed [6]

Non-technical Losses Reduction: Tracking, Monitoring and Analyzing Non-

Technical Losses by region Setting and performing procedure for violations

discovery Detecting and disconnecting illegal connections Submitting fraud and violations files to EDL

Work in Progress [6]

Meter reading & bill collection

Planning and Design of new networks and new customer connections

Construction of new networks and new customer connections

Operation and Maintenance (preventive and repairs)

Operation of customer care contact centers in EDL offices

Operation of our own call center in Selaata which is currently running 24/7

Preparation for the Smart Metering Project Pilot that will be concluded by the fourth quarter of 2013

Preparation for the roll-out of Medium Voltage smart meters at outgoing medium voltage feeders from primary sub-stations (to be finalized by the third quarter of 2013)

Low Voltage Network survey in progress.

Network tampering and violations discovery through dedicated Non-Technical losses specialized teams

Success Stories [6]

68 teams of technicians spread out through our geographical lot for network operation and maintenance

More than 3000 repair works executed per month Approximately 95% of the faults repaired in the same day More than 2000 construction work orders executed to

extend the grid and connect customers 3000 Km of surveyed Network 5000 surveyed MV/LV Sub-Stations 45000 surveyed Poles More than $180M transferred already to EDL from

Collection activity ($600,000 on a daily basis) 10 teams working daily on the detection and addressing of

energy theft

Success Stories [6]

More than 1000 fines issued to customers for detected cases of illegal electrical connections and meter tampering

All teams working on the ground already received extensive safety and technical training

Complete fleet of more than 100 vehicles acquired to facilitate BUS’s services including bucket trucks and

underground fault detector Selaata Facility including smart meters laboratory,

warehouse and call center

Political & Social Impact of the Project

Focus on Management based on Key Progress Indicators (KPIs)

Avoid technology risk which is shifted towards the Service Provider

Pay for Results and NOT Assets (100% achievement guaranteed)

Social Impact Moving from CONSUMERS to CUSTOMERS

Political Impact Reduces the clash between the Utilities and the Consumer in the Service

Providing Field

Isolate the Government from Distribution Problems

These impacts have been proven by the examples of Mobile Phone Operation and Gas Distribution where the Regulator acts as a judge between the Customer and the Service Provider

Advantages of outsourcing Metering Services

Potential Regions

Countries adopting Methodology

Countries around the world adopting the same Methodology

EMG’s Other Ongoing Projects

CRM

Operation

Installation

Supply

Engineering

AMI Metering System Project BOT – Ghana Ashanti & Accra

Number of Customers Served: 250,000 – Phase One 500,000 – Phase Two

System Technology:GPRS RF PLC

Service Required as part of Scope Service is not required as part of Scope

EMG’s Other Ongoing Projects

Meter Management Services – Albania

Number of Customers Served:

1,100,000

System Technology: GPRS

Service Required as part of Scope Service is not required as part of Scope

CRM

Operation

Installation

Supply

Engineering

Middle East

West Africa

Central Africa

Eastern & South Africa

Asia

Latin America & Caribbean

Our Global Footprint

Europe

References

[1] Beyond Meter-to-Cash-AMI for Improving Distribution Webinar

[2] Leveraging BPO to Drive Success in Utilities and Retail Energy Providers, Everest Group Report, 2012

[3] ^ World Population Prospects, Table A.1 (PDF). 2008 revision. United Nations Department of Economic and Social Affairs. 2009. p. 17. Retrieved 22 September 2010.

[4] ^ a b c d "Lebanon". International Monetary Fund. Retrieved 19 April 2012.

[5] http://www.georgessassine.com/electricity-sector-edl

[6] http://www.bus.com.lb/

[7] http://www.butec.com.lb/projectDetails.aspx?CategoryID=48&ProjectID=161&SubID=50

[8] International Energy Agency 2011 Report