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November 2010 GREENER, SAFER, SMARTER Considerations in Building a Smart Grid Communications Network John Eichhorn, CFO

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November 2010

GREENER, SAFER, SMARTER

Considerations in Building a Smart Grid Communications Network

John Eichhorn, CFO

© 2010 Tropos Networks, Inc. | Page 2

Agenda

• Background on Tropos

• What’s a Smart Grid?

• Smart Grid Communications Strategies

• Smart Grid – A Network of Networks

• Distribution Area Network Considerations

• Multi-use Networks

• Customer Highlights

• Q & A

© 2010 Tropos Networks, Inc. | Page 3 3 © 2010 Tropos Networks, Inc.

End-to-End Smart Grid Wireless Mesh Communications Founded in 2000 Headquarters in Sunnyvale, CA Focus Areas: - Security - Reliability - Resiliency - Scalability - Ease of use - Total Cost of Ownership - Partnerships

TROPOS

© 2010 Tropos Networks, Inc. | Page 4 4 © 2010 Tropos Networks, Inc.

30 patents; additional 30 pending

+750 customers

30 countries

PROVEN TECHNOLOGY

© 2010 Tropos Networks, Inc. | Page 5

Smart Grid: Enter Your Definition Here

AMI

Power Quality and Planning

Renewable Integration

SMART GRID

Demand Response

Distribution Automation

Outage

Management

Field Data Applications

PHEV

Management

Distributed Intelligence, Automated Controls, Broadband Communications

© 2010 Tropos Networks, Inc. | Page 6

Traditional Approach

• Network per project

– Build/pay as you go

• SCADA

• AMI

• Distribution Automation

• Field data applications,…

Strategic Approach

• Layered communications architecture

• Supports for current plus future smart grid apps

Selecting a Communications Strategy

© 2010 Tropos Networks, Inc. | Page 7

Source: AEP

AMI

Initial Capital Outlay

• Meter functionality

• Communications infrastructure

• Head-end & legacy systems modifications

Incremental Capital Commitment

Ex

pe

cte

d V

alu

e Demand

Response

Distribution

Operations &

Automation

Extended

Utility Roles

Strategic Approach = Better Long-Term ROI

© 2010 Tropos Networks, Inc. | Page 8

HAN Neighborhood Area Network

Distribution Area Network Core Network

Distribution Automation

Mobile Applications

Utility Core Systems

Power Quality Sensors

Outage Management

AMI Network

Demand Response

PHEV Station

Distribution Area Network

SmartGrid = Network of Networks

© 2010 Tropos Networks, Inc. | Page 9

Addt’l high traffic apps:

• Substation Video

• PHEV Station

• Mobile GIS

• AVL

…more in the future

SmartGrid Considerations

ApplicationLatency (msec)

Bandwidth (kbps)

Reclosers 10's <56

Capacitor Bank 100's <56

RTU 1000's 56

Motor Operated

Disconnect1000's <56

Line Regulator 100's <56

Advanced Metering 100's 56

IDR 100's <56

Demand Mgmt 100's <56

MWM Voice 100's <56

MWM Data 100's 1000's

Aggregate 10's 1000's

Distribution Area Networks are challenging

© 2010 Tropos Networks, Inc. | Page 10

SmartGrid Considerations (cont.)

Own Rent

• Capital expense • Low capital, pay-as-you-go

• High reliability • Less reliable

• Utility controlled - coverage, capacity, priority, security

• Limited visibility, no control over coverage, capacity, priority, security

• Cost effective for multi-use • Limited economies of scale

© 2010 Tropos Networks, Inc. | Page 11

Opportunities for Greater Community Value

$

RE

Timely information for city visitors

Mobile data access for

city workers

Community-wide mobile Internet

access

Reducing traffic congestion and carbon emissions

Building economic development

Conserving resources/

reducing carbon footprint

Improving public safety

Enhancing revenue capture

and improving visitor

experience

Efficient, on-time public transport

Enhancing education

© 2010 Tropos Networks, Inc. | Page 12

Funding Options

• Utility’s own budget

• Pooling multiple city departmental budgets

• Grants

– Smart Grid, public safety, traffic, …

• Bonds

• Performance-based contracts

© 2010 Tropos Networks, Inc. | Page 13

• ARRA Smart Grid award - $20M; total project $51M

• Phase 1: smart meters - 85,000 power and 33,400 water

• Wireless broadband network aggregates communications for utility applications

• Additional smart grid applications: distribution automation, thermal energy storage, demand response

• Other city departments plan to leverage network

Glendale Water and Power

Tropos Networks Inc. Company Confidential

Nation’s First ARRA Smart Grid Grant Recipient

© 2010 Tropos Networks, Inc. | Page 14

• Smart meter (power and water)

• Power conservation through automated demand response program

• Delaying construction of new power generation

• Enables direct load management and customer curtailment

• Mobile access to work orders and real-time data

• Other city departments plan to leverage network

Creating a Smart Grid to Manage Demand and Minimize Capital Spending

Burbank Water & Power

© 2010 Tropos Networks, Inc. | Page 15

• AMR/AMI network projected payback, 7–8 years

• Customers can monitor power and water usage encouraging conservation

• Utility workers have easy access to information in the field, reducing repair times

• Mobile police and fire access information and file reports improving efficiencies

Single Cost-effective Network for Multiple City Services

Rock Hill Utilities

© 2010 Tropos Networks, Inc. | Page 16

• Wireless mesh network used to read 1.5 million power and water meters in urban, suburban and rural areas

• Smart grid applications include AMI, real-time SCADA substation control, distribution automation, street light control, broadband connectivity for mobile workers, substation video security

• Upon completion the network will cover 5,000+ square kilometers

United Arab Emirates

Efficient Management of Scarce Resources Emirate-wide

© 2010 Tropos Networks, Inc. | Page 17

• $42 M Spokane Smart Circuits Project includes $20M DOE grant funding; communications ~15% of budget

• Project goal - faster pinpointing of faults in distribution feeder lines to reduce outage times

• Tropos network for 16 substations and distribution automation (~450 DA devices)

• Opportunity to extend and leverage network for AMI and Mobile Workforce

Avista

Distribution Automation Project to Reduce Outage Time

© 2010 Tropos Networks, Inc. | Page 18

Multi-Use Networks

Improve Efficiencies – Simplifies network management and control,

reduces redundant infrastructures

– Mobile workers have access to current information – work orders, GIS data, …

– Improves workflow efficiency

Reduced Operating Costs – Reduces OPEX

– Replaces costly recurring communications

costs: T-1 lines, cellular, …

Deliver Broad Community Benefit – Utility applications - Smart Grid, Water, Gas

– Municipal departments – public safety, transportation, ….

November 2010

GREENER, SAFER, SMARTER

John Eichhorn, CFO [email protected]

(408)331-6802 or

[email protected]

Q & A