According to the legislature conventional electricity meters shall be replaced by smart meters by 2020. Thereby consumption data is transmitted to the utility company via a communication network. The reading on site is not necessary, the utility is able to consider rate changes faster and create invoices based on the actual consumption. On the one hand that sounds like time and cost savings for the utility company, on the other hand it is a difficult venture. Although the legislature provides the framework for the implementation of smart metering systems, it is up to the utility to deal with the organization of individual processes and the costs of smart metering. One should start with the planning of a smart metering strategy in time, otherwise it will be hard to withstand the tough competition.
The EU internal market directive 2009/72/EG plans that by 2020 80 percent of the meters are smart meters. However, smart metering is far more than the simple replacement of electricity meters. Rather, it is an investment in the future that gradually allows a smart energy mix. It is not sufficient to narrow down this historical task to the aspects of CO2 reduction or renewal of the networks. The increasing energy consumption of the population and the dependence on a stable energy supply, accompanied by the dependence on a few energy sources, are the motivation of the legislature for implementing smart metering systems.
The current situation shows how different the countries in Europe deal with smart metering. The national legislation and the need for an immediate and current consumption accounting influence the countries in implementing smart metering. In this context Sweden and Italy have top positions. The Scandinavians use smart meters mainly for monthly consumption accounting and for optimizing the transparency in the consumption behavior. In Italy smart meters are used primarily to cut off electricity from a distance if payers are tardy. Both countries have established a basis for implementing the smart grid and could gain experience in using smart meters.
Major utility companies start their own smart meter pilot projects to prepare for the future – E.ON strives towards 1.8 million installed meters all over Europe. In Spain alone, further 725.000 meters shall be installed this year. In Denmark Dong Energy Sales and Distribution A/S have stated the aim of 1 million meters for a roll-out from 2016 to 2019.
New market for measuring point operation
In Germany, in the light of the expected costs, possible roll-out plans will be guided by the requirements of the Federal Office for Security in Information Technology. In its recent study the German Energy Agency (Dena) assumes that the cost portion of the utility company will be more than 50 percent, solely for the operation of the infrastructure to be installed in Germany. This depends on the chosen roll-out scenario. The requirements of the Federal Office for Security in Information Technology are addressed to the newly developed role of the gateway administrator who undertakes the measuring point operation. The aim is to increase the security in the use of smart metering systems. Such measures were previously reserved for the utility companies.
Thus an adaptation of the IDEX processes in the market communication is necessary. In the past the utility industry criticized the requirements that are defined by the legislature. These requirements concern security, consistent technical interfaces and the process structuring of the market communication. Thus there is the project „MessSystem 2020“ (measuring system 2020) of the panel network technology/network operation in the Association of Electrical Engineering, Electronics and Information Technology. Here standardized interfaces for the market communication via the gateways are developed.
The legislation is not completed
The problem for the utility companies: The legislation for the implementation of smart metering is far from complete. In addition, the companies have to deal with new issues such as data security and data protection. The technical guideline BSI TR 3109 specifies the data security and protection of smart metering systems, but the corresponding measuring system regulation (MessSysV) currently exists only as a first draft. Also the planned roll-out regulation and further ordinances for variable rates, data protection and load management take long. The utility companies head to a “moving target”, a target that is only vaguely known. Although many things are in progress, one thing is certain: Waiting is not a solution.
The utility industry must face the challenges of smart metering on enterprising, procedural and IT level in order to avoid unnecessary costs when implementing smart metering systems. In addition, the market positioning of the energy provider will change by smart metering. Regarding the role of the gateway administrator the providers have to face a make-or-buy decision. Do you want to offer the services for smart metering by yourself, do you buy them or do you cooperate with external third-party suppliers? In addition, decisions for a smart meter technology must be made and the staff has to be prepared for the roll-out. Thus the business model must be adapted in the context of a transformation management.
Permanently reduce costs
The utilities have to identify and adapt those processes that will be affected by smart metering. Generally, there will be a reduction of manual processes and a corresponding integration of automated work processes. Since a gradual change takes place here, the utility company must also consider the coexistence of old and new processes. Usually this does not work without the involvement of external partners. This especially applies to the definition of a new IT infrastructure that considers smart metering and in which new technologies for data exchange will be integrated. Thereby enormous amounts of data will emerge which in turn must be managed efficiently.
These are tremendous tasks that require a structured approach. At present many utilities shy away from these challenges in reference to the costs and the vague legal framework. And yet utilities can already draw on self-checks for smart meter processes that are in line with the Federal Office for Security in Information Technology. The PROLOGA GmbH, for example, provides the connection of SAP IS-U systems to the technical infrastructure of a smart metering system that is under construction according to German requirements. “Before the upcoming market communication regarding the gateway administrator, we rely on our expertise in implementing meter-to-cash processes.”, Alexander Silkeit, Solution Manager at PROLOGA, explains.
With efficient, standardized and process-oriented meter reading processes (move in/move out reading, RLM-procedure and development of a database for analyzing the consumer behavior) a lasting contribution to the transparency of consumer behavior and to the reduction of operating costs can be made. In this way first experiences with the smart meter technology can be acquired before the integration of the gateway administrator connection. Thus there is time for customers to gradually adapt their system environment to future conditions. In the utilities practical knowledge is built up early. In this way, the utility companies optimally prepare for smart meter and the smart grid of the future.
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With the Erneuerbare-Energien-Gesetz (EEG) (Renewable Energies Act) ambitious targets were formulated that are supposed to make Germany to a pioneer in ecological and economic efficiency. For German companies the impact of the related policies and regulations become more and more perceptible. Especially utility companies have to face these challenges. An example: Since 1st of January 2010 the installation of smart meters is mandatory if a building is renovated or newly built. In the cost-benefit analysis by Ernst & Young from 2013 it is assumed that 80 percent of the conventional meters will be successively replaced until 2020. Considering the large number of used meters in the electricity grid, this will be a comprehensive, resource and time-consuming process. In order to realize that process as economically and efficiently as possible, utility companies have the opportunity to use a software solution that unites energy suppliers, service providers and customers and also accumulates information.
Depending on the perspective the German turnaround in energy policy is a balancing act between network feeding and withdrawal or also between sustainability, competitiveness and cost efficiency. Energy must be sustainable, but also affordable. Energy providers have a leading role in this interaction of factors. Hardly a day goes by without news about the change of energy supply, caused by the focus on renewable energies and new technologies in this field. The Renewable Energies Act obliges energy providers to renew the network infrastructure gradually, in order to prepare the electricity grids for the new guidelines. An important aspect: Since 1st of January 2010 the installation of smart meters is mandatory for new or renovated buildings. Furthermore, it is assumed that the replacement of smart meters will gradually start in the next one to two years. This process is “just” restrained by the Bundesamtes für Sicherheit in der Informationstechnik (BSI) (Federal Office for Information Security) that specifies the requirements at the moment. These requirements are described in the technical guideline TR 03109 and its accompanying documents. The development belongs to the project “MessSystem 2020” of the grid technology/grid operation forum (FNN) in the Association for Electrical, Electronic & Information Technologies (VDE) – a mammoth project that should not be underestimated regarding costs and effort.
The migration to Smart Meter: a complex process
By installing smart meters conventional Ferraris meters will be replaced by electronic household meters (eHz). Smart Meters have a great advantage: Service technicians must not directly read the meters anymore, since the meter readings are transferred to the energy provider by data lines. The prerequisite for that is the comprehensive installation of the new meter generation. Taking a look at the huge number of meters that have to be installed or replaced – for big energy providers often several millions – it is obvious that complex processes are the basis of the partial realignment. It is not enough to replace all meters. There is a communication unit that belongs to the smart meters, a gateway for the exchange of control and consumption data. The selection of the gateways depends on the location of the meter and on the regional structure of the grid. According to the local conditions there will be different combinations of meters and gateways. Each combination has own requirements regarding the installation effort. Furthermore, the installations will be impacted by periodic replacements of meters. The temporal resources that are necessary to realize a complete migration, require new cooperation models of the involved parties for the construction or renewal of the technical infrastructure towards smart grids.
With teamwork to success: Social Business Networks
The great challenge for the utilities is to realize the large amount of installations and the resulting orders soon and in a cost-efficient way. The practice shows that an approach to reduce costs, is integrating external service providers into the own service process. The connection between business partners creates a working network for a mutual service provision. The global software company PROLOGA offers a software solution to meet these requirements: SAP® Smart Meter Rollout. The solution relies on already existing process knowledge that just has to be transferred to the mass rollout. “We offer the perfect platform to bring together external service providers and utility companies. We create Social Business Networks”, Jens Frenzel, Managing Director of PROLOGA, explains. The solution specifically supports the planning of the rollout of all required meters and gateways. With the aid of SAP® technology components utility companies are able to open their IT systems for the cooperation with other providers purposefully and securely. The solution allows the planning of smart meter installations in SAP® for Utilities. Using SAP® Netweaver Gateway and SAP® UI5 the service providers are actively involved in the work processes of the utilities. The software solution allows the electronic transmission of released orders to the planning software of the service provider. The partner transfers the feedback data of the executed orders back to the utility company. The adaption of user interfaces with SAP® UI5 or HTML5 can be processed by PROLOGA or the IT service provider of the utility company. All steps fit perfectly to the requirements of the utility company.
With precise planning to success
The core of the PROLOGA application is the evaluation of installation instructions per combination of meters that have to be installed or replaced as well as the effort evaluation depending on local conditions. After calculating the total requirements, work packages will be determined and a rough planning in periods is made. “With up to 5 million meters to be installed and an average installation time up to 30 minutes per device, it is obvious that the whole installation process is possible only over a longer period. The availability of resources at the starting point of the project is like a glance into the popular crystal ball. That is why the step-by-step activation of planning areas has proven as very practice-compliant”, Jens Frenzel says. This gradual and targeted activation enables the user of the solution to synchronize each process step with accompanying processes such as customer service, the purchase of the meters or services for the installation.
Complex tasks require innovative solutions
The huge challenge the Renewable Energies Act poses to energy providers can be accomplished only if processes are optimally coordinated. The perfect software solution can help tremendously and offers a continuous approach in order to map and support the strategic and operational planning as well as the operational realization of the meter replacement.
Already existing IT solutions can be used further on and the involved persons can create a closed process chain for a mutual service provision. That is the way how to handle the energy turnaround – resource- and cost-saving.
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Waste disposal and recycling companies have to face high expectations from customer’s side. Apart from first-class service the strict observance of appointments is demanded. For that reason waste and recycling companies have to work effectively and efficiently. It is indispensable to control costs, routes and the fleet utilization, in order to increase the own profitability. Tasks and routes must be planned efficiently, vehicles have to be controlled effectively and a contemporary communication between vehicles and back office must be guaranteed, in order to achieve the business objectives. Even the German company SITA Deutschland GmbH has to face these challenges every day. As one of the biggest waste disposal companies in Germany, SITA relies on a solution leading to an improved cost control and customer service. SAP® Mobile Order Management by PROLOGA allows a paper reduced order processing and optimizes the cooperation between driver, dispatcher, garage, distribution and customer.
DSITA Deutschland GmbH headquartered in Cologne is the fourth largest private waste disposal company in Germany. The subsidiary of the French environmental service provider SUEZ Environnement employs more than 2.400 people all over Germany and achieves sales of approximately 539 Million Euros. As a complete service provider in the fields of collection, transport, recycling and exploitation of waste, SITA advices customers on waste management issues throughout the country. SITA Deutschland has a strong regional focus with many locations in Germany and also benefits from the international network and global expertise of its parent company.
The services of SITA contribute to the protection of resources and climate. Using flexible solutions customers can maximize the value of their services. Normally, the planning landscape in the waste sector is very rigid, but implementing the SAP® Waste and Recycling enhancement SAP® Mobile Order Management helps to make the planning more flexible. The solution developed by PROLOGA GmbH allows a proper and accurate communication between the SAP system and the installed board computer systems in the vehicles of the SITA fleet. The solution supports waste disposal companies in processing and analyzing logistical processes, in order to improve the utilization of the vehicle fleet. With the help of the enhancement the waste disposal company is able to integrate its own fleet into the back office solution SAP® Waste and Recycling. As an IT-based support for the administration of routes and districts, the communication with spread fleets and teams as well as the compliance with legal regulations provide a company-wide transparency and control, that leads to a more efficient way to work and a better cost control.
In August 2013 SITA Deutschland started the implementation of SAP® Mobile Order Management. First, the on board computer solution (OBC) was implemented in Fulda. The observance of the narrow four month introduction timeframe finally opened the door for the rollout at other locations of SITA Deutschland. Today, all vehicles of the fleet are connected to the system. “Thanks to the great cooperation and the clear coordination between PROLOGA and SITA we could implement the solution in a pilot project completely on time”, says Martin Hallbach, managing director of the SITA Fleet Management GmbH.
More efficiency and transparency especially in the disposition
Using SAP® Mobile Order Management opens up new opportunities for SITA Deutschland regarding cost control, controlling and optimization. The on board computer solution allows the collective, direct transfer and storage of all relevant data with regard to a waste disposal order such as driver, vehicle, container data, container location, service date, customer data as well as advices for the crew in the vehicles. With the help of the software the results of the finished waste disposal orders can be seen in the SAP system immediately. For that reason, individual weighing of containers or unusual occurrences during the service process can be further processed and accounted directly. According to Hallbach the usage of the on board computer software means a notable change for less technophile drivers. “The biggest benefits of the solution can be recognized in the disposition. But we do not use the additional transparency to control our drivers. The main objective is to control and optimize our utilization and to strengthen our communication.” Even drivers who have been working for many years, got used to the new technique very fast. Now they do not have to collect data by handwriting anymore and are glad about the resulting benefits. “We were able to minimize transmission errors. In addition to the order data transfer the central office is able to communicate directly with the driver by short messages. Routes can also be changed or adapted after the tour has already started. Additionally, the mutual communication between driver and back office will provide benefits in the field of complaint management”, Hallbach points out. From now on customers are able to ask the service center for current information about emptying data at any time. Besides about 280 drivers, 30 dispatchers shall actively work with the solution after the rollout has been completed. Sales representatives can also take a look into the operative route planning, which provides additional transparency. These new opportunities shall contribute to an improved service quality and customer satisfaction.
An investment in the future
The waste disposal company benefits in several ways from introducing the new software solution. By using SAP® Mobile Order Management the dispatchers achieve an additional and immediate transparency. Furthermore processes can be streamlined and the manual effort as well as the corresponding inaccuracies can be reduced. The solution also allows comprehensive analyses and provides the basis for reliable decisions in real time. The automatically captured data can be used by many sections of the company, even by those, that do not have direct contact to the software: from the accounts receivable department on to human resources, for the comparison of planned/actual data to the optimization of processes and strategies. Converting its processes and introducing the new solution is an investment in the future for SITA Deutschland. Thus the company will continue to work on a service- and client-oriented basis, to improve the use of resources and to control the own fleet more efficiently.
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