Energy, Utilities and Chemicals

Smart Technology for

Utility Companies
The industrys next big opportunity

the way we do it

Around the world,

the introduction of
smart technology is
transforming the way
that consumers interact
with utility companies.
This technology allows
consumers to take
control of their energy
consumption, save
money and help to
protect the environment.

For energy suppliers, smart technology

is a way to increase efficiency, improve
customer relationships and comply
with environmental legislation, while
also reducing the need for future
infrastructure investment. The UK is
now set to embark on a nationwide
rollout of smart meters, with the
intention of replacing the electricity
and gas meters in every home by 2020.
This programme represents one of
the greatest challenges, and one of the
best opportunities, that the UK energy
industry has ever faced.
Water companies, too, are fast
realising the relevance of smart
technology to their businesses.
Automated Meter Infastructure
(AMI) can help companies improve
performance in many dimensions,
including efficiency, environmental
protection and customer service.
Capgemini is a leading presence in the
smart technology market worldwide,
having completed numerous smart
metering programmes. We have
worked with many of the largest
utilities on these programmes,
including Hydro One, ENEL, EDF
and San Diego Gas and Electric. Weve
managed the physical deployment
of over a million meters, and are
currently involved in the deployment
of a further 13m. We also have
several smart grid programmes in
progress. In addition to utilities, we
work with regulators and government
departments on smart metering.

Smart energy: the two key concepts

The two key concepts in smart energy are the smart meter itself for consumers and
energy retailers and, for electricity distribution and generation companies, the smart grid.
Smart metering is a two-way communications infrastructure for dynamically sharing
pricing information, supporting demand response and establishing time-of-use billing.
This last feature can help consumers to make smarter (and cheaper) use of energy, for
example by encouraging them to program their washing machines to run at night when
electricity costs less, and in doing so reduce peak generation demand. Operational
benefits include distribution system optimisation and enhanced outage management.
Smart grid is an electricity transmission and distribution network incorporating two-way
communications, advanced sensors, and distributed computers. It can anticipate, and
instantly respond to, problems in order to avoid or mitigate power outages and power
quality issues and support greater use of distributed generation.
2

Smart metering: why

and how?
Smart metering benefits consumers,
energy suppliers and the environment.
For the consumer, its about having
better information. Once you see how
much it costs to boil a kettle of water,
it suddenly gets easier to measure out
only the mugful that you need. And
when you realise exactly how much
that extra freezer in the garage is
costing you, you may decide you dont
need it after all. Smart metering allows
you to reduce not only cost but also
your carbon footprint, something
consumers are increasingly aware of.
For energy retailers, these benefits
to the consumer mean improved
customer relationships and retention,
better offers, and more efficient
operations. Smart metering also allows
energy companies to modernise grids
and their management, and decrease
the need for future power plants
and infrastructure. While saving
consumers and organisations money,
smart metering helps the environment
by reducing energy consumption and
greenhouse gas emissions.
We believe that your smart metering
programme should look beyond the
meter-to-cash process to generate
value for all participants in the
market (including generators,
system operators, transmission
and distribution service providers,
retailers, energy service companies,
consumers, regulators, and legislators).
For you as a utility, smart metering
is a way to increase output and gain
competitive advantage.
Our approach is above all a
collaborative one, because a vital part
of smart metering is to orchestrate the
many stakeholders involved. Thats
why were a founder member of the
Smart Energy Alliance, whose goal
is to support the next generation
of distribution systems by bringing
the worlds of IT, communications
and energy systems closer together
than ever before. Our Accelerated

Energy, Utilities and Chemicals

Solutions Environment provides an

ideal environment for collaboration
between multiple stakeholders to gain
agreement on the complex issues these
programmes create; it has been a great
success with Hydro One, NEMMCO
and many other clients.

Smart grid: whats involved?

Implementing a smart grid requires
integrating two complex and distinct
networks: firstly the physical power
grid infrastructure, and secondly
digital communications and controls.
To deliver value, an optimised power
grid must improve event visibility,
manage power flow in real time,
and make full use of distributed
energy resources throughout the
service area. The smart grid provides
new levels of information to drive
improved situational awareness, timely
decision-making, and effective actions
by the people responsible for operating
the grid.
The communication technologies
underlying smart grid are enabled by
an open, standards-based platform
built on a combination of public
carrier networks, wireless mesh,
WiMax, WiFi, and BPL (Broadband
over Power Line) networks. Use
of multiple technology vendors is
desirable to address varied operational
and cost considerations.

Although the utility industry has

embraced the goal of a smart grid, gaps
exist between the vision and reality
of physical infrastructure, technology,
finances, and keeping electricity
flowing smoothly 24 x 7. Capgeminis
roadmaps and resources enable a
smooth evolution from traditional
generation, one-way transmission and
distribution to distributed generation
with two-way communication and
consumer demand integrated with
utility delivery. We provide blueprints
for the smart grid not just pilots, but
practical working solutions.

Capgeminis smart
technology capabilities
We can offer you a full range of smart
technology services encompassing
business transformation consulting,
technology and managed business
services. A typical end-to-end
programme structure for multi-million
meter mass deployment includes the
following high-level elements:
Deploying smart meters to
residential and small commercial
customers
Building the enabling
communications infrastructure
Developing and testing time-of-use
billing, and integrating it into
existing business processes and
systems

Automated Meter Infrastructure (AMI) for the water industry

AMI is the logical move forward from Automated Meter Reading (AMR). It is a key
mechanism for understanding and influencing customer usage and water efficiency as the
industry strives for the 130l/day target. It can help companies manage demand, rationalise
assets, spot production losses and meet carbon targets. Correctly used, AMI also offers
a way to improve service to customers and meet their changing expectations.
AMI is much more than just meter-to-cash. To succeed, companies need to create a
robust, comprehensive business case. An AMI programme should take place in the
context of a vision of long-term change that will ultimately lead to an intelligent network
and business. Companies going down this route must build end-to-end partnerships with
other players, including their own customers.

the way we see it

We manage, and in many cases

execute, all of the necessary
technological work including design,
meter and network installation and
integration of new and existing
systems. Equally importantly, we
have the experience to reduce your
risk and help you transform your
business to realise all the benefits of
smart metering.

Some of our smart

technology success stories
Hydro One, Canada
We have been supporting Hydro Ones
demand response smart metering
programme for over a million electric
customers. Key activities included
enabling demand response tariffs and
automating meter reading. Capgemini
and Hydro One have developed a
smart metering technology roadmap
to add advanced functionality enabling
new retail services, home automation
and smart grid capabilities. The
programme required integration of
SmartSynch with legacy systems and
Lodestar MDMS. Future architecture
includes development of an event
manager solution to manage multiple
smart metering network solutions
and intelligent distribution grid
communication devices.
San Diego Gas & Electricity
(SDG&E), U.S.
Capgemini is working with SDG&E to
deploy 1.4m gas and electricity smart
meters. We have put in a programme
management office handling overall
day-to-day management of the
programme, as well as tracking
schedule, budget, and benefits
realisation. Other responsibilities
include business integration, solution
architecture, customer experience,
operational services and deployment
management, and organisational
change management.

Similar undertakings in the electricity and oil industries show that fundamental changes to
the business itself, including its organisational structure, are likely to be needed. In terms
of technology, integration of systems and data may be necessary, and some applications
may need to be migrated to different platforms.

Smart Technology for Utility Companies

Contacts
For further information on Capgeminis Smart Metering capabilities, contact:
Gord Reynolds
Practice Leader
Smart Energy Services
gord.reynolds@capgemini.com
+1 416.732.2200

www.uk.capgemini.com/industries/utilities/smart-metering

About Capgemini
Capgemini, one of
the worlds foremost
providers of consulting,
technology and outsourcing
services, enables its clients to
transform and perform through
technologies. Capgemini provides its
clients with insights and capabilities
that boost their freedom to achieve
superior results through a unique
way of working, the Collaborative
Business Experience. The Group
relies on its global delivery model

called Rightshore, which aims to get

the right balance of the best talent
from multiple locations, working as
one team to create and deliver the
optimum solution for clients.
Present in more than 30 countries,
Capgemini reported 2008 global
revenues of EUR 8.7 billion and
employs over 90,000 people worldwide.
More information is available at

www.uk.capgemini.com

2009 Capgemini. No part of this document may be modified, deleted or expanded by any process or
means without prior written permission from Capgemini