DIGITALIZING THE ELECTRICITY INFRASTRUCTURE OF LEB NON … · skillset of workforce, corporate governance & mark et regulation 3 GENERATE LIST OF PROJECTS • Define all potential

© World Energy Council 2019 | www.worldenergy.org | @WECouncil

INTERNATIONAL BEIRUT ENERGY FORUM 26 SEPTEMBER 2019

DIGITALIZING THE ELECTRICITY INFRASTRUCTURE OF LEB NONTHE ROAD TO A SMART GRID UNTIL 2030


WHO ARE WE ?FIVE AMBITIOUS FELLERSWHO MET AT DIFFERENT CROSSROADS

Salim al Banna, Eng. MBAUtility expertNUC, 10 years of experience

Patil Mesrobian, MSc.Environmental specialistLCEC, 5 years of experience

Serge Saad, Eng.Solar energy and data centers specialist, Ogero and LSES, 3 years of experience

Farid Comaty, Eng. MSc.Senior Consultant Navigant, 5 years of experience

Perla Tannous, Eng. MSc.Solar energy specialistEcosys, 2 years of experience

The content of the presentation are purely the views of the authors and do not represent the views of the company they work for or any local experts they have interviewed or WEC Lebanon


THE CHALLENGE WE DECIDED TO FACE

Required expert effort to deliver a smart grid roadmap

Taskforce 3 effort until now

~Years of team experience

~ 5

~ 10

~ 15

Total number of hours

~ 1,500 ~ 3,000 ~ 4,500 ~ 6,000 ~ 7,500 ~ 9,000 >10,000


30% of variable renewable energy supply will be integrated in the generation mix

20% of the electricity demand will be flexible and responds to variable prices

10% EV are on the road and will contribute to the balancing of the power system

New value added services will be offered to customers based on Artificial Intelligence and Smart Meter data

An electricity market will be in place where generation, distributed and central, renewable and non renewable, will compete to serve the customers

The Lebanese power system will be capable to self heal itself and operate in a network of microgrids in unexpected events

WHAT IS OUR VISION?LEBANONWILL HAVE A SMART GRID BY 2030WHERE:

Icons provided by the Noun Project


30% of variable renewable energy supply will be integrated in the generation mix

20% of the electricity demand will be flexible and responds to variable prices

10% EV are on the road and will contribute to the balancing of the power system

New value added services will be offered to customers based on Artificial Intelligence and Smart Meter data

An electricity market will be in place where generation, distributed and central, renewable and non renewable, will compete to serve the customers

The Lebanese power system will be capable to self heal itself and operate in a network of microgrids in unexpected events

WHAT IS OUR VISION?LEBANONWILL HAVE A SMART GRID BY 2030WHERE:

Icons provided by the Noun Project


WHAT IS A SMART GRID?IT IS A DECENTRALIZED, DECARBONIZED AND DIGITALIZED GRID

YESTERDAY: CENTRAL ONE-WAY POWER SYSTEM

TOMORROW: DISTRIBUTED MULTIY-WAY POWER SYSTEM


WHY LEBANON NEEDS A SMART GRID ROADMAP?

Nationwide Policies

Ensure electricity

supply security and reliability

Ministry of Energy and Water Policies

Increase Energy Efficiency and

shares of renewables

Expand generation and grid capacity

Policy paper goal Smart grid RoadMap

Reduce oil import

dependence of Lebanon

Reduce technical and non

technical losses

Deploy large scale renewable & battery storage

Deploy smart meters, AMI center, substation automation, asset health center

Deploy distributed energy management system, RE forecasting center, DLRs

*Adapted from World Bank: Practical Guidance for defining a Smart Grid Modernization Strategy


WHAT SMART GRID CAPABILITIES WILL SHAPE THE VALUE CHAIN OF A DIGITAL ELECTRICITY INFRASTRUCTURE ?

Advanced Metering Infrastructure

1

Infrastructure

New services and

applications

Enabling capabilities

Generation Transmission Distribution End user

Generation Dispatch and forecasting

4

Asset Management5

Distributed Generation

6

Demand Response

7

Electric Mobility

8Transmission Automation

3

Electricity market platform11

Distribution Automation

2

Value Added Services9

10Digital Applications

Advanced Communication Systems12

Network Security (Physical and Cyber)13

Artificial Intelligence (AI)14


HOW TO PRIORITIZE THESE SMART GRID CAPABILITIES TO TRANSFORM OUR VISION TO REALITY?

1 DEFINE VISION

• Identify key business requirements

• Leverage international lessons learned to set targets and goals

• Conduct workshops with senior level executives and operational managers

2 ASSESS CURRENT STATE

• Identify the current state of the Lebanese power system “how smart is it ?”

• Analyze gap of current state and vision by creating inventory of technologies and assessing skillset of workforce, corporate governance & market regulation

3 GENERATE LIST OF PROJECTS

• Define all potential smart grid projects required to modernize the Lebanese power system to highest level and bridge the gap

• Identify the dependencies and risks between projects

4 CONDUCT COST BENEFIT ANALYSIS

• Conduct a cost benefit analysis over 10-15 years

• Prioritize list of projects based on value and complexity

6 MONITOR IMPLEMENTATION

• Develop KPIs for evaluation

• Monitor cost of technologies

• Review and update roadmap

5 CREATE ROADMAP AND DETAILED IMPLEMENTATION PLAN

• Outline timeline of implementation in short, medium and long term based on priority list• Outline interdependencies and critical paths between projects to ensure continuous implementation• Develop resource and implementation plan to manage and execute smart grid program, including pilot testing,

standards/certifications processes and procurement• Develop risk management plan to mitigate delays in implementation


Establish the enabling capabilities of a Smart Grida Reliable and Secure Advanced Metering Infrastructure

1. Define vision

2. Assess current state

3. Generate list of projects

4. Conduct cost benefit analysis

5. Roadmap and implementation plan

6. Monitor implementation

WHERE DO WE START ?


HOW DID WE DO IT?


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

EDL KEY BUSINESS REQUIREMENTReduce technical and non technical losses

Improve bill collection

0

Technical Losses, 12%Non‐Technical Losses, 15%

Delayed Payments, 16%

USD $1.8 Billion

Fuel subsidies, 40%

Collected Bills

O&M, 17% O&M

EDL BUDGET DEFICIT: 2018 EDL BUSINESS NUMBERS: CURRENT STATE

Measure Impact

Reduce losses by 1% Increase revenues by USD 15 Million

Add 100 MW of production Increase deficit by USD 60 Million

Increase tariff by USD 1 cent Decrease deficit by USD 100 Million


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

EDL KEY BUSINESS REQUIREMENTReduce technical and non technical losses

Improve bill collection

EDL Losses 38%

Technical 17%

Variable Losses ~I2R >70%

SG Tech + AMI

Fixed Losses~Een_Tr<30%

SG Tech beyond AMI

Non-Technical 21%

Meter tampering AMI eliminate

Line tamperingAMI detect but

can not eliminate

Faulty meter AMI improve accuracy

Non payment by customer

AMI remote accelerate cash

payment

Other (lost receipts) AMI Eliminate

MEW Loss reduction target by 2025

• Compared to a business as Usual, a full deployment of AMI, including remote load shedding and digital billing, has the potential to save EDL $ 250-350 Mn per year.

• This number excludes the reduction in operational cost of EDL e.g meter reading / inspection / outage management + indirect benefit of customers e.g increase reliability / awareness of energy bill / enabling home energy management systems etc


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

Timeline Legal Framework

Communication Infrastructure Billing System

EDL, DSP, EDZ Achievements

Accelerating rollout


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

First Pilot Project‐ DSP conducted first sets of Pilot projects on M5 Meters, lots of trials and errors‐ Some DSP’s conclude the installation of M3 on MV Feeders

2013

Rollout Finally Begins‐ DSP Started the installation of M4 Meters on Private customers (Malls, Hospitals, Factories…)‐ Certification of Meters in 3rd party laboratories was conducted, two DSPs received certification‐ Validation of Meters on local grid completed, at least one DSP passed this stage‐ 1st DSP to start rollout with 1% stage with Finally Approved meters for installation on Lebanese Grid

2019

Project Relaunch ‐ Lebanese Companion at Last‐ Lebanese Companion was developed,‐ DSP’s started Certification Process

2018

Launch of DSP Project‐ SM core of the project‐ Specs not comprehensive enough for SMART rollout

2012

Data Center to be Awarded‐ Awarding of Data Center to connect and manage all SM’s‐ Final Solution to include temporary HES to manage rollout of Meters

2020

Smart Meter Rollout Complete‐ SMART Meters Rollout to be completed‐ DSPs would have deployed and connected smart meters to a central HES and MDMS

2021

Past

Present –Near Future

Timeline


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

Service & Operation Contract

Meter Manufacturers

Certification Laboratories

Lebanese Companion

STEP 1

Site Validation

STEP 2

1% Rollout(Rollout Testing)

STEP 3

10% Rollout(Rollout Testing)

STEP 4

Full Deployment

STEP 5

Legal framework


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

11 Elecricite Du Liban

22

33

1. Reducing non technical losses 2. Designing the process of the smart roll out and establishing a smart meter program officer3. Establishment of Lebanese Companion (Standard)4. Training of 250 EDL sworn inspectors 5. Tender for AMI Center to manage all Smart Meters to be installed

EDL, DSP and EDZ achievements


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

Residential LV Communication Network Utility/Third partyData Reception & Management

Data Concentrator Unit (DCU)

MV M4 Meters Public

Private MV M4-Meters

1 Watt Router

M5-Meter

Power Line Carrier (PLC)

M5-Meter

M5-Meter

GPRS Communication

M5-Meter

M5-Meter

M5-Meter

GPRSRouter

SUBNET

MV M4 Meters Public/Private

LoRaWANRfMesh

EDLData Center

Communication Infrastructure

GPRS Communication

EDZHead End System

Future Communication

≥ 2021


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

EDL Data

Bill Collection /Unpaid Bills

DSP Customer

Data

Meter Reading

CollectionManagement

BillingManagement

Printing Bills

Approve Readings

Add Reading

Data Convert Files to printing

Printed Bills/ Updated reading data

Account Management

Sort Unpaid

Bills

30 Days Process

30 Days Process

Reading Data To EDL

Unpaid Bills To EDL

1 Day Process AMI Data Center

• Remote Reading Availability• Easy Data Export

EDL Billing System

EDLData Center

1 2

3

6

4

5

8

7

3 4


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

• The current regulation in place for replacing mechanical meters will likely delay rollout given the critical path for having one EDL sworn inspector for each new smart meter installed. Training and delegating to DSP will alleviate load on EDL.

• MEW should clarify the role and responsibilities of DSPs after 2021 and EDZ after 2020 and how EDL plans to integrate five different customer billing portals (four DSPs + EDZ) into the AMI data center and continue carrying the same quality in customer service.

• EDL should clarify how the DSPs are supposed to deal with the transition solution until the AMI data center is built, e.g are they supposed to procure their own Head‐End System ? If so, what specs are needed to ensure compatibility with future AMI data center?

• Law makers should prepare a reform for billing collection allowing customers to opt for digital billing, cutting cost for EDL and accelerating payment process

Accelerating rollout: Recommendations from DSPs and EDZ


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

AMI FunctionalityUtility operation

Level 1 BAU

Level 2 AMI Basic

Level 3 AMI Advance

Level 4 Utility of the Future

Meter reading • Send utility personnel to read meter

• Remote reading through HES

• Integration of meter reads in AMI data center

• Integration of AMI data center with other operational and IT systems at EDL (SCADA, DMS, OMS...)

Connect/Disconnect • Send utility personnel to connect/disconnect

• connect/disconnect smart meters remotely

• Automated connect/disconnect with billing

• Automated connect/disconnect integrated with other use cases (firefight, cyber breach, move in/out…)

Theft detection • Manual identification of abnormal consumption

• Manual theft detection with smart meter

• Manual theft detection with data analytics

• AI theft detection using big data analytics

Outage management system (OMS)

• Manual outage management

• Use smart meter “last gasp” and “ping” calls

• Integrate OMS in AMI Data Center

• Pro-active automated OMS

Power quality management

• Load flow modelling to derive PQ issues and reinforce grid

• Use smart meter PQ measurement to mitigate local issues

• Integration of PQ measurement in AMI data center

• AI Power Quality management using big data analytics

EDL Current state Functionality enabled but requires regulation reform *Adapted from World Bank: Practical Guidance for defining a Smart Grid Modernization Strategy

Define AMI smart grid functionalities and map EDL current state


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

AMI FunctionalityCustomer service

Level 1 BAU

Level 2 AMI Basic

Level 3 AMI Advance

Level 4 Utility of the Future

Billing • Printing of bills and manual collection for payment

• Digital bill and online payment

• Generate near real time automated and accurate bills based on customer preference

• Enable pre paid billing and pro-actively notify customers for over consumption

Tariff setting • Fixed rate regulated tariff

• Time of use tariffs • Variable wholesale power market prices are passed to HEMS

• Peer to Peer trading capabilities included in HEMS

Load forecasting • Assumption based, macro economic and temperature driven

• Ex post forecasting based on granular smart meter data

• Ex ante AI forecasting based on granular smart meter data

• Probabilistic AI forecast based on customer likelihood adoption of DER assets and EVs

AMI Fingerprinting • n/a • Disaggregate load in household per appliance and detect abnormal use

• Ability to prevent malfunction of appliances with predictive maintenance

• Offers continuous lifecycle management services to customers for reuse of appliances

EDL Current state Functionality enabled but requires regulation reform *Adapted from World Bank: Practical Guidance for defining a Smart Grid Modernization Strategy

Define AMI smart grid functionalities and map EDL current state


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

• The business case is clear: With non‐technical losses of ~20%, an AMI will likely pay back in ~3 years- CAPEX full AMI < USD $ 150 million- OPEX savings for EDL > USD $ 50 million per year at non‐technical loss reduction rate of 3% per year

• The priority to enable the benefits is to reach the AMI Advance capabilities for utility operation by 2020 i.eAMI Data Center is a MUST that should not be delayed

• It is important to plan already with local stakeholders in the utility sector how to enable the customer service AMI capabilities in Lebanon post 2021

• While monitoring deployment of AMI, it is important to benchmark the costs and benefits of a LORA vs PLC communication systems in connecting and validating meter reads and publish results to raise awareness of a) technology readiness level of LORA b) leapfrogging capabilities of Lebanese utilities


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

AMI Capability

2019 2020 2021 2022 2024 2026 2028 2030Q2 Q4 Q2 Q4 Q2 Q4

Meter Reading

1% 10% 40% 70% 100%

• DSP deploy Smart Meters and connect them to their own supplier software

• Safe disposal of old meters

• EDL Procure AMI Data Center• DSP procure HES in transition• DSP connect SM to HES• Increase sworn inspectors • Safe disposal of old meters

• Integration of HES in AMI Data Center• Safe disposal of old meters• IT-OT Integration SCADA-OMS

• Integration of AMI Data Center with other EDL process and new smart grid capabilities e.g DERMS, EV Charging stations.

Billing • Law makers legislate regulation to reform billing procedure from paper to digital

• DSPs proof reads automated and manual reads

• Complete automation of billing process

• Near real time VEE billing

• Enable pre-paid billing • Pro-active notification systems for over consumption

Connect / Disconnect

• Law makers authorize DSPs to disconnect remotely non paying customers

• Remote disconnection of non paying customers

• Automation of disconnection of non paying customers (including warning messages)

• Automation of disconnection processes with other use cases (e.g Cybersecurity breah, firefighting, move in move out …)

Theft Detection • Manual theft detection with data analytics (energy correlation) • Hire Data Analytics Experts

• AI Theft Detection

Outage Management

• Manual Outage detection • DSP leverage “last gasp” and “ping” functionality of smart meters to detect outages

• Integrate OMS in Data Center• IT-OT Integration AMI-SCADA

• Hire Data Analytics Experts• Pro active outage management, prediction of outages and time duration for restoration of outages• Integration with other new smart grid capabilities e.g DERMS, EV, Charging

PQ Management

• All four DSPs are using smart meter PQ measurement to mitigate local issues

• Integration of PQ measurement in AMI data center

• AI Power Quality management using big data analytics

BAU AMI Basic AMI Advance Utility of Future

Deployment rate

Success rate of remote reads Billing reformAMI DATA CENTER

Capacity Increase

Data Analyitcs ExpertCritical

path


AMI VISION

1CURRENT STATE

2AMI

PROJECTS

3AMI COST BENEFIT

4AMI

ROADMAP

5AMI

MONITOR

6

AMI Capability

2019 2020 2021 2022 2024 2026 2028 2030Q2 Q4 Q2 Q4 Q2 Q4

Tariff Setting

1% 10% 40% 70% 100%

• Fixed rate regulated tariff M5• Time of use tariff M4 Customers

• Time of use tariffs M5 Customers • BEMS / HEMS deployed • Variable wholesale power market

prices are passed to HEMS

• Peer to Peer trading on the blockchain

Load forecasting

• Assumption based, macro economic and temperature driven • Ex post forecasting based on granular smart meter data

• Ex ante AI forecasting based on granular smart meter data

• Probabilistic AI forecast based on customer likelihood adoption of DER assets and EVs

AMI Fingerprinting

• n/a • Disaggregate load in household per appliance and detect abnormal use

• Ability to prevent malfunction of appliances with predictive maintenance

• Offers continuous lifecycle management services to customers for reuse of appliances

BAU AMI Basic AMI Advance Utility of Future

Deployment rate

DSP Procure HES AMI DATA CENTERCritical

path

Law 402 application Data Analyitcs Expert


THANK YOU FOR YOUR KIND ATTENTIONHIT US WITH YOUR QUESTIONS

Salim al Banna, Eng. MBAUtility expertNUC, 10 years of experience

Patil Mesrobian, MSc.Environmental specialistLCEC, 5 years of experience

Serge Saad, Eng.Solar energy and data centers specialist, Ogero and LSES, 3 years of experience

Farid Comaty, Eng. MSc.Senior Consultant Navigant, 5 years of experience

Perla Tannous, Eng. MSc.Solar energy specialistEcosys, 2 years of experience

The content of the presentation are purely the views of the authors and do not represent the views of the company they work for or any local experts they have interviewed or WEC Lebanon


TASK FORCE 3: CONCLUSION AND NEXT STEPS


WHAT CAN WE LEARN FROM OTHER UTILITIES?

35 million customer

5 years pilot and trial: 2010 -2015

6 years deployment :2015� 2021

France

• Installation of 35 million smart meter LINKY PLC

Average cost per meter: $200Data concentrators transmission

data GPRS

Smart meters

deployment cost

$5 billionMeter Procurement

and Installation

Data Concentrators

IT System



8 years installationtimeframe

• Installation of 800,000 smart meter GPRS

Meter Procurement and Installation

Data Concentrators

IT System

800,000customer

Illinois

Smart meters

deployment cost

$272 Million


4 years pilot +Trial : 2013-2016

5 years deployment : 2017-2021


6.2 million customer

KSA

Smart meters

deployment cost

$3.25 billion

• Installation of 4.81 million smart meter PLCAverage cost per meter: $128

• Installation of 1.39 million smart meter GPRSAverage cost per meter: $186

Meter Procurement and Installation

Data Concentrators

IT System

Documents

DIGITALIZING THE ELECTRICITY INFRASTRUCTURE OF LEB NON … · skillset of workforce, corporate governance & mark et regulation 3 GENERATE LIST OF PROJECTS • Define all potential