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Eye on Africa Market

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Page 1: Eye on Africa Market

AFRICAN UTILITY WEEK

METERING INTERNATIONAL ISSUE - 1 | 201432

The business case for smart metering has been made worldwide as a tool to increase revenue collection and reduce non-technical losses. It has the potential to address Africa’s power challenges, but in many case studies it has been highlighted that the selection of the right technology is key. Utilities often choose technologies without the due diligence and requirement assessments and there are numerous considerations to be made regarding installation, maintenance, operations and service level agreements. During the African Utility Week advisory board meetings earlier this year these concerns were raised and the question of whether African utilities and municipalities are ready to implement smart metering technologies was discussed at length.

According to Christa Robijn, Programme Director, East Africa Power Infrastructure Convention (Eapic), “Smart metering is not about the meter, it’s about the knowledge gained. If you put the right technology in place, you will obtain useful data.”

Technology is in a constant state of advancement with Tata Power in India recently launching a new smart metering technology project which is the �rst in the world where ADR and AMI are being used in the same framework. Another example is the integrated partnership between IBM, Honeywell and Landis+Gyr who have taken smart metering technology collaboration to the next level with components including Radio Frequency Mesh based communication, ADR, smart meters, MDMS and the integration of IT operational technology. With the wide implementation of smart metering rollouts all over the world, it seems that Africa has the opportunity to learn from the mistakes and decisions made in other markets. Africa’s ageing infrastructure is perhaps not ready to accept smart metering technology, but utilities have the option to explore wireless solutions.

Michael Rhode, Director of Technical Services of Knysna Municipality South Africa, says: “Communication is the key to smart meter success! Communication providers therefore have a huge opportunity in the global rollout of smart metering.” Rhode has presented many papers on smart grid and also has a keen interest in the revenue protection �eld. As an advisory board member to African Utility Week, Rhode has been instrumental in determining the key challenges that utilities face on a daily basis around metering, technical losses

and revenue protection. During the metering communications focus day at the 14th annual African Utility Week in Cape Town in May, Rhode will uncover the challenging questions of whether prepayment meters have taken o� in Africa as was expected and what the hurdles are for embracing this technology.

Zimbabwe and South Sudan attract funding for metersTwo countries that have shown the ability to assess their needs e�ectively and implement a metering strategy accordingly are Zimbabwe and South

Sudan. The key denominator between these two countries is investment, emphasising the need for stakeholder engagement between utilities and the private sector.

Zesa Holdings in Zimbabwe secured US$35 million from the regional bank, African Export and Import Bank, to install pre-paid meters across the country. The African Development Bank is supporting South Sudan in deploying 20 000 pre-paid meters with a US$26 million grant. The aim of both projects is to rehabilitate and expand the distribution networks. Director of African Development Bank Alex Rugamba recently said: “The current situation of low level of power generation, coupled with ine�cient distribution networks, has adversely a�ected living standards of the population and restrained business development. Currently only about 1% of South Sudan’s estimated 10 million people has access to grid electricity.” The South Sudan Electricity Corporation (SSEC) will be further supported by �nancial, project and technical training – a crucial step to ensure sustainability of the metering rollout programme.

Global lessons sharedBrazil has seen its fair share of regulatory challenges around metering projects and rollouts, even impacting meter suppliers. The original mandate to roll out smart meters across the country was amended to install

“Communication is the key to smart meter success! Communication providers therefore have a huge opportunity in the global rollout of smart metering.” Michael J Rhode, Director: Technical Services, Knysna Municipality, South Africa and President of the Southern Africa Revenue Protection Association (SARPA).

EYE ON AFRICAN MARKETIS AFRICA READY FOR SMART METER IMPLEMENTATION AND MANUFACTURING?By Nicolette Pombo-van Zyl, Programme Director, African Utility Week, Spintelligent

Michael J Rhode, Director: Technical Services, Knysna Municipality, South Africa and President of the Southern Africa Revenue Protection Association (SARPA) will impart his wealth of information on metering communications and infrastructure at the 14th annual African Utility Week conference

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Page 2: Eye on Africa Market

AFRICAN UTILITY WEEK

METERING INTERNATIONAL ISSUE - 1 | 2014 33

a smart meter only if the customer requests to do so – resulting in a US$5 billion loss in revenue forecast for meter suppliers. The main drivers of these legislative changes were that the authorities were concerned about rising energy prices and putting pressure on utilities that would not be able to handle the rollout due to low resources and lack of technical knowledge.

Luiz Jose Hernandes Jr, the coordinator of the Centre for Research and Development in Telecommunications’ (CPqD) smart-meter research, told Bloomberg News that “Brazilians use �ve times less power than USA citizens; however smart meters in Brazil are twice as expensive”. The original proposal would have prompted the replacement of as many as 68 million meters across Brazil, but it is not yet clear how many meters the Brazilian utility, Aneel, expects to see replaced as a result of its amended scheme.

Meters for Africa by AfricaThere appears to be a positive market throughout Africa for locally manufactured meters. In Sudan, the government has formed a joint partnership with a Chinese manufacturing plant with the capacity to produce 450,000 meters per year. In west Africa, Momas Sytems in Nigeria has also signed an agreement with Conlog to develop meters locally. However, there is a concern that imported prepaid meters threaten local manufacturing in African countries, where it is cheaper to import meters than produce them locally.

Moman Meter Manufacturing Company Limited (MEMCOL) who participated at the 2013 West Africa Power Infrastructure Convention (Wapic), which is the sister platform to the annual African Utility Week, expressed concern. “We have not been able to meet our dream to be less dependent on importation of prepaid and post-paid meters. Nigeria is currently occupying the fourth position in meter manufacturing, but if this unfavourable importation of meters continues to grow, we would be misplaced in the global market. To overcome this problem, the government is regulating the market through policies to protect the industry,” said the Chairman of MEMCOL, Mr Kola Balogun. This sentiment is based on the desire to create an inclusive economic environment where jobs and wealth will be created through the process of intense industrialisation such as the manufacture of meters. The federal government has already developed the Nigeria Industrial Revolution Plan (NIRP) based on sectors where the nation has comparative and competitive advantage.

Recent case studies International metering manufacturers such as Landis+Gyr, Conlog, Elster Kent, Itron and El Sewedy Electrometers will be exhibiting some of these technologies at the 14th annual African Utility Week on 13 - 14 May 2014 at the CTICC in Cape Town. Landis+Gyr in particular will also o�er an insightful presentation on the Metering conference programme focusing on interoperability in the African meter trade environment.

Senior utility representatives from Ghana, Nigeria, Malawi, Uganda, Zambia, Zimbabwe and Egypt will also present developments in metering technologies and discuss African case studies.

Nicolette Pombo-van Zyl is the Programme Director of the 14th annual African Utility Week which will take place on 13 – 14 May 2014 and look at electricity and water metering as well as smart energy in an African context.

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13 – 14 May 2014, Cape Town, South AfricaFocus days: 12 May 2014 | Site visits: 15 May 2014

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