The integration of smart meter in a water grid: a perspective from a multiutility company

Marcello Bondesan Head of Energy Asset Development – InRete Distribuzione

Page 1 Engineering Energy 26 October 2014 HERA Group: about us HERA is a leading multi-utility company in operating in over 240 municipalities. It was founded in 2002 through the merger of 12 public service companies in Emilia Romagna. The geographical coverage of the HERA Group is completed by:

AcegasApsAmga S.p.A. was established after the merger between AcegasAps and Amga Multiservizi in . With over 2000 staff, it manages the Integrated Water Service, the distribution and sale of gas and electricity, waste collection and handling for 800 thousand people living in the North East of Italy.

The company is the biggest multi-utility in the Region in terms of turnover and industrial scale and is the first merger on a regional level between companies in the local public services sector.

DGO- Technology and Development-Engineering Page 2 The HERA Group: activities and services

The main activities in which our group is involved:

ENVIRONMENTAL SERVICES ENERGY SERVICES WATER SERVICES

Waste collection and disposal Distribution and sale of gas and CII: extraction, distribution, electricity sewerage and purification

DGO- Technology and Development-Engineering Page 3 Gruppo HERA: where we stand among Italian utility companies

HERA – A quick glance at the numbers:

ENVIRONMENTAL SERVICES ENERGY SERVICES WATER SERVICES

Waste collection and treatment Distribution and sale of gas and Waterworks, sewerage and electricity purification

Largest Italian Fourth largest Third largest Second largest operator operator operator operator in environmental services in the electricity sector in gas sales in water services

4 mln tonnes/year 9,4 TWh 3.2 bln/m3 298 mln/m3 of waste handled of energy sold of gas distributed of water sold

3.3 million 720,000 1,7 million 3,6 million members of the public served customers customers members of the public served

80 12,000 km 20,600 km 53,108 km treatment plants of electricity network of gas network of water network

DGO- Technology and Development-Engineering Page 4 The Electricity Framework

The first electric rollout in Italy has take place in 2002/2003. The metrological duration of the meter is 15 yr. The smart meter were pushed by the biggest italian energy operator (). He communication line was only directed at the distributor datawarehouse (no IHD available).

Resolution AEEGSI 87/2016 has stated the performance expected by of the second phase meter rollout, when 32.000.000 meter has to be replaced:

Actual communication: Power Line Communication The next: dual line, for communication without power, and for IHD: - PLC+ RF169MHz AMM - PLC + NB-IoT - NB-IoT only?

4G or LTE

IDH PLC-A Concentrator

RF169MHz RF169MHz 2.0 Series: PLC+ RF169MHh or PLC+ NB-IoT or NB-IoT only? PLC-C NB-IoT NB-IoT

DGO- Technology and Development-Engineering Page 5 The Gas framework

The first gas rollout in Italy is started in 2010 in the industrial segment Both were done with In 2011-2013 the rollout were performed with separate electronic the commercial – light industrial market converter equipment segment

The mass market is started in 2014 and the Integrated actual regulation has targeted a 50% rollout in equipment 2018. And after?

DGO- Technology and Development-Engineering Page 6 The Gas framework 2010 2011 2012 2013 2014 2015 2016 2017 2018

100% >G40 100% 100% al 29.2.2012 100% 100% 30% 100% 100% G40 95% 100%67% 95%100% 100% 100% 100% G25-G16 95% Several changes in 25% 100%60% 100% the regulation over 60% 100% 25% the past 8 yr. 30% 100% 100%Da definire con 4PR = Obblighi del. 155/08 G10 5% 15% daDa definire definire con 4PR 4PR 15% 30% = Obblighi del. 28/12 15% 30% 50% 85% 100% = Obblighi del. 5% 20% 40% 60% 80% 575/12 60% ** = Obblighi del G4-G6 60% ** 631/13 3% 10% 60% = Obblighi del 554/15 3% 10% 15% 33% 50%

DGO- Technology and Development-Engineering Page 7 District Heating

Italian government has stated a new resolution (L. 102/2014) for heat metering for each apartment even in centralized supplies.

Vertical distribution plant Horizontal distribution plant

Mostly 1950 – 1970 buildings Mostly 1970 – 1995 buildings

Simpler solution: a meter on each apartment, one for heating and one for hot water

DGO- Technology and Development-Engineering Page 8 District Heating

Vertical distribution plant

Ceirtanly the most complicated solution The main solution uses a RF 868 MHz frequency. One major problem is the presence of fan coils 868 MHz GPRS

SAC GPRS

• Heat substation → overall consumption → BILLING STC • Smart metering → consumption for each apartment

overall consumption – sum of the apartment = heat losses + common part consumption Apartment billing according to UNI 10200

DGO- Technology and Development-Engineering Page 9 The water framework

Since smart meters needs battery to communicate it’s now possible to switch from mechanical meters to new technologies: -magnetic meters -ultrasonic meters

A massive roll out of water meters is to be assessed in the overall sense. On one side we will have : • more accurately • Possibility of much more frequent reading, which allows the exposure of portals accessible on the web • Installation of the measuring equipment for all utilities (in Italy there are still cases of unaccounted supplies, or the meter-free) • Possibility of installation in new conditions (verticality, etc.)

On the other hand, it must be said that in Italy there are currently other priorities: • ensure the purification even in small discharges • reduce losses of water supply system

For now, the water meter reading was limited to large industrial users. Only in a few pilot cases it has spread to the domestic market.

DGO- Technology and Development-Engineering Page 10 Resolution 393/13: Framework of the HERA multibusiness project HERA, as a multi-service company looking for new ways of interfacing with its customers, assessed the feasibility of a pilot project which was approved by Res. 334/14 on July 10, 2014. The project focuses on areas of the Municipality of featuring different urban aspects.

suburban area (medium concentration)

Municipality of Modena

out-of-town area (low concentration)

•The project involves over 13,300 users of 5 different services in areas with different population densities in which two different data transmission frequencies are implemented. town centre •The goal is to test both the technical (high concentration) and organizational/management aspects that feature significantly in wide scale remote reading of gas meters. The proposed duration of the experiment by HERA is 24 months.

DGO- Technology and Development-Engineering Page 11 The areas involved and user distribution

suburban area 868 868 169 169 169 169 169

169 169 169 169 169 169

S S out-of-town area

D S town centre

rural area GPRS

S = smart grid D = distribution

DGO- Technology and Development-Engineering Page 12 Resolution 393/13: The users affected

SERVICES INVOLVED NUMBER OF METERS 8,560 fiscal flow meters point-to-multipoint Gas Distribution 155 fiscal flow meters point-to-point 3,857 fiscal flow meters Intergrated Water Service 12 divisional meters 2 district meters Electricity Distribution 500 add-ons 111 fiscal flow meters Remote Heating 16 substation meters Environmental Health– Waste Collection Service 150 environmental health containers Total smart meter points 13,363

DGO- Technology and Development-Engineering Page 13 Resolution 393/13: HERA multibusiness project Architectural aspects Network Management Automated Meter Meter Data Management Management Control room

SAC SAC T M MDM

Transmission Transmission GPRS in RF 169 MHz in RF 169 MHz Transmission

Transmission RF 868 MHz Meter installation and maintenance Web interface

Multi-service smart metering pilot project Users Meter Data Management

DGO- Technology and Development-Engineering Page 14 Radio planning

DGO- Technology and Development-Engineering Page 15 Additional features within the framework of Res. 393/13 Smart Water/Heating/Waste Grid:

The «Smart Water Grid» means user consumption data can be compared on a daily basis with water volumes fed into the relevant water district allowing hidden losses to be identified. It also means consumption thresholds can be set for user types, thus enabling any losses to be identified downstream of the meter.

•The «Smart Heating Grid» means that energy from the remote heating system can be segmented between the production centre and the distribution substations and allocated right down to individual users. •Here again the system can identify losses and poor performance situations in the production system.

The «Smart Waste Grid» means the level to which dumpsters are filled can be controlled, thus optimizing the refuse vehicle collection run, thus obtaining energy savings, a positive impact on the environment and an improved service in the district. It is also possible to detect firing, damages, etc.

DGO- Technology and Development-Engineering Page 16 Smart Water Grid – Cognento Water District

From the comparison of 769 smart water meter and 2 flow meter installed on the water network it is possible to calculate the balance from input and output of the system, detecting:

- Anomalies in the minimum night flow - Customer side leakage

DGO- Technology and Development-Engineering Page 17 Using smart water systems to provide more accessible data for the customer

User’s data

Alert

DGO- Technology and Development-Engineering Page 18 What smart water systems might be able to do for the customer in the future With accurate frequent client’s mesureament it’s possibile to have:  optimal adjustment of the models used for the simulation of the network status, by using the maximum withdrawal values for each user;  the timely simulation of greater system solicitation both from timeline point of view and from territorial point of view, based on knowledge of the change in consumption during the period of analysis and distribution of the same in the various areas of the simulated system  Better calibration of the simultaneity coefficient to be used for the estimation of consumption for new users.

Designed services based on client’s needs.

Utility services is also designed on city needs with a better use of our investements.

DGO- Technology and Development-Engineering Page 19 Conclusions

Currently, the main unknown factors from a technical point of view are:

•For gas, the reliability of the meters (especially the innovative type): at this time, we are observing a 7,2% replacement in the first two year (10800 failure over 150.000 installation): high rate!

•The duration of the batteries and the variability of the firmware installed in the meter which requires constant updating of communication procedures;

•The necessity of a “change management” project in the workforce

•For electric energy, the quick changes in machine-to-machine technology communications in the timeframe indicated by Resolution 87/16 which ask a rapid replace of the meter.

•For water metering, The reliability of the meters (especially the innovative type) regard to icing and the M2M technology which is facing the scene;

•With regard to the other services, the lack of a standard technical framework to address the technical choices which will inevitably differ between the various participants and make technical/economical benchmarking much more difficult;

•Regard to the user: the italian approach is “technical driven”. Do we have a “smart user”?

DGO- Technology and Development-Engineering Page 20