2007 Australia - Smart Grid

Energy Management and Broadband

Publication Date	July 2007
Publisher	BuddeComm
Product Type	Report
Pages	139
ISBN Number	not applicable
Product Code	BUD00140

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Summary

This report provides high-level overviews and strategic analyses of the telecommunication developments in the electricity utilities market within Australia. It identifies key trends and developments, major projects and business opportunities, points out the hype and the pitfalls, and it will be of assistance in making the right business decisions in a rapidly changing environment, in which global warming must be taken more seriously.

The subjects covered in the report include:

The market in 2007;
Forecasts of opportunities in this market;
Major players, projects and cooperative models;
Demand side management;
Broadband power line;
Network architecture, standards;

Telecommunications is not new to the electricity energy utilities. 'Ripple wave' communication was invented back in 1896 and has been used ever since in the electricity grid - for instance, to switch hot-water systems on and off.

This was later developed into Power Line Communications (PLC) and for more than two decades, utilities have been looking at utilising this technology to develop new applications, especially in the area known as demand side management. However, very little progress has been made and only in recent years have we seen the rollout of so-called smart meters over this (still not very smart) narrowband technology.

In a rapidly deregulated market (breaking up the vertical industry structures), utilities were forced to become more sophisticated in their business management in order to increase their revenues. Still heavily regulated in relation to the prices they are permitted to charge for electricity, they looked at using unregulated assets to generate revenues that would be unaffected by regulation.

This led them to look at the telecommunications market.

Many utilities began to make available to the telcos access capacity on their communications networks; others made their pole and wire infrastructure available - to cable TV companies, for example - to string their cables next to the electricity wires. Others looked at retail opportunities, either reselling telephone services or offering broadband services; however most failed, or steered clear of this, as it was outside their core business area, and therefore outside their comfort zone.

New opportunities arose when the PLC technology was developed into a broadband version - Broadband Power Lines (BPL). This caused excitement in the market, since BPL could be offered as an infrastructure-based service in competition with the telcos. The utilities are far more comfortable with this as BPL could be an integral part of their own electricity network. However, the technology costs remain high and global standards are still a year away.

At the same time DSL was rolled out deeper and deeper into the broadband market, decreasing the business opportunities for BPL. BPL still has good opportunities in niche markets and Aurora in Tasmania has a commercial pilot in Hobart to test the waters there.

However, in more recent times, global warming has become a hot political issue. Electricity generation and usage accounts for 40% of carbon emissions and it became clear that the utilities would have to get serious about this issue. Most utilities don't have an intelligent network in place that can alert them about outages or problems with the wires. They have no capability to manage demand and supply. All of this will be essential if they want to become serious about energy saving, and their carbon bill could quickly become the highest cost element of their business.

This has led to the concept of smart grids - building an IP-based, intelligent, carrier-grade telecommunications network over the electricity grid, with sensors and routers that will allow them to better manage the network. This would assist them in limiting their carbon reductions and provide them with a lucrative position on the carbon trading market.

Electricity will become more expensive and customers will also become involved, directly or indirectly, in the carbon issue - either voluntarily, because they want to make their own contribution to limiting the onset of global warming, or driven by the fact that they, in this case business users, might have to pay carbon tax.

A smart grid can be extended to people's homes and businesses through BPL, but also through wireless, fibre and copper-based DSL technologies. Customers will get an information panel (a true smart meter) in their homes, which will provide them with information about their energy use, about pricing - especially in peak periods, when the prices will go up - and they will be able to interactively communicate with their utilities to limit their energy use, shift their use and even insert their own wind or solar power into the grid.

The industry (telcos and utilities) are collaborating with the government in developing plans for the introduction of smart grids in the country. Sydney-based Energy Australia launched the country's first smart grid in mid-2007.

Highlights

Telecoms developments are driven by the electricity companies' core network requirements. Key developments will take place in relation to their own grid upgrades.
Utilities have no intelligence in the network to detect faults, outages - let alone prevent them from happening through early detection.
Electricity generation and usages accounts for 40% of carbon emissions.
Network leakage results in a 10% to 20% loss of energy.
IP-based interactive intelligent smart grids - not 'if' but 'when'.
Customers and their retail electricity providers have a high demand for intelligent interactive energy applications. This can lead to 15-20% energy savings.
Broadband Power Line is one of the access options that utilities can use to link customers to their smart grids.
Aurora in Tasmania has a commercial BPL pilot in operation in Hobart.
Sydney-based Energy Australia launched Australia's first smart grid in mid-2007.
The government is working on a cost/benefit analysis for the rollout of smart meters.
Meters can't be smart if they are not linked to an interactive broadband-based smart grid.
UtiliTel is leading an industry workgroup promoting the implementation of smart grids.
BPL standardisation is still a year away, hampering the introduction of cheaper equipment.
Other technologies such as WiMAX might well be more suitable for end-user access.
Smart grids offer opportunities to on-sell excess broadband capacity to telcos.

This report provides high-level overviews and strategic analyses of the telecommunication developments in the electricity utilities market. It identifies key trends and developments, major projects and business opportunities, points out the hype and the pitfalls, and it will be of assistance in making the right business decisions in a rapidly changing environment, in which global warming must be taken more seriously.

Further information provided:

Analysis of the opportunities in this market for utilities and telcos;
Essential information for policymakers in environmental issues, energy savings and broadband infrastructure developments;
The unique structure of the electricity utilities market, and the issues involved - essential knowledge for those not familiar with this industry;
The major players in the market and opportunities for partnership options;
How to use the open network approach, which allows for cooperation with the players in the broader industry;
Insight into and detailed information about the technologies and applications in the utilities telecoms environment;
In-depth technology assessments and analysis of BPL.

Content

1. The Market In 2007
- 1.1 Introduction
- 1.2 Full Circle For Utilities Telecoms
- 1.3 Bpl - From Telecoms To Environment Opportunities
  - 1.3.1 Significant Telco Progress
  - 1.3.2 Bpl More Core To Utilities
  - 1.3.3 Better Electricity Networks
  - 1.3.4 Global Warming And Bpl
  - 1.3.5 Smart Grids
- 1.4 Bpl - The Quiet Telecoms Achiever - Analysis 2007
  - 1.4.1 Looming Shortage In Local Broadband Capacity
  - 1.4.2 Home Networks
  - 1.4.3 Bpl - Better Than Wireless
- 1.5 Bpl As An Access Technology - Analysis
  - 1.5.1 Selecting The Right Business Model
  - 1.5.2 Second Generation Has Arrived
  - 1.5.3 Third Broadband Network Into The Home
  - 1.5.4 Regional Opportunities
  - 1.5.5 Utilities Propelled Into A Growth Market
  - 1.5.6 Utilitel - Australia's Bpl Incubator
  - 1.5.7 Voip Over Bpl
  - 1.5.8 Bpl - Superior To Adsl
- 1.6 Forecasting Bpl As Broadband Access
- 1.7 Bpl Technology Reports
  - 1.7.1 Architecture And Techniques
  - 1.7.2 Standards And Homeplug Plc
  - 1.7.3 Opera, Ds2 Bpl And Co-Existence
  - 1.7.4 Bpl Access Systems
  - 1.7.5 Interference And Challenges
- 1.8 Bpl - One Step Closer To Reality
- 1.9 Radio Interference
  - 1.9.1 No Harmful Radio Interference
  - 1.9.2 Radio Amateurs Release Bpl Report
  - 1.9.3 Industry Seeking Solutions
2. Bpl Projects And Forecasts
- 2.1 Introduction
- 2.2 Bpl - One Step Closer To Reality
- 2.3 Bpl Forecasts
  - 2.3.1 The Future Of Bpl - Analysis Mid-2006
  - 2.3.2 Looking Towards 2015
- 2.4 Broadband Power Line Pilots
  - 2.4.1 Utilitel Cooperation
  - 2.4.2 Sp Ausnet Trial In Mt Beauty
  - 2.4.3 From Bpl Trial To Smart Grid
  - 2.4.4 Aurora Tasmania - First Global Commercial Bpl Service
  - 2.4.5 Queanbeyan Trial
  - 2.4.6 Silk Telecom
- 2.5 Bpl Home Networks
3. Energy Utilities Markets
- 3.1 The Australian Utilities Market
  - 3.1.1 Market Overview
  - 3.1.2 Investments
  - 3.1.3 Deregulation Of The Market
  - 3.1.4 Industry Groups And Their Move Into Telecoms
  - 3.1.5 Changes To The Energy Market
  - 3.1.6 Utilities Need To Expand
  - 3.1.7 Niche Opportunities In Telecoms
- 3.2 Nus Electricity Report And Cost Survey - 2007
- 3.3 Utilitel
- 3.4 Wireless Power
- 3.5 Marketing And Business Issues
  - 3.5.1 Energy - And Telecommunications Services
  - 3.5.2 Will They Deliver Competition?
  - 3.5.3 Shake-Out In Energy Industries
4. Smart Grids
- 4.1 Carbon Trading Will Facilitate Smart Grids
  - 4.1.1 Buddecomm Smart Grid Seminars
  - 4.1.2 From Not-So-Smart-Meters To Smart Grids
  - 4.1.3 Pinc Australia's First Smart Grid
  - 4.1.4 Key To Smart Grids: The Right Vision From The Government
  - 4.1.5 Carbon Trading
  - 4.1.6 Narrowband Will Foreclose Maximising Energy Management
  - 4.1.7 Excess Capacity Can Be Used For Other Broadband Services
  - 4.1.8 Thinking Outside The Square
- 4.2 Coag Opens Door For Smart Grid Development
  - 4.2.1 Telco/Utility Proposal Included In Study
  - 4.2.2 Current Grid Outmoded And Outdated
  - 4.2.3 Old Technologies, And No Young Engineers
  - 4.2.4 The Reality Of Global Warming
  - 4.2.5 Demand In Energy Bigger Than Ever Before
  - 4.2.6 The Industry Is Ready For Action
- 4.3 Industry Push For Smart Grids
  - 4.3.1 Cooperative Model From Telco And Utilities Industries
  - 4.3.2 Telco And Utility Industry Calls For Government Leadership
- 4.4 From Smart Meters To Smarts Grids
  - 4.4.1 It Makes Economic Sense
  - 4.4.2 Global Warming And Energy Saving
  - 4.4.3 Demand-Side Management
  - 4.4.4 Energy Security
- 4.5 Smart Meter Readers
  - 4.5.1 Introduction
  - 4.5.2 Rollouts, Trials And Plans
  - 4.5.3 Ena Takes Smart Metering Policy Initiative
- 4.6 Broadband Powerlines
  - 4.6.1 Plc And Bpl
  - 4.6.2 Smart Solutions = Smart National Benefits
  - 4.6.3 Utilitel Is Showing Leadership
5. Demand Side Management (Dsm)
- 5.1 Introduction
- 5.2 Bpl For Home Automation Services - Analysis
- 5.3 Dsm
  - 5.3.1 Services Overview
  - 5.3.2 Dsm Applications For Residential Users
- 5.4 Remote Monitoring
  - 5.4.1 Intermoco
  - 5.4.2 Amrs (Aust) Pty Ltd
- 5.5 Home Networking
- 5.6 Wireless Ip Technology For The Scada Industry
  - 5.6.1 Introduction
  - 5.6.2 Wireless Ip Technology
  - 5.6.3 Benefits For Scada Operators
  - 5.6.4 Technology Choices
6. Utilitel
- 6.1 The Utilitel Initiative
- 6.2 Overview Of Assets
  - 6.2.1 Track Record
- 6.3 Utilitel Moving In 2007
- 6.4 Utilitel-Led Group For Regional Infrastructure
- 6.5 The Power Of Utilitel
- 6.6 Key Opportunities And Activities
  - 6.6.1 Smart Grids
  - 6.6.2 Infrastructure Competition
  - 6.6.3 Ftth And Bpl
  - 6.6.4 Demand Side Management - Smart Meters
- 6.7 The Utilitel Opportunity
- 6.8 Paul Budde's Role In Utilitel
- 6.9 Historic Overview
7. Major Players
- 7.1 The Role Of Utilities In Telecoms
  - 7.1.1 The First Attempts
  - 7.1.2 New Directions
  - 7.1.3 Utilitel
- 7.2 Smart Grid From Energy Australia
- 7.3 Aurora Energy And Tastel
- 7.4 Country Energy
  - 7.4.1 Overview
  - 7.4.2 Telco Activities
  - 7.4.3 Radio Over Ip Solution
- 7.5 Silk Telecom
  - 7.5.1 Teco Arm Of Power Companies: Powercor And Etsa
  - 7.5.2 Etsa Telecom
  - 7.5.3 Silk And Adam Internet Do Adelaide
  - 7.5.4 Western Power
- 7.6 Powerlink And Ergon In Queensland
  - 7.6.1 Company Overview Powerlink
  - 7.6.2 Telecommunications Activities
  - 7.6.3 Nexium Will Distribute Services
  - 7.6.4 Nexium Telecommunications
  - 7.6.5 The New Network
- 7.7 Powertel
- 7.8 Sp Ausnet
  - 7.8.1 Electricity Transmission Assets
  - 7.8.2 Electricity Distribution Assets
  - 7.8.3 Gas Distribution Assets
  - 7.8.4 Telecoms Activities
- 7.9 Transact Broadband Communications Network
- 7.10 Transgrid
  - 7.10.1 Nsw High-Voltage Electricity Utility
  - 7.10.2 Telecommunications Network
- 7.11 Uecomm
- 7.12 Aapt Alliance With Integral Energy
- 7.13 Other Utility Initiatives
8. Broadband Power Line Technology
- 8.1 Architecture And Techniques
  - 8.1.1 Introduction
  - 8.1.2 Power Infrastructure Architectures
  - 8.1.3 Bpl Techniques And Architectures
  - 8.1.4 Propagation, Attenuation, Isolation And Crosstalk
  - 8.1.5 Frequencies And Modulation Techniques
- 8.2 Standards And Homeplug Plc
  - 8.2.1 Introduction
  - 8.2.2 Technical Standards
  - 8.2.3 Homeplug
- 8.3 Opera, Ds2 Bpl And Co-Existence
  - 8.3.1 Ds2
  - 8.3.2 The Eu Opera Project
  - 8.3.3 Practical Data Rates
  - 8.3.4 Market Requirements For Access Bpl And In-Home Plc
- 8.4 Bpl Access Systems
  - 8.4.1 Commercial Bpl Systems
  - 8.4.2 Trials And Commercial Deployment
- 8.5 Interference And Challenges
  - 8.5.1 Introduction
  - 8.5.2 Interference
  - 8.5.3 A Critical View: Considering Alternatives
  - 8.5.4 Barriers And Challenges
  - 8.5.5 Electricity Supply Board Of Ireland Critique
9. Glossary Of Abbreviations
Exhibit 1 - Bpl Projects Australian Utilities
Exhibit 2 - Key Bpl Applications
Exhibit 3 - What Is A Smart Grid?
Exhibit 4 - Case Study Txu
Exhibit 5 - Smart Grid Applications
Exhibit 6 - Smart Air-Conditioning Control
Exhibit 7 - Smart Meters Part Of Environmental Blueprint
Exhibit 8 - Listed Energy Information/Energy Management Services
Exhibit 9 - Homeplug From Netcomm
Exhibit 10 - Mobile Ip Technologies Available In Australia
Exhibit 11 - Three Classes Of Utilities/Carriers
Exhibit 12 - Telecommunications Projects Initiated By Utilitel Members
Exhibit 13 - Listed Energy Information/Energy Management Services
Exhibit 14 - Country Energy Key Statistics
Exhibit 15 - Rural Fibre Towns
Exhibit 16 - Non-Regulated Business (Telecoms) Activities
Exhibit 17 - Opera Phase 2 Field Trials