Smart (Grids + Metering ≅ Markets) Ralf Hoffmann CEO GÖRLITZ AG 2014

1. Smart (Grids + Metering ≅ Markets) Ralf Hoffmann CEO GÖRLITZ AG2014

2. WHO WE ARE Generation Transport Distribution Metering Consumption EnergyStability – Smart Grids EnergyEffiency - Smart Metering Smart Energy IDS GROUP People Country subsidiaries Utility references Metering sites Turnover per year 1.000 10 2.000 20.000.000 100 m€

3. WHAT WE DO Grid Management Grid Automation Energyefficiency GIS assetMgmt Smart Metering IT Security

4. REFERENCE example Peter Iversen (CTO): We have all meters out in the field, they are up and running and we are still able to bill our customers. Meter rollout 391.000 Powerline DC 8.207 100% average daily success rate for full data retrieval MDM IT 38 Servers 75% 99,93% Daily interval reads 1.955.000 50% meter values collected daily 376.924.000 25% eg. monthly 11.684.644.000 0% Smart Meter full rollout with 400k meters, powerline communication and GÖRLITZ MDM IT. Denmark represents the highest amount of rnewable energy integration in the grid worldwide. Data mining and reliable data processing enables the key beneftis of the project.

5. CONCLUSIONS • Peter Iversen, CTO of SEAS-NVE: • A smart meter rollout is an IT project, not a meter project. • When we started, we thought it to be a meter project and did it the classic way, we´d never do it that way again. • We are very happy to have the system up and running and we don´t remember how we were able to do metering before. • After completion of the project, we were surprised that ROI will be reached 2.5 years earlier that expected at planning stage. • We detected significantly more saving potential to our operation processes. • We brought the advantages to our customers and they enjoy the reliabilityof our service. • We had to learna lot. • We will definitely do it again.

6. Lessonslearned Energy Market 1

7. Integration required Energy Market 1 DSM Gen Portfolio/CRM Billing Gridmanagement ERP

8. Unbundling: Investmentsandresults Energy Market 1 Annual emissionofelectricitygenerationrelated CO2 (in 1.000 tons) Annual fundingforrenewableenergysources (EEG) in Germany (in 1.000 Euro) 400.000 kt 300.000 kt 200.000 kt 100.000 kt

9. theselfhealingmarketforces ... Energy Market 1 Even thoughwholesalepriceshavedroppedsignificantly, customersclaimconstantlyrisingprices.

10. Market design ... Energy Market 1 • Electricalenergyis a capacityproduct • consumption MUST alwaysalignwithproduction • storagehaslowefficiency • Bettertocontrolconsumption • We´ll lack in capacities • But handled in themarketlikestock bulkware • Weusuallytalkaboutenergysavings, not capacitysavings • Most incentivesoffered on productionquantities • We´llgetfloodedbyelectricalenergy

11. OldschoolVIEW Energy Market 1 Peak load Base load

12. FUTURE BASE LOAD PEAK LOAD VIEW Energy Market 1 Base load Peak load

13. Oeconomics Smart Metering Value chain 2 • Economicaleffortformeteringoperation will increaseanyhow, just thelevelofincreaseis not fixed, • Income frommeteringfees will increaseless, • Balance of additional costmayleadto • Reductionofprofitability (shit...) • Reductionofothercost(Synergies!) • Increaseofotherincome (newbusinesses!) • Effortfor • Gridoperation • Gridexpansionandmaintenance • Meter operation(++) • DSO invoicing • EDI • Technical Services • Aggregation andBalancing • Non-technicallosses • Incomewith • Gridandtransportfees • Metering fees(+) • Billingfees • Balance energy • Load Management • Demand sidemanagement • Energyservices • Consulting

14. Integration required Value chain 2 DSM Gen Portfolio/CRM Billing Gridmanagement ERP

15. Metering Technology bridge Value chain 2 Generation Management Compensation Management Meter reading Workforce Management Smart Meter Communication Head-End System SMGW admin Smart Grid DSO Smart Customer Smart Market Smart Generation Smart Office Aggregator IDEX Edifact, Ediel, EBix REN Grid relevant control Load forecast DMS Consumption analysis Smart Home, energy efficiency ERP Backoffice, CRM, CIM, billingand dunning ESCO

16. A POWERFUL MDM software system Solution offer 3 • IDSpecto SMDM System with state-of-the-art software design • 400+ different meter drivers for electricity, gas, water and heat • Workflow engine for automatic monitoring of all data collection, aggregation and processing functions • Unlimited scaling of performance and database storage by physical expansion of basic IT-platform only • Open interfacing to ERPand billingIT

17. AN UNRESTRICTED MULTI METER SUPPORT Solution offer 3 • 400+ different meter driversfor electricity, gas, water and heat • Powerline, Meshed RF, G3 and wired networks supported • Active in international standardisation, supporting ESMIGand driving the EU Mandate M/441 • Founding member of the DLMSuser association • You will not find any meter that we are not able to read automatically

18. A reliable project experiance Solution offer 3 • 900+ utility customers served with 20.000.000 metering sites in total • Industrial, commercial, and residential metering • Serious Roll-Outs managed with installation monitoring and IT integration • 24/7 maintenance service and EuropeanwideSLA´s in operation • Highly engaged deliveryteam Enel

19. Your weight on diet ... Implementation 4 Could a diet work out fine without weighing regularly? What if your balance just shows your total summary of all weights in a year only? Compared to the function of a dumb meter, it may answer you a weigh of 73 tons and 675 kilogram an march 16th. Great stuff!

20. Your energy on diet is … Implementation 4 How could one have the energy demand under control without regular “weights”? Previous dumb meters are precise and solid devices, but they just display the “total weight” of a consumer, nothing else. You may try to become energy efficient on such information level …

21. MORE INFORMATION REQUIRED? Implementation 4 Boilers 53,4 kWh Cooking 32,8 kWh Washing 38,22 kWh Fridges 22,9 kWh Heat pump 34,3 kWh Illumination 12,2 kWh Media 34,6 kWh Other 44,9 kWh ... plus somemore simple statisticalinformation, tachometers,graphsand easy tounderstandhints ..

22. Smart analyTiCssystem components Implementation 4 Smart Meter Power measurement Metrological device Sensor function COMfor IDspecto Home devicepatternlibrary Information database on typicalhomeconsumationdevicesandtheirspecificelectricalbehaviour Visualization Status information Loadinformation Contractdisplay Tariffoptionrecognition Booking registration Consumer Getsinformedthroughvisualizationdevice Actcontractualdecisionthroughvizualisationdevice Smart MDM Routing of all informationflows Monitoring ofcomponentstatus

23. ENVIEW Analytics Implementation 4

24. SMART MARKET EXAMPLE: ECO-FLAT Implementation 4 • Fixedmonthly feeof € 34,95 Euro for electricity supply • Unlimited volume of energy consummation* • Free load limit during time of sufficient renewable energy generation • Load limit of 4 KW during time of limitedrenewable energy availability • Easy upgrade booking on demand in low load limit times when necessary

25. Metering technology bridge Generation Management Compensation Management Meter reading Workforce Management Smart Meter Communication Head-End System SMGW admin Smart Grid DSO Smart Customer Smart Market Smart Generation Smart Office Aggregator IDEX Edifact, Ediel, EBix REN Grid relevant control Load forecast DMS Consumption analysis Smart Home, energy efficiency ERP Backoffice, CRM, CIM, billingand dunning ESCO

26. Conclusion • Youshould´tfinancewhatyoucan´tmeasure • The balanceofdecentralrenewableenergygenerationrequires DSM • Capacitytariffsand smart metersgivetheframeworkfor a proper market design • The restofthestoryis just abouttechnology; readytouse Let´smakeelectricitysupplymore human