This case study focuses on a story from Enexis, one of the largest energy network operators in the Netherlands, managing around 4.5 million customer connections.

As part of a European Union directive that 80% of homes must be able to monitor electricity consumption by 2020, it needed to rollout a secure smart metering solution. Vodafone provides the M2M (machine to machine) infrastructure to support the rollout and offers consultancy on best practice and strategic planning, particularly from its experience in the global energy sector.

The EU directive challenge

In 2008, a European Union (EU) directive stipulated that 80% of energy customers must be able to monitor their energy consumption by 2020. The Dutch government responded by making it a legal requirement for energy operators to install smart metering technology in homes.

To meet these targets, Enexis will need to deploy approximately five million smart meters, each transmitting energy consumption data once a day, every day.

Since 2011, Enexis no longer installs conventional meters so every new meter installed in the grid is a smart meter. This means that during the first few years of rollout, smart meters are installed across the grid.

To achieve this, Enexis had several connectivity options…

Routing data via Power Line Connections (PLC) was impractical because, to work effectively, entire districts would have to install smart meters simultaneously.

With the initial rollout limited to replacing faulty meters and new installations, this was not viable. The option of transmitting data via WiFi would mean homeowners needing a guaranteed connection, so again this was not ideal.

“Because we install smart meters that are scattered across our distribution network, the most effective solution was GPRS over M2M SIMs,” said Lonneke Driessen-Mutters, smart metering operations manager at Enexis.

The solution

A Vodafone SIM has been integrated into the smart meter to transmit energy consumption data to and from Enexis’ data centres. An SMS ‘activates’ the smart meter each day, measuring energy consumption data from the home. The smart meter then transmits the data via GPRS and then switches off. This reduces power consumption and keeps transmission costs to a minimum.

The SIM installation was supported by Vodafone’s ordering and activation system, using web-based tools to ensure high volumes of SIMs are delivered and managed. Real-time information on every device, including data usage, is integrated into the Enexis back-end systems.

The initial roll-out covered 3,000 smart meters, but has since been extended to approximately 100,000 locations, with plans for a further 150,000 installations in the near future

“If we only install smart meters as a natural replacement and at the request of a customer, this rate of growth will not be enough to meet the EU targets,” says Driessen-Mutters. “We therefore at some point will expand the roll-out by going door to door installing smart meters.”

Vodafone’s Service Improvement Plan (SIP) used here is now being used as a template for other Enexis suppliers. The SIP also helped balance the mix of local response and global outlook. Enexis has sufficient resources to address challenges locally while being able to access Vodafone’s global M2M insight to provide strategy and best practice.

“All new business comes with start-up problems. Smart metering is new to everybody; to customers, to energy networks, to meter vendors and to IT system providers. It’s a complex ecosystem and we’ve experienced teething problems with every partner we’ve dealt with, that’s understandable,” says Driessen-Mutters.

The impact

Part of the EU’s justification for smart meters was that consumers will lower their energy consumption once they are able to see their usage: If you can measure it, you can manage it. This is supported by early trials, With smart metering, estimated bills are no longer appropriate and consumers can see real-time data on spend. Suppliers are able to tailor tariffs and advise customers of alternative productsm which save them money and increase customer satisfaction.

The solution has reportedly been well received by homeowners, as they appreciate being able to see their energy consumption in real-time.