Slide title 70 pt CAPITALS Slide subtitle minimum 30 pt Energy & Utilities An Industry Under Transformation Régis HOURDOUILLIE Head of smart grid.

Energy & Utilities

An Industry Under Transformation

Régis HOURDOUILLIEHead of smart grid

Ericsson Internal | Page 2

Cloud

Access everything from the cloud

Broadband

Data produced and transferred is growing exponentially

Mobility

Mobiles the first choice for communication

The Networked Society

15 years50 billion connected devices

25 years 5 billion connected people100 years

1 billion connected places

Ericsson Internal | Page 3

Transforming industries t r o u b l e t o re s o l u t i o n o rd e r t o c a s htransport

Enable Intelligent transport systems for vehicles,

travelers and infrastructure

Utilities

Realize connectivity, control and data analytics in

Smart Grids

Safety & security

Complement missioncritical voice with

multimedia services

Ericsson Internal | Page 4

Different Drivers in different markets…

• Energy efficiency and demand response

• Aging infrastructure and workforce

• Evolving regulations

• Demand growth

• Aging or not developed infrastructure

• Non-technical losses

• Slow demand growth

• Renewables, Energy Efficiency, Market Competition, Market Interconnection (EU Energy Policy)

• Aging workforce

• Aging or not developed infrastructure

• Non-Technical losses

• Generation adequacy

• Renewables and interconnection (driven by EU) • Energy efficiency and demand response

• Optimization of O&M (extensive grid, low density)

• High demand growth, increase of electric intensity

• Infrastructure development and modernization

• Renewables

• Aging infrastructure

• Non-technical losses

• Renewables (also driven by ETS)

• Market restructuring

• Energy efficiency

• Shift from nuke to renewables

• Aging population and workforce

North America

LATAM

Africa

European Union Eastern Europe

ASIA

Oceania

JApan

Ericsson Internal | Page 5

…Lead to a similar Energy System transformation

Transmission Distribution ConsumerGeneration

Secure Communication FlowsElectrical FlowsDomain

› Non linear model

› More focus on customer concerns; quality, security of supply

› New market participants

› New management models; transparency and non discriminatory access.

› New products and services.

TODAY: ENERGY RESOURCES CENTERED

EXPECTED: DISTRIBUTED AND PARTICIPATIVE

Ericsson Internal | Page 6

Top 10 ICT trends driving the utility transformation

Source: Gartner, April 2013, icons Ericsson

Social media

Big DataMobile and location-aware technology

Sensor technology

Cloud computingand SaaS

In memory computing

IT and OT convergence

Advanced Metering Infrastructure (AMI)

Communication technology (4G/5G, LTN)

Predictive analytics

Ericsson Internal | Page 7

Utilities 2020 vision & roadmap

Focus:• Smart Metering• Smart Grid

Communications

Expansion:- Smart Metering

- Smart Grid Communications

- Customer & Revenue Management platforms

- Asset Management & Protection solution

- Grid Control IT

Integrated Utility Services

• Leading end-to-end transformation projects •Service Enablement solutions• IT/OT convergence• XaaS

Am

bit

ion

20152017

2020

Vision

IT and communication network unlock operational efficiencies and customer value

Utilities future state• Customer service oriented• Efficient and sustainable• Flexible - adapt to new market and

regulatory developments• Critical partners in emerging

integrated smart societies

Transformation need recognized by utilities• Smart Metering• Renewable integration

Innovating operations and consumer service enhancements

• Smart Metering• Meter Data Analytics• Distribution Automation• Distributed Intelligence

New business and operational models

• Enhanced data analytics• Consumer value creation• Decentralization and micro grids• Dynamic and automated operations

Utility change in BlueICT impact in Red

Ericsson Internal | Page 8

IoT platform(s) for utilities

Telecom Networks

Connectivity

Utility specific VA services

Service Enablement

Co

mm

on

fu

nct

ion

s

Value added services around energy efficiency, green energy, electric mobility, street lighting, cross silos services etc.

SG device management, SG data management, service creation and integration, Security , data analytics, etc.

Grid edge gateway

Ericsson Internal | Page 9

FIN

LAN

D

SW

ED

EN

ITALY

ESTONIA

› Third largest power distributor in Italy (and #1 water distributor in Italy).

› Complete managed Advanced Metering Management operation service for 1.6 million electricity meters and 500 street-lighting substations

› E.ON Elnat Sverige, part of E.ON Group› Ericsson operates more than 600.000

E.ON smart meters from 20 different vendors in Sweden

› Solution combines managed services, system integration, ICT and field services

› Industrialization of “Meter-to-Cash” processes

› Electrilevi is the main DSO in Estonia› Ericsson as prime integrator to supply,

deploy, system integrate and run a smart metering network

› Includes deployment of 630.000 smart meters and the needed IT systems

› Ericsson chosen to deliver nationwide SMaaS (including related field operations) for more than 700.000 L&G meters and more than 20 customers in Finland. Contract starts Oct 1st, 2014

› Contract includes transfer of 13 L&G employees to Ericsson

acea e-on

elektrilevi Landis Gyr

Example of projectsSmart Metering as a service

Ericsson Internal | Page 10

Example of projectsgrid Coms modernization in Duke

THE SOLUTION

› Visionary end-to-end, open, standards-based IP network

› On-demand, two-way flow of information

› Smart grid nodes foundational

› Flexible, extensible and scalable network architecture

THE RESULT

› 26 operating benefits in reduced costs, deferred capex and increased revenue

› 38% reduction in device count

› USD 2.5K/minute positive impact through better outage management

› 99.5% meter read rate success

THE CHALLENGE

› Digitize an antiquated grid system

› Give end-users choice and control

› Improve distribution grid operations efficiency

› Create foundation for emerging technologies

20-year NPV operational benefits ~USD 382.8 million

Fundamental OPS change Smart grid platform

138,000 Nodes

921,000Less truck rolls

Ericsson Internal | Page 11

Conclusion: New Utility Reality

1. Customers – participating and active

2. Assets – connected and intelligent

3. Grids – dynamic and automated

4. Data – turned into value-add information

5. Platforms – economics and scale

6. Capabilities – on-demand

7. Secure – resilient and trusted

The transformation is happening