Strategy & Finance

Reshaping a better Energy future 2020 with a

Smarter usage of Energy based on SmartGrids

Dr Maher Chebbo, PhD Energy

Chairman of ETP SmartGrids Demand & Metering/Retail (EU)
Member of the EEGI Executive Committee (EU)

VP, Head of EMEA Utilities& Services Sectors, SAP

maher.chebbo@sap.com
 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Reshaping EU Energy landscape towards

SmartGrids targeting EU 2020 targets
Smart Energy for Smart Customers aiming at reducing CO2 by
20%, 20% Energy Efficiency and 20% of Renewables share

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

37 large Demonstration projects nominated by top

Transmission, Distribution & Retailers in Europe

About 2 b estimated budget

Target : Fund raising and execution during 2010-2020

SAP Retail, Billing & CRM, dynamic pricing,

Demand Response
11 Retailers projects
SAP Retail, Retailers, ESCOs, 10 years
Demand Side, Energy Management Metering roles 320 M (R&DD)
SAP AMI/MDUS, SAP Convergent Charging for
EV, SAP for Renewables 12 DSO projects
8 years,
SAP for Distrubution, 1200 M (R&DD)
Linear Asset Management, Integration with
SCADA and GIS interoperability
14 TSO projects
8 years
SAP for Transmission,
Pan-European Grid, Wind Grid integration,
LAM,
NetworkIntegration withmarket
control and new SCADA and GIS
design 560 M (R&DD)
interoperability

SAP for PowerGeneration,Distributed

Generation & Portfolio Management

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Utilities 2011
Solution Portfolio

Enterprise Asset Customer Relationship

Management
Plant lifecycle management
Network lifecycle management
Resource & supplier management
Energy Capital Management
& Billing
Selling of energy & services Meter operations
Customer service Energy data management
Billing of energy & services AMI / Smart grid integration
Customer financials management Energy portfolio management
Intercompany data exchange Reconciliation & settlement
Energy accounting

Business Intelligence & Analytics

Enterprise Management & Business Support

Performance Financial accounting Human capital Corporate Operations
management management services support

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SAP [AMI-MDUS] architecture for

DSO or Retailers or independent MeterOps
Open architecture to MDM vendors Realtime Applications Demand Response,
Dynamic Pricing,
Distributed Generation

C
(L&G, Itron, OSISOFT, eMeter, )
Grid
Management / Optimization
AMI
Headend
System
Outage
Management
C
SAP
MDUS Customer Relationship

SAP EDM
& Billing
Meter Data
Unification &
Synchronization
SAP
Applications on
Energy Capital Mgmt
C
AMI
3rd Party
Headend Applications on
System SAP Energy Capital Mgmt
IDE
C Intercompany
Data Exchange SAP
Other Energy Enterprise Asset
Utilities Retailers Management

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SAP AMI Integration for Utilities - Roadmap

SAP AMI Integration for Utilities

EhP4 Business
EhP5Suite 7 Business
EhP5Suite 7 Business Suite 7
Business Suite 7
(RTC 21.11.08) Innovation
(RTC 16.06.10)
2010 Innovation
(RTC 16.06.10)
2010 Innovation 2011

Meter Reading
Support of regular and on-
demand reading
Monitoring
Status Administration
Device Management
Exchange of Master Data
Business Warehouse Content
Integration to all Data
Objects (e.g. Grid)
Customer Service
Disconnection /
Reconnection (also ERP)
AMI Capabilities for Product
Value Help
Device Information in the
Interaction Center
Broad Number of Enterprise
Services
Joint Energy Data
Management (MDUS
Integration)
Tight integration of MDUS
with SAP for Utilities
Transfer aggregation rules
dynamically to the MDUS
Support of the various billing
scenarios
Monitoring
Disconnection /
Reconnection
Scheduling, Monitoring of
entire Process
Support of Approval and
Reversal Process
Device Management
On-Demand Request for AMI-
Meter/Device status
Master Data Exchange
Sending of Text Messages to
the Meter
Possibility to send text
message from CRM or ERP to
specific meter
Event Management
Receiving and prioritization of
event data from the MDUS-
System
Triggering of follow-up
activities based on utility-
specific rules
Monitoring of event
processing
P2P Communication for all
enterprise services
Miscellaneous:
Performance Improvements
Support Meter Mass Rollout
Market Communication
Mass processing and
infrastructure adjustments
SOA enablement for
sending and receiving of
profiles stored in SAP EDM
Bulk-Services
Asynchronous services for
profile import
Enhancement of TOU-Billing-
Features
Simulation
Demand Side Mgmt.
Program support
Monitoring & Reporting

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SmartGrids benefits : up to 3 Million new jobs in EU

(sources : EEGI, ETP SmartGrids WG3 D&M/Retail, SET plan)
Primary
SmartGrids key success factors : individual stakeholder benefits
resources

Electric
as well as for the system, society & environment
Production

Regulators HQ/
Finance

Sales/
Marketing

Planning
Call
Center

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Overview of Smart Grid investment and

implementation across the EU (source: JRC, IE)
Europe has already executed 211 projects estimated at almost 5 b
in various SmartGrids areas

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Example of R&D Smart Grids / Smart Energy

Projects (EU and National)
Demonstration before large deployment of new concepts
and technologies

The MIRACLE project was followed by a start-up called Cyber-Grid www.cyber-grid.com (HQ in Austria) which is
an innovative European company focusing on load aggregation for C&I customers and capacity generation

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SmartHouses in SmartGrids (EU funded project)

Development of a flexible model for prosumers to reduce peak load

http://www.smarthouse-smartgrid.eu/fileadmin/templateSHSG/docs/SHSG_Animation.swf

SAP 2011 Executive Summit Zagreb EU Energy trends 2020 -Maher Chebbo 17-03-2011 Page 10
 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Key success drivers for SmartGrids deployment

Conditions for a SmartGrids success story : A Model for

the right answers to the right questions at the right time
Technology challenges are SmartGrids
solvable ?

Technology alone is it enough ?

Market frameworks Technology

versus innovation ? Regulatory frameworks

Regulation
Commercial
versus innovation ?
IP ?
Time to implement ?
Export opportunities ? SmartGrids
Making
Smart Connections
Innovation without Enabling
wide deployment ? Smart Choices Standards and

Supply Chain

Standards
Capacity of the Supply protocols availability ?
Chains ?
Time to Market ?
Manufacturing Skills &
services availability ?
Demonstration
Demonstration/pilot projects
first or wide deployment ?

Proof of concept step ?

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

10 Major R&D & Demonstrators answering SmartGrid

challenges

1. Business Models for the SmartGrids and Demand Side Management

2. E-Mobility and Distributed Generation (DER)
3. SmartGrids enabling Smart buildings/Smart Cities/Smart Transportation
4. Regulations and simulation of tariffs changes & Demand Response
5. Power unbundling & market openness
6. Large-scale Simulation, Modelling and Risk Analysis Tools
7. Large-scale deployment of Smart Meters
8. Large-scale integration of Renewables
9. Large-scale deployment of Electrical Vehicles
10. Large-scale SmartGrids Real-World trials and Demonstration

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SAP Thought Leadership in European Energy & SmartGrids

Bodies European Commission and other initiatives Participants
Energy Retailers Perspective on the Deployment of SmartGrids in
Europe (07/2010)
ETP SmartGrids Demand & Metering & Retail Group chaired by SAP
(M. Chebbo Retail coordinated with M. Gaspar)

European Electricity Grid Initiative (EEGI) white paper (Top 7 TSO &
Top 7 DSO)
Member of the Executive Committee (M. Chebbo)

SmartGrids (regulatory) task force (DG-Energy, DG-RTD, .., 25 CENELEC, ERGEG, EDSO-4SG, ENTSO-E, DIGITALEUROPE,
T&D Europe, Eurelectric, BEUC, ESMIG, etc
associations
ESMIG - EBSII working group on MDM/ERP System Interoperability
(09/2010)
European Smart Metering Industry Group WG EBSII chaired by SAP
(M. Chebbo)
Smart 2020 Germany (12/2009)
BCG co-funded by DTAG, SAP, Siemens, Huawei, GeSI, sponsored by
German Ministry
DIGITALEUROPE SmartGrids position paper (06/2010) SAP, Alcatel-Lucent, Apple, Cisco, Ericsson, HP, IBM,
Microsoft, Oracle, Philips, Siemens, Sony, Adobe,
DigitalEurope SmartGrids Group chaired by SAP (M. Chebbo) Fujitsu, Intel, Nokia, etc

SAP position paper on SmartGrids (25/01/2011) SAP

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SAP position paper on SmartGrids :

SmartGrids for EUROPE

Press Release SAP Leads the Charge for Smart Grid Adoption in Europe
White Paper Presented to European Energy Commissioner and Kicks Off Panel Discussion on Smart Grid Rollout
BRUSSELS, Belgium Jan. 25, 2010 There are few transformations driven by information and communication technologies (ICT) that are as
promising as smart grids in meeting Europes urgent energy challenges, according to a white paper published today by SAP AG (NYSE: SAP) and
presented in Brussels to Gnter Oettinger, European Energy Commissioner. The paper, Smart Grids for Europe: Benefits, Challenges, and Best
Practices, demonstrates that the pervasive application of digital information and communication technologies can help the European Union achieve
its 2020 goals of increased energy efficiency, lower carbon emissions, integration of renewables and greater energy security, all of which underpin
Europes 21st century sustainable economy and its global competitiveness.

SAP 2011 Executive Summit Zagreb EU Energy trends 2020 -Maher Chebbo 17-03-2011 Page 14
 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Market relevancy through extended collaboration

The SAP AMI Eco-System

The AMI@SAP Lighthouse Council Extended ACCU AMI Workgroup

Exchange of information on Composition and discussion Definition and prioritization Timely feedback from SAP Early customer
technology, market trends of of common software on new product engagement in the
and strategies for AMI and architectures requirements developments (system software-development-
Smart Grids and use cases demos) process (specs, etc.)

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SAP for Utilities AMI customers (Not a Full List)

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

EKZ business transformation study

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

SAP SmartGrids Methodology to support

Utilities for the next 10+ years
1 Vision & SmartGrids Platform KPIs ETP SmartGrids
SAP ACCU
SAP SmartGrids Framework Services for Utilities

EEGI
2 R&D, Demonstrators & Trials KPIs SAP Research
Research Partners

Due diligence
3 Business Case & Value KPIs Value lifecycle
SAP Utilities VE

SAP Research
4 Implementation Projects KPIs SAP Consulting
Partners

SAP Research
5 Joint Innovation (tailored IT) KPIs SAP Utilities CC
R&D Partners

6 SAP Consulting
Your SG Competence Centre KPIs Partners
Utilities

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Conclusion
1. Energy Value Chain becomes customer driven and SmartGrids is the highway to
transform and reach Energy targets 2020

2. Worldwide Energy players invest in Smart Sustainable Energy Services & SmartGrids as
the big thing of today and tomorrow

3. There is a lot to do that running alone is not optimal : Global cooperation, in

particular between EU and Euro-Med and African countries is needed

4. SAP, worldwide Software Leader in Utilities solutions for Enterprise Management (65%
market-share in Utilities, 2200 Utilities customers, 3 billion bills) delivers the future
SmartGrids, Smart Metering and Smarter Energy solutions TODAY.

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

Thank You

Dr Maher Chebbo

VP, Head of EMEA Utilities & Services Sectors, SAP

email maher.chebbo@sap.com

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

To know more about EU SmartGrids and Wind publications

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 Reshaping a better Energy future 2020 with a Smarter usage of Energy based on SmartGrids

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