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How IoT technologies are transforming utility industries

Keynote presentation at TM Forum's Digital Disruption Seminar on 10 Dec 2014 in San Jose by Ananda Subbiah, Chief Customer Officer of Freestyle Technology.

Energy Utilities are experiencing a perfect storm of grid defection - new distributed energy technologies, recommendation websites and other disrupters are eating into the traditional relationship between consumers and utilities. As each consumer moves away from the energy grid, cost pressures mount up on those remaining consumers - accelerating and perpetuating the defection cycle.

Smart meters are often held up as shining examples of innovation in this traditionally static sector. But automatic meter reading and variable tariffs are just the start of applying innovation to improve the value of utilities to their end customers.

A new generation of IoT technology is enabling utilities to apply genuine innovation - public safety, energy management, property security, asset management... pushing out new applications to the customer edge as business needs dictate.

During this presentation Ananda will discuss specific implementations and implications of this IoT technology and how it helps foster richer relationships and enable the digital utility.

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How IoT technologies are transforming utility industries

  1. 1. How IoT technologies are transforming utility industries Ananda Subbiah Freestyle Technology
  2. 2. 59% 42% 33%32% 11%10%9% “The energy industry is just above tobacco in consumer likability.” Energy G overnm ent Telecom m unications Airlines & Travel Banks & FinancialServices R etail H ospitality & Accom m odation Industries providing the best level of customer service Respondents ranking 1st or 2nd Fairfax Review Business Intelligence surveyed 699 Australians in 2014 Australian Utility GM of Sales, Service & Marketing
  3. 3. Energy Banks Telecom m unications Autom obile Insurance Services Superm arkets “How likely is it that you would recommend us to a friend or colleague?” Turning on utility customer loyalty October 11, 2012 Bain Brief -65% -33% -20%-21%-18% -24% 20% 14% 2% 15% 47% 68% Net Promoter Score in Europe Detractors. Promoters 0
  4. 4. IoT puts utility back into utilities utility |juːˈtɪlɪti| 1 [ noun ] the state of being useful, profitable, or beneficial. 2 [ noun ] an organisation supplying the community with electricity, gas, water, or sewerage.
  5. 5. Innovation at the edge Automation Adaptation 1812 Smart Meters Distributed Energy (BYOE) Demand Peak Reduction Disconnect Re-Connect Automated Meter Reading Flexible Pricing Disruptive Entrants Grid Defection Peer-to-peer P2P
  6. 6. Declining grid usage and viable alternative energy substitutes threatens the medium term viability of utilities business models. Customers start to move ‘off-grid’ Higher prices Customers use less energy from the network A perfect storm - the economics of grid defection Further price increases More customers leave
  7. 7. Towards a downward spiral
  8. 8. Kaohsiung Taiwan - 31 July 2014
  9. 9. Putting utility back into utilities Automation Adaptation 1812 Smart Meters Distributed Energy (BYOE) Demand Peak Reduction Disconnect Re-Connect Automated Meter Reading Flexible Pricing Disruptive Entrants Grid Defection Peer-to-peer P2P Distributed Energy Management Public Safety Energy Efficiency Digital UtilityHome Automation Property Security
  10. 10. M2M SwitchGateway 3G/4GZigbee Gas Meter Utility Apartment Building The typical smart meter deployment
  11. 11. M2M SwitchGateway 3G/4GZigbee Gas Meter Utility Public Safety Apartment Building Valve FME App Store A software driven edge / ecosystem
  12. 12. M2M SwitchGateway 3G/4GZigbee Gas Meter Utility Public Safety Apartment Building Valve Electricity Meter Zigbee Resident FME App Store Adjacent applications & value
  13. 13. M2M SwitchGateway 3G/4GZigbee Gas Meter Digital Utility Public Safety Apartment Building Valve Electricity Meter Zigbee Resident Solar DE WiSUN FME App StoreFME Ethernet Home Security Monitoring Insurance The Digital Utility A value adding long term relationship
  14. 14. Shin-Tao Natural Gas Co. (TW) with Chunghwa Telecom (TW) • Shin-Tao Natural Gas Co. is the 1st company to utilise Freestyle’s open ecosystem • in partnership / hosted with Chunghwa Telecom • easily incorporates a range of devices such as smart meters, appliances and sensors… • push out new applications post deployment as business needs evolve • .
  15. 15. Real world implementations • Taiwans Intelligent Gas Grid • Full in building coverage of apartment based smart meters • Integrates fire, smoke & CO2 sensors to detect leaks • Shuts off meters in apartment & adjacent apartments • Alerts utility, emergency services and residents
  16. 16. Real world implementations • LNG Delivery Trucks • Monitor volume / consumption @ delivery location • Optimise billing accuracy • Minimise on route “shrinkage”
  17. 17. Real world implementationsReal world implementations • LNG Residential Tanks • Monitor consumption at each location • Optimise distribution truck frequency - just in time • Monitor public safety
  18. 18. “I think the grid gets disrupted. The only question is, do you want to be the disrupter or do you want to get disrupted?” NRG Energy CEO David Crane
  19. 19. Conclusions • Utilities are not immune from Digital Disruption • The Digital Utility is enabled via an adaptable software driven end to end ecosystem • Smart Meters are just the start of the journey
  20. 20. www.freestyletechnology.com.au

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