Abstract
Introduction
This report looks at the state of the smart metering market within the
Australian utilities industry. It covers the underlying structure of the
industry, the emergence and evolution of smart metering technology, the impact
such technology will have on businesses and consumers, and recommendations for
both IT vendors and enterprises looking to invest.
Scope of this research
- Discusses the market for smart metering at a State and national level.
- Focuses primarily on the electricity distribution sector, as well as the
impact on consumers.
- Includes recommendations for technology vendors and enterprises.
Research and analysis highlights
Based on the technology requirements of AMI implementations, a range of vendor
engagements will be required. Within the Australian market, large systems
integrators including Logica, Accenture and IBM have been engaged in a
consultative fashion to provide advice on AMI strategies and implementations.
Key reasons to purchase this research
- Understand the underlying structure and regulatory environment in the
Australian utilities industry.
- Gain insight into Datamonitor' s view of the smart metering market in the
Australian electricity sector.
- View Datamonitor' s recommendations for both enterprises and technology
vendors within this market.
Table of Contents
OVERVIEW
KEY MESSAGES
- Smart metering technology continues to be a hot topic in Australia
- A range of smart metering projects are already underway in Australia
- The overall architecture of AMI spans networks, hardware and software
- A range of technology-related issues are emerging
- A range of delivery and customer processes are enhanced by smart meters
- The cultural change required for AMI rollouts should not be underestimated
- The competitive landscape is continuing to shift as vendors jostle for
opportunities
MARKET OPPORTUNITY
- The Australian utilities sector is growing under national regulation
- The ecosystem is heavily regulated by AEMO and its components
- But that is not the end of regulatory bodies
- The overall utilities sector is still showing signs of growth within
Australia
- Electricity prices are continuing to rise for Australian consumers
- The Australian utility value chain is typically structured around states
- New South Wales is the largest electricity sector in Australia
- Victoria is heavily deregulated
- Western Australia is independent of the NEM
- Queensland is a highly energy intensive economy
- South Australia has just one distributor
- Tasmania maintains a single distributor and retailer model
- The Northern Territory is dominated by Power and Water Corp
- The Australian Capital Territory relies primarily upon ActewAGL
- Smart metering technology continues to be a hot topic in Australia
- The basic structure of smart metering implementations is network-centric
- A range of benefits are driving smart metering investments
- Smart meters and smart grids are often confused
- Smart meters are part of a natural evolution for electricity networks
- A range of smart metering projects are already underway in Australia
- National guidance is being driven by the Council Of Australian
Governments
- Utilities have been looking at smart metering for some time
- Current projects in Victoria
- Current projects in New South Wales
- Current projects in Queensland
- Current projects in South Australia - ETSA Utilities
- Current projects in Western Australia
TECHNOLOGY EVOLUTION
- The overall architecture of AMI spans networks, hardware and software
- Conceptual data flows highlight the key requirements of smart meter
implementations
- The full architecture can be complex
- The in-home meter is the most desired method of interaction for consumers
- A range of technology-related issues are emerging
- Payment for AMI projects will be shared by value chain partners
- Distributors should be responsible for holding meter data
- Cloud computing is not expected to have a significant role in the smart
meter market
- The National Broadband Network may deliver future benefits but its
impact now is low
CUSTOMER IMPACT: SMART ENABLEMENT
- A range of delivery and customer processes are enhanced by smart meters
- Meter accuracy has been an issue for utilities for some time now
- Peak demand can be better managed to reduce overall costs for utility
companies
- The cultural change required for AMI rollouts should not be underestimated
- AMI will affect almost all employees within a utility company
- Infrastructure networks are being opened for the first time
- Smart meter assets will need to be treated differently
- Business processes are going to need refinement
- Those consumers already using smart meters are finding benefit
COMPETITIVE LANDSCAPE
- Services-centric vendors
- Accenture
- Bilfinger Berger Services Australasia (BBSAA)
- CSC
- HP
- IBM
- Logica
- UXC
- Software-centric vendors
- Communications and network-centric vendors
- Alcatel Lucent
- Cisco
- Silver Spring Networks (SSN)
GO TO MARKET
- Action points for enterprises
- Action points for technology vendors
APPENDIX
- Definitions
- Methodology
- Datamonitor MCI Index methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: Regulated electricity price increases by state 2007 - 10
- Table: Organizational definitions
- Table: Technology definitions
FIGURES
- Figure: Australian National Electricity Market
- Figure: Australian utility market size 2007 - 12 ($m)
- Figure: Distribution of Australian utility market size, 2007
- Figure: Quarterly index of Australian electricity prices
- Figure: Australian state electricity competitiveness
- Figure: Basic smart metering technology structure
- Figure: Australian respondents that have actively tried to reduce energy
consumption in last 12 months
- Figure: Consumer attempts to reduce energy usage
- Figure: Peak usage is an issue for utilities
- Figure: Smart grids have broader functionality than AMI alone
- Figure: Australian National Smart Metering Program structure
- Figure: Conceptual data flows for smart metering implementations
- Figure: Smart metering technology architecture
- Figure: Functional areas of opportunities for technology vendors in AMI
projects
- Figure: Preferences for consumer interaction with smart meter information
- Figure: Cloud computing as a service delivery option
- Figure: Business process impacts created by AMI implementations
- Figure: Meter reading accuracy is increased
- Figure: Improvements created by more frequent meter reads
- Figure: Peak energy comes at a greater cost
- Figure: Time of use tariffs can reduce peak demand
- Figure: NSMP BPPWG approach to AMI-driven process change within utilities
- Figure: An example process flow drafted by NSMP BPPWG
- Figure: Consumers are changing their habits thanks to smart meters
- Figure: MCI assessment scale
- Figure: MCI Assessment Framework
- Figure: MCI Scales
- Figure: Scale for MCI Assessment, Effectiveness of Regulator
- Figure: Scale for MCI Assessment, Ease of Third Party Access
- Figure: Scale for MCI Assessment, Pricing Regime
- Figure: Scale for MCI Assessment, Wholesale Fragmentation
- Figure: Retail Fragmentation
- Figure: Scale for MCI Assessment, Traded Market Maturity
- Figure: Scale for MCI Assessment, Access to Market Information
- Figure: Scale for MCI Assessment, Consumer Representation
- Figure: Scale for MCI Assessment, Propensity to Switch
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