Smart Grid in Africa

Market Review 2014

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Smart Grid: Key Technologies and Approaches in Africa
for higher profitability and reliability
Smart Grid is key to efficiently increase
the performance of energy distribution.
Reducing frauds, equipment thefts and
improving outage management are a primary
objective for utilities. In Italy, the pioneer ENEL
having deployed remote metering solutions
between 2001 and 2006
1
, financed this
operation mostly thanks to fraud detection
generating 500 million per year
2
.
AMI
3
presents a major
opportunity for remote monitoring
the grid, power consumption
reduction and bills recovery issues
currently faced by African utilities.
City Power, Itron and Edison Power
Group joined forces in 2012 in a $150 million
project to deploy smart meters for business
and private customers in the entire city of
Johannesburg
4
. The aim was to drastically
reduce frauds and improve outage
management. As well some 50.000 PLC
5
smart
meters
6
have already been deployed in
Djibouti, with the objective to improve
distribution service and optimize grid
management.
But though the benefits brought by
AMI, it is considered, by many, more as a tool
than an end. Deploying intelligence
through selected points along the
grid, such as primary and critical
secondary substations, remains
one of the main priorities for
utilities to achieve their
objectives of efficiency.

ICT enabled MV/LV
7

applications

A recent bmp TC study
8
among utilities
demonstrates that many of the MV ICT
networks in place have been set up for more
accurate supervision (Advanced SCADA, FLISR

1
100% roll out achieved
2
Source: ENEL Distribuzione 2010
3
Advanced Metering Infrastructure
4
50.000 should be achieved by June 2014
5
PRIME technology
6
Source: Sagemcom 2014
7
Medium Voltage/Low Voltage
8
Based on 130+interviews in 2013-2014
systems), higher protection and enhanced
control of main MV substations/equipment
(WASA, WAMPS), measures of voltage status
(VVC) in real-time. A growing number of DNOs
9

as well indicates needing an ICT-based
management of load issues resulting in the
DER
10
integration. This has helped anticipating
shortages, making investments more efficient
through grid situation awareness.

One of the first utilities in Africa
addressing MV-medium voltage-
monitoring is SENELEC with a
BPL
11
deployment in Senegal.
The coverage of the secondary
substations in Dakar enables Smart
Metering of industrial customers and further
Distribution Automation applications such as
service quality monitoring and energy balance
control in MV lines. AMI has already decreased
personal costs for meters reading, thefts,
technical losses
12
and other costs linked to
power outage/reactivating delays that are now
anticipated or faster recovered.
African utilities face specific
challenges, due to the poor state of their
infrastructure, the proportion of underserved
population, the high rate of the African
population still being rural
13
but also the
overloaded lines, the significant power
losses, the low quality of service Thus
African utilities will in priority address
specific issues of network reliability,
managed commercialization,
integration and production of
renewables when considering a
Smart Grid implementation. In
Africa Micro Grids present unexpected
potential promising an increase production
capacity and enhanced performance Those
applications will require all actors of the energy
market to be connected to each other, high
adaptability to differentiated situations while
maintaining adequate TCO of ICT solutions.

9
Distribution Network Operator
10
Distributed Energy Resources
11
Broadband Powerline
12
Forecasted savings of 4.5 million p.a.( SENELEC )
13
60% according to www.statista.com, 2013
Smart Grid in Africa
Market Review 2014

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No one solution fits all
Mobile technology
14
is currently widely
implemented and often foreseen as the main
WAN
15
platform for Smart Grid. The ease of
installation, limited CAPEX and wide coverage
are the main aspects favored by utilities here.
Though facing limited bandwidth and
congestion issues
16
, mobile solution provides
global connectivity, especially in areas that are
more difficult to reach with wired networks.
However mobile operators have often not
fulfilled all the expectations of utilities. They
target mass markets, resulting in a
contradiction between mobile public network
requirements and the specific, high level
utilities needs, targeted at a limited number of
points. Quite some operators are now working
out specific solutions for Smart Grid such as
dedicated bandwidth offers, service
availability guaranty in more than 95% of the
time
17
, and backup battery solutions to keep
the service running
18
in case of power outage.
Forecasted technologies
19
(Europe)
On the other hand a growing number
of utilities have decided to free themselves
from third party constraints to set up their
own network. PowerLine technology is at the
forefront with many implementation projects
or pilots. Indeed, in addition to permanent
end-to-end connectivity, up to several Mbps
are available for MV/LV and tens or hundreds
of kbps reach the meters allowing AMI. Finally,
the costs generated by the powerline
implementation remain controlled, focusing
mainly on operating costs related to the IP
(Internet) management tools and equipment
maintenance. This compares, in the long run,
favorably with third party mobile or wireless
solutions OPEX.

14
GPRS, 3G and now LTE
15
Wide Area Network
16
Public Network Connection
17
Source: European operators, march 2014
18
Still very limited in time: 3 hours on average
19
Source: bmp TC 2014
Making the right choice
Utilities have to carefully analyze the
TCO
20
from the start to the long term. IMPEX,
CAPEX and OPEX vary according to the ICT
network extent and nature. Costs are a key
element in the implementation of Smart Grid
applications.
Best case by geographic situation
21


Beyond costs, a certain level of
stability, redundancy and quality of the
communications links has to be considered
carefully when choosing the platform. To
achieve quick and concrete gains with Smart
Grid, already a small number of sensored
points/equipment enables to enter in a new
Smart Grid arena. Thus fully equipping some
critical areas, around e.g. 3 to 10% of the
secondary substations, can drive to signify-
cantly increased energy distribution efficiency.
The choice of the platform fitting in the short
term but also in the longer term is delicate.
Hybrid platforms, mixing fiber, BPL, wireless
radio and cellular, are seen as most
appropriate solutions. This mix can optimize
coverage and provide quick/easily deployed
internet connectivity without the costs and
building constraints of a traditional full-wired
solution (copper/fiber). In Africa, where
utilities have their specific requirements,
Satellite communications will play a larger role
and be a technology of choice due to its
ubiquity capability, it remains one of the most
secured solutions and perfectly suited in
emergency situations (i.e. natural disasters).

20
Total Cost of Ownership
21
Source: bmp TC 2014
From network full control to outsourcing, many ICT
network options do exist. The variety of existing
technologies allows flexible, hybrid solutions for
Smart Grid with economically viable and easy to
implement undertakings. Finally, the deployment of
ICT along the MV network in addition to selected or
full monitoring of smart meters is a key enabler for an
efficient and cost effective Smart Grid strategy.
Smart Grid in Africa
Market Review 2014

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bmp TC brief presentation:

As strategy consultants, bmp TC and associates have led innovative projects in telecoms and Smart
Grid strategies and implementations. The consultants provide services in the areas of ICT Platforms
(Broadband Powerline, Fiber, Cellular, CDMA) dedicated to Smart grid (MV and LV as well), and
work with utilities to fulfill their requirements and expectations regarding advanced Smart Grid
applications (WASA, WAMPS, FLISR, VVC, DER integration, AMI, Assets management).

bmp TC have been instrumental in various Smart Grid projects, more specifically following projects
have been conducted in Africa:
- ONEE, Office National de lEnergie et de lEau Potable, Morocco, 2008- now:
Consideration of Smart Grid opportunities Set up of a dedicated pilot project.
Recommendations /strategy for a national roll out of a given platform, after comparative
analysis of various platforms.
- Volia, Morocco, 2011-2012: due diligence of the telecommunications platform
deployed, analysis and recommendation for a Smart Grid approach.
- CEET, Compagnie dEnergie Electrique du Togo: 2010-2013: work out of a business plan
and strategy guidelines on BPL. Test of Smart Grid platform for MV and smart Metering
- CIE, Compagnie Ivoirienne dElectricit, Cte dIvoire: work out of a dedicated business
plan for the set up of a Joint Venture (AWALE) dedicated on fiber and Powerline.
Definition of strategy guidelines, elaboration of the related Business plan, identification
of risks impacting the business case.
- Senelec, Senegal: 2008-2009 Broadband IP AMM solution for MV Definition of a
dedicated AMM MV platform enabling the monitoring of the MV lines for enhanced
quality of service-accompaniment for the set up of the RFP and the choice of the supplier
- SNE, Congo Brazzaville: support services for the strategy work out of the fiber
deployment on HV, including considerations on other Smart Grid areas.
- AES Sonel, Cameroon: 2012-2013: due diligence of the HV fiber network and adequacy
of the network to internal current and future needs.

But Also in other parts of the world such as Europe:
- E.ON Metering (Germany): analysis and due diligence for Smart Metering project
- EnBW (Germany): market and technology due diligence for Smart Grid applications
- ESB (Ireland): set up of a PLC pilot for Smart Metering backhaul
- EDF (France): Strategic and operational support for the positioning with BPL
- Iberdrola in Spain, EAC in Cyprus, Stelkom in Slovenia, EWB in Switzerland
With a long time experience (since 1993) on broadband related issues (Infrastructure & local loop
strategy, value-added services, home networking, FMC), the senior consultants with more than 23
years of experience have been working in Smart Grid strategy development since 2006. The team has
strong expertise of key platforms (xDSL / LLU, Wireless (WiFi/Mesh, WiMAX), cable, PLC,
Fiber(FTTx)) and have led projects worldwide, primarily in Western & Eastern Europe, but also in
emerging markets (Africa, Asia, Latin America).
bmp TCs clients & projects throughout the world:
For any further information, feel free to contact
Nadine Berezak-Lazarus, Managing Director.

bmp TELECOMMUNICATIONS CONSULTANTS GmbH
Schusterinsel 7
79576 Weil am Rhein
Germany
Tel: +49 7621 686057-0
Fax: +49 7621 686057-9
www.bmp-tc.com
E-mail: info@bmp-tc.co

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