Emeter MDM White Paper

GTM RESEARCH september 2010
The Emergence of
Meter Data Management (MDM):
A Smart Grid Information white paper
sponsored by: produced by
Copyright 2010, Greentech Media Inc. All Rights Reserved

White paper | GTM RESEARCH september 2010
Table of contents
SUMMARY 3
1 DEFINING METER DATA MANAGEMENT 4

1.1 GTM Research’s MDM Taxonomy 4
2 THE MDM MARKET 6
3 BEST PRACTICES IN MDM DEPLOYMENT 7
4 MDM UTILITY STRATEGIES 8

4.1 Utility Implementation Examples 8
Westar Energy 8
list of figures
Figure 1-1: MDM Taxonomy 5

Figure 2-1: MDM Market Drivers 6
Figure 3-1: Best Deployment Practices vs. Challenges and Limitations 7
Copyright 2010, Greentech Media Inc All Rights Reserved The Emergence of Meter Data Management (MDM) 2
SUMMARY
The Meter Data Management (MDM) industry has recently emerged as a key to smart
grid rollout in North America. MDM offers the ability to manage, store and employ
consumption data, a crucial element of operating the smart grid as well as creating the
value-added services that lead to consumer efficiency and economic viability.
The Emergence of Meter Data Management (MDM): A Smart Grid Information White
Paper looks at the rapidly evolving MDM market and its influence on smart grid vision,
goals and objectives. We analyze MDM technology drivers and inhibitors as well as
strategies of leading vendors and adopters. We take an integrated look at supply- and
demand-side MDM and present the factors that contribute to a coherent MDM platform
strategy so that companies can fulfill smart grid potential and make more informed
technology choices down the road.
The White Paper is derived from GTM Research’s larger MDM report and is a part of
GTM Research’s overall Smart Grid analysis, which includes industry-wide reports and
surveys as well as a subscription service. It is being offered here in conjunction with
eMeter as a resource for industry professionals.
1 DEFINING METER DATA MANAGEMENT

Early-stage MDM deployment has been plagued by confusion due to a lack of consistent
standards and ambiguous vendor positioning. To provide clarity, GTM Research defines
meter data management by creating subcategories within the technology:
»» Meter Data Repository (MDR) – is the database for permanent storage of

advanced meter data, plus the programs and procedures used to process
meter data into billing determinants so that customer information systems
(CIS) can bill time-of-use data. The MDR receives, validates and stores
advanced meter data for billing and other purposes.
»» Meter Data Management (MDM) – is an integration architecture that
provides the communication and data management services for sharing and
circulating meter data for building new applications and for enhancing existing
applications. MDM is a set of enterprise data services. A robust MDM platform
provides the environment for building service-oriented architectures (SOA) for
low-cost integration and rapid deployment of new capabilities.
»» Smart Grid Applications – are utility applications that use advanced meter
data to improve and expand functionality. Smart grid applications include
enhancements to existing applications with data from advanced meters, as
well as entirely new applications made possible by advanced meter data.
Examples include outage management systems (OMS), market settlement
applications, and distribution capacity planning.
»» Advanced Metering Infrastructure (AMI) - we refer to smart meters as
advanced meters. AMI is used as an encompassing term for both advanced
meters and the supporting field networks that control and manage meters,
including communications from the meter to the wide area network (WAN).
Communications and services that connect AMI to MDR are considered part
of the broader MDM platform.
1.1 GTM Research’s MDM Taxonomy

The GTM Research MDM taxonomy divides conventional “Meter Data Management”
into database and a distributed data management platform for a number of reasons:
»» To build a cohesive model for understanding the market from a strategic

information perspective
»» To help guide technology decision-making toward the formation of a robust
technology architecture, specifically, a service-oriented architecture (SOA) that can
extend AMI data to meet broader smart grid business objectives beyond billing
»» To rein in vendor feature-creep and to provide a way for technology
evaluators to assess and analyze the implications of proposed solutions from
software vendors and integrators.
GTM RESEARCH september 2010
Figure 1-1: MDM Taxonomy
Source: GTM Research
Further discussion and a complete breakdown of GTM Research’s MDM Taxonomy can be found at The Emergence of
Meter Data Management (MDM): A Smart Grid Information Strategy Report
2 THE MDM MARKET

The AMI MDM market is early in its evolution. The market suffers from a lack of definition
and is highly dynamic, creating unpredictable implementation results. Vendors are moving
from customization for early adopters to standardized features for early pragmatists.
Vendors and their customers face challenges pertaining to managing complexity and
scalability. Utilities are poorly positioned for turnkey implementation, as most lack a built-
out service-oriented architecture (SOA), or even a consistent SOA vision and strategy.
Key issues in the market include:
»» Lack of robust standards for advanced meter functionality and data types for
AMI communications
»» Shortages in skilled and trained IT personnel
»» Incomplete or immature SOAs at utilities that are rolling out AMI
These issues increase implementation risks for MDR databases, which run the risk of
becoming overloaded with broader MDM requirements. Expect market consolidation as
established vendors acquire MDM startups to round out their product lines. Also expect new
entrants jumping into the fray as they realize the strategic importance of managing meter data.
Figure 2-1: MDM Market Drivers

PUC Requirements
American Recovery & Supply and Demand Utility
and Legislative
Reinvestment Act Management modernization
Mandates
The 2009 Smart Grid Many state governments MDM technology is key Utilities need to
Investment Grant are enacting laws to balancing variable modernize their
(SGIG) Program calling for smart grid renewable energy distribution network,
within the broader capabilities. Public production (i.e., wind software and
American Recovery and Utilities Commissions and solar) with ever- communications
Reinvestment Act of (PUCs) represent increasing consumption systems to bring their
2009 allocated a $3.4 the enforcement driven by need and infrastructure into
billion pool of money mechanisms for RPS and convenience as opposed the modern digital
for grid modernization. smart grid mandates. to availability of supply. world. This is driving a
Including matching The state legislation- MDM can be used to massive wave of utility
funds, total SGIG-related PUC dynamic is driving enable expansion of modernization spending.
investment may reach advanced meter planning demand management
$8.1 billion. and subsequent rollout. programs into consumer
Legislation varies in markets from current
level of rigor, from highly commercial and
prescriptive and specific industrial markets.
(e.g., Pennsylvania’s
program) to high-level
and vague (e.g., Florida).
See the GTM Research
report United States
Smart Grid Policy 2010:
In-Depth Analysis of
Ten Key States Driving
Deployment for further
analysis of this issue.
3 BEST PRACTICES IN MDM DEPLOYMENT

MDM planners need to establish their own blueprint for a SOA before selecting
vendors. Planners also need to limit the amount of data that will be collected, using
business value as a key criterion for inclusion. They should employ a use-case
methodology to define requirements. Creating a phased roadmap will help stage and
organize smart grid conversions into manageable steps. Lastly, consumers are the
most important constituent. AMI data and advanced time-of-use programs need to
be easy to access and compelling to use, and should be delivered via the consumer
channel of choice. Failure to provide consumers with direct access to meter data is a
recipe for smart grid disaster.
Smart Grid Investment Grant applications and PUC smart grid filings should not
be mistaken for a smart grid strategy and plan. Senior managers should formulate
smart grid strategy before setting MDM requirements. An effective smart grid
strategy and plan includes:
»» Vision statement – that clearly defines the future state the organization will
achieve. The vision statement guides initiatives and helps teams level-set when
they get lost in details.
»» Deployment baseline – that describes the current distribution infrastructure,
including current system and applications inventory to use as a starting point for
technology planning.
»» Gap analysis – that identifies technology changes required to achieve the
vision, including new applications, systems, work processes, and importantly,
integrations and interfaces between systems.
»» Phased roadmap – for building realistic project plans to deliver on business
objectives, including technology dependencies.
Figure 3-1: Best Deployment Practices vs. Challenges and Limitations
4 MDM UTILITY STRATEGIES

Utilities are turning their attention to MDM rollout in order to balance energy
demand with supply, and provide data to consumers so that they can make
intelligent consumption decisions.
There are five questions utilities should ask before selecting and implementing a
MDM system:
»» What is meter data management (MDM)? What are the core features, key system
boundaries, and limitations?
»» What business problems are we trying to solve? What business applications are
we seeking to enable?
»» What is our strategy for managing meter data and what will we do with it
when we get it?
»» How mature is the market? Can we count on vendors both now and in the future?
»» What are the keys to successful MDM deployment? What are the pitfalls and
how can we avoid them?
4.1 Utility Implementation Example
Westar Energy
Westar Energy is developing its SmartStar AMI pilot program in Lawrence, Kansas. In
choosing a MDM provider, the utility’s key criteria included flexible support for different
meter reading techniques, strength of web capabilities, and vendor vision / roadmap.
As a university town, Lawrence, Kansas has a lot of move-ins and move-outs, making
simple remote connect and disconnect a key ‘low-hanging fruit’ application. Hot
summers and the abundance of central air conditioning systems in the region also
present opportunities for significant peak reduction using programmable thermostats.
Lessons Learned
Lessons include the importance of implementing MDM before, or parallel with, AMI
deployment. Late MDM adopters reported difficulty managing AMI data volumes.
Company sources also cite the value of planning, including cross-functional MDM
configuration workshops that bring business and IT people together to talk about new
system capabilities, how existing systems work, and how to integrate them with AMI using
MDM. The sessions also consider the impacts of business process changes. Organizational
acceptance of AMI MDM has been good, especially as people have become excited about
potential uses for AMI data and opportunities to eliminate manual processes.
about GTM Research

GTM Research, a Greentech Media company, provides critical and timely market analysis
in the form of concise and long-form market research reports, monthly newsletters and
strategic consulting services. GTM Research’s analysis also underpins our webinars and
live events. Our analyst team combines diverse backgrounds in the energy, environmental,
emerging technology, investment banking, information technology and strategic consulting
sectors. Complementing decades of real world experience, the staff holds advanced
degrees in finance, engineering, public policy, law and environmental management. GTM
Research is situated in the major global markets for greentech innovation worldwide, with
offices in San Francisco, Boston, New York and Germany.
About eMeter
eMeter provides the essential software platform and applications that enable electric,
gas and water utilities to achieve large-scale Smart Grid deployments. Leading utilities
worldwide depend on eMeter’s to reduce operational costs, increase service reliability,
boost customer satisfaction and drive energy efficiency. With over 24 million meters
under contract today, eMeter has the most large-scale deployments in the industry and
provides the lowest risk way for utilities to achieve Smart Grid success. To learn more
about eMeter, visit: www.emeter.com.

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GTM RESEARCH september 2010

sponsored by: produced by

Copyright 2010, Greentech Media Inc. All Rights Reserved

1 DEFINING METER DATA MANAGEMENT 4

2 THE MDM MARKET  6

3 BEST PRACTICES IN MDM DEPLOYMENT 7

4 MDM UTILITY STRATEGIES 8

Figure 1-1: MDM Taxonomy 5

1 DEFINING METER DATA MANAGEMENT

»» Meter Data Repository (MDR) – is the database for permanent storage of

1.1 GTM Research’s MDM Taxonomy

»» To build a cohesive model for understanding the market from a strategic

Figure 1-1: MDM Taxonomy

Source: GTM Research

2 THE MDM MARKET

Key issues in the market include:

Figure 2-1: MDM Market Drivers

Source: GTM Research

3 BEST PRACTICES IN MDM DEPLOYMENT

Figure 3-1: Best Deployment Practices vs. Challenges and Limitations

Source: GTM Research

4 MDM UTILITY STRATEGIES

4.1 Utility Implementation Example

about GTM Research

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1 DEFINING METER DATA MANAGEMENT 4

2 THE MDM MARKET 6

3 BEST PRACTICES IN MDM DEPLOYMENT 7

4 MDM UTILITY STRATEGIES 8

Figure 1-1: MDM Taxonomy 5