Energy Digital - May 2015

www.energydigital.com | May 2015

The Canadian Market North American Infrastructure

TOP 10 Smart Grid Innovators

Landis + Gyr AG Makes Smart Moves In The Middle East

DIRECTOR’S COMMENT

Letter from the Director E N E R G Y I S N O S T R A N G E R to uncertainty. For

decades (maybe even centuries), scientists, lobbyists, extremists and activists have been debating cost versus necessity, supply versus demand, conservation versus utilization, and sharing these facts as “expert” opinions.

And while the “right” opinion may never be decided, what is certain is the significance of technology for the success of the industry overall.

Maintaining distance from the (tangled) political side of the market, this month’s issue reviews the five main energy sub-sectors in Canada. While some show promise (and others, more despair), these sub-sectors provide the foundation for Canadian energy production overall—and new technologies coupled with ambitious investments by global energy firms promise to increase that production over the next few years.

We also explore the science behind energy production—old and new—and the role technology has had in the evolution of energy infrastructure, as well as provide a list of 10 companies that are revolutionizing the smart grid sub-sector through – what else? – technology and innovation.

Enjoy the issue!

Jennifer White Director of Content, WDM Group jennifer.white@wdmgroup.com

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CONTENTS

Features UTILITIES

Company Profiles

6

Canadian Oil Markets: Promise Amid Uncertainty GREEN TECH

14 52

The Science Of New And Old Energy

TOP 10

22 4

Energy Companies Shaping The Future Of Smart Grid Technology

May 2015

Integrating Renewables through Energy Storage

36 Landis + Gyr AG

58 DNV GL

64

70

ABRAGET Assoc.

Romagnole

5

UTILITIES

CANADIAN OIL MARKETS:

promise amid uncertainty Canada’s diverse energy prospects must negotiate politics and market fluctuations.

THE CANADIAN ENERGY market is a mess of tangled up government regulations, conflicting news reports and contradictory policy objectives.

That mess, however, is a thriving and profitable marketplace for those who know how to navigate the energy landscape. This report provides an overview of the five largest 6

May 2015

and most significant energy subsectors in the Canadian economy.

Oil Over the last year, perspectives on Canada’s petroleum markets have shifted from uncontrolled exuberance to decidedly cautious, but positive.

There are two big pieces of good

news for Canadian petroleum.

Production is rising and will continue to rise—perhaps rapidly—for the foreseeable future. First, the Bakken Formation now appears to hold much larger reserves than previously anticipated, and advances in fracking technology make a larger portion of those resources recoverable than was

imaginable five years ago. Second, continued development of the tar sands deposits promises radical expansion of that market, too. Overall, Canadian oil production is expected to more than double by 2030.

At first, all that extra production looked like a black gold rush. Investors sobered up, however, as they 7

UTILITIES watched global oil prices tank over the last year. In late 2014, the price of oil plunged below $50 per barrel for the first time since 2004. All that extra production from Canada, the United States and Russia flooded the market just as demand growth started cooling off in China.

The current prices are artificially low, according to most experts.

Many analysts expect oil to climb back over $70 a barrel by the end of 2015. Provided the price stabilizes, Canadian producers will be able to count on a healthy profit. If prices were to plummet again, however,

some of the smaller producers could face serious cash flow problems.

Future production growth would also decline if prices stay low.

Another factor counseling caution in the Canadian petroleum market is the issue of environmental objections.

The tar sands projects remain controversial because the process of extracting and refining tar sand oil is much more polluting than conventional oil. The industry has largely overcome domestic protests to tar sand extraction, but the environmental lobby successfully persuaded President Obama to veto construction

‘Canada’s natural oil wealth is larger than ever and extraction efforts already in progress all but assure profitability.’

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May 2015

CANADIAN OIL MARKETS

of the Keystone XL pipeline. The pipeline isn’t essential for Canadian petroleum’s growth, but it’s an issue of concern. If the environmental movement gains more steam, it might pose a real challenge to profits.

Finally, Canadian oil will also have to compete with growing production in the United States. Most of the Bakken Formation is in North Dakota and available to U.S. petroleum companies. The U.S. has also expanded offshore drilling and, if the next president is a Republican, will likely increase drilling in Alaska, too.

Since Middle Eastern production looks to be on the rise as well, it is possible demand will fall well short of supply and drive prices down further.

Generally, a few splotches on the canvass shouldn’t overwhelm the oil industry’s rosy picture. Canada’s natural oil wealth is larger than ever and extraction efforts already in progress all but assure profitability.

Natural Gas Oil and natural gas follow an almost parallel trajectory in Canada due to their similar extraction methods.

With proven reserves in excess of 58 trillion cubic feet and a well-developed

industry, it’s no surprise that Canada is the world’s fourth-largest producer. New technologies and ambitious investments by energy firms promise to increase that production over the next few years.

However, the same risk factors associated with Canada’s oil industry apply to the natural gas industry. Gas prices didn’t fall quite as precipitously in late 2014 as oil prices, but the markets definitely took a bearish turn. Production isn’t increasing only in Canada—almost every other major player on the gas market is gearing up to open the floodgates.

Rising production and declining prices aren’t a disaster for Canadian natural gas necessarily, but it does mean that producers will earn a lower margin per unit of gas extracted and sold.

Coal Of the big three fossil fuel markets, coal looks to be the least exciting growth opportunity in Canada for 2015. The industry is definitely stable, capable of producing more than 60 million tons of coal a year and remaining profitable, but its growth prospects look sluggish.

With reserves clocking in at over 9

UTILITIES 10 billion tons, Canada controls right around 4 percent of the world’s remaining coal. Despite the immensity of its reserves, Canadian coal is strikingly underdeveloped. Only 19 coal mines operate within the country, with almost half of that in British Columbia. Part of the problem is that much of that reserve coal is located in remote regions of the country, but other issues are more significant.

First, coal has developed a major public relations problem in significant portions of Canada. Ontario and

Quebec have both launched significant green energy projects targeted specifically at displacing coal-burning power plants. British Columbia looks poised to reduce its dependence on coal as well.

Second, even before these green energy initiatives really took off, coal consumption in Canada was stagnant. In fact, Canadians are burning virtually the same amount of coal now as they were in 2004.

Third, over the next few years coal will need to compete with incredibly

‘Canada remains one of the world’s biggest coal producers, but most of its potential export partners are also big coal producers.’

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May 2015

CANADIAN OIL MARKETS

cheap oil and gas. While the three aren’t fungible, they do trade off with one another to an extent. If oil and gas prices remain depressed, however, electrical companies may opt to expand oil and gas-based electrical production. That would bite directly into coal’s profit center.

Finally, Canadian demand for coal may be set to decline as heavy manufacturers continue to transition overseas. Steel production, famously dependent on coal for energy, has declined significantly in Canada over the last decade. If more metal producers go under or move to Asia, it will be hard for Canadian coal to remain competitive.

Canada remains one of the world’s biggest coal producers, but most of its potential export partners are also big coal producers. The United States, for example, is unlikely to buy Canadian imports since it has sufficient domestic production.

China has always seemed eager to buy despite its own domestic reserves, but it’s trying desperately to control its smog population. Export opportunities don’t look promising.

Nuclear

Canada’s nuclear energy industry received some very good news lately: the Canadian and Indian governments appear ready to sign a deal promising significant cooperation on building and supplying new nuclear plants in India. Cameco, Canada’s largest uranium producer, looks to be the biggest beneficiary from the deal.

The company will supply virtually all of India’s new uranium demand under the provisions of the new agreement.

However, the domestic nuclear industry continues to suffer from two pieces of recent bad news. First, scientists announced in mid-April the discovery of radioactive isotopes from the Fukushima nuclear disaster on the coast of British Colombia.

The news underscores the risks of nuclear energy and may make Canadians even more skittish about supporting power stations near them.

Second, significant congressional opposition to Canada’s proposed nuclear waste plan is forming in Washington, D.C. The existing plan calls for Canada’s spent nuclear fuel to be stored less than a mile from the banks of the Great Lakes.

Without a viable nuclear waste storage proposal, it will be very 11

UTILITIES

Solar and wind energy difficult for any new nuclear power plants to break ground on Canadian soil. Democratic lawmakers in Washington may try to derail the storage plan and force Canada’s nuclear industry to start from scratch.

Solar and Wind Energy The future of Canadian solar and wind energy looks bright, especially if voters continue to emphasize environmental concerns at the polls.

Canada has expanded domestic 12

May 2015

solar and wind power production every year since 1992, with last year topping 1,000 installed solar MWp for the first time ever. Quebec alone expects to add 2,000 MWp of wind power by the end of 2015. The overall impact of renewable energies remains limited, however, accounting for only 1 percent of total energy production.

Unless political currents shift dramatically, the share of renewable energy in the market should grow over the next several years. Photovoltaic

CANADIAN OIL MARKETS

panels continue to improve in efficiency, as do wind turbines.

Major solar farms are planned for Sault Ste. Marie and Kingston, Ontario, and existing wind farms are expanding all over the central plains.

There are a few clouds on the renewable energy horizon, however.

First, the drop in fossil fuel prices makes it even harder for expensive solar, wind and other renewable technologies to compete. If gas and coal power plants can produce

at less than $0.04 per kilowatthour, renewable energies will be stuck depending on government subsidies for the foreseeable future.

Second, political support for renewable energy may not be enough to keep those crucial subsidies in place. Japan and the European Union have previously filed complaints against Canadian green energy incentives at the World Trade Organization, arguing the plans violate free-trade rules.

Though some of those cases have lost, others have succeeded and forced Canadian provinces to retool their incentive structures. If other trading partners jump on the bandwagon, growth in solar and wind energy will be difficult to sustain.

Conclusion The Canadian energy market remains a mixed bag, with some sectors looking very promising in the mid-term timeframe and others looking bleak.

As always, the flow of political currents will dictate the success or failure of some critical sectors. However, in the big picture, dependence on fossil fuel make oil and gas the most reliable bets in the energy world.

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GREEN TECH

The science of new and old energy Fossil fuels, nuclear and green energy sources depend on complex technologies to reach the North American home.

THE NORTH AMERICAN energy infrastructure relies on a variety of resources including fossil fuels, nuclear and renewable energy. Fossil fuels contribute the largest percentage to energy production in the United States. According to data released by the U.S. Department of Energy in 2014, fossil fuels account for 69.03 percent of the nation’s energy while 14

May 2015

8.33 percent comes from nuclear power. All renewable energy sources combined generated 9.68 percent.

Each of these resources requires complex processes and machinery to convert them into accessible energy. Continuing technological advancements play a large role in the efficiency, safety and viability of available energy resources.

Fossil fuels Fossil fuels include petroleum, coal and natural gas. Petroleum is the primary fuel used in electricity production in the United States.

It is obtained by drilling a hole approximately one meter in diameter and inserting a steel pipe. A drill bit with a pipe, referred to as a drill collar, is used to cut through the rock. A

drill string is attached to the bit and is extended as the well becomes deeper. Once the hole is drilled, steel pipe, or casing, is inserted. A drilling rig is typically employed for this process since it is equipped with all of the implements required to carry out these operations. Perforations are made in the casing to allow oil to flow into the pipe from the rock. The 15

GREEN TECH

Fossil Fuels

reservoir is then sealed and a smaller tube provides a pathway for the oil to the surface. If the pressure is not high enough to push the oil to the surface, a gas lift or pump jack may be used. After the well is completed, an assembly of valves is affixed to the mouth to control pressure and flow.

Petroleum is distilled at a refinery to produce gasoline, kerosene and other 16

May 2015

chemicals used in consumer products.

Coal represents about 20 percent of the energy resources used in the production of electricity in the U.S. After it is mined, coal must undergo processing prior to combustion.

First, it is crushed in a feeder breaker.

Large lumps travel on a conveyor and are broken up by a toothed drum.

Next, the coal is crushed by a sizer

THE SCIENCE OF NEW AND OLD ENERGY

that ensures the largest particle size is less than 75 millimeters. The coal is then screened to separate fine particles from coarser ones.

Uniform particle size produces even combustion that is desired for kilns whereas coarser particles are used for grated applications. The next step, beneficiation, is the process whereby impurities are removed from the coal.

The subsequent cleaning process helps separate out particles of stone since the coal is lighter. The final step is charring, which removes hydrogen and oxygen, resulting in a product that consists primarily of carbon.

The demand for natural gas has increased significantly in recent years

‘The demand for natural gas has increased significantly in recent years as it offers an abundant, low cost energy source with comparatively low greenhouse gas emissions. ’

as it offers an abundant, low cost energy source with comparatively low greenhouse gas emissions. However, its use in electric power generation may be limited by the availability of natural gas pipeline transport systems.

Natural gas is most often discovered in subterranean rock formations, usually near or in conjunction with coal beds or petroleum reservoirs. After a well is drilled and the gas is extracted, it is processed to remove impurities.

Hydrocarbons and fluids must be removed to produce dry natural gas before it can be transported through major pipelines. A variety of equipment is usually installed at the well to carry out these purification processes.

For example, a low temperature separator is used to remove oil and condensates from natural gas and flash tank separator-condensers 17

GREEN TECH aid in recovering methane from the glycol dehydration process that would otherwise be released into the atmosphere.

Nuclear Energy There are presently 99 nuclear power plants in operation in the United States and 19 in Canada. Nuclear power generates 15 percent of Canada’s electricity and they plan to build two additional reactors over the next ten years. The United States expects an additional 6 to come online by 2020.

While the United States leads the world in nuclear energy generating capacity, Canada has long been a leader in nuclear research, developing and exporting reactors to other countries. The demand for lowcarbon technologies has sparked new interest in nuclear power. It is cost competitive and new technologies continue to improve safety.

Nuclear reactors are designed to sustain chain reactions produced by the fission of heavy nuclei. The reactor core converts energy from the reaction into heat. The heat is used to produce steam that drives a turbine for the production of electricity. The amount of power generated is controlled with 18

May 2015

control rods. Control rods absorb neutrons and are used to reduce their number available for fission. By inserting the control rods deep in the reactor, power is reduced. Removing them will increase the power output.

There are several types of nuclear reactors used for power production.

They are categorized by either the type of fuel employed or by coolant.

THE SCIENCE OF NEW AND OLD ENERGY

Uranium fuelled reactors can produce as much energy as 10 tons of oil from 1 kg of uranium. Plutonium fuelled reactors are capable of generating as much energy as 1 ton of oil from 1 g of plutonium. Plutonium is 100 times more energetic than uranium. Light water reactors include pressurized, and boiling, water reactors. Light water reactors use regular water for

cooling, as well as for a moderator, to slow the reaction; while heavy water reactors use deuterium oxide.

Carbon dioxide is used for cooling in gas cooled reactors and graphite is employed as the moderator.

Renewable Energy Sources Renewable energy sources are largely derived from solar energy either directly or indirectly. The most promising, thus far, include solar photovoltaic (PV) systems, wind power and hydroelectricity. However, new technologies such as hydrogen and fuel cells show tremendous promise as well. The North American Energy Infrastructure Act brought about an integrated power grid that enables the U.S. and Canada to share energy resources. Many of the projects underway take advantage of renewable energy technologies.

The Soule River Hydroelectric Project, located in Alaska, will provide hydroelectric power to British Columbia and the U.S. Pacific Northwest.

Montana-Alberta Tie Limited will generate power from wind farms.

The most highly developed solar energy technologies consist primarily of solar collectors and photovoltaic 19

GREEN TECH systems used to convert light into direct current, or DC, power.

Photovoltaic systems include small, thin panels of semiconductors called solar or PV cells. A chemical reaction takes place in the solar cells upon exposure to sunlight that generates electrons to produce current. The solar cells are installed on large panels, some of which are designed to track the sunlight throughout the day. Other components of the PV system include one or more batteries, a charge regulator and an inverter which converts DC, to alternative, or AC current. Solar PV has become a rapidly growing industry as cost effectiveness has improved. It offers a

Hydroelectric power

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May 2015

clean, inexhaustible source of energy.

Although presently the technology is insufficient to meet energy demand, many utilities, organizations and residences use solar PV systems to supplement present energy sources and help reduce costs.

As of 2013, there were 46,000 operating wind turbines in the United States. Wind energy provides 4.1 percent of the energy produced in the nation. Wind turbines are equipped with blades that rotate as the wind blows. A shaft that connects from the blades to a generator revolves to produce electricity. The primary objection to the technology stems from the fact that they require a large space to generate a significant amount of power.

Canada is the largest producer of hydroelectric power in the world. Its 450 hydroelectric stations produce 62 percent of its energy. In addition, there are presently 1756 hydroelectric power facilities in the United States.

Hydroelectric power facilities are typically constructed on large rivers that have a significant drop in elevation. The damn retains large volumes of water in a reservoir. Gravity forces water through an intake near

HEADLINE

Wind Turbines the bottom of the dam wall. A turbine propeller is turned by the force of the water. A shaft connects the propeller to a generator which converts the mechanical energy to electrical power.

The various methods employed in energy production in North America require the assimilation of a wide range of resources. At present, the vast majority of energy sources rely on a generator to convert various forms of energy into electricity. A generator produces electricity by moving wire or a disc, usually made of

copper, between magnetic poles. The power distribution system requires large numbers of power cables, transformers and circuit breakers; therefore, it too demands a substantial amount of resources. Each of these systems requires maintenance and periodic replacement of parts that must be calculated into the economic viability. The North American energy infrastructure encompasses an immense range of materials and technologies and will continue to expand in the coming years.

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TOP 10

SMART GRID

INNOVATORS

Smart grid technology is shaping the future of utilities—and these 10 companies are paving the way New technological innovations in the world of data, electronics and information sharing have revolutionized the electrical grid. Smart grid technology has emerged as the clear path of the future of electrical service. Over the past few years, companies located all over the world have started focusing on this exciting technology. Smart grids enable a more energy efficient electrical grid, saving money for both utility companies and consumers. This is

why so many reputable companies are focused on creating innovations for this new and important field.

The following 10 companies have each made significant progress in various fields related to smart grid technologies. Some of them have created solutions that help improve consumer adoption, while others are enhancing security and efficiency. Each company on this list was selected because they have made notable advancements in the world of smart grids.

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TOP 10

TENDRIL INC.

10

Tendril has produced an Energy Services Management platform that’s helping energy providers and smart grid users further understand their needs and uses. This unique platform employs a “leaderboard” so that different user’s usages can be compared. The goal of Tendril is to create a system that will deliver the right message and energy to the right customer. This technology is helping to advance the overall utility of the smart grid by allowing end users to dictate how they interact with the smart grid. Providing users with increased options not only helps save them money, but it helps them understand how the smart grid is different than traditional grids. This motivates smart grid adoption, something that’s good for this emerging technology.

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9

SCHNEIDER ELECTRIC With the goal of creating a stable grid with fewer fluctuations in price, Schneider Electric has developed what they call a “prosumer solution.” This solution is centered on being able to control the smart grid from the customer’s location, both in homes and businesses.

With software tailored to them, these “prosumers” will be able to customize in demand responses from the smart grid, improve grid reliability and automate their usage. This software is greatly improving how customers of utility companies are interacting with the smart grid. Much like advancements made by Tendril, these changes will improve how end users feel about the new technology in a positive way and will help perpetuate acceptance and adoption.

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TOP 10 OnPower IncThis company’s innovative approach to a customerfacing thermostat management systems aims to revolutionize the way that thermostats interact with the smart grid. Depending on the customer’s power consumption, the utility company will let customers know if they are eligible to receive a smart thermostat.

Once installed, customers will be able to use it to adjust usage according to their individual needs. The utility company will also track the customer’s usage and make suggestions about optimal settings.

As if this weren’t enough, the smart thermostat will also inform them of what other customers are doing as a means of giving them ideas for keeping their usage down. The OnPower smart thermostat is helping promote customer adoption and desire for the smart grid.

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7

SILVER SPRINGS NETWORKS Silver Springs has brought several innovations to energy smart grids. One of their leading smart grid platforms, Gen4 Communications Module, offers cellular connectivity. This connectivity, combined with high data rates, allows them to automatically tailor the amount of data used throughout the network.

Along with other minor features that are entirely unique to them, this makes Silver Springs Networks one of the top leaders in the cellular module industry for smart grids. Cellular modules for smart grids are one of the primary ways that smart grids have been enabled to grow and stand out from traditional electrical grids. High speed transmission of usage data helps the grid adapt as needed.

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TOP 10

6

S&C

S&C’s PureWave UPS System is turning heads in the smart grid world. This system fulfills a promise of uninterrupted power that operates with a carbon footprint that’s much lower than other UPS systems on the market. This highly efficient solution is capable of being coordinated with a backup generator. The PureWave UPS System is said to be able to offer 60 seconds of power should the smart grid fail; S&C states that 60 seconds is more than enough time for their self-healing grid to come back online. This UPS system helps provide minimal, or even no, downtime for markets that employ this solution.

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5 ITRON Electric vehicles (EVs) are a growing technology that place an increased demand on the smart grid. Itron is developing solutions to help implement efficient charging stations for EVs. Their goal is to utilize smart grids to deliver fast charging solutions to EV owners. Itron stations provide a plethora of analytical information that help them plan new features and address needs. With enabled Wi-Fi, local access is easier than ever. Boasting an impressive 280 patents that are related to smart grid innovations, they’re working to create solutions for more energy efficient future. This applies both to EV charging stations as well as expertly monitoring and assessing usage and needs. One of their stated goals is to provide an overall improved experience with energy. This means making it easy for consumers to interact with and making energy more affordable, both of which will make smart grids more important to the end user.

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TOP 10

4 SIEMENS

Siemens is making its mark on the smart grid world by creating three separate types of smart grid management tools, known as the SIGUIRD suite. Each of these three tools can be used individually or along with another of the tools.

These three tools are: Â Phasor Data Processer (PDP), Dynamic Security Assessment (DSA) and Protection Security Assessment (PSA). Each of these tools help operate smart grids in a safe and protected way. They also enhance the capability of a smart grid to be analyzed with improved accuracy, which can be used to increase operating efficiency 30

May 2015

and provide better service.

Siemens has 526 smart grid related patents. These patents are focused on innovations that help them create effective monitoring solutions as well as enhance smart grid security.

Beyond standard electrical smart grids for businesses and homes, Siemens is making advancements towards moving mass transit onto smart grid applications in order to increase their operating energy efficiency.

S M A R T G R I D I N N O V AT O R S

3 As you might imagine from this networking powerhouse, they’ve created a multi-faceted approach to the total operations of smart grids. While they have made several incremental innovations that have helped advance the industry, the GridBlocks Architecture is what really stands out.

Through this innovation, Cisco aims to make short term improvements to operations that will provide long term improvements. Cisco’s primary goal with every improvement is to make smart grid technology more affordable and accessible to different corners of the globe, which is an important factor to producing overall success of the smart grid industry as a whole.

Cisco is employing a phase deployment strategy that they believe will transform the face of electrical utilities over a long enough time frame.

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TOP 10

IBM Technical and electronic security powerhouse IBM has contributed greatly to smart grid operations.

They’ve approached smart grid solutions from three important angles: people, security and data.

Optimizing these three angles has made IBM one of the top leaders in smart grid technology. Their security software patrols the smart grid looking for abuse, combined with analytical information that’s used to enhance security by understanding trends that may indicate suspicious patterns. With a focus on large scales smart grid adoption and usage, IBM is working to provide security and support to ensure that even the largest grids operate safely. They’re advancing the goal of having a series of safe and manageable smart grids located all over the world.

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2 33

1

TOP 10

ABB

This worldwide operation is helping to implement a variety of smart grid technologies for people located in many different cities. Unlike some other companies who are focused on smart grids, ABB looks beyond smart grids and wants to create smart cities. By taking smart grid technology a few steps further, ABB aims to make monitoring energy usage easy for both business and residential users.

In essence, they aim to take the smart grid beyond the grid itself and into the homes of those who are using it with customized ways for users to tweak their usage.

ABB has over 1,085 patents that help them with this goal.

Each of their innovative projects is implementing unique solutions to smart grid problems being faced in different cities around the world.

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S M A R T G R I D I N N O V AT O R S

CONCLUSION With each of these companies working on various aspects of enhancing smart grid technologies, a bright vision of the future is painted in which energy is efficiently delivered where it needs to be precisely when it needs to be there. A future is being created in which electrical grids are more efficient, affordable and flexible.

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Landis + Gyr AG

makes smart moves in the Middle East Written by: Nye Longman Produced by: Craig Daniels

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The Company is leveraging decades of experience to rollout a calculated smart metering plan across the GCC and Iraq

L

andis+Gyr began its operations in the Middle East in 2007 but the company itself has a much longer history; founded in Switzerland in 1896 as a manufacturer of high quality, state of the art electricity, water, gas and district cooling meters. The company has grown to cover 30 countries across five continents, employing in excess of 5,500 people. Over the decades Landis+Gyr has been pioneering various innovations including launching the world’s first digital meter in the late 1970s. Today it serves approximately 3,500 utilities customers around the globe and is involved in the world’s largest smart metering and smart grid projects. In Japan, Landis+Gyr is providing communication networks for 27 million metering points; in Brazil the company is deploying South America’s largest Advanced Metering Infrastructure solution.

Versatile & Modular Grid Metering applications

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May 2015

EUROPE

British Gas has chosen Landis+Gyr for delivering more than 10 million multi fuel gas and electricity meters, and in the US and in Canada the company has completed several of the biggest Smart Metering roll-outs.

Since 2011 Landis+Gyr has been jointly owned by Toshiba and the Innovation Network Corporation of Japan (INCJ). The business is managed as an independent growth platform of Toshiba Corporation.

Rajiv Sawhney, Managing Director of its operations in the Middle East, was present at the foundation of the company’s growth into the Middle East and has been responsible for developing the business into an organization matching the particularities of the Gulf market in line with Landis+Gyr’s global norms. Before his Directorship at Landis, he was involved in setting up two other technology startups in the Middle East over the last 15 years.

The power of Landis+Gyr: The company provides a variety of technological solutions to utilities and it is notable for its innovative smart metering systems that formed the basis for its reputation as an industry leader.

Landis+Gyr AG Middle East also provides advanced metering and pioneers end-toend (AMI/AMR) smart metering solutions, in addition to load management, and smart grid enabled technology.

Key Personnel

Rajiv Sawhney Managing Director Rajiv Sawhney took on the role of Landis+Gyr Managing Director for the Middle East office in October 2007, and is based in Dubai, United Arab Emirates, being responsible for its Middle East operations from conception.

Before joining Landis+Gyr, Rajiv has been involved in setting up two technology startups in the region having previously worked in the Oil, Gas & Petrochemical industry.

He has worked in the power generation, transmission and distribution sectors under several management responsibilities including business head, strategy, product management and business development.

w w w. l a n d i s g y r. c o m

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Saudi Masar High-Tech & Marketing Co.

High Tech Solution

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tersection beside Riyad Bank • King Abdulaziz Road (Al Malek Road) • Jeddah • Saudi Arabia

SUPPLIER PROFILE

SAUDI MASAR Head Office Saudi Masar High-Tech. & Marketing Co. Office No. 16, Dinar Center North of Hera Street Intersection Beside : Riyad Bank (Private Banking) King Abdulaziz Road (Al Malek Road) Jeddah Saudi Arabia CR No. 4030118442 Capital 1,000,000 SAR Tel 00966 92 000 5711 Fax 00966 2 652 0718 E-mail info@saudi-masar.com.sa P. O. Box 990 Jeddah 21421 Kingdom of Saudi Arabia

Saudi Masar High-Tech & Marketing Co.

EUROPE

Landis+Gyr launched its activities with a portfolio around electromechanical and high accuracy electronic meters for the transmission sector and district cooling ‘cold’ meters back in 2007.

Since then, the company has supplied close to 2 Million electromechanical meters to the Kingdom of Saudi Arabia, half a million meters to Iraq and 200,000 meters to Bahrain’s distribution segment. Landis+Gyr rules the transmission metering segments in the UAE and Qatar with a 60 percent market share. The cold meters supporting the district cooling applications on sub-metering have also been a major success with continuously growing market share on par with the region’s infrastructural development.

Leading the way with its introduction of smart devices through local adaptation into the residential market, Landis+Gyr has been a key meter supplier to the Dubai Electricity and Water Authority (DEWA), UAE’s Federal Electricity and Water Authority (FEWA), Bahrain’s Ministry of Electricity and Water (MEW) Kahramaa, Qatar, and the MEW of Iraq. Key alliances and partnerships in the region have led to successfully implemented projects that have bolstered its

2MIO Meters supplied in Saudi Arabia

Trusted partner

‘The company has supplied close to 2 Million electromechanical meters to the Kingdom of Saudi Arabia, half a million meters to Iraq and 200,000 meters to Bahrain’s distribution segment.’ w w w. l a n d i s g y r. c o m

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Remember internet access with dial-up modems?

With a dedicated phoneline, speeds of 20-56kbps, and no bandwidth for security encryption?

Then Broadband internet access changed everything.

No more phonelines, and cable, DSL, BPL, WiFi and FTTX significantly improved data speeds allowing for encryption

Why would you use a Narrowband Solution when a Broadband Solution for Smart Metering is available?

Qatar is currently deploying Corinex’s Broadband over Powerline (BPL) solution with Landis + Gyr meters.

Why is BPL the Advanced Metering Infrastructure choice of one of the fastest growing economies in the world?

Speed. So much is possible with Broadband AMI....

200Mbps* allows realtime event reporting, meter reading and Time-of-Use, with all the bandwidth you need for current and future data encryption.

enewab nR

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Innovatio

*physical layer speed

Multiple independent relays in each home allow for demand load management, synergizing with home automation technologies (HAN) and smart appliances such as air conditioners.

May 2015

Find your SmartGrid Solution Today www.corinex.com

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reputation around its core values of Customer Focus, being a Trusted Partner, having an Innovative Spirit and Commitment to Quality.

After developing its software, sales and support capabilities in the region using a strongly developed back office and project management team, Landis+Gyr moved into end-to-end solutions, offering businesses state-of-the-art electricity and district cooling applications.

Its largest software assignments outside Saudi Arabia include work for the UAE armed forces, substation solutions in Kurdistan, a Regulatory and Supervisory Board in Abu Dhabi, and residential complexes for ADNOC, alongside multiple housing projects in Bahrain. The worldfamous man-made archipelago at Palm Jumeirah in Dubai, UAE also uses Landis+Gyr technology

SUPPLIER PROFILE

ULTRACOLD 2WR6 A cold meter designed for residential needs and easy billing

CORINEX

We provide technologies and business consultancy services for the energy sector. We develop and manufacture complex solutions for Smart Metering and Smart Grid infrastructure projects, with a primary focus on BPL (Broadband over Powerline) communications. From inception Corinex has been the leader in design and development of powerline products. Our technological expertise enables us to offer state-of-the-art solutions for a wide range of global clients, whom we work with to ensure seamless integration with existing infrastructure assets. Using our BPL meter communication modules, gateways and concentrators, Corinex can deploy communication capabilities with meters from any industry-leading manufacturers.

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T (+974) 44124375 F (+974) 44124376 • sales@innovation-re.com

• Energy/Water/Renewable Energy • Advanced Metering Infrastructure • Project Mangement/Installation/Support

Innovation Renewable Energy

Our mission is to provide our clients with the knowledge they require to optimise the delivery and use of Energy and Water We are part of Alsraiya Holding Group (Qatar).

Our AMI system integrates data acquisition, remote meter reading and load control.

Supplying the Head End System (HES), RF communications modules, large scale product and the meter data management system (MDMS), makes innovation and development on the aspects of AMI Systems, Energy quality analysis and customer services of metering device, working with the the global leaders in smart meter technology like Landis+Gyr, Corinex, GWF and other worldwide providers, playing the Key Role in Smart Metering and renewable Energy systems in Qatar.

Our guiding purpose at Innovation is to deliver genuine value to our customers in the energy and water industries. We will do this by providing innovative solutions in a manner that rewards our customers, our employees, our investors and other stakeholders.

Innovation Renewable Energy 4 Lusail 6 Energy M a yCity2 •0P.O. 1 5Box 24526 • Doha • Qatar

E350 Modular Residential meter

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in the form of cold meters which use Automatic Meter Reading (AMR). Other successfully implemented projects include the Shams Gate Towers in Abu Dhabi, Discovery Gardens in Dubai, Barwa City and Commercial Avenue, Qatar, as well as the Clock Tower and Makkah and Headquarters Business Park in Saudi Arabia.

Teamwork powering the company: Perhaps the most impressive aspect of Landis+Gyr’s operations in the area is the crucial role played by its regional headquarters in Dubai serving the Gulf Cooperation Council (GCC) and beyond, namely Saudi Arabia, Oman, Kuwait, Qatar, Bahrain, Iraq and the United Arab Emirates.

Its small but competent team of eight oversees pre and post-sales support, pre-sales business management, and logistics, as well as the first

“His team are more like a family in its holistic dedication to the success of Landis+Gyr and to their wellbeing as a unit.”

- Rajiv Sawhney Managing Director

Xxxxxxxx

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Landis + Gyr S650 Smart Grid Terminal

level of project management for its clients.

Rajiv Sawhney said: “We formulated the structure of the organization to focus on the right implementation, so we don’t have over enthusiastic sales guys picking up every project and then getting into a mess when it comes to implementation. In addition we have selected the right partners – the best in the region - and inculcated the same ideology by closely networking and supporting them.”

Having a small team tasked with such a broad remit requires an innovative approach to operations, Sawhney said: “We do not create corridors within our organization

Smart Energy Management Rising Landis+Gyr ’s Gridstream Solution for the Middle East •

A complete smart metering solution to address all of your energy management needs

•

Unlimited scalability and unique integration with your existing systems

To learn more about our Landis+Gyr portfolio, contact Landis+Gyr Middle East (Dubai):

•

An adaptable and flexible answer to your interoperability and multi-energy challenges

•

More than 50 million smart meters deployed in over 100 AMI solutions worldwide

www.landisgyr.eu Rajiv.Sawhney@landisgyr.com

your pathway to the smart grid

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and say ‘this is my responsibility and that is not’- there is always interaction between our employees which makes work very exciting.”

He reinforced the notion that his team are more like a family in its holistic dedication to the success of Landis+Gyr and to their wellbeing as a unit. Not only do they share the workload, they enjoy joint remuneration benefits through innovative but challenging KPIs. Moving forward on the road to success, the company not only invests in technology and new products but also in people. The company provides appropriate employee training in house, alongside intensive partner training programs; it does however recognize the importance of the latest managerial and productivity insights, providing outsourced training to keep its team up to speed with the conditions of the market as well as changing customer requirements.

Being part of a company with a global reach has enabled the team in Dubai to dip into a seemingly bottomless talent pool which allows management to cherry pick the right person for the job, giving the company a unique edge over its local competition. Rajiv said, “We get great support – legal, management, project implementation from Landis+Gyr global – from the US, Czech, UK and headquarter resources in Switzerland.”

This strategic approach of selecting the most workable project is part of a broad initiative by the firm focusing on building a strong reputation and partnerships in the Gulf. The small and medium-

‘Moving forward on the road to success, the company not only invests in technology and new products but also in people.’

E450 IDIS Residential meters

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Landis+Gyr E850 ZMQ200 Increased revenue through high accuracy and tailored grid functions

Eco Meter residential inhome display 50

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sized projects that Landis+Gyr has been working on now anticipate strongly growing demand, as the GCC countries increasingly realise the crucial importance of rolling out smart metering solutions across its utilities and distribution networks. Rajiv added, with no small measure of pride: “It’s about being very clear when choosing which projects we want to do and we have been very successful.

Today I would say that we have a very clean slate, perhaps the only metering company in the region that has a major list of successful projects.”

Leading the way with superior technology: Being part of a company that has set the trend in electrical metering from the start has enabled Landis+Gyr to remain one step ahead of its competition, and none more so than in the Middle East. Rajiv said: “We always

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keep our customers up to date with our latest developments and industry trends. We are proud of the industry’s largest R&D forces – over 1,100 engineers – and our significant R&D investments – close to 10 percent of the company’s turnover.

This explains why we believe that we provide technology that is at least one communication generation ahead of what our competition has.”

This technological advantage combined with its bespoke partnership process has enabled the company to rollout the latest technology into its target market. By forming a partnership with Ericsson (a world leader in communication technology) Landis+Gyr can support utilities across the region by providing key data to enable utilities to foster relationships with end-consumers.

This allows for the creation of data-managed smart energy networks which enable efficient grid and energy consumption management, as well as integration of micro-generated, renewable energy.

Conclusion: Landis+Gyr has proven itself through its unceasing attention to quality, strong partnerships, innovation, and through its dedication to the needs and nuances of its Middle Eastern customers. It is becoming increasingly clear why it holds such large market shares across many of its territories.

Furthermore, the fastidious groundwork the company is laying down provides a resounding reason as to why this company will certainly be one to watch in the Middle East in coming decades.

Company Information INDUSTRY

ENERGY HEADQUARTERS

Dubai FOUNDED

1896 EMPLOYEES

5’500 REVENUE

US $1.5 billion PRODUCTS/ SERVICES

Smart energy solutions

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Integrating Renewables Through Battery Energy Storage Written by: Cleverson S. Takiguchi

Mount Komekura Photovoltaic power plant

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Energy storage system

E Energy storange systems address the challenges of renewable energy

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lectrical power utilities are working diligently to meet renewable energy mandates enacted by many governments around the world. This massive undertaking demands more widespread deployment of both grid-scale and distributed renewable resources. However, wind and solar energy generation poses significant integration challenges. Both resources can be intermittent and can cause serious power grid reliability and stability issues, while also impacting electric service quality for businesses and consumers.

In Africa there is much potential for off-grid renewable generation, which has developed in response to the often poor coverage provided by national grids. It is here where intermittent generation can have the most far reaching

ENERGY

effects, since reverting back to the grid can often prove fruitless. In some cases connecting to weaker grids can also be problematic given the low inertia of this type of generation.

Another concern that arises when generation surpasses demand is bi-directional power flow which can further impact grid stability and reliability. Today’s systems were built to handle a one-way flow of power from centralised generators, down transmission and distribution lines to loads.

Distributed energy storage systems, particularly when located in close proximity to renewable resources, are well suited to address the key challenges associated with renewable energy supplies.

Key Personnel

Cleverson S. Takiguchi S&C Electric Company

A solar plant, Shams

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AFRICAN UTILITY WEEK Solar power station

In Africa there is much potential for off-grid renewable generation, which has developed in response to the often poor coverage provided by national grids

ENERGY

Variability in output from wind and solar energy generation can create rapid swings in local and feeder-level voltage, but distributed energy storage can provide fast response to help firm up voltage levels and effectively fill in gaps created by large voltage fluctuations.

Co-locating storage and renewable energy resources gives utilities a particularly effective way of managing unwanted voltage changes, allowing them to maintain grid stability whilst meeting power quality requirements.

Distributed energy storage systems also provide an easily deployed energy resource for utilities, allowing them to ensure renewable energy supplies are available to meet demand.

Renewable energy generated when demand is low can then be stored to meet future demand.

Energy storage can be deployed in smaller capacity sizes, which can help avoid establishing a completely new plant. Distributed energy storage also supports other useful grid functions. For example: peak shaving, which can provide further savings by reducing the need to maintain conventional generation, and maintaining grid capacity to meet peak demand.

For more information on the latest battery storage technology, come to African Utility Week & Clean Power Conference. The Renewables: Wind & Solar track will have a dedicated session with presentations addressing uses for next generation energy storage on Wednesday 13 May 2015.

A Li-Ion battery being placed in an underground vault, beneath S&C’s PureWaveŽ CES unit.

Find out more at African Utility Week

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Sub-Saharan Africa can be a renewables integration leapfrog “Change is on”. This was the response of one original equipment manufacturer (OEM) to DNV GL’s survey on a high renewables future.

Supplied by: DNV GL

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DNV GL

Earlier this year, more than 1,600 people from 71 countries provided their views on a scenario where renewables account for 70% of power-sector generation.

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he results shed light on the energy transition underway – and hint at sub-Saharan Africa’s (SSA) potential to carve its own pathway.

It’s clear that change is coming. Our survey respondents were upbeat: when asked how quickly the transition could be made to a high renewables system in a secure and affordable manner, more than four fifths believed this could happen by 2050. And indeed, parts of the African continent are already making great headway: South Africa and Morocco lead the pack on wind and PV; Egypt is hot on their heels, whilst East Africa’s tasty wind speeds have been attracting interest.

But the question is: how can higher penetrations of renewables be achieved? This is where the survey’s findings get interesting. Around two thirds of respondents identify energy storage in their topthree most important factors for integrating a high share of renewables, ranking well ahead of options such as smart grids and regulatory changes.

SSA respondents clearly share in this global storage enthusiasm: one SSA government agency employee frankly stated that “The importance of energy storage to realizing a high level of renewable energy…cannot be overemphasized”. Meanwhile a manufacturer representative targeting the SSA market boldly asserted that a power system with 70% renewables was “science-fiction” without storage.

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Low carbon leapfrog But this is where the similarities end.

Whereas more mature markets have been adapting existing grid networks to new renewables, in SSA renewables and grid infrastructure are being pursued in tandem.

Development is simultaneous, rather than sequential – opening up new possibilities.

Taking storage as an example – our survey results show global agreement on storage’s importance, but this masks regional differences in its value proposition. In mature markets, energy storage is often discussed in the context of ancillary services, for instance frequency and

Above: Infographic depicting the importance of storage, comparing SSA with Asia, Europe and North America

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DNV GL

Below: how ‘vital’ respondents vote (a) transmission system operators and (b) distribution system operators – comparing SSA responses with those from Asia, Europe and North America

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voltage regulation. Meanwhile in SSA, where much of the population still lacks electricity access, the role is more fundamental. Storage can be combined with distributed renewables to offer an alternative to access to a (reliable) grid.

Another example of SSA’s distinct approach to renewables grid integration lies in its emphasis on transmission. Our survey shows that North American and European professionals are particularly preoccupied by distribution challenges; in these markets, distribution network operators have to adjust from a ‘fit and forget’ mentality to more

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active network management. But in SSA, it is transmission, rather than distribution, which is seen as more vital to a high renewables future, highlighting the urgency of building out a national and regional electricity backbone A current example in Kenya provides a particularly interesting holistic, in-tandem, approach to renewables and transmission.

Lake Turkana wind project is being developed in conjunction with Kenya Electricity Transmission Company Ltd (Ketraco)’s 400kV transmission line to deliver the wind project’s electricity to load centres.

Of course, significant institutional and infrastructural challenges remain. Our survey shows that lenders are particularly important to scaling-up renewables in SSA, yet the reality is that debt financing often remains an uphill battle due to high currency and political risk. Indigenous fossil fuels bring constraints – one survey respondent explained that “South Africa is a coal mining country, therefore coal generation is set to be an integral part of our power mix”. And low per capita incomes mean that cost reduction is imperative.

Yet it’s hard not to be excited by the emerging role for SSA as a low carbon leapfrog, pioneering a new model of renewables integration. The forces are strong – one SSA respondent bluntly stated that “there is no option but to move to renewable energy sources, and the more we move over, the cheaper it will get”.

Change is on. Let’s embrace it.

Sliman Abu Amara DNV GL’s Area Manager for Africa For more information: Learn more about our global industry study on the three dynamics reshaping renewables and the grid at: dnvgl.com/beyond_ integration Visit dnvgl.com/energy to explore our proven renewable integration and energy storage services.

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ABRAGET:

Brazilian Thermoelectric Association Written by: Edmundo A. Pochmann da Silva | Produced by: Danilo Stefanelli

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ABRAGET

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he Brazilian Thermoelectric Generators Association (ABRAGET) was founded in 2001, and is based in Rio de Janeiro. Their associates are traditional companies in the Brazilian energy field and are allocated throughout the country.

They are national and foreign groups, controlled by the state or by private companies. These companies entered the segment of thermal power plants after they are already consolidated in activities such as oil, natural gas, generation and distribution of electricity.

ABRAGET aims are study, discuss and seek institutional solutions for all issues to make possible the economic and financial balance of thermoelectric power plants. Thus the thermal power plants are likely to operate in balance with all the advantages of a Hydrothermal System.

Porto PecĂŠm

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UTE Candiota - CGTEE Eletrobras

Some of the topics in focus in ABRAGET are: • supply of gas and other fuels; • penalties; • expansion planning; • operation of the power system; • technical features of the plants; • market, pricing and tariffs; • fuel diversification in the Brazilian energy matrix, ensuring thermal power plants to natural gas, coal and nuclear, planning expansion; • aspects concerning the requirements for inclusion and proper operation of thermal generation in the Brazilian electrical system, including gas.

President of ABRAGET, Xisto Vieira Filho

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ABRAGET

UTE Governador Leonel Brizola

Since 2005, the Brazilian New Energy Auctions provided the construction and installation of more than 13 GW of installed capacity of thermal power plants in the National Interconnected System. About 45% of this capacity refers to low plants Cost Variable Unit - CVU (less than R$ 200 / MWh), 27% refers to plants of moderate CVU (between R$ 200 / MWh and R$ 500 / MWh) and 28% relates to high CVU plants (greater than R$ 500 / MWh). All these plants were extremely important as they have been fully dispatched to complement the low hydroelectric production observed in the Brazilian power system since 2012.

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BRAZIL

The Brazilian New Energy Auctions were also responsible for achieving a significant volume of hydroelectric plants, mostly run out of-river power plants (82%), which produce a lot of energy in the rainy season of its rivers, but that require additional dispatchable energy during dry periods.

In this context, the intense delivery of thermoelectric energy supply observed from 2012 to the moment, should be understood as a new structural condition that the Brazilian Electric System is beginning to experience, and is here to stay, especially for thermal power plants of low operating costs.

The most intense introduction of alternative energy sources (wind and solar) can bring reliability problems to the operational system, without adding energy and security reliability.

In this scenario it is very important to improve the analysis of the impacts of this new Brazilian energy power matrix in the operation system and suggest changes in the electrical generation profile by adding more thermoelectric generation, allowing providing reliability to the power systems and reasonable tariffs.

Currently, ABRAGET priorities is to find mechanisms for the expansion of thermal power plants, working closely with NATIONAL CONGRESS, MME, ANEEL, CCEE, ANP, EPE and ONS, on topics of members interest, in order to bring benefits of a consistent expansion of the Electric Power System.

Association Information NAME

ABRAGET - Brazilian Thermoelectric Association INDUSTRY

Non-profit association HEADQUARTERS

Rio de Janeiro, RJ E S TA B L I S H E D

December 19th, 2001 NO OF MEMBERS

33 MANAGEMENT

President: Xisto Vieira Filho Executive Director: Carlos Alberto Afonso

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DEVE

Integration highlig

ROMAGNOLE:

ELOPING ENERGY

n, sustainability, and identification of market demands are the ghts of the maturity celebrated in over half a century of history Written by: Flรกvia Brancato | Produced by: Danilo Stefanelli 71

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omagnole is currently among the biggest manufacturers of electric products throughout Latin American. Its history started in the early 1960’s, in a little factory of concrete goods. From the creation of tanks for washing clothes, square benches and reservoirs to the installation of the first power networks in country towns in the state of Paraná, some years have passed. The key to success was the ability to identify when the time was ripe to diversify the product line, by manufacturing concrete posts.

With the incorporation, in the production line, of electro-technical hardware, and later, power transformers, little by little, concrete had to make room for the electric sector. 53 years in business and nearly 2,300 employees are the cause of the development of products traded to power utilities, contractors and companies throughout Brazil, the Americas, Africa, Europe and the Middle East. Our products have offered solutions

Quality control in one of Romagnole’s concrete artifacts units

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BRAZIL

Management Alexandre Romagnole CEO Idimilso Dalbem CFO Ayrton Aparecido Bardeja, Roberto Cesar Tarelho e Valdenir Rodrigues dos Santos Industrial Directors Haroldo Danillo Romani e João Roberto Favine Commercial Directors

for the industrial electric installation, power transmission and distribution sectors and wind and solar power generation.

Structure and Production Constantly investing in workforce training, technology, product research and development and improvement of processes, the company’s structure stands out for its efficiency. According to Haroldo Danilo Romani, Romagnole CCO for Concessionaires and Export, the company is much more than a manufacturer of materials for

“We always focus on generating synergies to improve the company’s results” – Haroldo Danilo Romani, Romagnole CCO for Concessionaires and Export

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the electric sector. “It is a solution provider since the company offers the biggest and most varied portfolio of products for this sector. It is also the only company in the market to produce and trade the full line of items for power networks,” he explains.

Among so many categories, the company offers products from alternative generation sources, metallic towers and concrete structures to transmission systems to a full line for distribution networks, including concrete posts, cables, many types of transformers, electrotechnical hardware and miscellanea. “We also have the industrial line, by means of which we offer modern and efficient solutions for energy input, like the

Production detail of electrical hardware

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ROMAGNOLE

Initial stage of concrete poles production

Painting

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metallic booths, a product supplied with all the equipment necessary for this purpose. Thus making the installation process extremely quick and safe,” Romani adds.

The industrial complex is comprised of nine units. In addition to the electric booth assembly center, there is one product distributor, two distribution centers, one regional office, one commercial operation center and the administrative office in Mandaguari where the greatest part of the group’s activities is. The other industrial units, all of them focused on the production of concrete posts, are located in Portao (RS), Pindamonhangaba and Itapolis (SP), Itaborai (RJ) and Cuiaba (MT.) The onyx distribution centers are in Recife (PE) and Florianopolis (SC), and the regional office for the northeastern region is in Recife as well.

Constantly evolving, Romagnole has recently extended its operations to the power transmission sector by means of the concrete structures and the metallic towers in addition to the generation of solar energy and the metallic structures for photovoltaic boards. The CCO emphasizes the

Metallic structure for photovoltaic panels

Submersible transformer

“We hold a large share of the domestic market of electric products, and in the last decade, we have grown about 10% per year” – Haroldo Danilo Romani, Romagnole CCO for Concessionaires and Export w w w. r o m a g n o l e . c o m . b r

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ROMAGNOLE importance of such growth, where the results have proved to be permanently solid. “This way we manage to meet the demands of power concessionaires, electric material distributors, contractors working in the sector, developers, constructors and companies in general. We hold a large share of the domestic market of electric products, and in the last decade, we have grown about 10 percent per year,” he explains.

Transformer box

Dry transformer

Recognition Business sustainability is another of Romagnole’s priorities. Following the directives of strict strategic planning, the company follows judicious analyses so actions are as assertive as possible and development stands positive. As an evidence of it is the market consolidation and recognition from the sector’s main players.

“This work philosophy has proved to be highly effective. In 2014, one of the main communications forums, specialized in the economic sector, deemed Romagnole first

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Concrete structure for power transmission installed in urban areas

ROMAGNOLE

“Today the great challenge is to keep the company’s growth goals in spite of this unfavorable scenario” – Haroldo Danilo Romani, Romagnole CCO for Concessionaires and Export

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among the companies of its market in sustainable growth,” Romani celebrates. Another relevant victory was the certificate awarded last year by the Software Alliance, which led the company to be the first Brazilian firm to have the software antipiracy seal.

Market Challenges The reality of the Brazilian electric system brings some doubts to the market, and this is reflected in the production and trading of power and its components. Romani is decisive: “Our electric system needs to be increased and modernized.

The electric product sector performance is

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directly associated to the economic situation of the country.”

In view of this scenario, the CCO points out some trends for the sector such as: products related to the generation of clean energy from renewable sources, products for power transmission lines and for the modernization of networks for power distribution in urban areas and states: “Today the great challenge is to keep the company’s growth goals in spite of this unfavorable scenario. As for us, we have mainly an great growth if we analyze the market situation, the amount of competitors we face with each and every product line and the country growth levels in the same period.”

The growth at Romagnole is not necessarily limited to the increase or opening of new factories. Strategically speaking, the company believes that it should also focus on the opening of new markets, on the efficiency of management and production processes, as well as on the optimization of resources and training of people.

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ROMAGNOLE

Electrical hardware production

Initiatives and Projects In global terms, Romagnole started back in 2012, the year of its fiftieth anniversary; a project that involved opening new units, enlarging and modernizing existing ones, increasing product line and strategizing how to increase market share in all the sectors where it was present.

The technologic updating and the adoption of new machines and equipment, for example, are consequences of the continuous improvement process. In addition to the purchases, the company also has areas specifically dedicated to the internal development of such resources.

A recent investment that deserves to be highlighted is the purchase of robotic equipment developed by a manufacturer with the specific purpose of meeting the needs of the production line. “We always focus on generating synergies to improve the company’s results. Romagnole 82

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Company Information NAME

Romagnole Produtos Elétricos S.A. HEADQUARTERS

Mandaguari, Paraná Brazil E S TA B L I S H E D

1962 EMPLOYEES

2.300 ANNUAL REVENUE

directs its investments towards the research and development of new products that are related to its business and can optimize the results achieved with its industrial, commercial and logistic structures,” said Romani.

The company’s strategic planning includes the opening of new units to meet the specific demands of some regions and the launching of new products that will be added to the current portfolio. As for the future, the CCO just clarifies: “The plan is to cause the company to increase its share in the domestic and international markets at the same time pace of growth it has experienced in the last years.”

US$ 170 million PRODUCTS/ SERVICES

Products for power generation, transmission and distribution, and industrial electric installations

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