Advances in Smart Energy by Landis+Gyr

Tuesday 29 November 2016 | The Australian Financial Review | www.afr.com ADVERTISING FEATURE

Advances in smart energy

Switched on to a world of change

The ultimate in networking: smart metering and energy are essential building blocks for smart cities.

Theglobalelectricitymarketisinfluxasaresultof seismicshiftsintheenergysector. Technologybreakthroughsandtheadventofbig dataandthe‘‘internetofthings’’havecomeata timeofmoredemandforrenewables,increased competitionandpricingpressuresonhousehold bills. Inresponse,utilitiesarepursuingbothnewand provenbusinessmodels,plussolutions(suchas advancedmeteringinfrastructure,orAMI)that enablehigherengagementwithcustomersby usingthevastamountsofdataavailablethrough digitisation. Landis+Gyr,aworldleaderinmeteringandgrid solutionsforindustry,iswellawareofthe challenges.‘‘Youaregoingfromaworldwhereyou hadcentralisedgeneration,whichgenerallyusedto betheverticallyintegratedutilities’main investment,toaworldwheremarketsare liberalisedandthereiswidespreaddistributed generation,’’saysEllieDoyle,Landis+Gyr’s executivevicepresidentforAsia-Pacific. ‘‘Thisiscreatinguniquechallenges,andutilities arehavingtoreallyrethinkhowtheygotomarket andhowtheyviewtheircustomers,operationsand businessmodels.’’ Thefirstwaveofsmartmeteringsolutionswas rolledoutinNorthAmerica,sustainedbyUSfederal stimulusfundingamidtheglobalfinancialcrisis. Thiswasfollowedbygovernment-mandatedrolloutsacrossEurope.AccordingtoGTMResearch(a globalleaderinenergy-marketanalysis),the EuropeanUnionestimates80percentofits

As the electricity market adjusts to new technologies and increasing input from renewables, one market leader is meeting disruption with innovation. populationwillhaveAMIby2020.Britainalonehas mandated53millionsmartmetersby2020,worth $US17.3billion. Thelatestphasehasbeenthedeploymentofa smart-meteringnetworkinvariousAsian countries.Chinahasagoalof380millionsmart metersby2020andtheIndiangovernment,in conjunctionwithIndia’sSmartGridTaskForce,is aimingfor130millionsmartmetersby2021. TheNorthAmericannetworkisreasonably advanced,Doylesays,andtheEurope’spotential roll-outisvast. However,shedescribestheAsia-Pacificmarket asthemost‘‘interesting’’,givenitssheersizeand thevaryinglevelsofelectrificationindifferent countries.Yetitstechnologyrequirementsarenot allthatdifferentfromdevelopedmarkets. Allofthesophisticatedsmartmeteringthatwas developedinNorthAmericaandEuropeovermore thanadecadeisalreadyvisibleinAsia-Pacific, thoughtheregionisinanascentphaseofroll-out. ‘‘Thebusinesscasearoundsmartmeteringand smartgridisproven,’’Doylesays.‘‘Everythingfrom demand-sidemanagementtoconsumer informationandengagement.Theyareallverywell proventhroughouttheworld,sowearevery excitedtoseethisfinallytakingoffinAsia-Pacific.’’ Landis+Gyr,whichwasacquiredbyJapanese electronicsgiantToshibain2011,hasinrecentyears

intensifieditsfocusonsmart-meteringtechnology asanessentialbuildingblockinthedevelopmentof smartgridsandsmartcities. Landis+Gyr’soperationsspanmorethan30 countriesandfivecontinents.Itsrevenuelastyear was$US1.6billion,andtheservicesitprovidescover morethan14millionmeteringpoints.Itisoneofthe largestserviceprovidersinthesegmentworldwide. Landis+Gyr,whichhasbeenasmart-grid pioneer,saystheconceptisallaboutinfrastructure andinformation. Forinstance,linesmenwouldoncedrivepast networklinestogaugetheircondition.Today, advancedanalyticscanforetellthehealthofthe grid,allowingtheutilitytoquicklylocateandfixany weakness,andaccordinglyoptimiseits investment. Fasterreactiontimetranslatestooperational savingsandimprovedcustomersatisfaction. Doyledescribestechnologyasa‘‘powerful enabler’’:forenergydistributorsitbringsimproved gridsandoperationalbenefits;andforenergy retailers,itmeansmorewaystheycanengagewith customers,andtheabilitytodifferentiate themselvesinthemarket. Landis+Gyr’smulti-purposenetworkscanbe usedasthelifebloodofinformationinasmartcity. Thesestrengthstieinperfectlywithparent companyToshiba’sfocusonsmartcommunities

andsmartcities.‘‘Sowearenotjustaboutsmart meteringandenergy,wecanalsoprovidethe pathwayforabroaderconnectedworld,’’ Doyle says. Landis+Gyrseekstodifferentiateitselffrom rivalsthroughasustainedfocusoncutting-edge innovation.Whileaverageindustryspendon researchanddevelopmentrangesbetween5and 7 percent,Landis+Gyrearmarksroughly9.3per centofitsannualrevenueforthispurpose. ThisisreflectedinitsextensiveglobalR&D operations,includingaR&DcentreinSydneyand manufacturinglocationsinVictoriaandWestern Australia. Thebenefitshavebeenclear.Innovationcoming fromitsAustraliancentre,forexample,isalso utilisedbyLandis+Gyr’ssouth-eastAsianand Indianbusinesses. Inturn,AustraliaandNewZealandbenefit greatlyfromresourcesinthebroaderAsia-Pacific andacrosstheglobe. Thecompanyhasmadeapointofbeingcloseto itscustomers–bothgeographicallyandby adaptingtotheirrequirements. Landis+Gyrsaysthattranslatesintometering infrastructurenetworksthathavebeenprovento work,plusahostoftailoredsmart-gridsolutions.It ensuresthatinvestmentsthatutilitiesmaketoday arefuture-proofedfortomorrow. ‘‘Wehavepartnershipswithourcustomerbase, sothathelpsustomakeveryconcentratedand smartinvestmentinthistechnologytomeettheir needsandweareveryproudofthat,’’Doylesays.

INVESTING IN AUSTRALIA TO MANAGE ENERGY BETTER IN A RAPIDLY TRANSITIONING ENERGY MARKET, For Landis+Gyr, managing energy better is all about being

SMART

Future-proofed Intelligent Robust Local & Global World First AFRGA1 A036

S M A R T

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Tuesday 29 November 2016 | The Australian Financial Review | www.afr.com ADVERTISING FEATURE

Advances in smart energy

Primed to get the measure of the future In an ever-changing industry, Landis+Gyr is leading the way, not just in smart metering but also in providing end-toend smart-energy services. AstheenergyindustryinAustraliapreparesfora raftofrulechanges,inahighlychargedpolitical environment,onesegmentisfeelingtheeffectsof thedisruptionmorethanothers. Businessesthatprovidemeteringinfrastructure andservicesareseeingacompletechangeintheir marketlandscape. TheSolarBonusSchemeendsonDecember31, whenhouseholdswithsolarpowerwillbe compelledtoinstallsmartmeters,allowing accuratemeasurementoftheirnetenergyuse(by quantifyingtheirsolar-energygenerationagainst theirgrossenergyuse). TheCSIRO,inconjunctionwithEnergyNetworks Australia,suggeststhelong-termvalueofsuch integrationcouldbesignificant.Accordingtoits ElectricityNetworkTransformationRoadmap,if integrationfromrenewablesoccursatthe‘‘right placeattherighttime’’,thelong-termbenefitsto 2050couldreplaceabout$16.2billionofnetwork investmentandprovide$16.7billionineconomic benefitstothecommunity. Themostsignificantmarketchangewilltake placeonceenergyretailersbecomeresponsiblefor electricitymeteringtoresidentialcustomersfrom December1,2017.Mandatednationalelectricity ruleswillrequireallneworreplacementmetersto be‘‘smart’’. ‘‘Thebiggestchangethatweareseeingisthe moveacrossthewholenationalelectricitymarket tocontestablemetering. ‘‘Forourbusiness,thathasmeantthe emergenceofawholenewsetofcustomers,’’says AdrianClark,chiefexecutivefortheAustralia-New ZealandregionatLandis+Gyr,oneoftheworld’s largestmetering-solutionscompanies. ‘‘Wealsohaveastrongrelationshipwithenergy distributorsinAustralia.Landis+Gyrhasbeen operatinghereforover90years.’’ Overthepastthreeyears,inresponsetomarket changes,Landis+Gyrhascreatedanewbusiness, intelliHUB. Itprovidesend-to-endsmartenergy infrastructure‘‘asaservice’’toitsretailcustomers (somethinglikeInfrastructureasaServiceor SoftwareasaServiceintheITspace).Ontopofthis, itprovidessafeandreliableinstallationand maintenanceofmeteringassets. Landis+GyrhasitsheadquartersinSwitzerland, butforyearshasuseditsAustralianandNew ZealandbasetogrowintheAsia-Pacificand providethefoundationforitsentireregional business.ItseesAustraliaasauniquetesting groundforinnovationinenergytechnology. Australia’senergymarkethasaregulatory environmentthatpromotesalotofchoice,making itoneoftheworld’smostcompetitiveretail markets.AndbecauseAustraliahasoneofthe highestper-capitalevelsofresidentialsolar installations,marketconditionsareidealfortesting newtechnologiessuchasbatteries.

Innovations that meet the challenges of a changing market: Landis+Gyr’s Adrian Clark, CEO Australia-New Zealand, with Ellie Doyle, executive vice-president, Asia Paciﬁc.

Australiaalsohasreasonablyhighelectricity prices:akeydriverforinnovationisaroundprice andthesearchforsavings. Overtheyears,Landis+Gyrhasmaintaineda sizeableresearchanddevelopmentcentrein Australia.Itisrunaspartofthecompany’sglobal operationsbuthasastronglocalpresence. Clarkgivestheexampleofalargeenergyretailingclientwhich,atthestartoftheyear, discussedwithLandis+Gyrproblemsitwashaving inrelationtometering:itwantedtobettermanage thetransitionofcustomerswhowereontheSolar BonusScheme. Landis+GyrdivertedanentireR&Dteamonto theproblem–andcreatedawholenewmetering solutionfortheretailer,whichhasbeenvery successfulandinnovativeinthemarket. ‘‘Ifwedidn’thavethatlocalR&D,wewouldn’t havebeenabletobeasquicktotakeonboard what washappeninginthatmarketsegment,’’ Clarksays. LocalR&Dhasalsohelpedonaregionallevel. Muchofthecutting-edgeinnovationdevelopedin

AustraliasupportsLandis+Gyr’sbusinessesin south-eastAsiaandIndia. Asitsmarkethastransitioned,Landis+Gyrhas investedmillionsofdollarstotransformitslocal operations.Oneofthekeymarkersofthatchangeis intelliHUB. Landis+Gyr’sservicesroleis‘‘akeypartofour businessonaglobalbasis’’,Clarksays:‘‘Butwesaw theopportunityevenmoreshort-terminAustralia, giventhechangesinthemarket.’’ Thecompanyfoundthat,asregulatorychanges evolved,theconversationwithitsutilitycustomers becamelessaboutproductandmoreabout solutions,andaboutengagementwithendconsumers.ManyofLandis+Gyr’scustomers wantedtotakemeteringasaservice,asopposedto anylarge-scalepurchaseofatechnologysuitethat wouldconstantlyevolve. Overthreeyears,thecompanyhasworked hard tobuildtheintelliHUBbusiness.Itnow offers end-to-endmeteringproductsandsolutions asaservicetailoredtotheindividualneedsofits retailcustomers.

Globally,Landis+Gyrkeepsacloseeyeon intelliHUB’sprogressintheAustralianmarket,with aviewtoadoptingthesameapproachworldwide. Inanefforttospeedupnewtechnologyoffers, theAustralianbusinesshasadoptedanindustrypartnershipapproach,workingwithsmaller playerstobringuniqueofferstomarket. Thenextbigstepinsmartgridswillbetoreduce outagesandmakethetransmissionand distributionnetworkmoreresilient. Anothertargetistodevelopsolutionsthatmake electricitymoreaffordableandbettervaluefor consumers. Theholygrailofsmarttechnologyistogetan ‘‘interconnect’’betweenelectricity,gasandwater, andmaximisethebeneﬁtstoallpartsofthevalue chain–retailers,distributorsand,ultimately,the endconsumer. ‘‘Thereisalotoftechnologyinthegridspace,in automation,transportandtelecomthatwillall intersecttocreatethatsmartercity,’’Clarksays. ‘‘Thequestionis:howdoesallofthatplaytomake ourliveseasierandsimpler?’’

WE’VE MADE SOME BIG CHANGES. NO DOUBT, SO HAVE YOU Landis+Gyr invests 9.3% of sales per annum on research and development globally to support our SMART strategy. Explore a world of smarter energy management solutions at