Smart Metering & Smart Grids Strategy for the Kingdom of Saudi Arabia

Mod.RAPPv.7
Smart Metering and Smart Grids Strategy
for the Kingdom of Saudi Arabia
Final Report:
Strategy, Business Case, and
Minimum Functional Requirements
2nd
June 2013

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© Copyright 2013 by CESI. All rights reserved
Mod.RAPPv.7
Client ECRA – Electricity & Co-generation Regulatory Authority
Subject Smart Metering and Smart Grids Strategy for the Kingdom of Saudi Arabia
Phase 2 final report
Order 95/433
Notes
Partial reproduction of this document is permitted only with the written permission from CESI and A.T. Kearney
No. of pages 124 No. of pages annexed 133
Issue date 2nd
June 2013
Prepared CESI : Marcelo Tardio, Marco Gobbi, Ettore De Berardinis,
Giuseppe Pannunzio, Ciro Palumbo
AT Kearney: Ugo Bello, Jose Alberich, Riad Zantout
Verified Marcelo Tardio, CESI
Ugo Bello, AT Kearney
Tariq Khan, ECRA
Approved Dr Abdullah Al Shehri, Governor, ECRA

REPORT B3006974
Page 3
Table of contents
GLOSSARY...........................................................................................................................9
1 FOREWORD ................................................................................................................ 11
2 OBJECTIVES OF THE REPORT....................................................................................... 11
3 EXECUTIVE SUMMARY ................................................................................................ 12
3.1 The KSA Electricity Market ............................................................................................... 12
3.2 Smart Meters and Smart Grids Opportunities and Benefits............................................... 12
3.3 Technology options .......................................................................................................... 16
3.4 The business case options and scenarios............................................................................17
3.5 Customers and Regulatory issues...................................................................................... 20
3.6 Implementation roadmap ................................................................................................. 21
3.6.1 SM/SG Programme governance..............................................................................21
3.6.2 Implementation phases.......................................................................................... 22
4 KEY CHALLENGES IN THE KSA ELECTRICITY MARKET................................................... 24
4.1 Growing Consumption and peak demand ......................................................................... 24
4.2 Increases of power capacity .............................................................................................. 26
4.3 Network losses...................................................................................................................27
4.4 Quality of supply............................................................................................................... 28
4.5 Conclusions....................................................................................................................... 29
5 SMART METERS AND SMART GRIDS SOLUTIONS ......................................................... 30
5.1 Overview of Smart Grids concepts.....................................................................................31
5.1.1 Transmission Network ............................................................................................32
5.1.2 Distribution Network ..............................................................................................33
5.1.3 Customer-side Solutions.........................................................................................41
5.2 Smart Metering technologies and solutions...................................................................... 45
5.2.1 Smart Metering systems architecture .....................................................................45
5.2.2 Communications technology options..................................................................... 49
5.2.3 Standards and Protocols .........................................................................................54
5.2.4 Overview of Smart Meters functional requirements................................................59
5.3 Smart Meters and Smart Grids International solutions...................................................... 62
5.3.1 Smart Meters and Smart Grids solutions................................................................ 62
5.3.2 SM/SG Communication Technologies and International Standards ........................63
5.3.3 Regulation, Funding and Roadmap. ....................................................................... 64
5.4 Proposed Smart Meters and Smart Grids options for KSA ................................................ 67

REPORT B3006974
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5.4.1 Smart Grids proposal for KSA..................................................................................67
5.4.2 Smart Meters proposal for KSA.............................................................................. 68
6 BUSINESS CASE ANALYSIS...........................................................................................75
6.1 The Business Case Model...................................................................................................75
6.1.1 Cost Benefit Analysis...............................................................................................75
6.1.2 Base Assumptions...................................................................................................76
6.2 Business Case for Smart Grids............................................................................................78
6.2.1 Summary of assessed benefits and costs [SG].........................................................78
6.2.2 Direct Benefits Assumptions [SG] ...........................................................................79
6.2.3 Indirect Benefits Assumptions [SG]........................................................................ 80
6.2.4 Capex and Opex costs [SG] .....................................................................................81
6.2.5 Base Case Results [SG]............................................................................................85
6.2.6 Sensitivity Analysis [SG]......................................................................................... 86
6.3 Business Case for Smart Meters solutions......................................................................... 89
6.3.1 Summary of assessed benefits and costs [SM]....................................................... 89
6.3.2 Direct Benefit Assumptions [SM] ............................................................................91
6.3.3 Indirect Benefit Assumptions [SM]..........................................................................93
6.3.4 Capex and Opex costs [SM].................................................................................... 94
6.3.5 Base Case Results [SM] .........................................................................................100
6.3.6 Sensitivity Analysis [SM] .......................................................................................102
7 CUSTOMER MANAGEMENT IMPLICATIONS.................................................................105
7.1 Customers Participation and Government Commitment ................................................ 106
7.2 New Paradigm for Appliances and Customers .................................................................107
7.3 Privacy and Security of data............................................................................................ 108
7.3.1 Data protection by design and data protection by default settings .......................109
7.3.2 Data protection measures.....................................................................................109
7.3.3 Data security.........................................................................................................109
7.3.4 Information and transparency on smart metering.................................................110
7.3.5 Privacy and data security recommendations.........................................................110
7.4 Social aspects (special needs customers) .........................................................................111
7.5 Customer Engagement Actions .......................................................................................111
8 REGULATORY AND POLICY REQUIREMENTS ..............................................................113
8.1 Implementation approach / policy....................................................................................113
8.2 Financing schemes...........................................................................................................115
8.3 Defining and monitoring of KPIs on progress and results .................................................115
8.4 Pricing Policy ...................................................................................................................116

REPORT B3006974
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9 IMPLEMENTATION ROADMAP....................................................................................119
9.1 Programme Governance..................................................................................................119
9.1.1 Tasks of the Steering Committee..........................................................................120
9.1.2 Project Management Company ............................................................................120
9.1.3 Technical Working Groups ....................................................................................121
9.2 Implementation Roadmap .............................................................................................. 122
9.2.1 Initial Steps (year 0)...............................................................................................122
9.2.2 Design phase (year 1) ............................................................................................122
9.2.3 Pre-rollout phase (year 2-3)...................................................................................123
9.2.4 Smart Meters and Smart Grids Implementation Phase (year 4-8) .........................123
9.2.5 Roadmap timeline.................................................................................................124
ANNEX I – COMMUNICATION COST ANALYSIS ..........................................................................129
ANNEX II – MINIMUM FUNCTIONAL REQUIREMENTS................................................................165
ANNEX II – SMART GRIDS TECHNOLOGIES .................................................................................239

REPORT B3006974
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List of Tables
Table 1: Support of SG and SM solutions to strategic objectives............................................................ 15
Table 2: Cost and benefits from the Smart Grid solution......................................................................... 17
Table 3: Cost and benefits from the Smart Meters solution..................................................................... 19
Table 4: Public and private telecommunication networks ....................................................................... 42
Table 5: Wired and wireless communications.......................................................................................... 42
Table 6: Communications requirements for Transmission and Distribution networks........................... 43
Table 7: Comparison of wireless communication technologies............................................................... 52
Table 8: Advantages and disadvantages of Communications options ..................................................... 53
Table 9: IEC 62056 suite of protocols. Source: IEC................................................................................ 55
Table 10: Current situation for the communication profiles. Source: IEC............................................... 55
Table 11: Example of Communication among Meters............................................................................. 57
Table 12: Some Protocols and communication technologies used in Open standards............................. 58
Table 13: Summary of the Minimum Functional Requirements.............................................................. 61
Table 14: Smart Metering development status......................................................................................... 63
Table 15: Smart Meters: Standard development and sourcing method.................................................... 64
Table 16: Smart Grids: progress and regulatory status in selected markets............................................. 65
Table 17: Regulatory instruments on Smart Meters and Smart Grids...................................................... 66
Table 18: Smart Metering implementation plans ..................................................................................... 66
Table 19: Model’s structure and scenarios............................................................................................... 71
Table 20: GPRS & PLC scenario............................................................................................................. 72
Table 21: Only GPRS scenario ................................................................................................................ 72
Table 22: Wi-Fi & Fibre-optic scenario................................................................................................... 73
Table 23: RF & GPRS scenario ............................................................................................................... 73
Table 24: Business Case model structure................................................................................................. 75
Table 25 Smart Grids Business Case – summary of major assumptions ................................................. 83
Table 26 Smart Meters Business Case – summary of major assumptions............................................... 98

REPORT B3006974
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List of Figures
Figure 1 – Overview of Smart Meters and Smart Grid solutions............................................................. 13
Figure 2 – Major benefits for the electricity system................................................................................. 14
Figure 3 – Proposed Smart Meters and Smart Grids solutions for KSA.................................................. 15
Figure 4 – Smart Grids – Business Case Results – Direct Benefits ......................................................... 18
Figure 5 – Smart Grids – Business Case Results – Direct and Indirect Benefits..................................... 18
Figure 6 – Smart Meters – Business Case Results – Direct Benefits....................................................... 19
Figure 7 – Smart Meters – Business Case Results – Direct and Indirect Benefits................................... 20
Figure 8 – Steering Committee Structure................................................................................................. 22
Figure 9 – Smart Meters / Smart Grids implementation roadmap ........................................................... 23
Figure 10 – Electricity and Peak demand in KSA – Historical growth.................................................... 24
Figure 11 – Electricity demand – Breakdown by sector .......................................................................... 25
Figure 12 – Forecast of peak demand ...................................................................................................... 26
Figure 13 – Total installed capacity and electricity production by fuel type ........................................... 26
Figure 14 – Peak demand and existing /planned capacity........................................................................ 27
Figure 15 – Network losses in KSA and international comparison ......................................................... 28
Figure 16 – Smart Grid conceptual representation................................................................................... 31
Figure 17 – Smart Grid core components ................................................................................................ 32
Figure 18 - Voltage change in presence of Capacitor Banks or Line Voltage Regulators....................... 34
Figure 19 - Reactive power capability of DGs for MV connection ......................................................... 35
Figure 20 - Volt-VAR control system for distributed generation ............................................................ 36
Figure 21 - Newer devices behaviour....................................................................................................... 36
Figure 22 - ENTSO-e LVRT capability................................................................................................... 37
Figure 23 – Over frequency response according to CENELEC TS 50549-1-2........................................ 38
Figure 24 – Over frequency response according to Italian CEI 0-16....................................................... 38
Figure 25 – Under frequency response according to ENTSO-e Rule for Generators (draft)................... 38
Figure 26 – Under frequency response according to Italian CEI 0-16..................................................... 39
Figure 27 - Wireless public and private access networks......................................................................... 43
Figure 28 – Key features of a Smart Meter.............................................................................................. 45
Figure 29 – Example and overview of Smart Meter Architectures.......................................................... 47
Figure 30 – Example of Software Applications Structure........................................................................ 48
Figure 31 – Status of development for Smart Grid applications.............................................................. 62
Figure 32 – Preferred communication technology in EU for Smart Meters............................................. 63
Figure 33 – Communication architecture options for Smart Meters........................................................ 69
Figure 35 – NPV for Smart Grids including indirect benefits.................................................................. 86

REPORT B3006974
Page 8
Figure 36 – Smart Grids – Sensitivity analyses........................................................................................ 87
Figure 37 – Smart Grids – Aggregated Base, Worst and Best Case ........................................................ 88
Figure 38 – NPV for Smart Meters by cost and direct benefit component ............................................ 101
Figure 39 – NPV for Smart Meters including indirect benefits ............................................................. 101
Figure 40 – Smart Meters – Sensitivity analyses ................................................................................... 103
Figure 41 – Smart Meters – Aggregated Base, Worst and Best Case .................................................... 104
Figure 42 – Smart buildings applications............................................................................................... 107
Figure 43 – Key areas of Regulatory and policy framework for SG and SM ........................................ 113
Figure 44 – Steering Committee Structure............................................................................................. 120
Figure 45 – Smart Meters / Smart Grids Implementation Roadmap...................................................... 124

FINAL REPORT B3006974
Page 9
REVISIONS HISTORY
Revision
number
Date
List of modifications
00 22/01/2013 First Emission
Draft 2.0 27/01/2013 ECRA edits (T Khan)
Draft 4.1 31/01/2013 Circulation to stakeholders for comment
Final 5.0_TK 26/05/2013 Final (incorporating stakeholders comments + ECRA edits)
Final 7.0_TK 02/06/2013 Final (checked)
GLOSSARY
Acronym Description
ADSM Active Demand side Management
ADWEA Abu Dhabi Water and Electricity Authority
AEEG Authority for Electricity, Energy and Gas (Italy)
AGC Automatic Gain Control
AMI Advanced Metering Infrastructure
AMM Advanced Metering Management
AMR Automated Meter Reading
CAPEX Capital Expenditure
CBA Costs Benefits Analysis
CC&B Customer Care & Billing
COSEM Companion Specification for Energy Metering
CPP Critical Peak Pricing
CPUC California Public Utilities Commission
CSP Concentrated Solar Power
DAS Distribution Automation System
DAS Distribution Automatic System
DCC central data and communications company
DECC Department of Energy and Climate Change (UK)
DLMS Device Language Message specification
DOE Department of Energy
DSM Demand Side Management
DSO Distribution System Operator
EC European Commission

Page 10
Acronym Description
ECRA Electricity & Co-generation Regulatory Authority
EER Energy Efficiency Ration
ETSI European Telecommunications Standards Institute
HAN Home Area Network
HV High Voltage
ICT Information & Communication Technologies
IEC International Electro-technical Commission
K.A.CARE King Abdullah City for Atomic and Renewable Energy
KACST King Abdulaziz City for Science and Technology
KPI Key Performance Indicator
MDM Metering Data Management
MV Medium voltage
NAN Neighborhood Area Network
OBIS Object identification system
Ofcom Office of Communications (UK) - Authority
OFGEM The Office of Gas and Electricity Markets (UK)
OPEX Operating Expenditure
PLC Power Line Communication
PV Photovoltaic
RES Renewable Energy Sources
RTU Remote Terminal Unit
SCADA Sending System Control and Data Acquisition
SEC Saudi Electricity Company
SEEC Saudi Energy Efficiency Centre
SG Smart Grid
SM Smart Metering
SPP State-wide Pricing Pilot
STC Saudi Telecommunications Company
TOU Time Of Use
TSO Transmission System Operator
UAE United Arab Emirates
V2G Vehicle to grid
WAN Wide Area Network

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1 FOREWORD
The Electricity & Co-generation Regulatory Authority (“ECRA”) of the Kingdom of Saudi Arabia
(KSA) was established in 2002 as an administratively and financially independent Regulator.
ECRA’s primary goal is to ensure the provision of high quality and reliable electricity and
desalinated water services at fair prices to customers.
In view of its responsibilities, ECRA is committed to consider new technologies, innovations and
related developments in the Electricity Industry which may have sound, viable and sustainable
potential impact to bring efficiency savings and enhanced services for customers in the Kingdom.
The advent of Advanced Metering Infrastructure (AMI), Smart Meters, Information &
Communication Technologies (ICT) and other emerging techniques bring the prospect of setting-
up the “Smart Grid” (SG) concept. Thus, a dramatic contribution could be made to energy
efficiency and generation capacity savings and whilst bringing new service enhancements to all
customers in the Kingdom.
In this framework, CESI and A.T. Kearney have been selected to assist ECRA in the development
of a strategic plan for Smart Meters and Smart Grids that can deliver the above aims along a well-
defined and phased roadmap for implementation.
The primary objectives of the Study, as defined in the project Terms of Reference, are as follows:
 Identifying Saudi Arabia’s current and future challenges which a Smart Meter / Smart Grid
(SM / SG) strategy can help overcome.
 Reviewing available smart metering technologies that are best suited for the Saudi
Electricity Industry and its customers;
 Assisting ECRA and representatives of the major Stakeholders of the Electricity Industry
in the Kingdom of Saudi Arabia (KSA) in determining and finalizing the salient functional
requirements of proposed Smart Meters to be deployed,
 Developing a high level Smart Grid deployment strategy for Saudi Arabia, and
 Advising on and help preparing the most efficient implementation, gradual and timely
rolling-out of Smart Meters.
2 OBJECTIVES OF THE REPORT
This report is aimed at providing strategic guidelines for a Smart Grids and Smart Metering
strategy in the Kingdom of Saudi Arabia, leveraging international experiences, local initiatives
already in place and perception of priorities of local stakeholders in addressing local energy
challenges.
This report includes a description of proposed technology solutions for Smart Meters and Smart
Grids for KSA, a cost and benefit analysis on such solutions, customer implications and regulatory
and policy requirements and a proposed implementation roadmap. A comprehensive set of
minimum functional requirements for Smart Meters is provided in Annex II. The previous phase 1
report (available separately) covered a review of International Comparators, Current KSA
Initiatives, Stakeholders Workshop, Survey, Interviews and Site Visits.

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3 EXECUTIVE SUMMARY
3.1 The KSA Electricity Market
The electricity market of the Kingdom of Saudi Arabia (“KSA”) is facing a series of important
challenges that reflect the underlying impressive growth of the national economy and the
peculiar characteristics of the energy sector, strongly linked to the wide availability of the oil
natural resource.
Such challenges relate to the impressive consumption and peak demand growth (+5% steady
growth expected), the consequent need for additional power capacity (+70 GW by 2032), the
improvable level of network losses (now equal to 10%) and of quality of supply.
In order to face these challenges, several stakeholders within the electricity sectors have already
identified and/or launched, within the scope of their role, a portfolio of initiatives aimed at
developing alternative energy sources, nuclear and renewables (K.A.CARE), promoting energy
efficiency within end-users (SEEC) and beginning trials of Smart Meters and Smart Grid solutions
(SEC, Marafiq).
ECRA itself is committed to provide its contribution to the resolution of the challenges outlined,
in line with its mandate of being the regulatory authority for the electricity sector, by defining a
Smart Grid and Smart Meter strategy for KSA aimed at:
 Addressing the deployment strategy of Smart Meters and Smart Grids by network
operators (SEC, Marafiq), with the proper regulatory framework
 Enabling the development of alternative energies, energy efficiency and DSM measures,
driven by other system authorities (K.A.CARE and SEEC)
3.2 Smart Meters and Smart Grids Opportunities and Benefits
A smart grid is an electricity network that uses digital and advanced technologies to monitor and
manage the transport of electricity from all generation sources to meet the varying electricity
demands of end-users. Smart grids co-ordinate the needs and capabilities of all generators, grid
operators, end-users and electricity market stakeholders to operate all parts of the system as
efficiently as possible, minimising costs and environmental impacts while maximising system
reliability, resilience and stability.
Besides, Smart Grids refer to an integrated portfolio of network technical solutions which are
spread across the whole electricity value chain and include the central and distributed generator,
the high-voltage network and distribution system, the industrial users and building automation
systems, and the end-use customers including their appliances and other household devices.
Smart Metering is the first step or ‘building block’ toward a smart grid providing a highly
advanced link between the utility and the end-user.
The Smart Grid is characterized by a two-way flow of electricity and information to create an
automated, widely distributed energy delivery network. It incorporates into the grid the benefits
of distributed computing and communications to:
 deliver real-time information;
 enable the near instantaneous balance of supply and demand at the device level.

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Therefore, the Smart Grid creates the opportunity to handle energy as an ‘active service’, instead
of a traditional commodity, through multiple applications at both grid- and customer-side.
Figure 1 – Overview of Smart Meters and Smart Grid solutions
Smart Grid applications are generally in the early stage of development, with Transmission and
Distribution automation systems being the most well advanced and already deployed in many
utilities. These have already demonstrated improvements in supply performance in terms of
reliability, power quality, security, whilst emerging techniques will also allow better integration of
renewables and distributed generation.
The deployment of Smart Meters and Smart Grids on the electricity grids can bring significant
contribution to address energy challenges that can be summarized in the following categories:
 Network reliability and power quality. The Smart Grid provides a reliable power supply
with real time information on network status, detection of power quality deficiencies,
voltage control and network automation.
 Energy Efficiency. The Smart Grid is more efficient, providing a more optimized energy
supply balance, through reduced total energy use and peak demand, reduced energy
losses and the ability to induce end-users to reduce electricity use.
 Cost optimization. The Smart Grid drives significant cost efficiency for electricity
operators, through reduced system losses and outages, improved load factors, asset
utilisation, reduced costs of manual network operation and meter management.
 Environmental support. The Smart Grid facilitates an improved environment,
supporting the reduction of greenhouse gases (GHG) and other pollutants through
optimum use of valuable fuel sources and enabling the development of alternative
energies.
-
Overview of Smart Grids and Smart Meters solutions
Smart Grid system architecture
E-vehicle
Smart
building
…
Smart
meter
Distribution
Control Center
Core Smart
Grid
component
s
• Transmission line sensors
• FACTS devices
• Short circuit current limiters
• Telecom / IT infrastructure
• Cyber security
• Intelligent electronic devices
(IEDs)
• Phasor measurement
technology
• Enterprise back-office system
(e.g. GIS, outage mgmt, …)
Transmissio
n
Distribution
• Distribution automation
– SCADA and DMS system
– Feeder reclosers and relays
– Intelligent reclosers
– Remotely controlled switches
– Short circuit current limiters
– Voltage and VAR control on feeders
– Intelligent Universal Transformers
– Telecom / IT infrastructure
• Smart Metering Infrastructure
• Integrated distributed
generation
• Building automation
• Grid-ready appliances
and devices
• Vehicle-to-grid two-way
power converters and
energy storage
Customers

Page 14
 Market unbundling. The Smart Grid supports unbundling and the opening of the
electricity sector, through providing enhanced data on customer accounts and usage,
advanced tariff structures, and the ability to switch supply contracts easily.
Such benefits are distributed among all the key stakeholders of the electricity systems, as
follows:
 T&D companies. Network utilities can reduce their operating costs, improve the quality
of supply and optimize network control and automation.
 Electricity Supply companies. Electricity retailers can provide service differentiation to
compete in an open market and enrich the customer experience.
 Customers. Customers can balance and optimized their energy consumption with the
real-time supply of energy, with opportunities to save money through variable pricing.
Smart grid information infrastructure will support additional services to customers not
available today.
 Regulator. The regulator can pursue its objectives to increase quality and reliability of
supply and to push sector development.
 National Economy. The National Economy as a whole can enjoy benefits from the
diversification of the energy generation mix and significant financial impact from
optimum fuel usage.
Figure 2 – Major benefits for the electricity system
Considering specific characteristics of the KSA electricity sector, the Smart Meters and Smart
Grids Strategy for KSA needs to cover three key areas:
1. Renewable Energy: enable the achievement of Renewables targets and the
deployment of such technologies within the grid
2. Network: improve network reliability, quality of service and efficiency
3. Customers: provide additional services to customers and enable energy
efficiency targets.
-
National economy
Distribution
network operator
Supply companies
Comsumer
Regulator
 Generation mix
diversification
 “Smart industry”
development
 Innovation boost
 Operational cost reduction
 Losses reduction
 Network control and
management optimization
 Active consumption
management
 More options to choose
 Sector development
 Increased Quality and
reliability of supply
 Enriched customers
experience
 Service differentiation
Major benefits for the electricity system
Smart Grid benefits for market stakeholders

Page 15
Figure 3 – Proposed Smart Meters and Smart Grids solutions for KSA
Smart Meters and Smart Grids solutions in KSA can effectively support the achievement of such
objectives in different ways, as illustrated in the following table.
Table 1: Support of SG and SM solutions to strategic objectives
-
Proposed Smart Grids and Smart Meters solutions for KSA
Smart Grids and Smart Metering
Strategy in KSA
Enable Renewable
targets and deployment
on the network
Improve network
reliability, quality of
service and
efficiency
Provide additional
services to
customers and
enable energy
efficiency
1 2 3
Major objectives of Smart Grids and Smart Metering Strategy in KSA

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3.3 Technology options
Along the above objectives, Smart Meters and Smart Grids are mostly likely to include the
following:
 Smart Grids portfolio of solutions:
o HV networks: automation, transmission line sensors, FACTS devices such as SVC
(already installed in some substations in KSA) and STATCOMs and short current
circuit limiters for lines and HV substations, with related communication and IT
infrastructure, cyber-security and management systems.
o MV networks: automation, identification and recovery of network faults, voltage
/ current sensors along lines for voltage control, smart inverters, Intelligent
Reclosers and switches, SCADA and DMS systems, with related communication
and IT infrastructure, cyber-security and management systems.
o Generation: new generator’s adaptation to new technical developments (such as
synthetic inertia, low voltage ride through, 4 quadrants inverters, frequency
response…) required by technical standards or grid codes.
 Smart Meters technologies may cover:
o Remote meter reading, two way communication for software upgrades,
customer account management, multiple tariffs, and other key functions as
covered by the functional requirements detailed in this report (Annex II).
o With respect to the communication architecture for Smart Meters, there are a
number of options and combinations of technologies that could be implemented.
This choice will be a key element for the success of the overall Programme and at
the same time must take a prudent view of likely advances in the
telecommunications field. Possible solutions are discussed in section 5 of this
report and could consist of a mix of data concentrator models or a direct
communication model, both using a variety of mediums such as Power Line
Carrier, meshed wireless networks (Wifi, RF), private or public fibre-optic
networks, public mobile networks (GPRS) and others.
o With regards to communication standards and protocols the IEC 62056 is being
widely used by world-wide suppliers of Smart Meters and would give a good
chance of achieving full interoperability (and exchangeability) of metering
components from different manufacturers.

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3.4 The business case options and scenarios
The Business Case for Smart Meters and Smart Grids solutions in KSA highlights that, according
to specific assumptions (detailed in Chapter 6), there is a positive cost-benefit based on direct
costs (to the network companies). There are also indirect benefits, reflecting savings to the
national economy, but these are not required to justify the deployment.
For the Smart Grids mid-case, over a 15-year time frame, the cumulated NPV is equal to 2,189
million SAR, composed as follows:
Table 2: Cost and benefits from the Smart Grid solution
Item Billion (SAR)
Costs for Smart Grid Solution
Smart Grids solution on the transmission network 5.6
Smart Grids solution on the distribution network 9.5
total operating costs of transmission 0.3
total operating costs of distribution 1.2
Total Cost (not discounted) 16.6
Total Costs discounted (NPV) 6.8
Benefits from the Smart Grids
reduced operating costs, through remote and automated operations 4.3
improved quality of service, mainly driven by reduction of technical losses 4.4
reduction of duration of outages. Such benefit, even if relatively lower, is
significantly the most important for the perception of continuity of service
by customers
0.24
Total Benefits (NPV) 9.0

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Figure 4 – Smart Grids – Business Case Results – Direct Benefits
Besides the direct benefits for T&D operators, indirect benefits for the Saudi Arabia economy, are
strongly higher and make NPV significantly soar, as illustrated in the following figure, mainly due
to the increased availability of fuel for sale on international markets.
Figure 5 – Smart Grids – Business Case Results – Direct and Indirect Benefits
The Business Case analysis on Smart Meters in KSA (with detailed assumptions described in
Chapter 6) shows positive value, considering costs and direct benefits of the base-case. Over a
15-year time frame, the cumulated NPV for a massive roll-out of Smart Meters is equal to 1.6
billion SAR, composed as follows:
-
Smart Grids – NPV by cost and direct benefit component
-SAR Mn, 15 year timeframe-
Cumulated
NPV
2,189
Increased
continuity of
service
245
Improved quality
of services and
losses
4,448
Reduced
operating
costs
4,330
Costs
(capex and
opex)
6,834
Smart Grids – Business Case Results
-
Smart Grids – NPV by cost and direct and indirect benefit component
Cumulated
NPV
12,023
Reduced
GHG
emissions
1,791
Increased
availability of
fuel for sale to
int’l markets
8,095
Optimized
energy
capacity
mix
52
Direct benefit
9,023
Costs
(capex and
opex)
6,834
Smart Grids – Business Case Results
Indirect benefits

Page 19
Table 3: Cost and benefits from the Smart Meters solution
Item Billion (SAR)
Costs for Smart Meter Solution
CAPEX required for installing SM massively 12.3
operating costs to operate and maintain equipment and systems 2.6
Total Cost (not discounted) 14.9
Total Costs discounted (NPV) 7.6
Benefits from the Smart Meters
reduced operating costs, through remote meter reading and management 2.5
Benefits which the greatest component is mainly driven by reduction of
non-technical losses
5.5
improved billing accuracy 0.5
avoided replacement of traditional meters 0.7
Total Benefits (NPV) 9.2
Figure 6 – Smart Meters – Business Case Results – Direct Benefits
Besides the direct benefits linked to the initiative for T&D operators, indirect benefits, not only
for T&D operators, but for the whole system, related to the opportunity to realize peak shaving
are much higher and make the NPV significantly jump, as illustrated in the following figure, due
-
Smart Meters – NPV by cost and direct benefit
component
Cumulated
NPV
1,615
Avoided
replacement of
traditional
meters
686
Improved
billing
accuracy
465
Improved
network
losses
5,541
Reduced
operating
costs
2,470
Costs
(capex and
opex)
7,548
Smart Meters– Business Case Results

Page 20
reduced generation capacity requirement, increased availability of fuel for sale and reduced GHG
emissions.
Figure 7 – Smart Meters – Business Case Results – Direct and Indirect Benefits
In Chapter 6, specific scenarios are developed to consider the impact on the NPV generated by
the variation of specific cost and benefit drivers.
3.5 Customers and Regulatory issues
Electricity final customers will be highly affected by the development of Smart Meters and Smart
Grids programmes in KSA, since they will be joining significant benefits on one side, but will be
also required to overcome some cultural and social barriers that such programmes are typically
faced with.
With respect to the benefits, customers will enjoy:
 Improved network quality and reliability;
 Innovative tariff systems (differentiated by hours);
 Opportunity for reduction of energy consumption and, therefore, for savings in electricity
expenditure (even if tariffs in KSA, as it is known, are very low);
 Reduction of cost and delay of interventions;
 More accurate meter reading and billing;
 Perspective opportunity for more advanced and value-added services (home automation,
etc.).However, social acceptance is one of the most important success factors especially
for the Smart Metering programme, and should be nurtured from the beginning of the
implementation process, in order to avoid risks of increasing implementation costs and
not realizing the full programme benefits.
-
Smart Meters – NPV by cost and direct and indirect benefit component
Cumulated
NPV
102,219
Reduced
GHG
emissions
8,340
Increased
availability
of fuel for
sale to int’l
markets
71,051
Reduced
generation
costs
17,101
Reduced
T&D
costs
4,113
Direct benefit
9,162
Costs
(capex and
opex)
7,548
Smart Meters – Business Case Results
Indirect benefits

Page 21
3.6 Implementation roadmap
3.6.1 SM/SG Programme governance
Smart Meters and Smart Grids solutions will directly influence other energy-related initiatives in
KSA, such as the development of alternative energies and energy efficiency actions. Hence, an
effective governance of the programmes should effectively involve all the relevant electricity
market stakeholders, with specific mechanisms and roles.
To this extent, it is recommended to create a “Smart Meters and Smart Grids Steering
Committee” (SM/SG SC), involving major electricity stakeholders, responsible for:
 Development of a proper Smart Meters and Smart Grids National Plan, following the
strategic guidelines of this Study and including the major topics to be regulated for the
programmes, as illustrated above, in strong alignment with other energy initiatives as
soon as these will be finalized and / or planned (alternative energies, energy efficiency);
 Development of proposals for regulatory and legal framework upgrades, in line with the
strategic guidelines, to ensure that the legislative background properly fits with Smart
Grids and Smart Meters objectives;
 Monitoring of implementation progress and benefit achievements for both Smart Grids
and Smart Meters programmes, eventually proposing corrective actions in case actual
results differ from original plans.
In order to be representative of key energy market stakeholders, the Steering Committee should
be chaired by ECRA, as the energy regulatory authority, and composed on a fixed basis also by
government bodies and utilities:
 The Ministry of Water and Electricity (MOWE)
 KA.CARE
 SEEC
 SEC
 National Grid
 Marafiq
 Aramco
 Representative of the customers and/or Customer Protection Associations
 Representatives from manufacturing Industry
 Representatives from telecommunications industry (including CITC)
 Representatives from Academia (Universities and research organisations)
A Programme Management Company will also be established, to take ownership of the delivery
timeline, as well as Technical Working groups reporting to the SM/SG Steering Committee.

Page 22
Figure 8 – Steering Committee Structure
3.6.2 Implementation phases
It is proposed that the implementation roadmap will consist of the following 4 phases (see
chapter 9.0 for details):
Initial Steps (year 0)
 Establish SM/SG Steering Committee
(and seek high level government approval for the SM/SG plan)
 Establish Technical Working groups
 Appoint Programme Management Company (PMC)
Design phase (year 1)
 Complete SEC 60,000 meters trial (mainly non-residential)
 Scope of work and tendering for pre-rollout phase activities
 Finalise project execution / delivery schedule for complete roll-out (under project
management company service agreement)
 Complete work of Technical Working groups
Pre-rollout phase (year 2-3)
 Pre roll-out trials: 150,000 meters: Urban (6 cities), minimum 4 suppliers
 Pre roll-out trials: 100,000 meters: Rural (6 regions), minimum 4 suppliers
 Field testing of AMM system (in second year of pre-rollout phase, with 2 AMM
companies)
SM/SG Steering
Committee
GovernmentEntities:
ECRA
MOWE
KA.CARE
SEEC
SEC
NationalGrid
Marafiq
Aramco
Industry /
Telecommunications
AEC
International
manufacturers
Mobily,STC, Zain
CITC
Customer
Representation
ConsumerGroups
ComplaintsCommittee
Academia / Research
Universities
Schools
KAPSARC
KACST
Project Management
Company
Technical Working
Groups

Page 23
 Field testing of transmission and distribution network automation
Smart Meters and Smart Grids Implementation Phase (year 4-8)
 Leveraging the pre-rollout trials phase, the massive roll-out of Smart Meters begins in
year 4, including the residential sector, to be completed in 5 years. Also in this phase will
be implemented the results of the pilots on Demand Response, new tariff rates, and other
transitional policies.
 The Smart Grids Implementation Phase has two important goals:
 i) the automation of the transmission network by 2016 (taking into account the current
degree of automation); and
 ii) the automation of the distribution network by 2020.
 Other components of Smart Grids implementation will be determined by the Technical
Committees during the Design Phase (by end of year 1).
Figure 9 – Smart Meters / Smart Grids implementation roadmap
2013 2014 2015 2016 2017 2018 2019 2020 2021
Initial
Steps
Design
Phase
Programme Monitoring
Appoint Project
Management
Company
Smart Grids (network automation)
Smart Grids future technologies
Pre-rollout
Smart Meters Trials
Smart Meters massive rollout

Page 24
4 KEY CHALLENGES IN THE KSA ELECTRICITY MARKET
The electricity market of the Kingdom of Saudi Arabia (“KSA”) is facing a series of important
challenges that reflect the underlying impressive growth of the national economy and the
peculiar characteristics of the energy sector, strongly linked to the wide availability of the oil
natural resource.
Such challenges, highly interconnected and outlined in the following sections, are already a
reality and will become even more serious in years to come, requiring the need to be addressed
today.
4.1 Growing Consumption and peak demand
Electricity consumption in the KSA has been growing significantly over the last years. In 2011, it
reached a total of 219,662 GWh of energy, equal to an average increase of 6.7% yearly since 2007.
Simultaneously, in the same period, the number of customers grew on average by 5.2% yearly,
reaching 6.34 million users in 2011, from 5.18 million users in 2007. These values significantly
reflect the underlying growth of the whole national economy and of the population.
Figure 10 – Electricity and Peak demand in KSA – Historical growth
Considering the past decade (2002-2011)1
:
 Energy consumption increased by 70.8% from 128,629 GWh in 2002 to 219,662 GWh in
2011
1
Source: ECRA, Activity Report, 2011
-
Growing Consumption and peak demand
Source: ECRA Activity Reports
Electricity demand in KSA
TWh
Peak demand in KSA
GW
+6.7%
Others
Industrial
Government
Commercial
Residential
2011
220
8
42
28
33
109
2009
193
9
35
26
23
101
2007
169
6
31
24
19
89
2007-2011
C.A.G.R.
+5.1%
+14.3%
+3.5%
+8.3%
+7.6%
# of
customers
(‘000)
+5.2%5,183 5,702 6,341
48
45
40
37
35
8.2%
20112010200920082007

Page 25
 Number of customers grew from 4.03 million in 2002 to 6.34 million in 2011, an increase
of 57.5 %
 Peak demand increased by 102.1% from 23.938 GW in 2002 to 48.367 GW in 2011.
Looking at the distribution of electricity consumption by sector, it emerges that half of the
demand (109 TWh in 2011, 50% of total) results from residential customers, having a very high
average unit consumption, equal to 22 MWh in 2011, very close to commercial customers (32
MWh), mainly due to the significant use of AC appliances in response to the hot temperature and
dry climate.
Figure 11 – Electricity demand – Breakdown by sector
The national economy is still expected to significantly grow over the next years, also reflecting
still rapid increase in population, electricity consumption, and peak demand.
Particularly, without considering at this stage any energy efficiency measure, the peak demand is
expected to more than double in the next 20 years, reaching 121 GW in 2032, from 48 GW in 2011,
as illustrated in the following table.
-
Electricity demand – breakdown by sector 2011, TWh
# of
customers
(‘000)
Other
s
8
Industria
l
42
Government
28
Commer
-
cial
33
Resi-
dential
109
Total
220
Unit
Consumption
(Mwh)
6,341 5,023 1,031 204 8 5
35 22 32 135 5.510 110
50%

Page 26
Figure 12 – Forecast of peak demand
4.2 Increases of power capacity
In the last years, the installed power capacity increased dramatically to support the growth of
electricity consumption and of the peak demand specifically, in order to provide an adequate
reserve margin for the stability and continuity of electricity to customers.
At 2011, the total installed capacity reached 57 GW, with +20 GW increase since 2007, equal to an
average annual capacity growth of 12%. In terms of power generation mix, nearly 63% of the
electricity production is covered with oil-based sources (crude oil, diesel and heavy fuel oils).
Figure 13 – Total installed capacity and electricity production by fuel type
In order to cover the impressive growth in peak demand expected in the next years (121 GW in
2032, without considering energy efficiency measures), the power capacity will have to nearly
double by 2032, with 70 GW of new plants needed.
-
Source: ECRA DSM study
Forecast of Peak Demand in KSA
2009-2032, GW
121
4845
40
140
120
100
80
60
40
20
0
+5%
+10%
2032202720222009 2010 2011 2012 2017
-
Strong increase of power capacity
Total installed capacity
2011, GW
50%
20112007
+12%
2009
51
37
57
Electricity production by fuel type
2011, % on total
Crude Oil
Natural Gas
Diesel
37%
37%
Heavy Fuel Oils
5%
21%

Page 27
Figure 14 – Peak demand and existing /planned capacity
The strong increase needed in required power capacity will therefore generate high cost impacts
for the electrical system, related to:
 Investments in new power capacity of 70 GW, of which only 10 GW is already committed
 Investments in transmission and distribution networks, in terms of both upgrades and
expansions of the electrical grids to support the system growth, while maintaining and/or
improving network reliability
 Additional consumption of hydrocarbon fuel to feed new steam and combined cycle
capacity, with a significant opportunity cost against the potential sale of oil on the
international market
4.3 Network losses
The level of transmission and distribution network losses reported for KSA are growing. In 2011, it
reached a level of around 10% of electricity production, almost double that of best-practice
countries, corresponding to around 24 TWh of electricity lost from production to consumption.
-
Source: KA.CARE, “Solar Energy: The Sustainable Energy Mix Cornerstone for Saudi Arabia”
100
20
80
60
40
HFO
Diesel
New
committed
20322027202220172012
0
Gas
Crude
140
120
Peak
demand
~60 GW
Peak demand and existing /planned capacity
2009-2032, GW
Strong increase of power capacity
Additional
~10 GW

Page 28
Figure 15 – Network losses in KSA and international comparison
The reported losses include both:
 Technical losses, that are the result of the inherent resistance of electrical conductors and
heat losses at voltage transformation
 Non-Technical losses, that are made up of energy delivered for consumption but not paid
for as a consequence of a wide variety of factors ranging from theft and non-registered
consumptions to inaccurate billing and metering
The increase of network losses in KSA in the last years reflects growing network sizing and
complexity, which will need to be counterbalanced by network improvement measures.
A significant proportion of the predicted benefits of Smart Meters and Smart Grids is loss
reduction, as explained in the subsequent chapters of this report.
4.4 Quality of supply
Power continuity is a key aspect of the quality of electricity supply.
In order to monitor current performances of the electricity operators and define specific
standards in service levels, ECRA introduced in 2011 a set of 26 KPIs for the various steps of the
electricity industry (generation, transmission, distribution, and customer services) and defined
standards to reach progressively results in line with those of the industrialized nations.
With respect to Distribution activities, the KPIs highlighted improvable results in the quality of
services, in terms of:
 Average time of power disruption per customer per year, equal to 88 - 205 minutes
respectively for Marafiq and SEC, whilst the defined target established by ECRA is 150
minutes, referenced to other industrialized countries (<100 minutes)
 Average number of power disruptions per customer per year, equal to 0.76 for Marafiq
and 4.4 for SEC networks, against a target of 2
-
Network losses
1. Net of generation plant losses
Source: ECRA Activity Report; Regulatory Bodies of respective Countries
T&D Network losses in KSA
% on produced electricity1
50%
+1.7 p.p.
2011
10.0%
2010
9.4%
2009
8.3%
T&D Network losses – Int’l comparison
2010, % on produced electricity
Electricity
produced 1
(TWh)
211 234 244
Lost Electricity
(TWh)
17 22 24
KSA 9.4%
ES 8.9%
IT 6.2%
UK 5.6%
FR 5.5%
DE 5.0%

Page 29
In order to optimize the performance level, network operators are already performing specific
investments on the electrical grid.
4.5 Conclusions
In order to address the imperative challenges discussed above the opportunity for Smart Grid and
Smart Meter systems, the subject of this strategic study, are seen to be a major solution to these
needs. A timely and well managed deployment of these technologies will therefore be a major
economic and social contributor to the KSA.

Page 30
5 SMART METERS AND SMART GRIDS SOLUTIONS
The words “Smart Grid” refer to an integrated portfolio of network technical solutions aimed at
modernizing the electricity delivery system, making it able to monitor, protect and automatically
optimize the operation of its interconnected elements. Such elements are spread across the
whole electricity value chain and include the central and distributed generator, the high-voltage
network and distribution system, the industrial users and building automation systems, and the
end-use customers including their thermostats, electric vehicles, appliances and other household
devices. This chapter starts with the description of the main technologies applied to typical Smart
Grid (transmission and distribution networks) and Smart Metering solutions (communication and
advance metering infrastructure). The same technologies are then evaluated in the context of
Saudi Arabia to assess which are the most feasible and profitable ones. Starting from the
technological assumptions of this chapter, the next chapters illustrate key aspects of a proper
strategy framework for the development of both Smart Meters and Smart Grids solutions in KSA:
 Business Case analysis (Chapter 6), assessing their profitability for T&D operators – under
current structure - and whole system
 Customer Management implications (Chapter 7), describing additional services available
to customers, expected barriers and implications
 Regulatory and Policy Framework requirements (Chapter 8), that are needed to push the
proper development of such solutions
 Proposed implementation approach (Chapter 9), to realistically implement such solutions
and start capturing related benefits

Page 31
5.1 Overview of Smart Grids concepts
The Smart Grid is characterized by a two-way flow of electricity and information to create an
automated, widely distributed energy delivery network. It incorporates into the grid the benefits
of distributed computing and communications to
 deliver real-time information;
 enable the near instantaneous balance of supply and demand at the device level.
Figure 16 – Smart Grid conceptual representation
The Smart Grid creates the opportunity to handle energy as an active service, instead of a
traditional commodity, through multiple actions at both grid and customer-side. In should be
noted that the majority of Smart Grids technologies are in the early stages of development and
there is no fully operational Smart Grid demonstration project that can be referenced (at the
utility scale). Hence, the roll-out of Smart grids concepts and technologies in the KSA
environment cannot be fully determined at this stage. The exception is the automation of
Transmission and Distribution networks which have been budgeted in the implementation
roadmap, together with a provisional number of voltage and reactive power management
devices.
-
Traditional Grid Smart Grid
Electricity value chain trend
Basic load flows
Standard home E-vehicleSmart
building
MV/LV
transformer
Distri-
bution
Distributed
generation
…
HV/MV
transformer
Storage
Smart
meter
Trans-
mission

Page 32
Figure 17 – Smart Grid core components
Grid-side applications include a combination of current and advanced technologies that are
introduced within the Transmission and Distribution electricity networks to improve supply
performance in terms of reliability, power quality, security, ability to integrate renewables and
distributed generation and provide enhanced services to customers.
5.1.1 Transmission Network
Transmission networks have already quite some intelligence incorporated because there are
already devices that can be controlled remotely (circuit breakers, switches, generators, etc.).
Nevertheless some other solutions can today be applied to make smarter a Transmission
network.
 Transmission line sensors, enabling the monitoring of real-time system data
(voltage/current, conductor temperature, etc.) that can be processed and turned into
useful operational predictive information: for instance to perform Dynamic Thermal
Ratings in order to increase utilization of existing transmission network assets, to
enhance the power flow, to solve congestions, to predict/know line sag, so optimising the
use of existing transmission assets, without the risk of causing overloads. In this category
also Intelligent Electronic Devices (“IED”), encompassing a wide array of microprocessor-
based controllers of power system equipment, useful to perform automatic operations in
the stations or on the lines.
 Flexible AC Transmission Systems (“FACTS”) enhance the controllability of transmission
networks and maximise power transfer capability. The deployment of this technology on
existing lines can improve efficiency by managing active and reactive power flows and
defer the need for additional investment. Renewable generation on HV would benefit
from the introduction of such devices which would increase the hosting capacity of the
network.
-
Smart Grid system architecture
E-vehicle
Smart
building
…
Smart
meter
Distribution
Control Center
Core Smart
Grid
component
s
• Transmission line sensors
• FACTS devices
• Short circuit current limiters
• Telecom / IT infrastructure
• Cyber security
• Intelligent electronic devices
(IEDs)
• Phasor measurement
technology
• Enterprise back-office system
(e.g. GIS, outage mgmt, …)
Transmissio
n
Distribution
• Distribution automation
– SCADA and DMS system
– Feeder reclosers and relays
– Intelligent reclosers
– Remotely controlled switches
– Short circuit current limiters
– Voltage and VAR control on feeders
– Intelligent Universal Transformers
– Telecom / IT infrastructure
• Smart Metering Infrastructure
• Integrated distributed
generation
• Building automation
• Grid-ready appliances
and devices
• Vehicle-to-grid two-way
power converters and
energy storage
Customers

Page 33
 Short circuit current limiters, limiting fault current to a level acceptable for normal
operation of the existing power system and particularly where a new generation
(renewables) is injected at distributed locations.
 Phasor measurement units (“PMU”) technology (also known as synchro-phasors) for wide
area monitoring, providing real-time information about the power system’s dynamic
performance and therefore providing the ability to monitor and manage the reliability
and security of the grid over large areas. In fact, the ability to monitor grid conditions and
receive automated alerts in real-time is essential for assuring reliability. Synchro-phasor
technology provides an accurate picture of grid conditions giving to TSOs (Transmission
System Operators) wide-area situational awareness so allowing coordination with
neighbouring control areas. The synchro-phasor technology consists of a Wide Area
Measurement System (WAMS) that uses real-time data/measures coming from
Peripheral Measurement Units (PMU) installed on well-defined nodes. PMUs provide
voltage & current measurements that can be used to detect grid events, to assess and to
maintain system stability in order to reduce the likelihood of an event causing widespread
grid instability. More details are given in Annex III.
 As regards communications and IT infrastructure, they are already available because the
devices may already be controlled remotely. Therefore only upgrades will be necessary
when new applications will be implemented (for instance Cascading Events Detection
and Mitigation, Condition based Maintenance of Circuit Breakers).
5.1.2 Distribution Network
On the other hand, with respect to the Distribution network, Smart Grid applications usually
apply to the following fields:
 Volt-VAR control (also known as VVC, Variable Voltage Control)
 Ancillary services
 Automation for fault selection of the smaller number of branches along MV lines
 Advanced control systems using DMS
 Potential development and use of micro-grids
5.1.2.1 Volt-VAR control
Volt-VAR control in the distribution networks are generally aimed
 at maintaining acceptable voltages at all points along the feeder under all loading
conditions by using:
o Transformer Tap Changer Control,
o Power factor set-point control for PV/Wind plants
o Line Drop Compensation
 at operating the distribution system at the lowest possible voltage without violating any
load and voltage constraints
 at reducing losses along the lines
Voltage profiles along MV lines are generally controlled by imposing a defined value at the MV
bus-bar by means of the HV/MV tap-changer. The choice of this value is taken into consideration

Page 34
the voltage drop along the lines so is maintaining voltage limit within defined ranges for the
electrically more distant node (see Figure 18).
Figure 18 - Voltage change in presence of Capacitor Banks or Line Voltage Regulators
The voltage profile may be enhanced in long and loaded lines by using Switched Capacitor Banks
or Line Voltage Regulators because they can compensate the reactive power (VAR) requested
from loads2
.
Another element to be taken into account is the presence of distributed generators (DGs) on the
distribution networks. In fact, they may change the voltage so determined a radical change in the
voltage profile of MV lines. This results in an increase of the voltage at that node and, more
generally, in a variation of the voltage profile along the entire line that can reach critical (too high)
values according to the size of the generator itself.
On the other hand, the presence of Distributed Generators (DGs) may be a chance for the voltage
control as they may exchange reactive power with the network as Capacitor Banks or Line
Voltage Regulators if they would have suitable characteristics like shown in CENELEC Technical
Standard. At this aim, also Grid Code should be updated to include such requirements.
2
“Case Study: How the Commission Used a Smart Grid Programme to Identify, Resolve & Prevent Losses”, Ohio Public
Utilities Commission

Page 35
Figure 19 - Reactive power capability of DGs for MV connection
In cases in which the energy produced by distributed generation is greater than that consumed by
passive loads in the network, the MV network can become "active" in the sense that it can export
energy to the high-voltage network. The voltage profile along the MV lines, in such cases, is
strongly influenced by the presence, and of course the size, of the generators installed.
Assuming to have available a suitable communication system and in the perspective of
Distributed Generation, the Voltage – VAR control suited for KSA might be based on:
 the measurement of the MV bus bar voltage,
 the measurement of the voltage at the nodes where the generator is connected or in
other critical point of the network.
 the exchange of information between the generators on the MV network and the control
centre that knows in real time the trim network.

Page 36
Figure 20 - Volt-VAR control system for distributed generation
The components of the system in previous figure have the following meaning:
 Control Centre: remote control system of the medium voltage network and the
calculation of voltage control;
 G: MV generator connected to the network;
 Control device in HV/MV substation: peripheral terminal for remote operation.
In deploying Volt – VAR control, the following recommendations apply:
 Voltage and reactive power regulation should be applied first in the HV / MV substations.
As a second step, voltage and reactive power regulation can be applied along the feeders.
Volt-VAR control may be also used to maintain voltage delivered to the customer in the lower
portion of the acceptable range in order to reduce the power supplied.
This Voltage Reduction (VR) works best with resistive load (lighting and resistive heating)
because they are “constant” impedance but in general, seems to be less effective than expected
since some newer devices exhibit a “constant power” behaviour to some extent (see Figure 21).
Figure 21 - Newer devices behaviour
Moreover, particular attention has to be paid to the negative effect that may occur on motors.
Finally, a Volt/VAR control has to be centrally coordinated to reach best benefits of the network.
More details are given in Annex III.
Control Centre
HV MV
Bus Bar Voltage
G
Control device
in HV/MV
Substation
Node’s voltage

Page 37
5.1.2.2 Ancillary services
As ancillary services, inverter should provide:
 Low Voltage Ride Through (LVRT)
In some European countries (Germany, Denmark, Italy…) the LVRT capability has been
already applied according to National rules. Furthermore, European Standards as
ENTSO-E RFG and CENELEC Technical Specification 50438 and 50549-1-2 require the
LVRT capability as shown in Figure 22.
Figure 22 - ENTSO-e LVRT capability
 Voltage Control as described previously
 Frequency response to power variation
In a transmission network, it is important to keep the frequency as stable as possible
because the biggest generating resources, all of which are synchronous machines, work
at their most efficient point at exactly 60Hz. Also, the speed governors on these
machines must operate in lock-step to share the generation load between machines to
the specified schedule. For the frequency to remain stable the generated active power
must match the power demand at all times. Active power curtailment and ramp rates are
commonly used in big power plants to mitigate site-specific concerns and help improve
grid stability. However, whether the amount of distributed generation reaches critical
levels (which depends on the network’s features and needs specific analysis), DGs should
contribute to the frequency stability as well. At this aim, in Europe, the standard bodies
are developing rules requesting under and over frequency response by the inverters
(Figure 23, Figure 24, Figure 25 and Figure 26).

Page 38
Figure 23 – Over frequency response according to CENELEC TS 50549-1-2
Figure 24 – Over frequency response according to Italian CEI 0-16
Figure 25 – Under frequency response according to ENTSO-e Rule for Generators (draft)

Page 39
Figure 26 – Under frequency response according to Italian CEI 0-16
 Participation in emergency plan
Each Country has to handle its own defence plan to take into account load / generation
conditions. As an example, in Italy the TSO requires the possibility to disconnect
generation plants above 100 kW by remote or planned command.
5.1.2.3 Automation for fault location and isolation on radial MV lines
A permanent fault may occur at any time on MV lines and it will result in an outage involving a
number of customers (SAIFI) for some time (SAIDI). The number of customers involved and the
outage duration depends on the procedures adopted to locate / isolate the fault.
MV network automation can dramatically reduce both the number of customers (SAIFI) involved
and the outage duration (SAIDI) by automatically performing the same operation carried out by
personnel.
Essentially, it is necessary to install switches / circuit breakers along the lines, peripheral units
(PUs) operating on them and able to communicate with a central control room.
Many types of automation are of course possible but often they are based on re-closing cycles
operated in the HV/MV station: the open / close circuit breakers cycles allow to isolate the fault on
the lines on the basis of fault passage indicators (FPIs) and voltage absence/presence information
provided by PUs locally or remotely assisted/coordinated.
More details are given in Annex III.
5.1.2.4 Advanced control systems using DMS
Distribution (MV) networks are typically operated radially but the normal running arrangements
may need to be changed as a consequence of faults or operational needs (e.g. due to load
balancing or active/reactive power flows). Changes are traditionally carried out on the basis of

Page 40
off-line calculation or operator “experience”. It’s therefore clear that a tool able to ”give”
suggestions on the best operation “options” would allow the operator to manage the network
more dynamically and efficiently.
Such tools, necessary for dynamic network management, are generally called DMS (distribution
management systems). These can provide system to the engineer and dispatcher information /
suggestions to effectively and efficiently engineer, plan and operate the distribution network. In
fact, it can analyse dynamically changing distribution networks in real-time, while providing
scenarios capability for both backward and forward review to identify options to improve network
reliability while lowering losses.
Advanced DMS can hence solve the critical distribution network condition (for instance overload
in some branches) or can give suggestion on the best network configuration for choosing
objectives (for instance, technical losses reduction, voltage profile optimization).
Furthermore, DMS can better integrate a large number of renewable energy resources into the
distribution network, maintaining the balance needed to reliably operate different energies.
Some functions of DMS include:
 State Estimation (SE): it is mainly aimed at providing a reliable estimate of the system
voltages.
 Load Flow Applications (LFA): it analyses the power systems in normal steady-state
operation.
 Fault Management & System Restoration (FMSR): the DMS application receives faults
information from the SCADA system and processes the same for identification of faults
and in running switching management application; the results are converted into action
plans by the applications and may be used to enhance the continuity of service.
 Distribution Load Forecasting (DLF): it provides a structured interface for creating,
managing and analysing load forecasts. Accurate models for electric power load
forecasting are essential to the operation and planning for a utility company.
 Automatically re-configure the network (this feature is not usually utilized).
DMS is actually used in several countries, and also in Italy by ENEL, in order to give information
on the State Estimation, on the better network re-configuration in case of fault, on the short
circuit currents”. More details are given in Annex III.
5.1.2.5 Potential development and use of micro-grids
A micro-grid is a smaller power grid that can operate either by itself or connected to a larger
utility grid. The proposition is that "if your home is part of a micro-grid, you could continue to
receive power even when the utility power goes out”, because "it gives you the ability to ride
through any disturbances or outages by seamlessly switching over to locally generated power"3
.
It's important to note that a backup power system — like a diesel generator — is not the same as a
micro-grid because they can supply power to local loads in the event of an outage, but there is
usually a delay after the disconnect from the utility grid. In addition, a backup system is not
intended to run continuously, nor put power into the grid.
3
NREL (National Renewable Energy Laboratory).

Page 41
A micro-grid therefore consists in a “local” grid where generators (solar, wind, storage) are able to
supply loads in a well-coordinated and stable way in order to have a good quality and continuity
of service even in the event of an outage of the “main” grid: in fact, it can disconnect from the
“main” grid without any additional transient.
This means that a suitable control centre has to coordinate properly flexible generators (with
suitable capabilities today not always available) in order to balance loads in real-time; moreover,
the re-synchronization of the micro-grid to the “main” grid is an additional challenge because the
same control centre has to carry out a parallel between two grids, the “main” grid and the micro-
grid composed by many different generators and loads. Last, but not least, the protection
system has to be usually changed in order to properly operate in all the possible conditions (in
parallel with the “main” grid or isolated from it).
Because of the very challenging above mentioned issues, until now only limited experiences have
been achieved and this is the reason why at this stage of the project is not advisable to take the
microgrids in consideration. the business case model doesn’t take into account this item. As a
general recommendation, micro-grids may have some applications for an islanded network but
they require special devices in order to control the network by means of:
 Balancing generated and absorbed power
 Regulating voltage
As regards communications and IT infrastructure, they have to be realized for the distribution
network control in order to implement the above mentioned applications. More details are given
in Annex III.
5.1.3 Customer-side Solutions
Besides the described grid-side applications, Smart grids also include a portfolio of customer-side
solutions that are enabled by the previous ones and encompass new services and functionalities
provided to customers as a result of full integration with electricity supply systems and emerging
of new electrical and electronic technologies.
Such customer side applications can be summarized in the following:
 Demand Response, based on differentiated tariffs (for example, by Time of Use), able to
alter demand patterns and therefore electricity peak demand. This may include ‘direct
load control’ of large loads on the customer side (such as air conditioning, heating,
pumping) via a utility-controlled scheme.
 Building automation and grid-ready “intelligent” appliances and devices, able to improve
energy management in the home and commercial buildings, reducing peak demand and
improving energy efficiency.
 Integrated distributed generation, including a variety of customer-owned systems, such
as rooftop photovoltaic (PV) systems.
All these solutions may be coordinated via electricity meter or gateway. Therefore, a local
communication network is required, usually called a Home Area Network (HAN). HAN is a
residential local area network (LAN) for communication between digital devices typically
deployed in the home. Home networks may use wired or wireless technologies. Wired
technologies include fibre optical cable, Digital Subscriber Line (DSL) on copper wires or PLC.

Page 42
Wireless technologies are also common solutions. They include: Wi-Fi, Bluetooth and
ZigBeSmart Grids Communication Networks
A communications infrastructure can be built from copper cable, fibre, or wireless technologies
utilizing the radio frequency spectrum, such as microwave and satellite. The investment and
ownership of such infrastructure may be either by public services companies (in KSA: Mobiliy,
STC, Zain) or private networks in which the utility has invested, either singularly or in partnership
with other entities. Various combinations of the above can be seen across the world, including
joint investment with public telecommunications companies, whilst in the past utilities would
prefer to have separate systems due to concerns on national security during emergency
conditions.
The choice between public or proprietary networks is therefore a key concern implementing a
Smart Grid or / and a Smart Metering project. In particular, for the Smart Grid a fast response
network would be required (for example to respond to system blackout or cascade events),
especially at the transmission level (380 kV substations and major power plants).
Proprietary networks are often considered to be the best solution if the infrastructure is available
(such as private RF stations and utility allocated radio bands) but this is less common at the
distribution level (13.8kV for Saudi Arabia) because the Distribution Companies generally do not
have dedicated networks to cover all the substations, in particular the MV / LV ones.
A comparison of public and private access networks is given in Table 4 below:
Table 4: Public and private telecommunication networks
Public access networks Private access networks
+ Low CAPEX - Very high CAPEX
- High OPEX + Very low OPEX
- Low security + High security
- Availability / coverage determined by the
carrier
+ Deployment and Quality of Service under
utility control
Quality according the telecommunications
regulations and a negotiated agreement
Quality according the specific needs of the
SM/SG project
In addition, the selection of the media is a key issue. A comparison of wire-line (or fibre optic)
communication vs. wireless media in given below (Table 5):
Table 5: Wired and wireless communications
Wire-line/fibre communication Wireless communication
+ High guaranteed bandwidth
+ Low latency
- High deployment costs
- Bandwidth and latency determined by the
technology / spectrum
+ Flexible deployment
Wireless technologies are generally preferred to create a geographical communication network
spread over a wide territory (e.g. for the Distribution network). Under this category the most

Page 43
referenced and used technologies for both private and public access networks are show in the
figure below:
Figure 27 - Wireless public and private access networks
On the other hand, as mentioned above, the requirements of transmission and distribution
networks are significantly different and therefore are likely to demand different types of
communications options, presented in the table below:
Table 6: Communications requirements for Transmission and Distribution networks
Transmission Networks Distribution Networks
Security and reliability are the most important issues
in a Transmission network, with a focus on infrequent
but potentially high impact events (e.g. wide-scale
blackouts)
Overall average performance for customer
interruptions is important using SAIFI and SAIDI
global indices
The communication means must be fast and highly
resilient (e.g. with full standby / parallel systems).
The communication means must cover very high
volumes and must be least-cost to avoid excessive
cost burden on the customer
The communication strategy is likely to prefer private
networks, rather than in public ones, for reasons of
national security during blackout conditions.
The communication strategy for the great
quantity of equipment (feeders, sensors and finally
meters) are generally based in public ones, except
where the territory served is small or highly
concentrated customers
The security of the data is vital for the operation of
the power system. This is another reason to rely on
The security and the privacy of the information are
issues that are important for the individual /

Page 44
private networks rather than in public ones. customers and can be mitigated.
In summary, the strategy for Smart Grid communications is a primary driver in the selection of
the most appropriate communications medium. In addition, whichever option is selected should
coordinate and overlay the communications requirements for Smart Metering (discussed in
chapter 5.2).
It is likely that fibre optics already installed by the transmission operator (private network) and
grid substations would be used for the Smart Grid, incorporating potential applications such as
transmission line sensors, dynamic volt-var control and network automation4
. Smart Grids
communication for the distribution network is likely not to use fibre optic as a private network
would be prohibitively expensive whilst the number of distribution network points is high
(230,000 in 2011). The volume required for Smart Metering is an order of magnitude higher (6.2
million at end 2011) and is discussed in detail in section 5.2.2 .
4
for KSA the number of transmission substations which are to be connected to a private fibre-optic network is around 642 (at year
2011, increasing at 50 per year). For the distribution network (13.8kV / LV) the number of distribution substations is around 230,000 (at
year 2011, increasing at 20,000 per year) and the direct communication connection of these to a private fiber network would be
prohibitively expensive; hence, wireless communication options are more likely to be preferred.

Page 45
5.2 Smart Metering technologies and solutions
A smart meter is usually an electrical meter that records the consumption of electric energy in
intervals of an hour or less and communicates that information at least daily back to the utility for
monitoring and billing purposes. With the introduction of Advance Metering Infrastructure (AMI)
technology, two-way communication between the smart meter and the control centre, as well as
between the smart meter and customer loads would be facilitated for many applications,
including demand response, dynamic pricing, system monitoring and the mitigations of
greenhouse gas emissions. In the next paragraphs an overview of the following topics is
presented:
 Smart Metering systems architecture
 Communications technology options
 Standards and Protocols
 Minimum Smart Meter Functional Requirements
5.2.1 Smart Metering systems architecture
Deploying an Advanced Metering Infrastructure (AMI) is a fundamental early step to grid
modernization. The smart meter is the focal point of a “Smart Metering Architecture” and is as an
electricity meter with embedded computing and networking capabilities. It combines electronic
metering with a programmemable communication terminal that can interface with multiple
networks and devices.
Figure 28 – Key features of a Smart Meter
Three Smart Metering systems are typically categorized under three types of architecture,
beginning with the least advanced:
-
Smart MeterTraditional electricity meter
• Existed for over 50 years without changes
• Is a paragon of reliability and economy
• Just measures energy use; does nothing else
• Merges measurement equipment and ICT
• May become part of a network of devices
(smart grid)
Source: Echelon; Landis+Gyr, E.ON; A.T. Kearney
Strengths:
• Reliable over a very long lifetime (> 30 years)
• Many vendors can Ferraris meters for good prices
Shortcomings:
• Meter readings have to be collected manually
• Does not support flexible tariffs
• Does not support free market processes
• Provides little insight about energy use
Expected benefits:
• Lowers cost for meter readings
• Provides detailed insight in energy use
• Supports flexible tariffs and market processes
• Supports decentralized generation
• Can be used for intelligent load management
Challenges:
• Detailed readings introduce privacy issues
• Short lifetime of meter due to ICT lifecycle (~ 15y)
• No standards yet („stranded assets‟, vendor lock-in)
Smart Metering architecture

Page 46
 AMR (Automated Meter Reading) is a remote reading system based on an advanced
technology that permits utilities to read electronic meters remotely through “one-way”
communication. Through AMR, the energy consumption (and maximum demand) can be
read on an annual, monthly, weekly, daily or on an hourly basis. Consumption and status
data, such as time stamps, are transmitted through various connection media to a central
system for billing and analysis. The automatic data collection enables billing based on
real time consumption as opposed to an estimated consumption.
 AMM (Advanced Metering Management), or Smart Metering, is another expansion of a
remote reading system that includes the possibility of gathering technical measurements
and functions and carrying out customer-orientated services via the system. The question
arises, not only how to get the data, but how to manage this data for the best technical
and commercial use. This is in fact the core function of the smart meter: it enables a
sensible and economically viable allocation of the resources from data collection to
analysed data.
 AMI (Advanced Metering Infrastructure), refers to systems that measure, read and
analyse energy consumption and demand. These systems are also able to read electricity,
gas, heat and water meters remotely. AMI systems can be defined as an evolution of the
simpler AMR-system. The AMI always communicates two-way and comprises the whole
range of metering devices, software, communication media, and data management
systems This exchange of information with the customer can improve consumption
behaviour and enable them to take energy-efficiency measures as well as implement
Demand Response programmes. Through the integration of multiple technologies (such
as smart metering, home area networks, integrated communications, data management
applications, and standardized software interfaces) with existing utility operations and
asset management processes, AMI provides an essential link between the grid, customers
and their loads, and generation and storage resources
The general architecture of smart metering systems consists of three blocks: Software
Application layer, Communication Network layer, and Smart Meters (physical layer).5
5
Note: the terminology used in IEC62056 is: Application Layer, Communications Profile/Layer, and the Physical Layer

Page 47
Figure 29 – Example and overview of Smart Meter Architectures
The software application layer represents the uppermost block of the smart metering system
and its objectives are: Gathering data from Smart Meters, Sending commands and/or data to
Smart Meters, Monitoring the meters working status, query analysis and storage of data. Some
typical applications of this layer are described as follows:
 AMM: is the software application that communicates with Smart Meters directly. It’s the
interface application that manages the requests send by Enterprise applications to the
field. Some of its functionalities are:
-
Smart Metering architecture
Smart metering system architecture
IT
Infrastructure
layer
Communications
layer
Smart meters
layer
PLC
GPRS
WiMax
Others
Home Area
Network

Page 48
o Commissioning of Smart Meters
o Consumptions collections from Smart Meters
o Send technical data to Smart Meters (clock updating, firmware updating)
o Send commands to Smart Meters (Connections, disconnections)
o Send Contract information (Power, tariffs, etc.)
o Monitoring of Smart Meters status in the Network (detection of tampering,
reachability of Meters, etc..).
 MDM: Meter Data Management has the main objective to collect, to manage and to
store the consumption data of all customers. Main functionalities among others, are:
o Collection of data Consumptions from Smart Meters
o Management of data to send, periodically, to the Billing Software for the
calculation of invoices.
o Aggregation of Data Consumptions for reporting, forecast, etc. (provides
data for example, to Business Intelligence Software)
o Availability of Consumptions Data for Front End applications (Customers
Portal, Help Desk, etc.)
Figure 30 – Example of Software Applications Structure
The Communication Network Layer ensures the interface between the IT infrastructure and the
main smart meters area and through to the electricity network. Various communications
technologies exist, such as a middle-layer of data concentrators, equipped with balancing meters.
The existence of balancing meters is especially important in countries where the level of
commercial grid losses is high. This helps accurately identify the area where such losses are
occurring, by analysing the difference between the power transmitted to the household and the
registered consumption. With this middleware layer, a data concentrator makes the connection
between the meters and the IT systems. In its absence, the connection is made directly, or a
combination of the two layers, in which a data concentrator only intervenes in certain
connections depending on the topology of the network, and the additional connections between
meters and home devices and other meters are ensured.
The smart meters represent the lower part of the infrastructure, connecting the first two blocks
of the system with the home area network. In advanced cases, the home area network may
include a number of devices installed on a customer‘s premises.

Page 49
5.2.2 Communications technology options
This section analyses the options of communications for the Smart Metering system. It
emphasizes technical aspects, standards and capabilities of communication technologies being
considered. The issue of future changes in the technology and the telecoms market are discussed
and the business case implications and cost-benefit analysis of various options is presented in
Annex I. Technologies for the Home Area Network are not considered in detail as they are not
essential for the initial Metering Infrastructure.
The options for establishing a suitable communication network are usually divided into two
categories:
 Wired: such as fibre optic (FTTX) and power line carrier (PLC) / Broadband over power line
(BPL), DSL (telephone line)
 Wireless: such as Wi-Fi / WiMAX, Radio Frequency (RF), GSM / GPRS, satellite
The data will be encrypted and often transferred using VPN. The operator / provider will not
threat the data or elaborate them. The contract will be signed only by the utility. The service will
not be in any way usable and used by the household.
All these technologies have their benefits and limitations. For this reason an AMI will generally
use several of these technologies to cover the range of requirements for an entire country
network.
5.2.2.1 Power line carrier (PLC) / Broadband over power line (BPL)
When LV distribution feeders are considered, PLC is well suited because it is a no-cost medium
for the utility (for the cable) and already covers the entire distribution system. Traditional PLC has
the potential to transmit data at a maximum rate of 11 Kbit/s, and the maximum data rate can be
achieved only in a narrow frequency range of 9 to 95 kHz. This low rate of communication may
sometimes be not enough for supporting applications where large amounts of data may be
transferred, for example, when a large number of smart meters connected to end-user loads send
periodic information using the AMI. PLC technology has been used in Italy and other countries as
the “last mile” communications (from the meter to the DCU in the MV / LV substation). This
provides the benefit of aggregating data from a number of meters before the data is sent via the
Data Collector, making for a more cost effective system (the DCU can compress data and reduce
traffic charges as well). The reliability of PLC systems has improved dramatically over the past
decade with better filtering and frequency multiplexing methods compared to the first
introduction of PLC over 2 decades ago. With bulk production of PLC chip sets modems can be
integrated within Smart Meters at very low cost. The only concern is the choice of frequency
band which needs to be reserved and assigned by the appropriate communications regulatory
authority.
Broadband over power line (BPL) is a relatively newly developed technology, with very few
trials/implementation in utility networks. The main reference case is Korea and the consultant
KEPCO is advising SEC on this option. CITC document “RI089”, described Power-line
communication in the band 1.6 MHz - 30MHz, like the Home-plug standard. In RI089, the Power-
line band is defined for all devices which will use the PLC communication, not exclusively reserved
for Distribution utility. A potential risk of interference, not only for radiating emission and
interactions with other devices, but also for conducting disturbances and traffic collision with
commercial “Home-plug” devices must be considered. Any commercial PLC device compliant
with RI089 (there are many devices on the international market, like in-home PLC modem for

Page 50
Ethernet, video Senders, audio and video surveillance devices, etc.…), working in the same band
can affect the Broadband communication for meters. Furthermore there is some risk of frequency
overlapping with broadband PLC and other Amateur Radio transmitter. For reference, see CITC
Specification RI094 “Amateur Radio and Ancillary Equipment” and RI019 “Citizens’ Band radio
and Ancillary Equipment”. Even if modulation is completely different, CB devices with TX power
up to 4 Watt could obscure the broadband PLC communication (it is an immunity, not an
emissions issue).
In addition the attenuation in a radial distribution feeder is high, and this would limit the distance
from Smart Meter to DCU (or regenerators are needed, possibly via adjacent meters). Thus, even
if the medium of communication is free in BPL, there are infrastructure costs involved. In
addition, the high-frequency signals may cause problems by being blocked by voltage regulators,
reclosers, and shunt capacitors that are common in long radial feeders. The cost of BPL systems
is substantially higher than traditional PLC but this additional cost may be supported by non-
utility and non-regulated services (i.e. internet to home) under a separate commercial
arrangement.
5.2.2.2 Fibre optical connection
One of the main issues with copper wire connections is interference and attenuation. Fibre optic
cables provide an interference-free solution, but it is a very high cost option, unless shared with
other services (e.g. internet to home). Newly developing cities could install a fibre optic
communication network close to or alongside power cables, thus enabling the infrastructure to
be shared for both the power grid and customer communication needs. One cost sharing option
is where the utility would bear only the costs of the terminal equipment and for leasing the line.
On the other hand, the utility would not have control over the medium because, in most cases, it
would not own the entire network. However, an example where a utility fibre network has been
installed (in conjunction with WiFi) is Abu Dhabi6
. This system is proposed to be used by a
number of utility applications including Smart Metering, network automation, SCADA and
corporate data (LAN). A backhaul fibre network between HV / MV (transmission) substations has
been installed by many utilities (alongside power cables and on overhead lines), including by the
SEC transmission company. This provides a very high capacity and high speed (over 20 Mbit/sec)
network for use by transmission network applications and other corporate data needs. The option
to use this network for long distance data collection for Smart Metering will depend on discussion
between the transmission and distribution business of SEC7
.
5.2.2.3 Mobile networks (GSM / GPRS or 3G)
As in other countries, KSA mobile network operators have national networks with high data
capacity and functionality. A technical challenge exists in establishing signal strength (likely to
result in more than one operator being used) and any mobile-based solution will likely work
alongside a fixed network to some degree (to ensure coverage of homes without a mobile signal,
e.g. via RF or satellite). A choice needs to be made on which mobile network technology to use.
GPRS (GSM) has been used in many projects (Italy, Spain…) to connect DCUs or industrial meters
to the Control Centre and it is usually considered the base-case for calculations. However, 2G
networks will be decommissioned at some point in the future, meaning an expensive upgrade to
6
Presentation notes of Abu Dhabi meeting 5-12-12
7
National Grid-SA meeting 17-12-12

Smart Metering & Smart Grids Strategy for the Kingdom of Saudi Arabia

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