1. AdvancedMetering: The Foundationofthe Smart Grid Andreas Umbach, President & COO Analyst Presentation November 2008 Confidential Company Overview & UpdateDRAFT November 2008 1 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

2. Once upon a Time… …Utilities’ business model was simple Generate as much as you can “Keep the lights on” “Power” for “Cash” Thomas Alva Edison 2 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

3. Operational ProcessesofUtilities Plan & buildenergyresources Operateenergyresources Plan & buildenergy delivery Operateenergy delivery …Metering was about “Feeding” Utilities’ Commercial Processes MeterReading Clearing Billing Metering Commercial Processesof Utilities 3 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

4. Utility Networks are “One Way” Networks –Last Mile is “Blind” Automation /Real TimeFeedback Very High High Medium / None None / “Blind“ 4 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

5. Thereis a GrowingUrgencytomaketheElectricityGrid“Smart“ Lack of real-time monitoringandcontrolcapabilities Supply – demandimbalance One-waytransmissionfunctionality Advancedageofgridinfrastructure 5 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

6. We are in a Transition Phase Today’s challenges… …quality, security and reliabilityof supply …cross-border power trading and grid services …integrated distributed generation and renewable energy …ambitious energy policies and environmental goals …electric vehicles …real time and variable pricing …growing expectations from consumers 6 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

7. A Vision ofthe Future Electricity System User specified quality,security and reliability ofsupply for the digital age Coordinated local energy management and full integration of Distributed Generation and Renewable Energy Source with large-scale central power generation Flexible DSM and customer-drivenvalue added services Extensive small, distributedgeneration connected closeto end customers Flexible, optimal andstrategic grid expansion,maintenance and operation Harmonized legal frameworks facilitating cross-border trading of power and grid services Source: European Commissioncommunityresearch 2008 7 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

8. What is a „Smart Grid“? “A SmartGrid is an electricity network that can intelligently integrate the actions of all users connected to it – generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies.” European Technology Platform SmartGrids 8 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

10. 15 minutes to real-time meter reading

11. Processing large amounts of data

12. Larger bandwidth communication

13. Openness, interoperability, security and IP

14. Meter & communications enabled SolutionsAdvanced Metering Smart Meters & Comms Demand Response MeterDataManagement Distribution Automation 9 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

15. Smart Metering – the Building Block of the European SmartGrid Central Power Plant Offices Metering is “feeding” commercial processes …and is providing real-time data, enabling “smart” operational processes Homes Storage CHP Micro Turbines Fuel cells Industrial plant Virtual power plant Wind turbines Source: European Commissioncommunityresearch 2008 10 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

17. Tackling and balancing

18. network constraints

19. growing demand

20. competitive pressure

21. Consumers’ & society’s interest in sustainable energy usage

22. Providing Data to manage the Smart Grid Distributed Generation Virtual Power Plant 11 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

23. Providing Information Software Communications Telco RenewableEnergy System Integrators EnergyMgmtServices IndustrialAutomation Home Automation 12 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

24. The Metering Point becomes the “Enabler” SmartMeter Electricity Gas Heat Water 13 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

25. Making theGrid Smart Regulator Consumers System Operators Data Environment TechnologyProviders Application & ServiceProviders 14 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

26. 15 You can have “Smart Metering“without the “Smart Grid”… …but the“Smart Grid”is built on“Smart Metering” 15 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

27. ? ? ? ? ? 16 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009

28. Thank you 17 Advanced Metering – the Foundation of the Smart Grid – Andreas Umbach / March 18th 2009