Smart Metering Implementation Programme_A road to a Smarter HomeEuropean Utility Week| October 16, 2013

Smart Home?

First step towards Smart Home_

Introduction_

Sub-stationsMeter

Home/Building

Generation Retail SellingDistribution

Power Plant

CT

The first step toward Smart Home is Smart Metering and the use of intelligent meters to measure and manage energy consumption at home

How has consumption being measured up to now?

Context_

Manual readings

or walk / drive-by

User consumption reports

Consumption estimation

Which are the main Smart Metering benefits?_

Consumers Goverment / Country

• Less and more efficient energy consumption

• Precise invoice• Value added services

Utilities

• Efficient demand planning

• Less operation costs

• Investment deferment

• Regulation compliance

• Increased customer loyalty

• Better environmental management

• Less dependencieson external energy resources

• Competition increase

Smart Meteringis not a question of “IF”, it’s a question of “WHEN” and “HOW”_

Context_Smart Metering momentum is determined by:• European Directive:

• UK

• Spain

• First Brazil Legislation (Feb’14)

Regulatory Stimulation

• Fraud

• Incentives / subsidies

• Avoiding Penalties

• Operating Savings

Positive Business Case

• Standardization

• Interoperability

• Leadership: Government / utilities

Model Definition

• Support to energy efficiency

• Energy dependency on external providers

Country Conditions

Communications and metering environment development level

x

Success Case

UK_Telefónica is involved in the largest Smart Metering project in the world

Million managed meters

K million €

Years contract

Million communication hubs

42

1,7

15

23,4

• Cellular Communications Hub (CH) combined with RF Mesh

• Low investment in infrastructure: use of already deployed cellular network

• Mature communications technology in continuous evolution

• Future proofed solution (3G) ready for value added services

• Secure and scalable solution

Telefónica solution_ overviewUK_ success case

BTS

SMIP Benefits_Comply with sustainability policies

Improve customer service

Drive innovation to Smart Home

Reduce energy consumption

UE directive: 80% SM deployment in 2020

UK Mandate: 100% SM deployment in 2020

53 mill. Meters (electricity and gas)

30 mill. homes

National Programme for SM implementation

Project summary_Success Case: UK_

42 mill. Meters (electricity and gas)

23,4 mill. homes

Communication Services Provider

Managed Connectivity and communication hubs

2 of 3 regions (Central and South)

SMIP programme opens the door of the Digital Home to value added services_

DIGITALHOME

In-home

display

eHealth

Digital Home

sustainability

Security

Preventive Heaters

maintenance

Water Meters

Why Telefónica?_Model based on existing communication networks to assure cost efficiency in long term projects

• Global Leader company with footprint in 25 countries

• 314 million accesses

• Deployed network in continuous evolution (“future-proof”)

• Scalability and Security

• Standardization and interoperability opening doors to innovation and development

• e2e solutions with industry partners

Teléfonica can address transforming projects of energy smart grids and smart

homes_

13

Thanks for your attention_Emilio Martínez de la Fuente  |  Telefónica Digital

Head of Smart Metering  |  Global M2M

emilio.martinezdelafuente@telefonica.com_