the challenges to implementing an amr system in the middle east

The Challenges to Implementing an AMR System in the Middle

EastPresented By:

Maha Chalouhi Chalhoub

NEEDSNear East Engineering and Development Services

Date:

February 1, 2005

Table of Content• Energy Status in the Middle East

• AMR Enterprise Solution

• AMR Challenges in the Area

• AMR Potential

February 1, 2005

2

Energy Status in the Middle East Countries

Electric Generation Capacity in some ME countries

1.5

17.7

31

5

1.7

26.6

9.3

2.2 1.475

7.6

32.3

5.6

0

5

10

15

20

25

30

35

Country

GW

2003 Total Generation Capacity in the ME :

154 GW

* Check Source of Information Slide

February 1, 2005

3

Projection of Electricity Consumption in the ME Area (2001-2025)

926818

723635

476

0100200300400500600700800900

1000

2001 2010 2015 2020 2025

Year

TW

h

Average Net Electricity Consumption Growth:

2.8% / year


* Source: Energy Information Administration

February 1, 2005

4


Projection of Natural Gas Consumption in the ME Area (2001-2025)

12.1

10.5

8.57.9

0

2

4

6

8

10

12

14

2001 2010 2020 2025

Year

Tri

llio

n C

ub

ic F

ee

t

* Source: Energy Information Administration

February 1, 2005

5


Facts in the Middle East:

- Saudi Arabia has 25% of proven oil reserve, UAE 10%, Kuwait 8%.- 2004 KSA oil exports revenues > 100 billion $- 2001: ME produced 32% of crude oil world production- The largest reserve of natural gas is in ME: 3rd in Qatar, 5th in UAE: ME holds 35% of world’s estimated reserve in gas- 2004 GDP Growth: UAE: 4%, Bahrain/Jordan: 4.6%, Qatar: 4.7%, KSA: 6.1%.- Dubai: the Model of the New 21st Century City: Internet City, Children’s City, Festivity City, Knowledge Village

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6

Population Growth

Maturity of Various Business Lines

Economic / Industrial Boom

Great Potential Business Market Area


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HOWEVER…

- Electricity Prices differs from lowest prices (Qatar, Saudi, UAE, Syria) to the highest prices in the world (Lebanon, Jordan)

- Losses are stamped by non-technical losses like electricity theft that may reach 24% of production

- Electricity Demand may exceed sometimes electricity supply leading some ME countries to import electricity from neighbors to avoid black-out

- Many ME Power Sectors are State-Owned: No competition.


* Check Source of Information Slide

February 1, 2005

8


Operation Deficiency

High Rate of Non-Technical Losses

Quality of Service not matching Quality of Life

Great Potential for Customer Services Improvement

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9


Transformations in Middle East Power Sector:

- Qatar: 2000: Privatization: Asset of MEW → QEWC 2001: Ras Laffan IWPP

- Bahrain: In 2004: First contract for IPP / Consideration of Privatization of entire electricity sector

- UAE: In 1998: ADWED → ADWEA / 2nd IPP in Gulf area

- Jordan: Deregulation distribution and generation power network

-In 2002, grid linking project: Egypt, Jordan, Syria and others

February 1, 2005

10

Technologies Adoptedin the Middle East Countries

Automation

Projects (EMS/DMS)

LV AMR

Pilot Project

BAHRAINNational Control Center Trends

Serious Efforts in ME were put to manage the HV Level. Why not the MV and LV Device ?

AMR Pilot Projects/Contract

Signature

National Control Center

February 1, 2005

11

Generation Level

Transmission Level

Distribution Level

Consumer Level

Black-outs

Historical information

Classic network

Continuous Supply

Responsive, Intelligent Network

Real-time Information

Non-technical lossesImmediate Actions Required

Manual / lengthy collectionAutomated / Remote

Today Utility Objectives February 1, 2005

12

Generation Level

Transmission Level

Distribution Level

Consumer Level

Black-outs


Classic network

Continuous Supply



Fraud unidentifiedImmediate Identification


Today Utility Objectives February 1, 2005

13

Automation Status in the MEFebruary 1, 2005

14

Enterprise Utility System

CISCISEnhanced energy tracking,

data analysis, and customer relation

MISMIS Developed policy setting,

cost/benefit analysis and work flow procedure

WISWIS Warehouse Control,

Minimum Stock Monitoring,Purchasing Control

Automation:Automation:Automatic Meter Reading

LOAD ManagementDistribution AutomationSubstation Automation

NEEDS Master PLAN“Enterprise Utility System”

GISGIS

Network Mapping, Data Management,

Utility Business Activities

DMSDMSImproved operation,

Quality of service,

Productivity improvement

EMSEMSSecure Operation, Quality of Supply, System Efficiency

February 1, 2005

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Financial Flow

Flow measurements

& control settings Billing & collection

management systems

Monitoring control

& reliability of supply

Technical Flow

Technical and non-technical losses

Fuel

Digital Modeling of a Utility

Generation Transmission Distribution KWh

79

3 Phase

Consumption Water, and Electricity

DM CMNM NM NM

Financial Flow

METERING THROUGHOUT THE NETWORK IS THE CHALLENGE

February 1, 2005

16

i

i i

i

i i

i i

i

Generation Level

Transmission Level

Distribution Level

Consumer Level

Black-outs


Classic network

Continuous Supply



Fraud unidentified

Immediate Identification


AMR Transforms the UtilityFebruary 1, 2005

17

i

i i

i

i i

i i

i

AMR Transforms the Utility

UTILITY BENEFIT: Cost Minimization of Customer Management Course of Action

February 1, 2005

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i

i i

i

i i

i i

i

AMR Transforms the Utility

CUSTOMER BENEFIT: Customized Tariffs & Value Added Services

February 1, 2005

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Bills Collected

Bills Issued

Bills CollectedEnergy Distributed

Bills IssuedEnergy Consumed

Increasing Increasing

Collection Collection

EfficiencyEfficiency

Enhancing Enhancing

Reading Reading


Improving Improving

Overall Overall


Energy Distributed

Bills

Consumed

Bill $Bill $

Bills

Collected

Bill $Bill $

Bills

Issued

Bill $Bill $

Transactions EfficiencyFebruary 1, 2005

20

i i

i

i i

i i

i

i i

i

i i

i i

Supply – Demand BalanceT

echn

ical

Flo

wF

inancial Flow

February 1, 2005

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AMR: The Business Driven Approach

Au

tom

ati

c M

ete

r R

ea

din

g T

ec

hn

olo

gy

System Not Open

No Enterprise System No

IntegrationEnergy /

LoadTracking

ResourcesManagement

CostOptimization

Load Management

February 1, 2005

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AMR ImplementationBottleneck in ME Countries

IMPLEMENTATIONBOTTLENECKS

Investments RisksFear of Unrecoverable Cost

Lack of EnterprisePerspective System Not Open

Lack of Standards

Regulatory Uncertainties Solution Driven by ProductUncertainty to Capture Value

Immaturity of Digital Utility Concept

Absence of Awareness

February 1, 2005

23

More Understandings of Utility’s / Customer’s Needs &

Expectations

More Understandings of Utility’s / Customer’s Needs &

Expectations

AMR : How to Move Ahead?

- Involvement of Regional Role- Understanding Implementation Constraints- Building Internal Capabilities- Use of Advanced Technologies

- Changing or Upgrading Meters- Meeting Dynamic Growth- Financing Strategies Elaboration- Benefit/Cost Payback Analysis- Decision Support- Strategic Planning Development - Portfolio Creation Dynamic Rate Structure

More Awarenes

s

More Expertise & Dedicated Consultancy Services

February 1, 2005

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Turnkey AMR System Project

Contract Negotiation

Technical Specification

Request for Proposal Preparation

Bid Evaluation

Vendors

Pre-Qualification

Feasibility Study

System Development and Testing

Meters Installation

February 1, 2005

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AMR Potential

4-6%LOSSES

Well Structured Network

8-25%LOSSES

Current Networks

AMR

Because only 1% LOSSES in 1GW

Current Networks

SMinimum 2.5 Million

February 1, 2005

26

AMR Potential

Electric Generation Capacity in some ME countries

1.4

17.7

31

5

1.7

26.6

9.3

2.2 1.475

7.6

32.3

5.6

0

5

10

15

20

25

30

35

Country

GW

Cost of 1% Losses (Million USD)

3.75

44.2

77.5

12.54.2

66.5

23.2

5.5 3.7

19

80.7

14

0102030405060708090

Bahra

in (2

002)

Egypt

(200

2)

Iran

(200

3)

Iraq(

2004

)

Jord

an (2

003)

KSA (200

3)

Kuwai

t (20

04)

Leba

non

(200

3)

Qatar

(200

4)

Syria

(200

2)

Turke

y (20

03)

UAE (200

2)

Country

Mil

lio

n U

SD

February 1, 2005

27

Projection of Electricity Consumption in the ME Area (2001-2025)

926

818723

635

476

0100

200300

400500

600700

800900

1000

2001 2010 2015 2020 2025

Year

Bill

ion

KW

h

Projection Cost of 1% Losses of Electricity Consumption in ME Area (2001-2025)

238

317.5361.5

409

463

050

100150200250300350400450500

2001 2010 2015 2020 2025

Year

Mill

ion

USD

AMR PotentialFebruary 1, 2005

28

Source of Information

• Dubai Electricity and Water Authority (DEWA)• Abu Dhabi Electricity and Water Authority

(ADWEA)• Energy Information Administration• The World Bank• The United Nations Stats• The Saudi Arabia Information Resource• Emiri Diwan - Qatar

February 1, 2005

THANK YOU

For More Reference:

Paper ‘Transforming the Utility Business Environment’ / Metering International / Issue4

Contact Address: [email protected]

the challenges to implementing an amr system in the middle east

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