Two examples of IoT business models for utilities are described:
1) A "Smart Energy for everyone" model that provides cost-optimized meter reading and customer services even in unregulated markets using IoT technology.
2) An "Energy management services via lean building automation" model that provides remote monitoring and parameterization of building assets like meters, heating systems, and pumps to optimize processes and costs for real estate companies.
The document then provides more details on a lean metering solution and lean building management solution that utilities could offer using IoT connectivity and analytics.
Unblocking The Main Thread Solving ANRs and Frozen Frames
IoT business models for Utilities? Here they are!
1. IoT business models for Utilities? Here they are!
2 examples from the market :
- Smart Energy for everyone, even the unregulated market
- Energy management services via lean building automation
Digital Utilities 2018
6. Lean Metering
A solution for cost optimized meter reading
and customer oriented services – even in
the unregulated market
7. Cost optimized meter reading
Multi use case business model: Separate, independently applicable use cases can be
combined to one whole solution based on IoT technology
Grid operatorcollects meter data via
„Walk-by“ or „Drive-by“. Could be carried out by
the postman, garbage collection, or similar, who is
equipped with a simple receiving unit. Reduces
costs and improves the data quality.
Customer retention/ Data
acquisition
Sales department collects high
resolution meter data (up to one value/sec) via
cost efficient customer gateway. Based on this
highly granular data, additional services to
improve customer retention can be established.
2
1
3
4
…
Value added services
Smart Home integration
Many more
8. Optimized meter reading:
No technical hurdles during installation, readout, data processing and retrofitting
Standard meter
New Standard-Basic-Meter (in Germany „moderne Messeinrichtung“/mME). Already in
portfolio of three well known meter manufacturers. Installation without additional
knowledge. Equipped with state of the art IoT technology including near and wide area RF
connectivity.
ERP inclusion
A simple receiving unit automatically
collects meter data and reports to your
app, ERP and billing systems. Far more
than the status quo of once a year.
9. Optimized meter reading:
Very low investment risk – amortization after 2 to 4 years
Profitable after 2-4 years
Even without charging the end customer for the additional costs, the
system can be profitable within 2-4 years. This can be achieved through
improved data quality (higher granularity, exact values) which results in
optimized processes for energy purchasing, invoicing for process payment,
… .
Low cost due to IoT technology
The additional cost of IoT technology included within the meter can easily be
offset through additional benefit over the meter lifetime.
For Germany: Costs are still covered by the regulatory maximum revenues for
installation, readout, operation, maintenance and deinstallation of
20€/mME/year.
10. Customer retention through data insights:
Cheap customer gateway and visualization platform
Gateway cost starting from 25,- €
IoT technology offers cheap but highly functional gateway units for end customers. The
gateway includes multiple communication options such as ethernet and wireless
connectivity. It offers local data storage and access by the end customer.
End customer APP‘s
Existing backends and app frameworks with specialized
analytics for energy data disaggregation, interpretation
and visualization are provided. The annual cost for this
kind of infrastructure is approx. 5€ per customer.
11. Customer retention with data insights:
2 step approach creates benefit for end customer and utility
Increased customer satisfaction
In step one the meter data is stored locally on the gateway, thus regulatory and data privacy aspects are adhered
to. No data leaves the customer network before they provide an opt-in.
In step two the end customer has to give their opt-in to transfer the measured data to the backend. As a benefit
they are offered several additional functionalities.
With step two the meter data can also be forwarded for billing purposes, as a result even the walk-by/drive-by is
no longer required for these customers
Value added services
Data analytics,
device
recognition,
disaggregation
Home control,
gamification and
cost savings
Cross-Selling
Smart-Home or
AAL
Tool for brand
communication
12. Key Technology feature
• Dual RF technology with intelligent negotiation method inside the meter allows best performance in combination with
multiple use cases. Sub GHz frequencies ensure connectivity even in larger buildings by using FSK and LoRa modulation.
• The data granularity is very high even in longest transmission intervals :
Single- or semi-detached houses (2 floors): data interval 1-2s, latency 5-15s
Smaller apartment buildings (3-4 floors): data interval 3-5s, latency 30-60s
Bigger apartment buildings (up to 12 floors): data interval 7-25s, latency 120-180s
• The high data quality allows very detailed analytics, especially disaggregation to identify attached consumer devices.
• All communication is IP based including „state of the art“ security methods, for device inclusion and all communication.
The security methods are based on recommendations from the BSI. Data protection is ensured in case of a change of the
end customer
• Innovative features allow a high density of meters and GWs which is essential for a rollout in urban areas
14. • Data analytics and visualization is provided through established cloud
platforms which can be adopted to special requirements if needed
• Standard interfaces to other platforms already exist or can be adopted
• Measured values and parameters are collected and transported
via a simple GW seamlessly from the device inside the basement
to cloud
• At the same time parameterizing of devices and assets based on
data insights can be applied
End – to – End management solution
15. The solution today and in the future
Photovoltaics
E-cars /
charging
Smart Home
Available today
Power Water Gas PumpHeat Heating
A solution starting in the basement,
growing to cover the whole building
16. The IoT advantage
scalable the central cloud based Building-Management-Application fits all requirements for the
remote management of current and future use cases
Future proof The communication technology used is highly dynamic and easy to adopt even if already
rolled out in the field. In combination with well established Internet-Standards (IP-
Technology) a future proof solution has been created which is flexible, modular and works
across domains
Connectivity The RF technology used convinces with high range and material penetration in and
outside of buildings – best suited for areal units! A combination of long and short
range wireless protocols ensure connectivity in all situations
safe All communication is encrypted with state of the art technology. The security is ensured
seamlessly from the device to the cloud
lean Significantly reduced effort and cost of hardware, installation and engineering by
use of a simple architecture and IoT technology
17. An offer from utilities to tie in real estate or local authorities by enabling new opportunities
Cost reduction! Optimization, modernisation, Invest! Improve services, raise value!
• Reduced cost / effort for meter reading
• Less travel for error diagnostics
• Avoid manual processes in administration
for billing
• Combat lack of transparency around
detailed consumption in concrete buildings
• Stop oversizing in new investments for e.g.
heating where rough estimations often
result in oversizing
• Identification of errors prior to complaints
from residents
• Offer of new services, e.g. power
subcontracting by real estate for residents
• Increased efficiency, reduction of heating
cost
IoT based (retrofit) solutions are helping to digitalize business and offer new business models for
utilities and real estate companies
18. Example: A leading real estate
company
Monitoring of meters as well as monitoring and
parametrization of assets within the central boiler
room
• Gas meter (Elster) via Impulse-Interface (outside boiler room)
• Heat meter (aquametro Amtron Sonic D) via
RS232-interface
• Viessmann-Heating, MODBus-Interface
• WILO-pumps via MODBus-Interface
• Unity Media-Internet connection inside the building
for Cloud connectivity
19. Why this solution?
Business benefits for utilities
Customer retention enabling new services models and offers for B2B customers such as real estate,
local authorities etc.
Energy services offer of new business models
Business benefits for User
Optimize process costsreduced administrative and maintenance costs through remote control, predictive
maintenance and automation
Save decisions detailed knowledge of device condition and requirements of properties allow
better decisions regarding new investments
Efficient devices aata based knowledge allows an optimization of asset parameters and thus an
efficient operation
New business models digital buildings open doors for new business models and allow new services
by extension of the open system through third parties