Private Radio CDMA Network for Smart Metering
- 1. Andries v/d Meulen – Alliander Rob Kopmeiners – Alliander Final – v1.0 Private National Radio Network as a communication backbone for AMI Metering Europe 2010
- 2. Introduction Motivation 450 MHz Frequency and CDMA technology Proof of Concept Technology analysis Approach Results Business analysis Approach Results – Financial and other Conclusion Contents
- 3. 287 Introduction - Motivation The world is changing for DSOs because of a.o. introduction of electric vehicles, growth of decentralized energy generation and changing regulation As a result there is a growing need for data communication solutions that can meet long-term requirements coming from smart metering, smart grid, in-home automation and energy management The Dutch DSOs are developing a data communication strategy to face the challenges involved with these developments A final choice for a data communication solution for smart metering has not yet been made: Current GPRS has uncertainty of long-term commercial availability (>2025) Current PLC solutions do not economically fit into scattered roll-out scenarios The availability of a yet unused private radio license gives an unique opportunity to set-up a private radio network and perform a proof of concept The Proof of Concept is performed by a consortium of DSOs (Alliander and Enexis) and a Telco (KPN, owner of the license) between November 2009 and May 2010
- 4. 287 The CDMA Proof of Concept (PoC) is carried out by three parties: Objectives of PoC: The PoC investigated whether a private CDMA 450 MHz network fits within: The technical criteria for smart metering such as coverage, capacity and response time The business criteria such as financials, strategic fit and risks Alliander is the largest grid utility in the NL with over 5.000 employees and 2,8 million customers (Gas and Elec.) Enexis is the second largest grid utility in NL with 2,6 million customers (Gas and Elec.). KPN is the leading telecom. and ICT service provider in NL. KPN is owner of the 450 MHz license Introduction – Proof of Concept
- 5. Dutch Smart E-meters are situated “deep” indoor from a radio perspective, mostly in separate metering closets A relatively low frequency band (450 MHz) gives wide coverage and deep indoor penetration, making it suitable for communication with Dutch smart meters Wide coverage per base station implies less base stations compared to higher frequency bands, thus making it more cost effective The lower available bandwidth is expectedly sufficient for end-to-end communication such as smart metering 287 3.6 km 7.9 km 11.6 km 450 Mhz – CDMA 1800 Mhz – GSM, GPRS, UMTS 900 Mhz – GSM, GRPS, UMTS Introduction - 450 MHz frequency
- 6. 287 Introduction – CDMA Technology CDMA* is currently the only commercial available technology on the available 450 MHz frequency band CDMA technology is comparable with GSM/GPRS technology. It codes different simultaneous voice and data-users in one radio band, so they can all communicate at the same time World-wide, CDMA is utilized by more than 500 million end-users and CDMA 450 MHz by more than 100 million in over 60 countries for voice and data. In a few countries (a.o. Estonia and Korea) CDMA 450 MHz is used for smart metering Note: (*) Code Division Multiple Access CDMA technology has favorable radio interference features and is relatively difficult to intercept from a security perspective Most widely used CDMA technologies are: 1X: standard (bit rate of 150 kbps per cell) EV-DO: “Evolution Data-optimized” (bit rate of 1.8 Mbps per cell)
- 7. 287 Technology - Approach Realization of a CDMA 450 MHz IP communication network based on 1X technology with 50 base stations in only a few months, covering 10% of the Netherlands with a typical set of geographical area types (urban, rural, etc.) Development of an AMR end-to-end metering chain according to DSMR v2.31 370 CDMA 450 MHz E-meters in field and lab-trials, developed with subcontractors Xemex , Landis+Gyr and Netinium Verification and testing of technical criteria: Coverage Model Capacity Model Response times Measurement AMR use case support Test Latency Measurement Availability Measurement Security Analysis Interference Test Human Electro sensitivity Test Determination of data communication profiles of smart metering and other DSO related applications Validation of approach, test results, modeling and conclusions by independent institute (TNO) Note: (*) Dutch Smart Metering Requirements
- 8. 287 Results show that the PoC CDMA network complies with technical criteria for smart metering Approx. 275 base stations are required for 98% (±1%) coverage in the Netherlands Increase of coverage to 100% gives approx. double number of base-stations Capacity is sufficient for approx. 60 million standard interval readouts per day Smart meter CAS Base station Base station Smart meter Technology - Results
- 9. 287 Business Criteria Financial Other What are the delta Total Costs of Ownership for a CDMA 450 MHz network for smart metering over 25 years compared to the current business cases? What are the costs per meter per year allocated to the participating DSOs? What is the financial impact of using CDMA 450 MHz communication modules compared to alternative solutions (e.g. GPRS and PLC)? What are financial effects of potential upsides beyond the smart meter? How does owning an own CDMA 450 MHz network fit to the strategic frameworks of the participating DSOs? What risks are involved in using a private dedicated CDMA 450 MHz network for data communication purposes (e.g. smart metering) and how can these risks be mitigated? Business - Approach
- 10. 287 Business – Financial results Results From a TCO perspective, the building and exploitation of a CDMA 450 MHz network in the Netherlands over a 25-year period is comparable with current DC-based PLC solutions and is more cost effective than current GPRS offerings DC-based PLC is more cost effective than CDMA and GPRS because of the lower costs for the communication modules Market analysis shows that the costs for CDMA communication modules will become comparable with costs for GPRS modules GPRS is less cost effective for data communication than CDMA because of commercial prices and the higher number of base stations Model is sensitive for adjustments in pricing of communication modules and costs for maintenance Dutch DSOs have to build and exploit the network together in order to increase cost-effectiveness Upside potentials A private CDMA 450 MHz network for smart metering can, at marginal extra investments, also be used for additional DSO related applications, such as charging points for electric vehicle and public lightning. Furthermore, it can be engineered to ensure communication during black-outs
- 11. 5 Strategic Fit A private CDMA450 network could provide a solution for issues involved with GPRS and PLC Enexis as well as Alliander are in the process of developing a strategy on data communication. Important considerations are e.g.: To what extent should data communication be a core activity of a DSO? How should aspects of flexibility versus future-proofness be assessed? To what extent should a DSO have control over the design and/or management of a data communication network? Is ensuring availability of communication during black-outs essential for the DSOs? … Risks One of the significant risks is the availability of CDMA equipment Another important risk concerns the long-term access to the license. The license has been granted to KPN until 2020. Current regulations prescribe an auction in 2020 where the license can be obtained, but at a yet unknown cost l l 2010 2015 2035 e.v. 2020 2025 2030 450Mhz frequency license Frequency auction Business – Other results
- 12. 5 Conclusions The Proof of Concept was successful: Technical: A private dedicated CDMA 450 MHz network in the Netherlands complies with all criteria for smart metering and is expected to comply with smart grid scenarios during its life span Business: From a TCO perspective, the building and exploitation of a CDMA 450 MHz network in the Netherlands over a 25-year period is comparable with current DC-based PLC solutions and is more cost effective than current GPRS offerings Building and exploiting a private radio network is a serious alternative to commercial/public radio networks and PLC in smart metering. A private dedicated CDMA 450 MHz network could provide a solution for issues involved with GPRS and PLC and has attractive upside potentials Next steps The Dutch DSOs will have to further develop their data communication strategy and, on the basis of that, make a decision on their data communication Disseminating the project results in Europe, especially in E-UTC and determine the need, the possibilities and willingness for a Private European Radio Network. Conclusions
- 13. 5 Thank you very much for your attention!