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the Integrated Utility of the Future
As the worldwide utility industry rushes forward with new smart grid projects funded by national stimulus programmes, they will need sound, tested technologies and clear architectural strategies that help them to succeed as stewards of taxpayer money.
A reference architecture for the utilities industry’s smart energy ecosystem, consequently, is needed to help create a world where thousands of smart devices can seamlessly and securely plug into the grid thanks to common standards and interoperability frameworks, just as the plug and play model allows thousands of devices to seamlessly plug into PCs today.
This reference architecture can serve as the basis for the development of the “integrated utility of the future” -- enabling utilities to enjoy significant benefits from ever greater collaboration, especially as the smart energy ecosystem, including the smart grid, evolves and requires the integration of everyday business processes and regulatory compliance.

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By having the reference architecture for the smart energy ecosystem available to them, enterprise customers will have the solutions they need to make the smart grid a reality.
The reference architecture for the smart energy ecosystem helps utilities by providing customers a method of testing the alignment of information technology with their business processes as they evaluate how those IT solutions fit the requirements of the smart energy ecosystem and create an integrated utility.
The reference architecture also will aid independent software vendors (ISVs) in their efforts to create new solutions that serve the needs of the smart grid/smart energy ecosystem, and it can serve as a basis for the IT industry to discuss in depth and develop interoperability standards.
And, not least, the reference architecture will improve customer service and reduce the impact of energy usage on the environment.
It not only will enable utility customers to take advantage of the greater availability of “green energy” from sustainable sources such as wind and solar, but also will encourage them to substantially cut their energy usage, and costs, through new tools, including the direct feedback from smart metering systems and advanced energy usage analytics, as well as indirect feedback from improved billing processes.
In short, the reference architecture for the smart energy ecosystem will in the future provide a roadmap for utilities to solve their integration issues.
It will help to show how applying standards for solving integration issues across the enterprise can enable and accelerate the smart energy ecosystem.
For example, by unlocking the data that currently exists in disparate systems or silos across the whole utility value chain.
It also will empower users to drive improvements in real time, as well as to accelerate continuous improvement over time, especially as technologies and approaches to enabling the smart energy ecosystem advance and evolve over time.
In essence, the reference architecture helps puts the smart in our future’s energy ecosystem.
Smart grid savings
Smart metering and smart grids can save GCC utilities and governments US$5-10bn, according to a report by AT Kearney.
Based on analysis of the energy sector in this region, the firm believes the GCC to be on the forefront of the smart grid revolution.
“Smart meters are the technology of the future to measure real-time-electricity which enable consumers for the first time to control and monitor their electricity consumption via the internet or home displays. Pilots have shown that ‘consumption aware’ and ‘informed customers’ reduce their consumption by around 10%,” said Christian von Tschirschky, principal, AT Kearney Middle East.
Smart grids allow direct intervention of a utility company into selected consumers’ consumption during peak times.
At A.T. Kearney we estimate that GCC utilities and governments can avoid investments of around $5-10bn into peak load capacities, up until 2020. In addition they can potentially reduce the peak load demand by 10-20 percent through effective customer behaviour changes, that evolve with smart metering implementation and the usage of remote control of air conditioning systems,” added von Tschirschky.
The UAE and Saudi Arabia are currently piloting smart grid projects and it is expected that these countries will adopt the technology relatively quickly.
“The investments in smart metering will pay-off, considering the cost reduction in operations and the reduced investment demand for additional power plants. It is an efficient way of managing and securing electricity supply as well as the future contributions from alternative energy,” concluded von Tschirschky.
Global smart grid figures
US€1 trillion - estimated spend on Europe’s electricity network by 2030
€6.2 billion – amount spent in France on smart grid initiatives, 2009-2016
$169 billion – approximate figure China will spend on utilities as part of stimulus plan
US$5-10bn – amount Middle East governments can save through smart grids according to reports
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