Smart Metering: Spotlight CEZDistributie Oltenia (Romania)Lukas Gebhardt I Portfolio ManagerCosmin Ghita Director of Digitalization & InnovationUnrestricted Siemens

Major factors drivingthe revolution of energy systems “All electric world” - Fluctuating infeed – e-MobilityCO2Prosumercentric energyworldPower production from renewablesIncreases by over 300% between 2010 and 2030Share of renewables goes up to 40% in 2030Distributed generation – Microgrids – Energy autonomyNew installations distributed power generationIncreases by over 150% between 2010 and 2030Share of distributed goes up to 67% in 2030Connectivity - Grid edge - End-to-endNew installations global smart metersIncreases by 200% between 2015 and 2025Reaches 100 million p.a. in 2025AG 2018Unrestricted Siemens 2019.Page 2June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Smart Metering is a major driver of thedigital transformation of energy systemsUnrestricted Siemens 2019.Page 3June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Metering system architectureSiemens supplies all system elementsBilling e.g. SAPBilling, Market transactionsMeter Data ManagementHead End erMeterVendor 1Vendor 2Vendor n G3-PLC (PLC PowerLine Communication) Gateway controls physicalmeter communication via PLC Logical Integration of (different) meters in HES (not in GW);SiemensIMx503rd partymeter3rd partymeters Secure E2E-communication between meters and HESUnrestricted Siemens 2019.Page 4June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Siemens offers EnergyIP powered byMindSphere a future proof solutionplatform for the all electric digitalizedenergy worldUnrestricted Siemens 2019.Page 5June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

EnergyIP powered by MindSphere –Flexible scalable platform for more and more smart grid applicationsEnergyIP MDMAnalyticsMeter DataSuiteManagement No CAPEX, less riskwith Software as aService. Running in avirtualized public datacenter e.g. AWSUnrestricted Siemens 2019.Page 6June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

EnergyIP MDM powered by MindSphereHighlights Process meter data from various smart meter vendorsautomatically to implement efficient processes for Data validation and estimation – automatically identifyand correct device errors, wrong measurement valuesto ensure complete and accurate data sets Meter to cash – automatically transfer billingrelevant data to billing system (e.g., SAP) Flexible application support via single pointof integration to CIS and other systems Out of the box reporting and AMI vendor independentUnrestricted Siemens 2019.Page 7June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

EnergyIP Grid Application Platform and applications are provenin 80 installations worldwideUnrestricted Siemens 2019.Page 8June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Actual Smart Meter projects with Siemens Austria participation4’4 Mio meter points contracted with AT-MasterAustriaRomaniaFOCUS TOPICSOperational EfficiencyEnd-to-End SecurityBusiness Process OptimizationSmart meter projects with Siemens participationUnrestricted Siemens 2019.Page 9June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Operational EfficiencyUnrestricted Siemens 2019.Page 10June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

AT - MasterFocus topics of Smart MeteringOperational Efficiency: MOC is our answerIntegration-Layer BackendMOCMDMKMSAbstraction-Layer HESMetering Operation Center (MOC) Group ManagementAlarm & Event CorrelationCampaign ControlsDashboardsGIS IntegrationsUnrestricted Siemens 2019.Page 11June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

End-to-End SecurityUnrestricted Siemens 2019.Page 12June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

AT - MasterFocus topics of Smart MeteringEnd-to-End Security: KMS is our answerIntegration-Layer BackendMOCMDMKMSAbstraction-Layer HESKey Management System (KMS)Responsible for Key Management Secure Storage of device keys for each meter role Key life cycle management Backup & Recovery of symmetric device keysResponsible for Key Usage Message de-/encryption, signing and signature validationUnrestricted Siemens 2019.Page 13June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Business Process OptimizationUnrestricted Siemens 2019.Page 14June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Focus topics of Smart MeteringBusiness Process Optimization: AT-Master is our answerAT - MasterUC: On Demand ReadIntegration-Layer BackendMOCMDMKMSAbstraction-Layer HESAT-Master MDM MOC KMS InterfacesTemplate to cover the business needs of Smart MeteringIn total 93 Use-Cases (IDIS, ÖE, ) clustered in 12 groups: SelectSwitch off / release forrecommissioningParameterizationFirmware UpgradeEvents/AlarmCalibration/TestingGateway / Dataconcentrator UC: Hard ConnectSecurityInstallation and CommissioningMeasurement DataMaster Data SynchronizationManagementDevice StatusOn-site Use CasesLoad ManagementUnrestricted Siemens 2019.Page 15June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Smart Metering: Spotlight CEZ DistributieOltenia (Romania)Unrestricted Siemens 2019.Page 16June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

SMART METERING INROMANIADEO presentationJune, 2019Vienna

18FROM A CZECH COMPANY TO AMULTINATIONAL GROUP – CEZ ASINVESTMENT IN ROMANIAHydroelectric system of micro hydro-plants in CaraşSeverin 30 mill. Euros invested in the refurbished processes Installed capacity: 18 MW before the refurbishment andalmost 22 MW after sitaBotosaniDevaSibiuTîrgu auSloboziaBucurestiCalarasiGiurgiuThe wind park form Fântânele, Cogealac and Grădina 1,1 bln. Euros investment Installed capacity: 600 MWThe CEZ wind park is the largest on shore wind park inEuropeVasluiGalatiBrailaTulceaStage Fântânele: First stage of the project– 139 wind turbines; Construction began in October 2008 Was connected to the grid in June în 2010ConstantaStage Cogealac: Second stage of the project - 101 wind turbines; End of construction: Dec. 2012Distribuţie Oltenia: energy distribution in 7Counties (in the area of former Electrica Oltenia)CEZ Vânzare: supplier for more than 1,3 mil. declients (economical and house holders)18CEZ Trade: energy transaction (en-gros market)CEZ România: management and services supplier forthe companies of CEZ Group in Romania)

INITIAL NATIONAL SMART METERINGIMPLEMENTATION PLAN WAS 80%DEPLOYMENT BY 2020Smart metering implementation – high benefits estimated2012 ATKearney study for Romania prepared for ANRE showed benefits in 80%deploymentFinancial inputATK caseEquipment lifetime20 years for technical15 years for WiMAX, fiber optics5 years for IT&CPLC 99%, GPRS 1%Comms. technologyInflationDiscount rateCPT splitDecrease in non-technical CPTDecrease in OPEXDecrease in intervention time/costFlat, at 4%Flat, at 7.5%63% technical37% non-technical60% reduction from current level100% decrease in disconn/ reconn. (process automation)1% reduction of time to perform maintenancePilot projects were deployed by each DSO in order to confirm initial assumptionand test PLC technology19

DEO IMPLEMENTED SO FAR 34 THS.SMART METERS IN SEVERAL AREAS ANDTESTED DIFFERENT PLC TECHNOLOGIESSmart metering implementation – pilot projects Upgrade network included: 2012 DEOPilot20Urban area, block of flatsUrban area, housesRural areaRural isolated area DEO 1.2 ths. meters: Craiova Carceni & Cordun Satic2013 PilotANRE Order Urban area, old networkUrban area, modernized networkRural area, old networkRural area, modernized network DEO 13 ths. meters:2014 PilotANRE Order Urban area, modernized network Rural area, modernized network DEO 20 ths. meters:PRIME & G3test Lab tests Urban area, modernized network Urban area, old network Craiova Carcea Podari Craiova Carcea DEO 320 meters: Craiova

ROLLOUT DEPLOYMENT STRATEGY WASTAILORED TO FIT DEO SPECIFIC NEEDSAND MAXIMIZE BENEFITSSmart Metering deployment prioritization and strategyValceaArgesPrioritization strategy181313110410Mehedinti0801100 Multi-criteria analysis applied to SS’s considers: Losses (40%) Periodic replacement (40%) Depreciation(20%) SS’s grouping by zones: no. of consumers: limited at 4000 consumers,depending on urban/rural environment clearly defined physical limits (such as railways,rivers or boulevards) SS’s fully included in a zone (i.e. all consumers of aSS must be part of the same zone) Average score for each zone was obtained and used toprioritize. Zones were classified into three priority tiers: Priority 1: 3,000 Priority 2: 3,000-4,000 Priority 3: 00836LegendPriority 1 Zones for SmartUrban areaPriority 2 Zones for SmartRural areaPriority 3 Zones for Smart212020202120222023202441k meters83k meters83k meters83k meters98k meters

SMART TRANSFORMATION TARGET IS TOTRANSFORM DEO BUSINESS MODEL,ORGANIZATION & CULTURESmart Transformation introduction Manage resources more Multiple regulatory constrainseffectively using available datafor decision making Problems with key indicators:CPT, SAIDI, SAIFIProjectbackground Limited resourcesExpectedresults Necessity of efficient system Decrease paperwork andincrease analytical capabilities Become more flexible, adaptableintegrationand compliantStatus of activitiesCompleted activities Analysis of current and definition of targetprocesses Scanning of available IT solutions and vendorsPreparation of business & technical requirementsFinalization of new concepts (incl. business cases)Initiation of procurement processes for newsystems and services Implementation of new systems22Next steps Smart Metering IT systems designSolutions Implementation, test and approvalTraining and full potential adoptionChange management

SMART PROGRAM HAS 7 INITIATIVESCOVERING ALL MAJOR AREAS OFDISTRIBUTIE OLTENIASmart Transformation – Key project componentsSmart MeteringSCADA, sectionalizers &reclosersMeter DataManagementData governanceGISEnterprise architectureMobile WorkforceManagement23

SMART PROGRAM HAS STANDARD 3LAYER ORGANIZATION SPLIT INTO 4STREAMSStrategicSMART Transformation program organizationCEZ CZ Distribution segment managementTacticalCEZ Romania Group:Smart Steering CommitteeProgram ManagementOperationalStream 1Stream 2Stream nceMeter datamanagement eStream 4ProgrammanagementSCADASmart Steering Committee takes place every 2-3 months. Key outputs from theSmart Transformation are presented on the Group Steering Committee24

Siemens offers a future proof solution tosupport customers on their Smart MeteringjourneyOperational Efficiency25End-to-End SecurityBusiness Process Optimization

ContactLukas GebhardtPortfolio ManagerCosmin GhitaDirector Digitalization & InnovationRC-AT SI DG CS&D-APSDistributie OlteniaSiemensstraße 901210 ViennaCales Severinului 19200768 RomaniaMobile: 43 (664) 80117 83182Mobile: 40 (734) 455 ergyUnrestricted Siemens 2019.Page 26June 27, 2019Gebhardt / RC-AT SI DG CS&D-APS

Page 4 June 27, 2019 Gebhardt / RC-AT SI DG CS&D-APS Metering system architecture Siemens supplies all system elements Meter Data Management Head End System Gateway Meter Vendor 1 G3-PLC Meter Vendor 2 Meter Vendor n UDIS SGW1050 Siemens IMx50 3rd party meter 3rd party meter s G3-PLC Billing, Market transactions Billing e.g. SAP P2P P2P