2. August 8, 2015ECI Confidential. AccessWave Smart Grid Market Trends& Applications Matthias Nass VP Field Marketing EMEA

3. August 8, 2015ECI Confidential. Smart Grid Definition 2 Present Mode of Operation: “Transporting energy from major generation sources using mostly non-renewable fuels to consumers who have limited knowledge of their consumption, where outages affecting customers are largely unknown until the customer alerts the network operator” Smart Grid Proposition: “dynamic network for two way energy flows; linking widely dispersed renewable energy sources and large energy sources; providing more dynamic information to customers; facilitating customer choice about energy source and level of consumption; and providing real-time information on the performance of the network”

4. August 8, 2015ECI Confidential. Smart Grid Motivations Smart Grid Changing Demand Pattern Changing Supply: Renewable Generation Regulations New Opportunities 3

5. August 8, 2015ECI Confidential. 1. Demand for Electricity is Growing ■ Raising power needs in developed & developing countries ■ Conservatives - anticipated growth in demand of 2% per year, this works out to 50% increase in demand over the next 20 years ■ Flexible Tariff -> change demand pattern, More Complex to Predict

6. August 8, 2015ECI Confidential. 2. Renewable Generation -> Distributed Generation 5

7. August 8, 2015ECI Confidential. 3. Regulation – Europe ■ EU 20.20.20 initiative ■ Improve energy efficiency by 20%, ■ Increase the percentage of renewable energy by 20% ■ To be accomplished by 2020. ■ Mandate includes a directive for 80% of European households to have smart metering capabilities by 2020, and 100% by 2022. ■ Standards & Interoperability ■ Network Security ■ Stimulus packages -> Support national economic growth 6

8. August 8, 2015ECI Confidential. 4. New Opportunities – E-Mobility Additional – Sales Volume by Electric plug in vehicles (Handle - evening load profile with millions of cars) Economically store electricity

9. August 8, 2015ECI Confidential. Smart Grid Benefits & Implementation

10. August 8, 2015ECI Confidential. What Is Smart Grid and its Benefits? "A smarter grid applies technologies, tools and techniques available now to bring knowledge to power - knowledge capable of making the grid work far more efficiently" - U.S. Dept. of Energy Utility Company Increase Energy Productivity Increase Power Reliability Reduce Operation cost Network consolidation Meter reading Customers complains Improve security and resiliency Grid reliability Load Management Energy forecasting Lower CO 2 emissions Lower & more accuracy energy bill Better control over energy consumption Reduce network outages and disruption Choice in energy source New Applications – EV. End Customer

11. August 8, 2015ECI Confidential. Electricity Theft = Lots of Money FBI

12. August 8, 2015ECI Confidential. Improve Operational Cost 11 Smart Grid: “Integration of utility, digital communication and IT infrastructures” – M.Tarnoff, General Electric, June 2008 Operations Utility Enterprise Business Applications Smart Grid Devices Smart Meters Voltage Regulator RTUSensors Protective Relays Energy Resources Communications Infrastructure

13. August 8, 2015ECI Confidential. Utility Telecommunication Network Transformation 12 Overlapping Ad- hoc Hard-to-manage Inefficient Grid limited view Advanced Metering NW 1 Distribution Grid Management NW 4 Video Surveillance NW 5 Demand Response NW 2 Wide Area Situation Awareness NW 3 Single Converged Reliable Efficient Grid Holistic view Sensors RTU Meters Access Plane V Cam Sensors RTU Meters Service Plane Application Servers Transport Plane IP/MPLS Carrier Ethernet Aggregation AMI DR WASA DA VS

14. August 8, 2015ECI Confidential. Smart Grid Communication LayersDA System Architecture Communication Network Layers for Distribution Communications Needs Consumers Feeders Primary / Secondary S/S Control Center Layer 4 (Neighborhood Area NAN Home Area HAN) Layer 3 (Regional Area RAN) Layer 2 (Substation LAN) Layer 1 (WAN) Connectivity /BW Latency Availability Reliability (last mile, Network) Mission Critical Protection Redundancy Security Quality of Service Manageability Complete view Situational awareness Operational Cost

15. August 8, 2015ECI Confidential. 14 Smart grid is much more than smart meters Communication is THE key enabler for Smart Grids Efforts shall be put in the Grid Flexibility, Scalability Reliability while mix legacy and new communication technology. Summary

16. matthias.nass@ecitele.com