Telegestore is Enel's fully operational smart metering system installed on 32 million customers in Italy. It uses advanced metering infrastructure (AMI) including electronic meters, concentrators, and communications networks to provide benefits like remote meter reading and management. The system required over 2 billion euros of investment but delivers operational savings and empowers customers with tools like home energy displays.

1. Smart metering and Smart grids Enel Telegestore Experience Francesco Starace President of Enel Green Power

2. Summary Telegestore is fully operational on 32 Mln Customers Leading Technology Excellence in operation Benefits for customers, power operators, distributors and the whole Italian Electricity System Italian Authority AEEG has published the resolution 292/06: all Italian electricity customers will be equipped with AMMs (Automatic Meter Management System) by 2011

3. Telegestore System Architecture PLC 3200 bps LV MV Electronic Meters INTRANET Concentrator Customer Information System Central System Work Order Management Billing System Metering Database Secondary Substations GSM/GPRS or PSTN or satellite TCP/IP AMM System

4. Telegestore Project Organization > 3.500 third-party installers 120 ICT Project technicians 31.800.000 Meters Enel’s Network 358.000 LV concentrators 8.500 Palmtops 3.400.000 Enel Digital Meter on other Italian Distributors Network 500 Enel units One of the most important infrastructural project in Italy Project duration 5 years One High Availability System

5. Investment and savings areas Failed Accesses Saving Areas Purchasing and Logistics Field Operations Customer Service Revenue Protection Readings Replacement Activation Deactivation Installation and Recovery Interventions on Failures Bad Payers Invoicing Customer Service Collection Self Consumption Warehouses Internal Transportation Purchasing Revision R&D COSTS PRODUCTION AND INSTALLATION OF ELECTRONIC METERS PRODUCTION AND INSTALLATION OF CONCENTRATORS IT SYSTEM DEVELOPMENT TOTAL INVESTMENTS  2,100 M€ Thefts and Failures Checks on Meters

6. INVOICES ON REAL CONSUMPTION REMOTE CONTRACT MANAGEMENT TAILORED TARIFFS SAVINGS IN BILLING PRE PAYMENT EASIER FREE MARKET DEVELOPMENT AND MANAGEMENT FOR CUSTOMERS and power system operators FOR ENEL FOR THE WHOLE POWER SYSTEM PEAK SHAVING ENERGY EFFICIENCY AND CO2 REDUCTION REDUCTION OF COMMERCIAL AND TECHNICAL LOSSES LEADER IN AMM/AMR SYSTEMS TECHNOLOGY CUSTOMER SATISFACTION EXCELLENCE IN COMMERCIAL AND TECHNICAL QUALITY OPERATING COST SAVINGS The Telegestore benefits

7. Remote management operations 12.737.000 3.027.000 760.000 8.100.000 850.000 2008 3.030.000 2.600.000 Bad payers management (increase of verifications on commercial credits) 9.030.000 530.000 5.150.000 750.000 2007 18.660.000 Total 700.000 Contract termination (increase of switching from free market to universal service) 14.000.000 Contract management ( strong increase of free market customers operations) 930.000 Activations (new connections) 2009 Operations

8. Remote reading operations 1) Load profile for LV customers requested only from 2008 256.000.000 46.000.000 5.000.000 205.000.000 2008 185.000.000 n.a. 1 5.000.000 180.000.000 2007 275.500.000 Total 55.000.000 Load profile (for LV customers with power> 55kW) 5.500.000 Spot readings 215.000.000 Montly-bimontly (increase of monthly readings due to the free market) 2009 Remote Readings

9. 3 kW power supply main flat 3 kW power supply main flat Tailored tariffs, some examples 3 kW power supply main flat 1.600.000 contracts in 1 year

10. Tailored readings for the free market customers 100.000 free market HV- MV customers with interval metering of 15 minutes 100.000 free market LV customers with interval metering of 15 minutes 3.200.000 Free Market Customers with monthly readings per band available for all the energy Traders 28.400.000 not free Market Customers with real bi- monthly readings As requested by the Authority gradually monthly readings per band for all 28.400.000 Universal Service Customers From 2007 new meters installed are only bidirectional ; in Italy more than 50.000 bi-directional digital meter for renewable sources connections are already on field

11. Home Display Development and design of a device able to provide the data managed by the Electronic Meter to the home appliances (Display, PC, TV, Home automation) to: Project description Enhance the Customers consciousness about energy consumption Encourage Energy Management inside each house Enable the load smart control Data Device Energy Services Enel Electronic Meter By 1° half 2009, the Italian Authority (AEEG) will set the procedures that every DSO shall apply

12. Smart Metering for Smart Grids: a key factor The Networks of the future Central and distributed resources Smart equipments and power electronics Central and distributed intelligence Seamless integration of new applications End user real time information and participation Multi-directional ‘flows’ Plug & Play technologies

13. Support the national / international projects focused on Smart Grid, providing skills and competences from their experience on managing electrical distribution networks Support the regulators on defining the enabling framework for Smart Grid (e.g. incentives by the Regulators on investments) Support standardization bodies on defining technical specifications and requirements (e.g. connection rules facilitating RES) Special actions to manage, monitor and analyze connection of distributed generation (bidirectional electronic meter). Smart Grids development: the DNO role Relevant actions to be performed by DNOs have been individuated to achieve the SmartGrid Vision: Actions to be performed by DNOs